Can You Work on a Labour Contract and Own a Company in Bulgaria?

Key Moments

• 00:00 – Introduction
• 00:35 – Can you be employed and own a company?
• 01:15 – Passive shareholder vs active company owner
• 02:10 – When self-insurance may be required
• 03:05 – Management and control agreement
• 04:00 – Social security on more than one basis
• 04:55 – Dividends and payment for personal work

Short Summary

Yes, you can work under a labour contract and own a company in Bulgaria at the same time. For example, you may be employed by one company while owning an EOOD as a sole shareholder or holding shares in an OOD. Company ownership alone does not necessarily create additional social security obligations when you are only a passive shareholder and do not perform work or manage the business.

The situation changes when you actively work in your own company, provide services through it or manage its daily operations. Depending on how the activity is organised, you may need to register as a self-insured person or work under a management and control agreement. The correct arrangement depends on the work performed, the remuneration received and your existing employment and social security status.

If you are insured under a labour contract and also work in your own company, social security contributions may be due on more than one basis. However, the total contributions are calculated with reference to the applicable maximum monthly insurable income. Your existing salary, the income received from your company and the legal basis for each activity must therefore be reviewed together.

Dividends are treated differently from payment for personal work. They represent income from company ownership and cannot replace the correct remuneration and social security arrangement when the owner actively works in or manages the company. Each case should be reviewed individually before choosing between self-insurance, a management agreement or another appropriate structure.