Can a Company Owner Be an Employee in Bulgaria? | Practical 2025 Guide
At T&G Consulting, we often get the same question: can the owner also be an employee in their own Bulgarian company? The answer depends on how your business is structured. Below you’ll find the rules that matter, realistic examples, and steps that prevent costly mistakes. 🙂
The Short Answer
There are two scenarios: EOOD (single owner) and OOD (two or more co-owners). In an EOOD, you cannot sign an employment contract with yourself. In an OOD, the other shareholders can appoint you as an employee or as a manager under a DUC. Understanding this boundary keeps your paperwork valid and compliant. ✅
EOOD: single owner
With 100% ownership you are both the “employer” and the “employee,” so an employment contract is legally impossible. The same applies to a Management & Control Contract (DUC) — there is no second party to appoint you.
The correct route is to register as a self-insured person (SOL), which secures pension, healthcare and other social rights.
- Declare SOL status through your company.
- Select an insurance base within the legal min/max range.
- File on time and pay contributions monthly. ⏱️
OOD: with co-owners
When there are two or more shareholders, the General Assembly (or an authorised person) may appoint you:
- Under an employment contract — if you perform real day-to-day work (sales, development, accounting, logistics, etc.).
- As manager under a DUC — when you take executive responsibility.
Make sure duties are real, decisions are documented, and contracts match what you actually do. 📌
Why it matters
Invalid contracts mean fines, non-recognised contributions and lost social rights. For foreign owners, the contract type may also affect residence and work permits. ⚠️
Examples
- Case A: EOOD in consulting. Self-employment only: register as SOL and pay monthly contributions.
- Case B: OOD with two owners. The Assembly appoints one as Sales Director under an employment contract — duties are real, KPIs are tracked.
- Case C: Foreign investor + local partner (OOD). The investor becomes manager under a DUC; the contract supports residence procedures.
Frequent pitfalls
- “Self-hiring” in EOOD — the contract is void.
- Unrealistically low insurance base — short-term savings, long-term loss of rights.
- Poor documentation in OOD — no Assembly decision, no job description.
- Deadlines missed — interest, audits, penalties. 🧾
Good practice
- Validate your model with an accountant/lawyer before signing anything.
- For OOD, always minute Assembly decisions and attach role descriptions.
- Review your setup yearly — thresholds and rules change.
Bottom line: in an EOOD the owner cannot be an employee — use SOL. In an OOD the owner may be an employee or a manager under a DUC if properly appointed and documented. T&G Consulting helps you get the structure right from day one, avoid invalid contracts and protect your benefits. If you’re starting or restructuring a Bulgarian company, talk to us — you’ll get clarity and a practical roadmap. ✅
For more information, you can visit our partner’s channel here!
❗ This content provides general information and does not constitute tax, accounting, or legal advice. Each situation is different and should be reviewed individually.