Yes, one person can own multiple companies in Bulgaria. There is no provision in the Bulgarian Commercial Act that prevents a single natural or legal person from being the sole owner of two, three, or more EOODs simultaneously. You can also run an EOOD and freelance at the same time. But there are social security rules, related-party obligations, and practical requirements you need to understand before you set up a second entity. This guide covers every angle — from the legal basis to the tax filing implications — so you can structure correctly from day one. All figures are in EUR following Bulgaria's euro adoption on January 1, 2026.
Owning Two or More EOODs
The Bulgarian Commercial Act (Article 113) states that a limited liability company may be formed by one or more persons. There is no provision anywhere in the Act that limits how many EOODs a single person can own. In practice, we regularly register second and third EOODs for clients who want to separate business activities into distinct legal entities.
Each EOOD you register is a completely independent legal entity. It has its own:
- EIK (Unified Identification Code) — unique company registration number
- Corporate bank account — funds must never be commingled between entities
- Accounting records — separate double-entry bookkeeping
- Tax returns — separate annual corporate tax return (due June 30)
- VAT registration — each company registers independently when it exceeds the EUR 50,000 threshold
- Annual financial statements — separate GFO filing with the Commercial Register
You can be the manager (управител) of all your EOODs simultaneously. There is no legal restriction on serving as director of multiple companies. You will be entered as manager in the Commercial Register for each entity separately, and your management responsibilities and personal liability apply independently to each one.
Key point: While you can own unlimited EOODs, each one multiplies your administrative obligations. Every company needs its own accountant engagement, its own КЕП (qualified electronic signature), its own bank account, and its own compliance calendar. Before registering a second EOOD, make sure the operational overhead is justified by the business case. For a breakdown of per-company costs, see our guide on annual cost of running an EOOD.
EOOD + Freelancer: Running Both Simultaneously
You can also own an EOOD and be a registered freelancer at the same time. These are two separate legal capacities: the EOOD is a legal person (юридическо лице), while your freelance registration is a personal activity under your own name (свободна професия). There is no conflict between them.
Common scenarios where clients combine both:
- IT consultant — EOOD for the main client contract, freelance registration for occasional side projects or speaking engagements
- Designer — EOOD for the agency, freelance registration for personal commissions
- Lawyer or accountant — freelance registration for the regulated profession, EOOD for consulting or training services
The practical difference is that the EOOD provides limited liability (your personal assets are protected), while freelance income carries unlimited personal liability. Most entrepreneurs use the EOOD for their primary income source and the freelance registration for lower-risk supplementary activities. For a detailed comparison, see our guide on Bulgaria freelancer tax rate.
Social Security: Pay Once, Not Per Company
This is the most misunderstood aspect of owning multiple businesses in Bulgaria. The rule is simple: you pay social security contributions once, not per company.
Under Article 4(3) of the Social Security Code (КСО), owners of EOODs who perform personal labor in their companies are classified as self-insured persons (самоосигуряващи се лица). When a self-insured person performs activities on multiple grounds — for example, as owner of two EOODs, or as EOOD owner and freelancer — they pay advance social security contributions on only one of those grounds, by their choice.
| Parameter | 2026 Value (Transitional) |
|---|---|
| Minimum insurable income (self-insured) | €550.66/month |
| Maximum insurable income ceiling | €2,111.64/month |
| Pension fund contribution rate | 19.8% (born before 1960) / 14.8% + 5% UPF (born after 1959) |
| Health insurance rate | 8% (self-insured pays full amount) |
| General illness & maternity (optional) | 3.5% |
| Minimum monthly SS cost (without GIM) | ~€153 (27.8% of €550.66) |
How to Choose Which Activity to Insure Through
When you start a second activity (register a second EOOD or start freelancing), you must submit a declaration to the NRA within 7 days declaring the start of the new activity. In this declaration, you choose through which activity you will pay your social security contributions.
The practical choice is straightforward:
- Two EOODs: Choose either company. Most people pick the one with higher revenue or the one where their accountant handles payroll. The contributions are the same regardless of which entity pays them.
- EOOD + freelancer: Choose whichever activity has the higher applicable minimum insurable income. If both are at the same minimum (EUR 550.66 for self-insured), it does not matter which you choose.
Annual equalization: At year-end, you must equalize your social security contributions based on total income from all activities combined. If your combined annual income exceeds EUR 550.66/month x 12, you may owe additional contributions up to the maximum insurable income ceiling of EUR 2,111.64/month. Your accountant calculates this in Table 1 and Table 2 of the annual tax return. This is not optional — the NRA cross-references income from all your activities.
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If one person owns two or more companies, those companies are automatically classified as related parties (свързани лица) under §1, point 3 of the Supplementary Provisions of the Tax and Social Insurance Procedural Code (ДОПК). This triggers specific obligations.
The Arm's Length Principle
Any transactions between your companies — services, goods, loans, rent, management fees — must be priced at arm's length. This means the price and conditions must match what two independent, unrelated parties would agree to on the open market. If your Company A provides IT services to your Company B, you must charge the same rate you would charge an external client.
The NRA can adjust the taxable profit of either company if it determines that a transaction was not at arm's length. The adjustment increases the taxable base, which means additional 10% corporate income tax plus interest and penalties.
Transfer Pricing Documentation
Since 2020, the ДОПК requires companies engaged in related-party transactions to maintain transfer pricing documentation (досие за трансферно ценообразуване). This documentation must demonstrate that your intercompany transactions comply with the arm's length principle using one of the accepted methods: comparable uncontrolled price, resale price, cost-plus, transactional net margin, or profit split.
There is an important exemption: entities that only conduct related-party transactions domestically (within Bulgaria) are exempt from the full documentation requirement. However, they must still price transactions at arm's length and be prepared to justify their pricing if audited.
Practical implication: If both your EOODs operate only in Bulgaria and transact with each other, you do not need to prepare formal transfer pricing documentation. But you must still ensure that your intercompany prices are market-rate. Keep evidence — comparable third-party invoices, market rate research, written pricing justifications — in case of an NRA audit.
VAT on Intercompany Transactions
If one or both of your EOODs are VAT-registered, transactions between them are subject to VAT at the standard 20% rate. Bulgaria does not allow VAT group registration — each company must register and file separately. This means you cannot avoid VAT on intercompany supplies by grouping your entities.
The receiving company can reclaim the input VAT (assuming the service/goods are used for taxable activities), so the net VAT cost between two VAT-registered entities is zero. But the administrative burden of issuing invoices, recording transactions, and filing returns exists for both sides.
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Running two companies means doubling most of your administrative infrastructure. Here is what you need for each entity separately.
| Requirement | Per Company? | Notes |
|---|---|---|
| Corporate bank account | Yes | Cannot share accounts between entities. Budget EUR 5-15/month each. |
| Accountant | Yes (or shared) | Same accountant can serve both, but charges separately. EUR 100-150/month each for non-VAT micro companies. |
| KEP (electronic signature) | Yes | Each company needs its own KEP for NRA filings. EUR 25-50/year each. |
| Registered address | Yes (can share) | Two EOODs can use the same registered address. EUR 15-25/month. |
| Social security | No | Pay once through one company only. |
| Annual tax return | Yes | Separate CIT return for each entity. Due June 30. |
| GFO (annual financial statements) | Yes | Separate filing with Commercial Register. EUR 15 each. |
| VAT registration | Independent | Each company registers when it individually exceeds EUR 50,000 turnover. |
Estimated additional annual cost for a second EOOD: EUR 1,500-3,000 depending on activity level and VAT status. This covers the accountant, bank account, КЕП, and registered address. Social security is not duplicated. For a full cost breakdown, see annual cost of running an EOOD.
Using the Same Accountant
Most clients use the same accountant for both companies. This is perfectly legal and often more efficient — the accountant understands both entities and can ensure intercompany transactions are properly recorded on both sides. However, the accountant will charge separately for each engagement, and each company must have its own accounting file and КЕП.
Virtual Address
Two EOODs owned by the same person can share the same registered address. The address provider simply registers consent for both entities. This saves EUR 15-25/month compared to maintaining two separate addresses.
When Multiple Companies Make Sense
Not every situation justifies a second entity. Here are the most common reasons our clients register a second EOOD.
1. Separating Business Activities
If you run an IT consulting business and a real estate investment portfolio, keeping them in separate entities makes accounting cleaner, limits cross-liability, and makes each business easier to sell independently. Mixing unrelated activities in one EOOD creates accounting complexity and makes financial statements less meaningful to banks and partners.
2. Risk Isolation
A second EOOD creates a legal firewall. If one business faces a lawsuit, creditor claim, or regulatory problem, the other company's assets are protected. This is particularly valuable when one activity carries higher risk — construction, transport, food services — while another is low-risk consulting or software development.
3. Partnerships on Specific Projects
If you want to bring in a partner for one project without giving them ownership of your main company, you can register a second entity as an OOD (with two or more owners) while keeping your primary EOOD fully under your control. This is cleaner than adjusting ownership percentages in your existing company. For the differences between EOOD and OOD, see our guide on EOOD vs OOD.
4. VAT Threshold Management
If your combined activities across one EOOD push you over the EUR 50,000 VAT registration threshold, splitting activities into two entities means each one is assessed independently. Each company only registers for VAT when its own turnover exceeds the threshold. This is legal and common, provided the two companies have genuinely separate business activities and are not created solely to avoid VAT registration.
Warning: The NRA can challenge entity structures that exist solely to circumvent VAT registration. If two EOODs perform identical activities for the same clients and the only apparent purpose of the split is to keep each entity below the EUR 50,000 threshold, the NRA may aggregate the turnover and require VAT registration. The split must have genuine business substance — different activities, different clients, or different risk profiles.
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Get Registration Quote →Common concerns about owning multiple companies:
"Will the NRA scrutinize me more if I own two companies?" Owning multiple entities is common in Bulgaria and does not trigger automatic audits. However, the NRA does cross-reference related-party transactions. As long as your intercompany pricing is at arm's length and your filings are accurate and timely, there is no additional risk. Sloppy compliance across multiple entities, on the other hand, multiplies the chances of triggering a review.
"Is it cheaper to keep everything in one EOOD?" Almost always, yes — from a pure administrative cost perspective. A second EOOD adds EUR 1,500-3,000/year in overhead. The question is whether the benefits (liability protection, cleaner accounting, partnership flexibility, VAT optimization) outweigh that cost. For most solo consultants earning under EUR 100,000, one EOOD is sufficient.
"Can I transfer money between my two companies?" Yes, but it must be a documented transaction — a loan (with market-rate interest), a payment for services (at arm's length price), or a dividend distribution followed by a capital contribution. You cannot simply move money between accounts without a legal basis. Each transfer needs an invoice, loan agreement, or resolution depending on the type of transaction.
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Frequently Asked Questions
Can one person own two EOODs in Bulgaria?
Can I own an EOOD and freelance at the same time?
Do I pay social security twice if I own two companies?
Are my two companies considered related parties?
Do I need separate bank accounts for each EOOD?
Can I be the manager of both EOODs?
Does each EOOD file its own tax return?
Can a non-resident foreigner own multiple companies in Bulgaria?
Disclaimer: This article provides general guidance on owning multiple companies in Bulgaria based on current legislation as of April 2026. Social security rules are governed by the Social Security Code (КСО) and may change with annual budget laws. Related-party rules follow the Tax and Social Insurance Procedural Code (ДОПК). The combined corporate income tax and dividend withholding tax rate is 15% (10% CIT + 5% dividend WHT). All amounts are in EUR (Bulgaria adopted the euro on January 1, 2026). This article does not constitute legal or tax advice. For personalized guidance, consult a qualified Bulgarian lawyer. Last updated: April 8, 2026.