How to start a business in Belgium - company formation, notary advice, taxes & VAT.
Belgium lies at the political heart of the European Union and it is the most cosmopolitan of all EU states. This may go some way to explaining its strongly free-market approach to businesses wishing to set up a company in Belgium. The authorities impose relatively few restrictions on foreign companies operating within the country.
What are the most common types of company in Belgium?
- The limited company (S.A. / N.V.)
- The limited liability company (S.R.L./B.V.)
- Foreign companies seeking to incorporate in Belgium can operate either through a subsidiary (established under Belgian law) or as a branch (which maintains the same statutes as those of the parent company).
What formalities must be completed to form a limited company (S.A. / N.V.)?
- The share capital of a S.A./N.V. is a minimum of €61,500 which must be fully subscribed and paid up.
- The constitution is carried out by notarial deed.
- The statutes must be published in the Belgian official journal.
- The language of the documents is either French or Dutch depending on the city region.
- A preliminary two-year financial plan (business plan) is required.
What are the other requirements for a limited company (S.A. / N.V.)?
- You can create this type of company alone or with other partners. At least one administrator is required.
- There is, in certain cases, a legal audit of the annual accounts.
- There are no residency or nationality requirements.
What are the procedures for creating a private company S.R.L./B.V. ?
- There is no minimum capital for the S.R.L./B.V. company form.
- The company must have at least one shareholder.
- This form of company only admits one director. At least one director is required
- Shareholders are only responsible for the assets they contributed to the company after 3 years of activity. For the first 3 years, the liability of the founders is unlimited.
- In order to become a company director, you must, depending on the region, demonstrate management skills. This is the case in Wallonia. In Brussels, it is no longer necessary to prove basic management knowledge, and in Flanders, to prove neither management nor access to the profession.
What are the other types of companies?
- The common law company: there must be at least two partners and the profits will be taxed under personal income tax.
- The Cooperative Society (SC) for which three founders are required. A symbolic euro is enough to create this company.
- The Limited Partnership (Scomm) for which a minimum of 2 founders are required (a limited partner - passive - and a general partner - active and generally the manager)
- The Company in Collective Name (SNC) for which a minimum of 2 founders are required
How easy is it to recruit staff?
Belgium has an advanced recruitment sector, including clerical and secretarial staff. Labour costs are high and generous welfare benefits are matched by high national insurance contributions for both employers and employees. In Dutch-speaking Flanders, the most prosperous region of Belgium, there is strong demand for skilled workers, particularly in IT and other technical fields.
What is the regulatory environment like?
Belgium guarantees the freedom to set up a company and transfer capital to all foreign companies and to any foreign investor who wishes to settle in Belgium in order to start a commercial or industrial operation. The benefits include:
- no prior authorization needed except for certain types of business such as banking, insurance and transport
- foreign capital may be brought into the country without restriction
- no preliminary authorization required for takeovers or joint ventures
- variety of tax breaks, including one which allows a multinational company to provide financial and managerial services virtually tax-free
Financial incentives and banking facilities
Full banking services are available which offer a complete range of commercial banking facilities, including those related to acquisitions and the raising of capital. We make it easy for you to open a bank account in Belgium. Financial incentives are available but vary widely according to location. These include:
- Flanders offers financial aid to SMEs starting up in established industrial zones or in industrial development zones; funding is also available to larger companies; extra incentives are in place for biotech companies and for businesses involving environmental controls
- Wallonia offers help with the purchase of land, buildings, equipment and project-related investment costs; aid is also available for investment in areas such as product development, licensing and market research
- Brussels may provide investment grants, initial exemption from withholding taxes in certain cases, interest free loans for industrial research, grants for employment of some categories of job-seekers and aid for technical and language training
For more information on company incorporation in Belgium, how to open a bank account or for any further issues on how to set up a business in Belgium including notary advice, taxes and VAT, please contact us on 0033 (0)1 53 57 49 10 or email us through our contact page and we’ll be happy to help.