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 string free-market approach to foreign investors and newly incorporated businesses.
The authorities impose relatively few restrictions on foreign companies operating within the country, and bar Luxembourg, it is the most prosperous country in the EU.
A summary of Belgium Corporate Taxes is available here.
Frequently Asked Questions about Belgium
What are the most common types of business formation in Belgium?
– Company Limited by Shares (S.A./N.V.)
– Private Limited Liability Company (S.P.R.L./B.V.B.A.)
Foreign companies looking to incorporate a company in Belgium may operate either through a subsidiary (incorporated under Belgian law) or as a branch (incorporated under the law of the country where the parent is based).
How much shares capital is required to establish a public limited liability company?
For a subsidiary, the minimum amount of share capital is €61,500, which must be 25% or more paid up. For a branch, there are no minimum capital requirements.
What are the formalities regarding a Belgium company incorporation?
– Incorporation by deed through a notary
– Articles of association to be published in the Belgian Official Gazette
– Language of documents to be French or Dutch according to the city
– Two-year preliminary financial plan required
– Branch must file parent company’s accounts with National Bank of Belgium
What other requirements are there for a Belgium public limited company?
– At least two shareholders, and at least three directors
– Statutory annual audit
– No residency or nationality requirements
– A local serviced office is advisable. Please contact us to discuss your requirements.
How much shares capital is needed for a private limited liability company?
The minimum share capital for a private limited liability company is €18,600, of which at least €6,200 must be paid up.
What are the other features of a private limited company?
– The company has to have at least one shareholder
– This form of company admits only one director
– Shareholders are responsible only for the assets they brought into the business
What other types of entity are available in Belgium?
– One-Person Private Limited Company (EBVBA/SPRLU): a limited liability company set up by one person. The minimum share capital is €18,550, with a minimum deposit of €12,400.
– Cooperative Company With Limited Liability (CBVA/SCRL): a co-operative company founded by at least three people. The minimum share capital is €18,500, with a minimum deposit of €6,200 and the rest to be paid within 5 years.
– Sole Trader: a business set up by one person with full liability. Documents must be provided to prove competency in an activity.
– European Economic Interest Grouping (EEIG): a cross-border partnership comprising partners from EU countries. No capital is required, there is no need for separate financial accounts, with partners being taxed individually.
How easy is it to recruit staff in Belgium?
The country maintains an advanced recruitment sector, incorporating clerical and secretarial staff. Labour costs are quite high, but with generous welfare benefits aligning with high national insurance contributions from both employers and employees.
In Dutch-speaking Flanders, the most prosperous region, skilled workers, especially in IT and other technical fields, experience strong demand. Conversely, in French-speaking Wallonia, unskilled workers face significant unemployment issues.
Contact us to discuss your staffing requirements in more detail.
What is the regulatory environment like for those looking to open a company in Belgium?
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 the country, in order to start a commercial or industrial operation.
– Except for certain types of business, such as banking, insurance and transport, without prior authorisation being necessary
– Foreign capital may be brought into the country without restriction
– There is no preliminary authorisation required for takeovers or joint ventures
– There are a variety of tax breaks, including one which allows a multinational company to provide financial and managerial services virtually tax-free
Contact us if you are considering company registration in Belgium and would like to contact one of our Belgian corporate tax specialists.
How easy is it to close a Belgium company?
Please contact us in order to discuss closing your company in Belgium.
What about banking facilities in Belgium and are there other financial incentives available?
Full banking services are available for those considering Belgium company formation. They 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.
– Flanders offers financial aid to SMEs starting up in established industrial zones or in industrial development zones. They also provide funding to larger companies and extra incentives for biotech companies and businesses involving environmental controls.
– Wallonia offers help with the purchase of land, buildings, equipment, and project-related investment costs. They also offer aid for investment in areas such as product development, licensing, and market research.
– Brussels may offer investment grants, provide initial exemption from withholding taxes in certain cases, grant interest-free loans for industrial research, offer grants for the employment of some categories of job-seekers, and provide aid for technical and language training.
