Company Formation in Belgium
Company Formation in Belgium
Belgium is a key member of the EU. The headquarters of the European Commission, the European Parliament, NATO—all are located in the Belgian capital, Brussels. In fact, the country is strategically located next to some of the most influential EU countries and serves as a major European traffic hub. Around 20% of European freight and traffic is conducted by Belgian companies!
But Belgium isn’t just a major transit zone with a well-developed road network. The country boasts high-tech, world-class research and development (R&D) facilities and possesses considerable economic strengths in the coal mining, textile, and engineering sectors. The pharmaceutical industry, plastic industry, and food sector are some other profitable investment opportunities in the country.
The Belgian government, as well as the numerous regions of the country, provides various incentives to attract foreign investors. These incentives and grants are available in the fields of renewable energy, green investment, energy saving, and environmental investment.
It’s no surprise that many American-based start-ups and established businesses are shifting their companies to the lucrative and dynamic Western European country!
If you’ve been considering establishing your business in Belgium, we’re equipped with the expertise and experience to help you kick things off.
Company formation in Belgium offers a range of benefits, such as access to a highly skilled workforce, favorable business environment, and strategic location, but requires compliance with regulations and potential language and cultural barriers.
Forms Of Companies In Belgium
- BVBA / SPRL – “besloten vennootschap met beperkte aansprakelijkheid / société privée à responsabilité limitée” – Private Limited Company
- NV / SA – “Naamloze vennootschap / societé anonyme” – Public Limited Liability Company
- Comm. V / SCS – “gewone commanditaire vennootschap / société en commandite simple” – Limited Partnership
- VOF / SNC – “vennootschap onder firma / société en nom collectif” – General Partnership
- “eenmanszaak/ entreprise individuelle” – Sole Proprietorship
What is the difference between BVBA and NV?
Doing business in Belgium, most foreign investors opt for limited liability company type.
Most entrepreneurs choose to set up a BV (Besloten Vennootschap) in Belgium, which is a private limited liability company. BV can have minimum 1 shareholder and 1 director.
Even though there is no minimum deposit required to pay prior to company registration in Belgium, the financial plan must be submitted to the notary. The financial plan explains how the initial capital will be invested. The plan must show that the initial capital will cover company operations for at least the first 2 years.
Share capital shall be deposited in a bank or with third party before company registration in Belgium.
The company can be formed approx. in a month. However this time can be extended in some cases where obtaining the necessary clearances, licenses, permits and certificates is needed.
Fundamentals Of A Limited Liability Company
Corporate Tax in Belgium | VAT in Belgium |
|---|---|
25% | 21% |
Fundamentals of limited liability companies in Belgium
| Limited liability company | S.P.R.L./B.V. |
| Minimum Share capital | There is no min capital to pay |
| Registered office required | Yes |
Physical office required for company formation in Belgium | Yes |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
| Local Director required | No |
Other requirements for company formation in Belgium | A business plan is needed for forming a company. A local bank account is mandatory. |
| Bank signatory must travel | Yes, in most cases |
Timescale for company formation in Belgium | 21 days |
| Timescale for bank account opening | 7 day |
| Timescale for obtaining VAT number | 7 days |
Statutory audit requirements for company formation in Belgium | Yes |
| Shelf companies available | No |
How can I register my company in Belgium?
Setting up a company in Belgium takes around 3 weeks.
Apart from the usual steps required to start a company (e.g. delivering due diligence documentation, choosing a company name, setting up a business bank account, appointing members), there are specific requirements that need to be observed in company registration in Belgium:
- The financial plan needs to be deposited with the notary
- The high school diploma must be shown to at least one director
- Incorporation needs to be notarized
- Articles of association must be published in the Belgian Official Gazette
- A preliminary financial plan is mandatory
- Registering with the UBO register (ultimate beneficial owners) is mandatory once the company has been formed.
In some cases, you can register a company in Belgium remotely with PoA (Power of Attorney) given to a lawyer, and using an online bank account. Online bank account opening will depend on the residency of the directors and shareholders.
However, in case you wish to have a business bank account in a reputable high street bank, a visit will be mandatory. This will determine the whole process for setting up a company in Belgium.
Buying an existing business has some advantages over setting up a company in Belgium, such as access to credit, trained employees, direct entry market with established customer base. Belgium has clear procedure for purchasing existing business and this makes investing in Belgium much easier for those with the needed capital.
More about Company Formation in Belgium
Setting up a business in Belgium and tax registration to dealing with extensive paperwork, opening a business in Belgium may pose to be a challenge at first.
The company shall be registered with the Register of Legal Entities once deed of incorporation has been filled. The company will be issued a single identification number, the enterprise number
Register with the Register of Legal Entities and VAT at a centralized company docket (guichet-entreprises / ondernemingsloket) and obtain a company number (numéro d’entreprise, or ondernemingsnummer) which can be activated by using a recognized onestop shop (guichets d’entreprises or ondernemingsloketten).
The certificate of competence must be obtained by submitting evidence of showing that the person in charge of daily management of the company has necessary education or practical experience.
With CompyCo, we strive to make company setup as effortless as possible. Through our wide network of trusted professionals, we coordinate international tax planning, compliance, and negotiations. Thanks to our knowledge of Belgium’s social, political, and economic landscape, we ensure you receive the right guidance and information to facilitate the process smoothly.
Our full-service solutions are designed to help your business hit the ground running without major hurdles along the way. Over the years, we’ve supported numerous start-ups, small businesses, and established companies in making the most of the lucrative corporate landscape when investing in Belgium. Through our wide network of licensed professionals, we coordinate all the essentials you may need — from corporate guidance to legal and financial expertise — giving you one trusted partner instead of multiple separate providers.
Investing in Belgium offers opportunities in diverse industries, a strategic location in Europe, and a stable political and economic environment.
Leverage our cost-effective solutions to steer your business toward success without feeling stressed about the complex procedures that lie ahead.
Bank Account Opening for Company Formation in Belgium
Delaying the process of opening a bank account could hurt your newly-launched business in the long run. Efficiently manage your funds while facilitating timely payroll generation by selecting a reputable and established bank. We suggest opting for one of the following trusted options for company formation in Belgium:
- BNP Paribas
- Banca Monte Paschi
- BBVA
- ING
- KBC
- Rabobank
- Santander
Once you’ve finalized the right bank based on your company’s requirements, gather the following documents:
- Passport
- Proof of residence
At CompyCo, we help facilitate the process by lending expertise and assisting with the complex proceedings. You can consult our experts for insights and advice regarding the procedure. Learn more about opening a bank account here.
Accounting & Taxation
- The tax year is the calendar year in Belgium, and taxable profits are trading profits, investments and selling assets for more than their original cost for setting up a company in Belgium.
- All businesses have to keep accounting books.
- In Belgium, the corporate tax rate is 25%, but small and medium sized companies are subject to 20% of corporate tax in cases certain thresholds of staff and revenue are met.
- Belgian companies are issued VAT numbers with the format of the country code BE followed by a 9-digit number which ends with a letter.
- The current VAT rate is 21% on most goods and services. Exceptions apply.
How can you employ staff in Belgium?
CompyCo coordinates complete employment and payroll-related solutions in Belgium through its network of licensed local professionals, ensuring compliance and smooth operations for your business.
In case you are employing in Belgium, you have to file DIMONA IN (Déclaration
Immédiate/ Onmiddellijke Aangifte) declaration to the Social Security Agency before employee starts working. This registration can be done in one day. This information is used by different Government institutions.
Insurance for accidents at work is also mandatory to set up. You will have to contact insurance company authorised to extend this type of insurance policy and contract shall be signed with such insurance. The cost will depend on insurance companies.
If you run a foreign business and specifically want to employ individuals who can work from home, we’ll set your non-resident company as employer instead of opting for local company registration.
In addition, we’ll provide an employment agreement and all the HR-related services you may require with payroll services.
We’re committed to offering cost-effective solutions so you can establish your business in Belgium without incurring unnecessary expenses.
Have any questions? Take a look at our HR services page for more information about our International HR services!
If you are looking to incorporate in a EU country with stable financial system, but you are not quite willing to go with France and its costs, check out how can CompyCo support your business in France.
However, if you are choosing between a few countries in Europe and you are not sure where to incorporate, have a look at our tips how to make the right choice, or talk to us today for free.