How to Set Up a Company in Belgium

Setting up a company in Belgium is an investment route that can support business growth and employment.

Many people seek to immigrate to Belgium, and start investing of various types, due to the strength and stability of the country’s economy, and giving many opportunities for various investment projects.

The matter is not limited to investing in Belgium and making profits, but also the possibility of enjoying all the features and services available in the country, in addition to obtaining residency.

We will present to you through Europedia 24 europedia24.com what are the steps for establishing a company within Belgium, the most important conditions required, in addition to the expected costs.

Advantages of establishing a company in Belgium

The idea of establishing a company in Belgium is considered one of the most important successful and profitable methods in the field Investing in BelgiumBecause it brings many profits, as well as the multiple fields in which a company can be established.

Of course, this type of investment has many advantages that benefit its owner, as follows:

1. Belgian law is keen to provide full protection and all rights and obligations to companies within the country, and therefore you cannot be exposed to fraud.
2. Providing many different types of companies that suit all categories of investors.
3. Corporations are subject to taxes, which are corporate income tax.
4. All agreements are written on paper to guarantee the companies’ rights.
5. The possibility of obtaining compensation in the event of a loss, but time must pass from the opening of the company.
6. Belgium has a strong and stable economy and thus ensures the success of companies.

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Disadvantages of establishing a company in Belgium

The field of establishing a company in Belgium is similar to many other fields within the country, and therefore there are also many disadvantages to establishing a company in the country, which are as follows:

• There are many decisions and actions that must constantly be taken formally.
• There are many legal, administrative and accounting obligations that require a lot of costs.
• The necessity of joining the Social Insurance Fund.
• Pay annual contributions to the company.
• Not to use the company’s profits for private purposes.
• Imposing heavy taxes on income.

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Categories allowed to establish a company in Belgium

There are some specific categories that are allowed to establish a company in Belgium with ease, due to the availability of the required conditions, and these categories are as follows:

• People who have Belgian nationality.
• Any person residing in the country, provided that he is over 18 years old.
• Artisans can practice their own work at the age of 16.
• Foreigners can establish their own business if they are from a European Union country, otherwise they will need an entry visa with a legal residence permit.

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Steps for establishing and registering a company in Belgium

When establishing a company in Belgium, preparing all the required papers, and choosing the target field for investment, you must register the company, in order for it to operate legally and officially.

The steps for establishing and registering a company in Belgium are as follows:

1. You must submit a business plan to open a company in Belgium.
2. The company name, address, and relevant field of work must be specified, in addition to the capital value.
3. The company’s articles of association must be registered in one of the Financial registration offices in Belgium.
4. Open a bank account in Belgium related to the company’s financial activities if the submitted business plan is approved.
5. Review the notary office.
6. Submit the documents and papers required to register the company.
7. Issuing a tax number for the company owner.

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Types of companies in Belgium

Belgium provides many different types of companies to suit the desires of each investor, the nature of his capital, and the targeted field of investment. The types of companies in Belgium are as follows:

• Public joint-stock company in Belgium: is intended for large companies, and the minimum capital must reach 63 thousand euros, with the possibility of it being headed by two partners or 3 people who have the right to manage.
• Limited Liability Company in Belgium: is intended for medium and small companies, and the minimum capital must be 20 thousand euros.
• General partnership in Belgium: The partners have unlimited liability, they can all make decisions about the business, and there is no minimum capital.
• Limited Partnership: There are active partners and another silent partner. There is no minimum capital for the company upon registration, and it is not affected by the personal assets of the silent partners.
• Partnership limited by shares: The minimum capital of the company must be approximately 61,500 euros, and it consists of a number of partners and shareholders, with liability limited to the value of the subscribed shares.
• Cooperative Society: It is considered one of the legal forms of companies in which the members pursue a common goal, at least 3 founders are imposed, and its primary goal is to meet all the private and common requirements of the shareholders.
• Sole Proprietorship: This is the simplest Belgian business model to incorporate, and the same person is responsible for any debts or taxes required.

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Costs of establishing a company in Belgium

Of course, the costs of establishing a company in Belgium vary from one company to another based on many different factors, whether the nature of the company, its location, or the field in which it operates.

But in general, all companies in Belgium are required to pay an annual contribution, and the amount is determined based on the company’s total balance sheet. It should also be noted that some companies are entitled to exemption from contributions.

The company’s annual contribution is a mandatory contribution that cannot be used personally, as these contributions contribute to financing many things, including the following:

1. Pensions salaries.
2. Benefits in the context of health insurance.
3. Maternity leave.
4. Inability to work.

If your company is subject to Belgian corporate tax or non-resident tax, you must join the Social Insurance Fund.

But if the company is a startup and small, meaning that the budget amount is less than 707 thousand euros, here you will pay a contribution amount estimated at about 370 euros for the first two years of application.

Accordingly, the contribution is based on the total balance sheet of the penultimate closed financial year, and if the company is large and its budget reaches more than 707 thousand euros, a contribution amount of 900 euros will be paid for the first two years.

As for the date for paying the amount of annual contributions, it is as follows:

• It is paid before 30 June if a company was established in Belgium before 1 April.
• If the company is established after March 31, the first contribution shall be paid no later than the last day of the third month after incorporation.
• In the event of late payment, a monthly legal increase of approximately 1% will be imposed.

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Taxes imposed on establishing a company in Belgium

Companies in Belgium are subject to income tax law and official regulations imposed, depending on the nature of each company, and therefore all companies starting a business must pay Belgian income tax.

The taxes imposed on establishing a company in Belgium are as follows:

1. Income tax, which ranges from 25 to 50%.
2. Corporate tax, which amounts to 29%.
3. VAT at a regular rate of 21%.

Double taxation can also be avoided in Belgium, by relying on an extensive network of double taxation treaties that follow the OECD standard.

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Frequently asked questions about establishing a company in Belgium

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