Company formation in belgium

 

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Company Formation in Belgium

Updated on Monday 09th August 2021

Belgium is a country at the heart of Europe, one that offers a favorable business environment and excellent connectivity to surrounding markets.
 
Foreign investors are welcomed and treated the same was as local ones and businesses are encouraged through a series of R&D incentives, innovation income incentives and the hiring of expatriate employees.

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Open a Belgian Company 

 
Company incorporation in Belgium is a simple process that involves a few key steps. These are outlined below by our team of company formation agents and described in more detail in this article.

Investors interested in company formation in Belgium should consider these stages:
  • • choose a type of company: this is done by selecting a business form suited to the size of the future business and the available share capital.

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  • • open a bank account: all companies in Belgium are required to have a corporate bank account.
  • • draw up the Articles of Association: these are the mandatory constitutive documents of the company; the incorporation deed is submitted for execution in front of a public notary in Belgium;
  • • register with the Crossroad Bank for Enterprises: the company founders submit all of the required documents with the Belgian Company Registry; once the company number is issued, it will also function as the VAT number.
 

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 These steps are similar to those necessary when you start a business in Netherlands, where you may also need the advice of a lawyer, or in other countries in Europe.


Investors can seek personalized help in order to open a business in Belgium and, what’s more, they can use our tax calculator as a first step when trying to determine the amount of taxes payable by their future business in the country.
 

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Types of Legal Entities in Belgium

 

The BVBA/SPRL- private limited liability company (société prive à responsabilité limitée), is a preferred business form in Belgium and one that is designed for small and medium businesses as well as family businesses. The Belgian BVBA is incorporated by associates who will be liable up to the extent of the invested capital. This business form can also be set up by only one shareholder and director and when this is the case, it is called a SPRLU/EVBA. at least one shareholder who can also act as the director. The shares of this type of company are registered shares that have restricted transferability. 
 
The SA/NV-public limited company (société anonime) in Belgium can be formed by at least two shareholders liable to the extent of their contribution to the capital with a minimum share capital of 61500 EUR divided into no minimal value shares. The capital is composed of transferable shares which can be registered at the Stock Market. The management of this type of company is assured by a board of directors that must be composed of at least 2 directors.

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 Another, less frequently used business form that can be incorporated in Belgium is the limited cooperative (societe cooperative a responsabilite limitee) which can be incorporated in Belgium by at least three individuals or corporate bodies with a minimum share capital of 18.500 EUR. A decrease or increase in the capital of a member in an SCRL is permitted during the first six months of the fiscal year.  

 
In general, when the individuals or the corporate bodies don’t have the possibility to deposit a minimum share capital, they are advised to open a partnership. The partnership can take one of the following forms: the Belgian general partnership, the Belgian limited partnerships and the partnerships limited by shares in Belgium. Our experts in company formation in Belgium can help you open a partnership in this country.

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 The individuals can join under the same name with the same economic purposes in a Belgian general partnership (société en nom collectiff). The partners in this type of have unlimited liability and all can make all the business-related decisions. For example, the unanimous votes are necessary in case the articles of association are changed. There is no mandatory minimum share capital for this type of legal entity and in case of liquidation, the personal assets of the partners can be claimed.

 
In case of a Belgian limited partnership (société en commandite simple), there are two types of partners: active partners (fully liable for the company’s actions and keeping all the decisional power) and another partner that is called a silent one (with liability limited by the contribution to the partnership’s capital). No minimal share capital is requested at registration just as in the case of the general partnership but the personal assets of the silent partners are not affected by the liquidation procedures.

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 The Belgian partnership limited by shares (société en commandite par actions) it’s a partnership that requires a minimum capital upon incorporation of 61.500 EUR. What is different in this case is that the partnership limited by shares is formed by partners (with full liability) and shareholders, with liability limited by the value of the subscribed shares. The management is assured by one of the members with unlimited liability, which has veto powers granted by law. The shares of this type of business are transferable to a third party. 

 

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