Belgium
A heterogeneous country with diversification or division between two language-speaking cultural groups where half of the population speaks French and the other half speaks German, with an independent nature since 1830, the country of Belgium is a constitutional monarch with its capital city of Brussels.
Belgium became an integral part of the EU, internationalizing its economy in the year of 1952 when it came to a pact with Luxembourg, BLEU.
Since the early 1990, Belgium was a major importer and came up as a fabricator and processor of imported raw materials. An almost recession-hit country majorly took steps and subsidized input costs for the international and national companies, post this there was a major depletion in the rate of unemployment, and the state have seen a growth in the rate of investment as well.
The cultural upliftment and modern practices to upgrade the business is one of the primary reasons why this Northwestern European country is an attraction for international businesses.
Culture, subsidized rate of taxes, an appropriate amount of manpower, and a good return on investment is what we will discuss in this article. We will also share why Odint is a better choice to expand your business.
Why should you register a company in Belgium?
- The country’s geographical location and French, Dutch and German-speaking communities make it a desirable place to try out new products on the European market.
- It has also been ranked as the 12th biggest exporter and the 14th biggest importer of goods around the world.
- Strong infrastructure and strong shipping infrastructure make it a desirable location for business thanks to logistics and manufacturing.
Steps for Belgium company registration
Draft the company’s legal documents
The necessary legal documents of the firm have to be prepared, such as the memorandum of association and articles of association. Once the documents are prepared, you must file them with the relevant authorities.
Register at a commercial court
In order to start a business in Belgium, you have to apply to register your business with the Crossroad Bank for Enterprises.
Set up a bank account and verify capital
You must set up a bank account, where the minimum capital required to operate the business has to be deposited.
Notarization of the deed of incorporation
The deed of incorporation and the by-laws should be drafted and signed in the existence of a notary, who will verify this paperwork and enroll the incorporation deed. And after the submission of the deed, the firm’s identifying information is provided to the Crossroads Bank for Enterprises. Following that, the deed of incorporation is published in the Belgian Official Gazette. Your firm is assigned a corporation number by the CBE.
Find the company’s VAT number
Then you must enroll for VAT and also acquire the tax id number.
Join social security to register
After that, you must enroll in Social Security.
Arrange workplace insurance
Arrange for the necessary workplace insurance
Engage payroll agency
After completing the enrollment process in Belgium, workers are required to begin the operation. Belgian workers are well-trained, and businesses seeking staff members can find applicants on hiring websites or through hiring agencies.
Set up professional cards and work permit
Obtain the required permits and licenses required for operating your firm in Belgium.
Eligibility criteria for Belgium company registration
The eligibility criteria for company registration in Belgium are as follows:
Directors
One director from any nationality is needed. The Director of a Belgium company registration can be a Belgium citizen or a foreign citizen.
Shareholder
At least one shareholder is all that is needed for company registration in Belgium.
Share Capital
The minimum share capital required for a public limited company is at least 61,500 euros and for a private limited company is 18,500 euros.
Registered Office
Your business requires an official office in Belgium and must be provided for company registration in Belgium.
Company Secretary
It is not a legal obligation for the Belgium business to have an executive secretary.
Documents needed for Belgium company registration
For Belgium company registration, you must need these documents:
- The Name of the Company
- The Directors Full name, birth date address, nationality, and full name.
- Copy of the director’s professional/educational qualification
- The capital amount and how many shares were purchased by each member.
- A financial plan will include details on how the initial investment, capital stock, will meet the requirements of the business for the first two years.
- Name and address of shareholders as well as a copy of ID/passport
- Proof of Residency and copy of the passport of the Director(s)/Shareholder(s)
Types of business entity for Belgium company registration
These are various types of business structures of company registration in Belgium.
Private limited company
This kind of structure is used to create small-sized businesses, provided an initial 18550 shares of capital dollars is paid. It is split into shares, and at minimum 20% of each share needs to be paid before incorporation.
Two shareholders are needed to set the type of organization, regardless of nationality or place of residence. The liability of shareholders is limited to the amount they contributed.
Public limited company
The minimum share capital required for this type of business is at least 61,500 EUR which can be paid by at least two shareholders. The company may be founded either by individuals or legal entities regardless of the place of residence or citizenship they possess. The liability remains restricted for shareholders.
Limited company
Three members at least must agree to create this kind of organization in Belgium and they must have at least 18,500 EUR. A minimum of 6,200 EUR is required to be paid before the incorporation of the Belgian firm, and the remaining is deposited within five years of incorporation. There is a different kind of cooperative that has unlimited liability.
Partnership
The company is founded by at least two founders who are the sole owners of the business and both are responsible for the obligations and debts of the company. There is no minimum amount of deposit required upon incorporation, and management is backed with the help of shareholders.
It is crucial to remember that in a general partnership, the responsibility of the shareholders is not limited. When a partnership is limited the general partner is the person who is accountable for the business and who will take care of the management, while the limited partners will contribute the financial resources but will not be able to participate directly in managing the company.
Sole trader
This is the simplest form of type of business and is also the one that carries full responsibility, just like in the case of a general partnership. The business is operated by a single person and there isn’t any separation between his property and the assets of the company. It is a good choice for consultancy work or offering other services.
Branch
The branch of the parent firm is engaged in similar business activities in Belgium. In tax matters, it is treated the identical way as a resident entity and must adhere to the local rules of management. The branch must also be certified by the Crossroads Bank of Enterprises before it can begin business operations.
Advantages of company registration in Belgium
- International investors are granted the same privileges as citizens when it comes to corporation creation.
- It is simple to establish a business in Belgium because it only requires one stockholder and no local directors.
- Belgium is an EU member, so it benefits from no trade constraints and easy access to EU clients.
- Belgium has world-class infrastructural and transportation systems.
- Belgium is one of the globe’s leading exporters.
- Belgian workers are among the most productive in the EU.
- Double taxation treaties have been signed with more than 80 countries.
Cost to register a company in Belgium
- The notary fees are calculated by the share capital of the company and will be greater in the case of an SPRL when compared with an SA.
- The publication fee will be charged to the time that they are paid when the Articles of Association are published in the Belgian Official Journal; around 250 euros.
- The registration fee for a company is due at the time of registration at the Crossroad Bank, with an average fee of around 70 euros.
- The VAT registration fee typically ranges from 50 to 50 euros for tax registration for the business.
Taxation of companies in Belgium
- Businesses in Belgium must adhere to the regulations of the Income Tax Code and the additional laws and decrees that are appropriate. The tax authorities of Belgium are created at the local, regional, and federal levels.
- The taxes that companies pay include taxes for companies include corporation income tax, pay tax for payrolls, transfer tax, insurance premium tax, value-added tax, and the value-added. The amount of corporate income tax is an effective rate of 25 percent. The general VAT rate is 21%.
- Tax on branches has the same value, however, when it comes to withholding taxes on dividends foreign companies operating in Belgium are affected by a reduced rate or total exemption by an agreement on double taxation.
Conclusion
Belgium has an ideal business environment as well as an excellent connection to markets around the Europen Union. The country offers a very high quality of life and an incredibly welcoming, multicultural, and welcoming business climate. The investors who register a company in Belgium are also able to have access to a highly skilled workforce of the country and million of consumers from the European Union.
Incorporating a company in Belgium is not a difficult process if the proper steps are taken. Contact Odint Consulting for help with company registration in Belgium. Our specialists will guide you through the process and ensure that your applications are not turned down.
FAQ’s
A minimum capital share is contingent on the type of business The minimum share capital can be 18,550 EUR for a private limited company, and a minimum of 61,500 for an open limited company.
The bank account of the company is crucial to facilitate future transactions and also to deposit the capital of the shares. Banks in Belgium generally need documents of incorporation as well as information about the founders to create an account of a corporate bank.
Yes. Permits and licenses are required for many business operations like the sale or storage of food items as well as exporting and importing various items, and many more.
Belgium has an income tax on corporate earnings of 25 percent. Real property taxes, payroll taxes, tax, and social security taxes as well as transfer taxes are included in the tax burdens for businesses in Belgium.
It could take just 4 days to start a business within Belgium.
Foreign investors are attracted to create Belgian businesses due to its central-European area, the diverse atmosphere, the skilled workforce, and the open economy.
