How To Register a Company in Belgium

Belgium is the world’s leading processor of cobalt, radium, copper, zinc and lead. The country has various dominant industries in food processing, glass, paper, chemical and textiles. High level standard of living and excellent public facilities has made Belgium a good place for entrepreneurs to start up a business as the country has put together easy procedures to enable easy registration of companies. Are you an entrepreneur looking to start a company in Belgium. Here are ways for how to register a company in Belgium.

Before starting up a business in Belgium, you will need to choose a legal structure for your startup company. There are different types of legal structures in Belgium and here are a few of them.

1. Sole proprietorship

Simply put, this is referred to as a freelance business. For this type of structure, you are personally responsible for any debt the business may experience and pay personal income tax which is higher when compared to company tax.

2. Partnership

This is a business structure between two or more individuals, where all parties have unlimited liability for company assets, commitments, and debts. They pay personal income tax on their earnings derived from the business.

3. Limited liability company

In this type of company structure, the business has its own capital. It is a legal entity with rights and obligations and the directors are only liable for the amount invested at the time the company was established.

This type of structure is set up by at least two people as shareholders where liability is limited to the amount of capital invested in exchange for shares. This structure requires a minimum capital investment of €61,500.

Now that we know the various company structures, we should also know how to set up a company in Belgium as either a foreigner or a citizen. To start a business in Belgium, you will need ;

1. A professional card

This is also known as a Belgian permit. If you are a citizen under the European Union, you don’t need to obtain a Belgian permit and can start a company in Belgium without restrictions.

Non-European Union citizens are however required to obtain a Belgian permit in order to start a company in Belgium. This professional card can act as a work permit. You can apply for a Belgian permit when applying for a Belgian visa in your home country before coming to Belgium. They will forward your application to the Federal Public Service with an authorization fee of €140.

If your application is approved, the Federal Public Service will issue you with the card which is valid for 1-5 years.

Now that you have gotten your work permit to start a company in Belgium, you can now move forward with the registration process.

After deciding on your company’s structure, the first stage into company registration begins with choosing the right company name. Your company is the name by which your brand is identified in the market, so selecting the right name is very essential. Choice of company name in Belgium is free as long as it is unique to only your company.

You can decide to use the name of one of the company’s shareholders (with full consent given), and you can even decide to use your own name, numbers, or even symbols alongside the name. It is necessary to always check the availability of your company name. That is, it is useful to check if the name you have chosen has not been registered as a trademark of another organization.

As a general rule, the notary is responsible for checking the applicant company’s name before incorporation. You can as well, carry out research on your desired name via the website of the Benelux Office of Intellectual Property.

When registering a business in Belgium, you will need to outline the article of incorporation and get them notarized. To set up the constitution of your company you will need to;

–Establish the constitutive act. This is usually established in writing. The constitutive act of your company includes the article of association containing all the characteristics (such as the company name, registered office, and share capital) and its operating methods.

Depending on the type of company, the constitutive act may take two forms which are notarial deed and/or  private deed. If  your company structure is limited liability company, then the notarial deed requires you to draw up a memorandum of association of the company. You must contact a notary for this process.

The memorandum of association contains the following data; the name of the company possibly with its abbreviated name or acronym (if any), the legal form of the company, the address of the head office, the purpose and the activities the company intend to exercise, the duration of the company, the administrative bodies if the company, the share capital, and the company securities.

For the notary to draw up a memorandum of association, you are to provide the following documents; a financial plan justifying the amount of share capital, proof of opening a company bank account, and a report from the company auditor.

-File the deed of Incorporation. After drafting the memorandum of association, you must then file it with the registry of the company in court within 30 days following the establishment of the constitutive act.

-Register the deed of Incorporation. The memorandum of association must be registered in one of the Federal Public Service (FPS) registration offices and payment is required for the registration process. The notarial deed registration must be carried out by the notary within 15 days.

Before you can commence company activity, you must register for trading. This registration will provide you with your company number which also serves as a Value Added Tax number and a social security number. This registration can be done at any authorized office in Belgium.

Companies who provide taxable goods and services are authorized to register for a Value Added Tax identification number. Companies under the Value Added Tax (VAT) are obligated to file VAT returns electronically, pay the treasury the value added tax they invoice to their customers, transmit an annual list of the subject customers electronically and also keep accounts and submit invoices.

All self-employed workers in Belgium are obligated to make their own social security arrangements and also register with a social insurance fund through which social security contributions are made.

Companies in Belgium are also advised to register with a health insurance fund.