Establishment in Belgium

Start your business in Belgium on the right foot

There are quite a few laws and regulations one needs to keep in mind when establishing their business in Belgium. In this blogpost, we highlight the potential hurdles you might experience and how to deal with them as efficiently as possible.

There are over a million self-employed people in Belgium, and even throughout the pandemic this number has kept on rising. An increasing proportion of these, especially in and around Brussels, are foreigners. By explaining in detail how a foreigner can establish their business in Belgium, Counterpart aims to service expatriates, dual citizens and other cross-border entrepreneurs.

Who can start a business in Belgium?

Establishing your business in Belgium is fairly straightforward for anyone who is a resident and over 18 years old. Foreigners can set up a business in Belgium as well, but non-EU/EFTA nationals may need a visa to enter Belgium as well as a Belgian residence permit.

Depending on what industry you are entering, you may need to provide evidence that you have certain skills (e.g., a degree), including entrepreneurial and management skills.

Some occupations are regulated in Belgium, which means that you have to fulfill certain conditions before you can start working. Look on the Business Belgium website for details on regulated occupations and for more information on what to do.

If you’re setting up as self-employed, you also have to register with a social security fund and pay contributions. Details of other processes and requirements for starting up a business in Belgium are available in the sections below.

EU/EFTA nationals

You don't need a special permit to start a business/ you can start without restrictions. All other exemptions can be found here.

Non-EU/EFTA nationals

You must apply to get a professional card from the Belgian embassy or consulate in your home country, unless you have a Belgian residence permit. More info about the professional card can be found below!

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Legal structures for businesses in Belgium

Sole proprietorship - 'éénmanszaak'

The sole proprietorship (or éénmanszaak) is the simplest legal structure an entrepreneur in Belgium can use. No distinction is made between you and your business. This means that you are personally liable for any debts your business incurs. It also means that all revenue the business generates will be taxed through the personal income tax. The personal income tax rates are usually much higher than corporate tax rates.

The sole proprietorship is often used by freelancers because of its simplicity. Especially for those that are only providing services, a sole proprietorship can be an easy way to get your business going. The comparison below shows the (dis)advantages of establishing a sole proprietorship.

Less formalities - easy establishment

No business partner needed

Single-entry bookkeeping sufficient

Personally liable - you pay all debts

All revenue taxed through personal income tax

Not scalable when the business grows

Selling the business later on isn't convenient

Private company - 'besloten vennootschap'

The most popular legal structure in Belgium is 'de besloten vennootschap', or private company. A private limited company, also known as the former (E/S)BVBA, remains the basic company form even today, particularly for starting SME entrepreneurs.

Because one founder is sufficient and no minimum start-up capital is required (this has been replaced by 'sufficient starting capital', a much broader concept), you remain very free as an entrepreneur within this company. A notarial deed and a financial plan remain mandatory, but the liability of your partners is limited to their own contribution.

The 'private' aspect refers to the fact that the shareholders are a closed circle of people, but the shares remain freely transferable provided that the articles of association are amended.

Another important aspect is that you can create different types of shares with regard to voting rights: with or without voting rights, as well as with multiple voting rights. This is why this form of company is also interesting for parents who want to divide their shares among their children, without compromising their own control.

Your personal resources are protected

Establish together with your business partners

Revenue taxed through corporate tax

Financial risks are limited

Harder to establish - financial plan needed

Fixed procedures for a lot of decisions

More accounting obligations

Although a private company is a bit more complicated to establish, Counterpart can guide you through the process!

Limited company - 'naamloze vennootschap'

A limited company is similar to a private company in the sense that a notarial deed and a financial plan are also required for its establishment. The main difference, however, lies in the minimum starting capital, which is no less than 61,500 euros, and in the complex regulations. This means that a limited company is more suitable for medium-sized or large companies.

As a capital company, it is a certain capital that binds the various partners together, but also guarantees their relative personal freedom. The liability of partners is also limited to their own contribution, unless the company is declared bankrupt within three years. In that case, the private assets of shareholders can be claimed.

Although only one founder is required as a minimum, there are various options regarding the form of management. With a monistic board of directors there is a central board of directors which may be assisted by an advisory committee. However, you can also opt for a sole director, whereby both the management and the articles of association of your PLC are entrusted to a single director. Finally, there is also dual management in which a management board and a supervisory board work together, each with their own powers.

Despite the fact that, here too, you can link a certain voting right to shares, these strict forms of management organization make a limited company less suitable for family businesses, for example.

Your personal resources are protected

Establish together with your business partners

Revenue taxed through corporate tax

Financial risks are limited

Harder to establish - financial plan needed

Fixed procedures for a lot of decisions

More accounting obligations

Other forms

There are various other business forms that can be established in Belgium, such as 'de vennootschap onder firma', which is suitable for liberal professionals. We won't go into depth into these forms in this blog post.

More information regarding legal structures in Belgium can be found here.

What other steps do you have to take to establish your business?

Choosing the company name

Writing up the company paperwork

Registering with the Crossroads Bank for Enterprises

Registering with the VAT authorities

Registering with a social insurance fund

Want to get started today? Get in touch!

Starting as an expat: the professional card

! As mentioned above, this isn't necessary for EU/EFTA nationals

If you’re a national from outside the EU/EFTA, unless you already have a Belgian residence permit, you must apply to get a professional card (carte professionelle/beroepskaart) to set up a business in Belgium. The professional card acts as your work permit.

You can apply for the card when you apply for your Belgian visa, by contacting the Belgian embassy or consulate in your home country before coming to Belgium. They will forward your application onto the Federal Public Service’s (FPS) authorization service for a fee of €140. You will also be advised on what you need to provide, which could include information about your proposed business, your finances, qualifications, and experience.

If your application is successful, the FPS will issue you with a card initially valid for a period of between 1-5 years. You can then extend your card for a fee of €90 per year. More information on the Belgian professional card, and how to apply in the different regions, can be found on the Business Belgium website.

Accounting obligations in Belgium

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