Company Formation Belgium

Company formation in Belgium consists of several actions that are necessary for setting up a company in Belgium. It is required to fulfill the drafting of the articles of association and the drafting of other documents such as the specimen signatures, the special application forms and the passport copies. It is also mandatory that all actions take place in front of a public notary in Belgium. In order to set up a company in Belgium, a registered office is necessary, as well as a bank account at a Belgian bank and a local accountant.

TYPES OF COMPANIES

• Private Limited Company (BeslotenVennootschap met BeperkteAansprakelijkheid/ SociétéPrivée à ResponsabilitéLimitée, BVBA/SPRL) – this structure is designated for small businesses and requires at least two shareholders, be it individuals or legal entities. The minimum share capital required is 18,550 EUR, out of which 6,500 EUR must be paid up. Shareholders have limited liability to the extent of their contribution. This type of company can also be set up by a single shareholder.
• Public Limited Company (NaamlozeVennootschap/SociétéAnonyme, NV/SA) – at least two members must join in order to set up this company structure in Belgium. The shareholders must provide a minimum capital of 61,500 EUR. They contribute to the capital of the company in exchange for shares and they have to provide at least 20%prior to company registration.
• Belgian Branch, Subsidiary or Representative Office – it can be either a separate entity from the parent company or an extension of the parent company in Belgium, depending on the structure chosen by the foreign company.

INCORPORATION PROCEDURE IN BELGIUM

Company registration in Belgium is performed after deciding which type of business to set up in Belgium.  All documents must be translated in Frenchif the new company will be set up in the southern part of Belgium or they must be translated in Dutch if the office of the company will be set up in the north of Belgium. A registered office or a virtual office is mandatory for setting up a company in Belgium. Company registration in Belgium can be performed by a legal representative appointed by power of attorney, with the exception of the bank account which must be set up by the shareholder whose name will appear as the titular of the account.

Company registration in Belgium is followed by the VAT registration only if the company is subject to VAT purposes. Company registration in Belgium for VAT is free of charge and is completed with the local VAT inspectorate provided that a file is submitted with two certified copies of the articles of association and the memorandum.

After the company registration in Belgium is completed, employees are needed in order to start the activity. The Belgian workforce is highly trained and employers can choose to find candidates on job websites or at recruitment agencies. This way, they will hire the best suited personnel for the newly formed company in Belgium. The average salary that the employers in Belgium must pay to employees is around 3,300 EUR.

ECONOMY OVERVIEW IN BELGIUM

The economy of Belgium is among the highest rated in Europe. The standard of life and the process of development in the business environment are the main reasons that qualify Belgium as one of the most competitive economies in the European Union. The international trading relationships between Belgium and other member states are flourishing and provide great advantages for new companies that are established in Belgium.

As far as the foreign investments are concerned, the Belgian government encourages investors from abroad to come and set up in Belgium and offers incentives for promoting employment. Anyway, there is a continuous flow of entrepreneurs that come to Belgium in order to invest and establish new companies.