Characteristics of a Belgian subsidiary
A subsidiary established in Belgium is considered a legal entity separated from its parent company, because of the fact that it has its own capital and separated administration. Even if you have a firm in Italy, France or ther European country, you can set up a company in Belgium.
Below are presented the main particularities of a subsidiary in Belgium that also apply in 2021. Take a look!
Advantages of owning a subsidiary in Belgium
An advantage of keeping a subsidiary in Belgium in 2021 is that the annual reports are less strict than for a branch, for example it doesn’t have to present the financial statements of the foreign company. The liability of its actions is not taken by the foreign company. A subsidiary opened in Belgium is regarded as an European company, not as a foreign company and beneficiate from the specific conditions.
the subsidiary may not pay any withholding tax on the profits paid to the foreign company;
due to the EU Parent Subsidiary directive the dividends are not taxed in certain conditions.
Types of subsidiaries in Belgium
The company limited by shares must be formed by at least two founders with a minimum share capital of 61,500 Euros. The management is assured by a board of managers consisting in at least three members.
The limited liability company is the best form of organization of the small and medium businesses. There is a requirement of a minimum share capital of at least 6,200 Euros if there are more than two shareholders and at least 12,400 Euros in case there is just one shareholder. The limited liability company must guarantee that in the future the capital will be of at least 18,500 Euros.
This type of company
is managed by one or more administrators appointed by the incorporators.
Procedure of opening a subsidiary in Belgium in 2021
Just like in other European countries like Estonia
for exemple, the process of incorporation
includes the notarization of certain documents, such as the deed of incorporation (containing the name of the shareholders, their address and their amount of capital brought to the company’s capital).
If you want to invest in Belgium through opening a subsidiary
you should know that a business plan for the subsidiary
must also be prepared and must contain the predictions for the future two years of activity, the reasons why the company is incorporated
, a marketing research for the approached market segment, a list with the company’s services and products that will be presented to the future clients and a description of the company’s resources (human and financial). The business plan must be signed in front of a notary.
A bank account
where the minimum share capital is deposited must be opened.
As a result , the new formed subsidiary company will receive a unique company number and may begin the commercial activities just like in any other country.
If you wish to open a subsidiary in Belgium in 2021, our team can provide complete assistance during the process. We can guide on the main steps, as well as help you with the name reservation and the drafting of the constitutive documents as part of the pre-registration stage. Our agents are also able to help you with the effective registration and the post-registration steps that may be required.