Holding Company in Belgium

 

A holding company in Belgium is a type of company that is focused not on producing goods but on acquiring and managing the shares in otter companies and controlling the companies. Holdings have the role of structuring and controlling the organization and financing of a group of companies.

 

Holding companies can also perform other activities, such as commercial transactions or property purchase and transactions. Foreign ownership for holdings in Belgium is permitted and foreign investors who want to open a Belgian company can request the services of our company incorporation specialists. 

 

 

Holding companies in Belgium can be incorporated as a company limited by shares – SA or a private limited company SPRL. The minimum share capital depends on the chosen business form. These companies are subject to the normal corporate tax rate of 33.99%. The Belgian holding company has to observe the holding requirements for taxation (10% of the corporate tax) but does not need special approvals and particular controls.

 

Belgian holding companies benefit from the double tax treaties signed between Belgium and other counties.

 

 

Dividends received by a holding company can be subject to a reduced corporate income tax (95% exempt) if certain criteria ate satisfied. There is also a capital gains exemption if the dividends qualify for the participation exemption. Our company registration experts in Belgium can give you details about the dividends exemption for EU and non-EU subsidiaries. The holding company can enjoy an exemption on company liquidation and an exemption from the withholding tax on payment of interest. 

 

A benefit offered by owning a holding company is lesser risks and reduced exposure. The holding can use its relationship with the subsidiary to secure loans and to create collateralized loans. The holding company can use its power derived from owning shares in subsidiaries to set corporate policies, but not necessarily to interfere with the management of these companies.

 

Our company registration experts in Belgium can help you with more information about Belgian holdings. You can contact us if you want to open a Belgian company and are interested in additional matters, like taxation in Belgium.