Company in Belgium

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorproation in Belgium

Belgium is located in the political heart of the European Union and happens to be the most cosmopolitan country. This may explain its strong liberal approach towards professionals who wish to form a company in Belgium. Indeed, the authorities impose relatively few restrictions on foreign companies operating in the country.

With many strengths, including its strategic location in the heart of Europe, Belgium has developed a dynamic economy, largely focused outwards, and therefore attracting many foreign companies. The Belgian economy is heavily dominated by service activities.

Types of companies

There are several types of businesses for foreign investors:

• Limited liability company (SPRL / BVBA)

• Public limited company (SA/NV)

• European Economic Interest Grouping (EEIG)

• Cooperative company with limited liability (SCRL)

• Representative Office

• Branch

• Holding company

The limited liability company (SPRL) is the most common corporate status of medium and large businesses.

Tax system

In recent years, Belgium has adopted a number of very attractive business fiscal measures. The government’s goal is to improve the country’s international fiscal image and enhance its companies’ competitiveness. The corporate tax is 33.99% (33% plus the additional crisis contribution of 3%). There is a reduced rate under certain circumstances.

Thus, Belgium guarantees the freedom to create a company and transfer capital to any foreign company and to any foreign investor who wishes to settle in Belgium in order to launch a commercial or industrial business.

Under EU law, the free movement of capital is the rule.

Foreign investors are offered a wide range of financial incentives in Belgium. In particular, the tax relief that allows a multinational to provide financial services and management with virtually no taxes. Financial incentives depend on regions.

Accounting

Belgian accounting must be kept by companies in double entry (debit / credit). It also requires creating an inventory and annual accounts (or even publishing them) in a pattern imposed by law, and to retain all documents until the end of the prescribed period.

The obligations may vary according to the legal form. SMEs must make a complete double-entry accounting, but they may use an abbreviated format.

Tax rate

 Income tax: 33,99% (33% plus the additional crisis contribution of 3%). Gradually reduced rate when taxable income does not exceed 322,500 € and under certain conditions. • Tax on capital gains: 16.5% (Built property) 33%(Undeveloped property) • Tax on interest and royalties: 15% • Income of foreign companies: 33.99% • Tax on dividends: 15% 0% in the case of a holding company) • VAT: 21% • Non-resident tax: 16.99% (16.5% plus solidarity tax of 3%) • Corporations tax: 15%

Minimum capital

18,550 € (33%, or 6,200, to be released at creation € ). Release of 12,400 € if the company is a sole proprietorship limited company (SPRLU)

Shareholders

Minimum of one associate (SPRLU)

Foreign shareholders

Yes

Foreign holding

Yes

Legal obligations

• Mandatory auditor if two of the following three criteria are met: Total assets greater than 3,650,000,€ Turnover exceeds 7,300,000,€ and over 50 employees in the company. • Mandatory publication of accounts if the company has over 100 employees.

Services of the European Nominee Director

“Passive” director who will sign only official company documents and contracts.

Deadline

5 weeks from the receipt of all documents

Headquarters

Business address, telephone transfer, fax, and mail. Possibility of having a physical office in a business center (rates vary according to demand) Establishment of the courier service and postage in your name.

Accounting

Annual financial report, appendices, and management reporting mandatory, based on an estimated number of monthly bills and a forecast of annual turnover.

Company registration procedure

Taxes and finances

Local labor law

Other information