Belgium

SETTING UP A COMPANY IN BELGIUM

Introduction

Another country at the heart of the European Union, Belgium has capitalised on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Belgium is one of most prosperous countries in the EU, with a GDP of $35,000 in 2008. Belgium is relatively straightforward to set up in, although Company Directors are required to be educated to at least degree or diploma in their relevent field.

What are the most common types of company in Belgium?

  • company limited by shares (S.A./N.V.).
  • private limited liability company (S.P.R.L./B.V.B.A.).
  • Foreign companies seeking to incorporate in Belgium may operate either through a subsidiary.
  • (incorporated under Belgian law) or as a branch (incorporated under the law of the country where the parent is based).

How much share capital is required to establish a company limited by shares (S.A./N.V.)?

For a subsidiary, minimum share capital is €61,500, which must be fully subscribed and paid up. For a branch, no minimum capital is required.

What are the formalities regarding incorporation as a S.A./N.V.? 

  • incorporation by deed through a notary.
  • articles of association to be published in Belgian Official Gazette.
  • language of documents to be French or Dutch according to city.
  • two-year preliminary financial plan required.
  • branch must file parent company’s accounts with National Bank of Belgium.

What other requirements are there for a S.A./N.V.?

  • at least two shareholders, and at least three directors.
  • statutory audit annually.
  • no residency or nationality requirements.

How much share capital is needed for a private limited liability company S.P.R.L./B.V.B.A.?

The minimum share capital for a S.P.R.L./B.V.B.A. is €18,600, of which at least €6,200 must be paid up.

What are the other features of a S.P.R.L./B.V.B.A.?

  • the company has to have at least one shareholder .
  • this form of company admits only one director .
  • shareholders are responsible only for the assets they brought into the business.

What other types of company are there?

The other main business entity is the European Economic Interest Grouping (EEIG) – a cross-border partnership comprising partners from European countries – no capital required, no requirements for separate financial accounts, partners taxed individually.

How easy is it to recruit staff?

Belgium has an advanced recruitment sector, including clerical and secretarial staff. Labour costs are high and generous welfare benefits are matched by high national insurance contributions for both employers and employees. In Dutch-speaking Flanders, the most prosperous region of Belgium, there is strong demand for skilled workers, particularly in IT and other technical fields. In contrast, there is an unemployment problem in French-speaking Wallonia, notably for unskilled workers.

What is the regulatory environment like?

Belgium guarantees the freedom to set up a company and transfer capital to all foreign companies and to any foreign investor who wishes to settle in Belgium in order to start a commercial or industrial operation.

no prior authorization needed except for certain types of business such as banking, insurance and transport
foreign capital may be brought into the country without restriction
no preliminary authorization required for takeovers or joint ventures
variety of tax breaks, including one which allows a multinational company to provide financial and managerial services virtually tax-free
if you would like to contact one of our Belgian corporate tax specialists.

Are there financial incentives available – and what about banking facilities?

Full banking services are available which offer a complete range of commercial banking facilities, including those related to acquisitions and the raising of capital. We make it easy for you to open a bank account in Belgium.

Financial incentives are available but vary widely according to location.

  • Flanders offers financial aid to SMEs starting up in established industrial zones or in industrial development zones; funding is also available to larger companies; extra incentives are in place for biotech companies and for businesses involving environmental controls
  • Wallonia offers help with the purchase of land, buildings, equipment and project-related investment costs; aid is also available for investment in areas such as product development, licensing and market research
  • Brussels may provide investment grants, initial exemption from withholding taxes in certain cases, interest free loans for industrial research, grants for employment of some categories of job-seekers and aid for technical and language training

How can I get more information?

Please contact us at Mumtaz & Associates and we will be pleased to discuss matters in greater detail. We can ensure your business gets off to the quickest and most cost-effective start.

 
Copyright Reserved © 2010 | Mumtaz & Associates
 
Design & Developed by Core Solutions & Services
Karachi Lawyers Law Firms, Karachi Law Firm Lawyer, Find a Lawyer, Attorney Karachi Pakistan, Divorce Lawyer Karachi, Pakistan - Karachi Lawyers, Law Firms Divorce - Karachi Attorneys, Best Law Firms, Advocates, Attorneys & Lawyers in Karachi, Pakistan, karachi law firm, Civil lawyers, karachi lawyer, karachi Law firms, family solicitors, income tax, sales tax, attorney, attorneys, matrimonial marriage court, accident injuries, Pakistan, acquisitions, adoption, asset protection aviation, banking and finance, bankruptcy, Pakistan, business and commercial, car accident, child support, class action commercial leasing, consumer, contract, copyright, Karachi criminal law, civil law, disability, discrimination, divorce, drug crimes, karachi family law, karachi immigration visa, incorporation international, internet cyber law, IRS audit, joint ventures, law suit, licensing agreement, limited liabiliy companies, litigation and appeals, Pakistan, medical malpractice, medical negligence, arbitration and collaboration, mergers, motor vehicles, partnership, patents, permanent green card, personal injury, prenuptial agreement, wills, probate, securities and investments, sexual harassment, tax planning, taxation, torts, trade marks, trusts, warranties, workers compensation, Karachi, Find law offices and Pakistan, lawyers practicing in the area of Divorce in Karachi, Pakistan. Find a Divorce law firm Karachi Pakistan. Divorce lawyer Karachi Pakistan, Find the best lawyers, attorneys, advocates and law firms in Karachi Pakistan. Find the best lawyers in Karachi who specialize in Advertising, Immigration, Agency Law, Alternative Dispute Resolution lawyers, Arbitration, Karachi Aviation Law, Pakistan, Banking Law, bankruptcy, Business Law, Child Support and Custody, Civil Litigation, Class Actions, Commercial Law, Computer and Software, Construction Accidents, Contracts, Copyright lawyers, Pakistan, Corporate Finance, Corporate Taxation attorneys, Criminal Defense, customs, Discrimination, Divorce, Domestic Violence, Drugs and Narcotics, E-Commerce, Karachi, Education Law, Employment and Labor, Entertainment Law, Environmental, Family Law, Food and Beverages, Forestry and Fisheries, Pakistan, Franchising, Fraud, Gaming Law, Government Contracts, Karachi, Health Care, Human Rights, Import and Export, Insurance Defense, Intellectual Property, Islamic Law, Joint Ventures, Landlord and Tenant Law, Pakistan, Lemon Law, Media, Nonprofit Organizations, Offshore Services, Oil and Gas, Patents, Personal Injury, Personal Property Law, Pharmaceutical, Pakistan, Real Estate, Securities, Sex Crimes, Pakistan, Sexual Harassment, Taxation, Karachi ,Tourism and Travel, Trademark, US Federal Courts, Utilities, Workers Compensation & Wrongful Death. Top lawyers in Karachi, Lawyer, lawyers, Find a lawyer, Pakistan, Find lawyers, Divorce lawyer, Family lawyer, Corporate lawyer, Business lawyer, in lawyers, in lawyer, law firm, law firms, find a law firm, find a law firms, solicitor, solicitors, find a solicitor, find solicitors, attorney, attorneys, family attorney, tax attorney, business attorney, commercial attorney, Pakistan, attorney law firm, patent attorney, copyright attorney, ip attorney, intellectual property attorney, find a attorney, find an attorney, find attorney, wills, family law, divorce attorney, divorce, legal, Pakistan, legal advice, free legal advice, legal help, online legal help, defense, litigation, litigation lawyer, litigation law firm, dispute resolution