Thanks to its geographical location at the heart of Europe, Belgium remains one of the most attractive countries for launching your business. If you are considering starting your business by settling in Belgium, here is everything you need to know to start smoothly.
Why start a business in Belgium?
Belgium offers numerous advantages to entrepreneurs:
- Its ideal geographic location within Europe, providing direct access to major European markets;
- Its modern logistical infrastructure, notably including the ports of Antwerp and Zeebrugge, and an excellent rail and highway network;
- The presence of European institutions and numerous international organizations in Brussels;
- A relatively efficient administration for business creation procedures.
Key sectors in Belgium
Belgium boasts many dynamic sectors, most of which are linked to the manufacturing industry. For instance, some major sectors of the manufacturing industry in the Belgian economy include chemicals and chemical products, food products, beverages, and tobacco products, as well as basic pharmaceutical products and pharmaceutical preparations. These can be broken down into four main clusters: chemicals, agri-food, pharmaceuticals, and metallurgy.
Here are some key sectors:
- Textile Industry: The textile industry has a significant history in the country and offers many opportunities for foreign entrepreneurs. The textiles produced in Belgium use materials sourced from Europe and ensure that their products are of high quality. Belgium is committed to innovation and offering sophisticated products. Approximately 70% of Belgian textile production is destined for export.
- Innovation and Design: Brussels, the capital, is one of the best in terms of creative design. It is a phenomenon that leverages dynamism and expertise in creativity. It impacts all sectors, embodies renewal and innovation, benefiting areas like urban planning, the textile industry, and interior decoration.
- The pharmaceutical and chemical industry: This is a major sector of the Belgian economy, encompassing both research and commerce. Nearly 200 pharmaceutical companies are established in Belgium, making it one of the leading exporters of medicines in Europe.
- Belgium also holds a significant position among the international leaders in the chemical sector. Its expertise in chemistry is globally recognized, particularly with ethylene, propylene, butadiene, benzene, toluene, and xylene.
- Industrial and environmental biotechnologies have led Belgium to open its borders to major names in the chemical sector such as Johnson and Johnson, Pfizer, GlaxoSmithKline, UCB, BASF, Bayer, Borealis, Chevron, BP, and Monsanto.
- The agri-food industry: Professionals in this industry are interested in various Belgian vegetables and other raw materials; potatoes, beets, wheat, among others. The main foods produced in the country are dairy products, sugar, chocolate, and beverages. However, due to its small size, Belgium must import many agricultural products.
How to start a business in Belgium
After discovering the different sectors in Belgium, you might be curious about how to start a business in this country. Here are the essential steps you will need to follow.
EU/EFTA Citizens vs. non-EU/EFTA: Do You Need a Residence Permit?
If you are an EU/EFTA citizen, the good news is that you can simply start your business without much administrative hassle. On the other hand, if you are not an EU/EFTA national but already hold a residence permit to live in Belgium, you will not need to apply for a permit to start operating.
If not, you will need to apply for a professional card (beroepskaart), which not only authorizes you to settle in Belgium but also to start a business. You must apply at the Belgian Embassy or Consulate in your home country.
Choosing a company name
Quite naturally, after deciding what exactly you want to do, you will need to start by choosing your company name.
One of the advantages when starting a business in Belgium is that you are free to choose any name you wish, provided it is not already used by another company. To check the availability of the name, simply visit the FPS Economy website.
Opening a business bank account
This bank account will be strictly reserved for the company and cannot be linked to any personal and private bank account. This account number must appear on every official and commercial document produced by the company. The bank account must be opened in the company's name at a bank established in Belgium.
Registration with the Crossroads Bank for Enterprises
This database, called the Crossroads Bank for Enterprises, lists all active companies in Belgium. To register yours, you must contact one of the 8 accredited business counters, which have numerous locations throughout the country.
You will then need to obtain the administrative authorizations that will allow you to access certain functions. This process primarily verifies the conditions for accessing executive positions in Belgium. You must demonstrate sufficient management knowledge, a degree in the field of specialization, and professional experience. You can also ask someone to testify for you.
After completing your registration with the Crossroads Bank for Enterprises, you will receive a unique company number.
Registering for VAT in Belgium
Once you have obtained your company number from the Crossroads Bank for Enterprises, you will need to register your company for VAT if your activity is subject to this tax.
This registration is no longer done at the municipal level but with the competent VAT control office according to the address of the operating headquarters.
You can fulfill this formality:
- Online via the MyMinfin platform,
- Through your accredited business counter.
Affiliation with Social Security and a Mutual
In Belgium, it is mandatory to have health insurance, register for various social benefits, family allowances, and a retirement pension. Without registration with social security services, you will be considered an illegal worker.
As a self-employed worker in Belgium, you will not have an employer to handle your registration with various services. You must personally take necessary steps for your social security, your social insurance, and your health insurance. Belgium is very strict about legal compliance, and administrative fines are not negotiable. Therefore, ensure you take care of these matters as soon as you start a business.
What types of businesses can you start in Belgium?
In Belgium, you can create various forms of businesses according to your needs: non-profit organizations, limited liability companies, partnerships, and cooperatives.
Non-profit organizations
If your goal is social, cultural, or humanitarian rather than profit-oriented, you can create a non-profit association (ASBL). It must be founded by at least two physical or legal persons.
Limited liability companies
Public Limited Company: This type of company must be composed of at least two people and have at least three directors. The founders must invest a fixed amount of €61,500 minimum capital to hold shares. A public limited company is generally preferable for large companies.
The limited liability company (SRL): this is the most common form for starting a business in Belgium. It can be constituted by one or more people, physical or legal. No minimum capital is required, but a solid financial plan is necessary to demonstrate the project's viability. This form is particularly suitable for SMEs, individual entrepreneurs, and family businesses.
Sole proprietorship
Starting a sole proprietorship in Belgium is the simplest and quickest solution if you want to start alone. You are the sole master on board: only one physical person constitutes the business, there is no minimum capital required, and the procedures are simplified.
But beware: you also engage your personal assets. In case of debts, your private assets can be seized to cover the company's commitments. It is therefore a suitable formula for small projects or to start, provided you carefully assess the risks.
Partnerships
Limited Partnership: This model allows you to associate active partners (the general partners) and investors (the limited partners). The general partners assume unlimited liability for the business, while the limited partners limit their commitment to the amount of their contribution. It's a good solution when you want to attract investors while maintaining operational control.
Simple Partnership: This is the simplest form of partnership in Belgium. Here, several people associate to jointly conduct an activity. All partners are jointly responsible for the company's commitments. This model is often used for liberal professions or small-scale joint projects.
Good to know:
There is no longer an autonomous category of joint control company in current Belgian legislation. This previously corresponded to a variant of a simple partnership with a particular structuring of capital and responsibilities).
The cooperative company (SC)
If you want to create a business with multiple partners who share a common project, the cooperative company can be a very good option.
You need at least three partners. Each partner invests a defined amount in the statutes, but there is no longer a legally imposed minimum capital. Good news: the partners' liability is limited to their contributions.
This type of structure is particularly appreciated when partners want to highlight collaboration, common interest, or social and ethical values at the heart of the project.
Other possible structures in Belgium
European Economic Interest Grouping (EEIG): If your project involves partners located in different European Union countries, the EEIG is an interesting structure. It allows companies or independents to cooperate at the European level while remaining legally independent. It is widely used for research, development, or innovation projects on a cross-border scale.
Good to know:
The association without legal personality is no longer really used in Belgium today. Any serious associative activity must go through the creation of an ASBL, which offers a secure and recognized legal framework.
Corporate taxation in Belgium
Belgium is a small country with a tax system that is both heavy and complex. The corporate taxation depends on several elements, namely the legal form of the company, the turnover, the type of activity, as well as other specific circumstances. To learn more about this, it is recommended to discuss it with a tax advisor, an accountant, and/or a notary.
Currently, the standard corporate tax rate is set at 25%. Small businesses (SMEs), under certain conditions, can benefit from a reduced rate of 20% on the first €100,000 of profits.
Beyond corporate tax, each region (Flanders, Wallonia, Brussels-Capital) can set its own tax rules for certain local taxes and specific business aids. This diversity is notably explained by the federal structure of the country and the many regional competences in economic matters.
This is why it is always recommended to seek the support of specialized professionals (tax advisors, accountants, notaries) to avoid pitfalls and stay compliant with Belgian tax administration.
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