Guide to Company Incorporation in Belgium

1. What is the minimum share capital of a Belgian BVBA/SPRL (Private Limited Liability Company)?
In order to set up a Belgian NV/SA or Limited Liability Company the law requires a minimum capital of 18.550 EUR. However before commencing the registration procedure only 6.500 EUR must be paid up. As the Private Limited Liability Company is set up by at least two partners, its capital is issued in shares. At least one fifth of each share must be paid up.

2. What is the minimum share capital for a Belgian  NV/SA (Joint Stock Company)?
Setting up a Belgian Joint Stock Company requires a minimum capital of 61.500 EUR. The capital is formed by shares. Prior to the registration procedure the shareholders must pay at least 20% for his share. The company may issue bearer and, or registered shares.

3. Are there any special requirements for establishing a BVBA/SPRL in Belgium?
Establishing a Belgian Limited Liability Company implies certain procedures and legal aspects that have to be complied. In order to set up a company in Belgium the founders must decide on the company type best suited for their needs. A Belgian Limited Liability Company can be set up by at least one shareholder who is not required to be Belgian citizen, or to reside in Belgium. From the legal point of view the incorporators of the company may be private individuals or legal entities also represented by private individuals. Regarding the registration procedure the documentation must be translated into French, if the company will reside in the southern part of Belgium, or Dutch if the company will reside in the northern part of the country. The Belgian Limited Liability company is required to have a registered office, or a virtual office, for tax purposes. As mentioned above, the founders of the company must provide a minimum capital, part of which must be deposited in a bank account and be frozen, until the business entity is granted the incorporation certificate. In other words the founders of the Belgian Limited Liability Company must open a bank account and for this purpose, at least one personal visit of the titular is mandatory. In every other matter, everything can be resolved through power of attorney. The representative of the company in Belgium is not required to have Belgian residence or citizenship, however work permit or professional card is mandatory.

4. How can I register for VAT in Belgium?
Before considering applying for this purpose, the owners of the business must establish if the company is subject to VAT. If so, the company must register with the local VAT inspectorate. The address of the corresponding VAT office can be found in the Belgium telephone directory, or online. For the purpose of VAT registration, which is free of charge, the company founders are required to submit two certified copies of the articles of association and memorandum. Once the registration id completed, the founders must charge VAT on all goods and services sold to customers, ensuring quarterly tax returns are made.

5. How can I open a bank account in Belgium?
In order to set up a company, the Belgian Law requires its founders to open a bank account. The first step is to open a temporary bank account in which the initial capital will be deposited. After this procedure, the bank account is blocked and reopened after the company obtains the registration certificate, when the deposited funds are reimbursed to the company.  The presence of the bank account titular is mandatory, at least once, after which all the procedures can be carried out by a representative authorized through power of attorney, or via internet banking, as most banks of Belgium offer this service, specially designed for entrepreneurs. The founders of the company need to provide a financial plan that explains in detail how does the initial capital cover the needs of the company, and what profits are estimated. Statutory information about the director and the shareholders, copies of passport and proof of residency must also be attached to the file.

6. How can I recruit personnel in Belgium?
Most of the newly established companies reach a point where they must hire employees. The workforce of Belgium is well-trained and professional and the recruitment sector is well-developed. National insurance contributions for both employees and employers are at high standards. A newly established company may choose to use job websites online, or collaborate with a recruitment agency.

7. What is the average salary in Belgium?
Even though the tax rates in Belgium may be higher then many other states, the quality of life is one the best in Europe. The average salary depends on the work field, experience, age and many other factors. However the medium salary of Belgium can be estimated at around 3300 EUR.

8. What is the overall economical situation in Belgium?
Belgium has one of the highest standards of living, including high salaries, a strong and continuously developing business environment. Most of the advantages are due to the affiliation with the European Union, Belgium maintaining trade relations with many EU member states. Even with one of the highest tax rates, most of the Belgian companies thrive and employees are well sustained by the social security system. In terms of foreign investment, the country is enjoying a continuous flow of entrepreneurs wishing to invest here, or establish companies. The government encourages foreign investment in order to promote employment.

BridgeWest offers company formation in Belgium, including virtual office and other related services.