Why Choose Belgium for Company Formation?

Belgium’s central position in Europe provides businesses with direct access to major EU economies. It boasts a highly skilled workforce, stable political climate, and a comprehensive legal framework that simplifies the process of company formation. These factors make Belgium attractive to foreign investors and entrepreneurs looking to establish a business presence in Europe.

Moreover, Belgium supports business growth across diverse sectors, offering various tax incentives and regulatory support for companies. Its extensive network of double taxation treaties further enhances the advantages of setting up a business in Belgium.

The ease of company formation has turned Belgium into a hub for European startups. Whether you’re forming a fintech startup or a manufacturing firm, the legal foundation for business formation remains consistently accommodating.

Types of Companies in Belgium

Understanding the available legal structures is a critical step in business formation. In Belgium, the most common types of companies include:

1. Private Limited Liability Company (BV/SRL)

This is the most popular form for small and medium-sized enterprises. It requires at least one shareholder and one director, both of whom can be non-residents. The shareholders’ liability is limited to their capital contributions, making it a secure structure for business owners.

The BV/SRL structure is also favored for its flexibility in formation and management, particularly among foreign investors.

2. Public Limited Company (NV/SA)

Best suited for larger businesses, this structure demands a higher minimum capital and at least two shareholders. It is ideal for companies planning to list on the stock exchange. Its formation requires more formal documentation but offers broader investment opportunities.

3. Non-Profit Association (ASBL/VZW)

Although not technically a business, this structure is used by organizations with a social or charitable mission. It’s often used for cultural institutions, educational bodies, and volunteer groups. Even non-profit formation in Belgium follows a clear, structured legal route.

Choosing the appropriate structure depends on the nature and scale of your business. Legal advice is recommended to ensure the selected entity aligns with your operational and tax objectives.

Key Steps in Belgium Company Formation

Forming a company in Belgium involves several regulatory and procedural steps. Here is a breakdown of the essential phases:

Step 1: Preliminary Assessment

Before you initiate the business formation process, conduct a feasibility analysis. This includes defining your business goals, assessing the market, and determining the legal structure that best suits your needs.

Step 2: Name Selection

Choose a unique name for your company. The name must not conflict with existing businesses in Belgium and must reflect the nature of your business. Once approved, the name becomes legally protected.

Step 3: Business Address

Every business in Belgium must have a registered address. This location will serve as the company’s legal seat. A virtual office or a co-working space can also fulfill this requirement if properly registered.

Step 4: Drafting Incorporation Documents

Articles of association and other foundational documents must be drafted and notarized. These define the company’s internal rules, responsibilities of directors, and shareholding structure. Proper document formation ensures legal compliance and long-term clarity.

Step 5: Bank Account and Capital Deposit

Open a corporate bank account and deposit the minimum share capital. For a BV/SRL, although the strict capital requirement has been abolished, a sufficient capital base is still recommended for stability. This step solidifies the formation process with a tangible financial base.

Step 6: Business and Financial Plan

Prepare a business plan that includes short- and long-term objectives, financial forecasts, and your strategy for achieving success. This is a mandatory component for most company types in Belgium. The formation of a viable business plan is a key to sustainability.

Step 7: Define Economic Activities

Register your business activities using NACE codes – a standardized EU classification system. Accurate coding ensures compliance and affects taxation and regulatory oversight. This registration is also a legal part of company formation in Belgium.

Step 8: Crossroads Bank for Enterprises (CBE) Registration

This registration step officially establishes your business in Belgium. You will receive a unique company number, which also serves as your VAT and social security number.

Step 9: VAT and Tax Registration

Register with the Federal Public Service Finance for VAT purposes if your company is subject to VAT. The standard VAT rate in Belgium is 21%.

Step 10: Social Insurance Fund Enrollment

Lastly, register with a social insurance fund to fulfill your legal obligations regarding social security contributions.

Taxation and Compliance

Companies in Belgium are subject to a 25% corporate income tax (CIT). Personal income tax (PIT) is progressive, ranging from 25% to 50%, depending on the income bracket. VAT applies to most goods and services at a standard rate of 21%, with reduced rates available for specific sectors.

Proper formation and ongoing compliance help ensure your business avoids penalties and enjoys available tax benefits. Post-formation services such as accounting and legal advice are highly recommended.

Starting with Expert Help

Navigating the legal and administrative steps of company formation in Belgium can be complex. Working with professionals like Manimama ensures your company is formed efficiently and remains compliant with Belgian regulations. Manimama offers tailored packages, including company incorporation, VAT registration, accounting, and banking support, streamlining every aspect of your business formation journey.

Conclusion

Belgium is an excellent location for business formation thanks to its strategic EU access, modern infrastructure, and supportive legal framework. By understanding the types of companies and following the key steps outlined above, you can confidently start your company in Belgium. With expert guidance, your business can be operational in as little as two weeks and well-positioned for long-term success.

If you are looking for reliable support in your company formation journey, Manimama Law Firm is here to help. With deep expertise in Belgian legal procedures, a client-focused approach, and a wide network of local partners, Manimama ensures a smooth, compliant, and efficient company formation process. From selecting the right business structure to handling documentation, banking, and registration — our team provides everything you need to establish your company in Belgium with confidence.

Our Contacts

If you want to become our client or partner, feel free to contact us at support@manimama.eu.

Or use our telegram @ManimamaBot and we will respond to your inquiry.

We also invite you to visit our website: https://manimama.eu/.

Join our Telegram to receive news in a convenient way: Manimama Legal Channel.

---

Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

---

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.