How to start a business in Belgium
Belgium is home to over 620,000 active businesses. This makes it a great place for entrepreneurs. If you want to start a new business or grow an existing one, Belgium is full of chances.
Starting a business here means you have to follow some steps. This includes forming your company and joining different authorities. But the process is easy because you can do a lot online or through a single place. This makes business registration in Belgium, Belgian company formation, and new venture Belgium simpler.
If your work is special, you might need extra permission in Belgium. But that’s okay. The Business Belgium website has advice on this. It also tells you how to speed up recognition of overseas qualifications.
Key Takeaways
- Belgium has a thriving business landscape, with over 620,000 active companies.
- To set up a business in Belgium, you’ll need to complete administrative tasks like company incorporation and registration with various authorities.
- Certain professions in Belgium are regulated, so you may need specific licenses or qualifications to practice.
- The process can be streamlined by using one-stop shops and taking advantage of online resources.
- Belgium presents a wealth of opportunities for entrepreneurs, from starting a startup to small business Belgium.
Understanding the Business Culture in Belgium
Belgium’s economy is open and its business style is formal, just like nearby European countries. EU data shows over 620,000 businesses are active in Belgium. Most of these are small or medium-sized, making up about 62.4% of the economy’s value. About 28% of the value comes from companies owned by foreigners.
Formal Business Etiquette
In Belgium, being formal and following proper etiquette matters a lot in business. Meetings and how people talk to each other are very organized and based on rank. People wear formal clothes and use the right titles when speaking.
Building a good relationship and trust with others is key. It’s common to chat about non-work topics before getting into business talks.
Importance of Rank and Titles
Rank and title are very important in Belgium’s business world. Most decisions are made by top leaders, and it’s key to show them respect. Using the correct titles, like “Monsieur” or “Madame,” is a way to be professional and polite.
Flat Organizational Structures
In Belgium, companies often have a flat structure with not many management levels. This makes decision-making faster and gives workers more freedom to act. But, the importance of rank and title is still strong, and leaders at the top have a big role.
Assessing Your Business Idea and Market Potential
Start by looking into the local market in Belgium. Research the local market well and check if your business idea will work. Belgium is great for starting a business, especially in cities like Brussels. These places support new ideas and businesses.
Researching the Local Market
Get to know your target market in Belgium before you start. Look at what’s popular in the industry, what your competitors are doing, and what consumers like. This info will help you find good chances, prepare for problems, and make sure your idea fits the market’s needs.
Evaluating Your Business Idea’s Viability
After understanding the local market, think about your business idea carefully. Look at things like if people will want what you offer, how you will price it, sell it, and why people should choose your product over others. Get advice from experts, possible customers, and support groups to make your idea stronger and more likely to succeed.
Exploring Support Resources
Belgium has lots of business support resources waiting to help startup owners. The European Enterprise Network, for example, offers advice, mentorship, and help finding funds. Using these support options can really help your business. It might just make the difference between surviving and thriving in the Belgian market.
Determining Your Legal Business Structure
Starting a business in Belgium is easy, especially if you’re over 18 and live there (16 for craftspeople). Setting up a business is also possible for foreigners. However, those from outside the EU/EFTA might need a visa and a residence permit in Belgium. You can choose to register as a sole proprietorship (natural person), partnership, limited liability company (BVBA/SPRL), or cooperative.
Sole Proprietorship (Natural Person)
If you run a sole proprietorship, you and your business are seen as one. You’re responsible for any business debts and pay taxes on your business’s earnings.
Partnership
In a partnership, at least two people come together to run a business. Each partner is fully responsible for the business’s finances.
Limited Liability Company (BVBA/SPRL)
A limited liability company (BVBA/SPRL) is its own legal entity. The partners’ risk is limited to the money they’ve put into the business.
Cooperative
Three or more people can form a cooperative business. This type of business can limit or spread out the financial risk among its members.
Obtaining Necessary Permits and Licenses
If you’re from the EU/EFTA, starting a business in Belgium is easy. You don’t need a permit. But, for those outside the EU/EFTA, the rules are different. You must have a Belgian residence permit. This allows you to get a professional card (carte professionelle/ beroepskaart). This card is also known as your work permit.
To get this professional card, you apply when you’re getting your Belgian visa. Contact the Belgian embassy or consulate in your home country. They will help send your application to the Federal Public Service (FPS) authorization service. This service charges a €140 fee. If your application is accepted, the FPS will give you a card. This card is usually valid for 1-5 years.
Regulated Professions and Qualifications
In Belgium, some professions are regulated. For these jobs, you need a license or proof of professional qualifications. This is to make sure everyone meets the necessary standards and has the right skills.
| Permit/License | Profession | Requirements |
|---|---|---|
| Professional Card | Non-EU/EFTA nationals | Apply for professional card before coming to Belgium |
| Regulated Profession License | Regulated Professions | Demonstrate required qualifications and expertise |
Getting the right business permits and licenses and following rules on regulated professions and qualifications helps entrepreneurs. It allows them to start and run their businesses in Belgium properly.
How to Start a Business in Belgium
Beginning a business in Belgium involves several key steps. Entrepreneurs must choose a fitting company name, get registered, and secure necessary insurances. This process is crucial for establishing your business’s presence in the country.
Choosing a Company Name
Selecting a company name in Belgium is the initial step. You’re allowed to pick almost any name that’s not already in use. This freedom lets you craft a name that truly represents your business and brand.
Drafting Company Paperwork
For a limited company, creating the articles of incorporation is necessary. These legal papers must be notarized. It’s a crucial step before starting the registration process.
Registering with Authorities
Register your company first with the Crossroads Bank for Enterprises. This step gives you a company number, used for VAT and social security. You must also register under Belgium’s VAT code if applicable.
Joining Social Insurance and Health Insurance
Self-employed persons in Belgium need to make their own social security plans. Sign up with a social insurance fund for this. And, don’t forget to join a health insurance fund to have health and disability coverage.
Setting Up an Online Business in Belgium
In 2018, the e-commerce market in Belgium reached €10.67 billion. More and more businesses are launching exclusively online. The steps to start an online business in Belgium are almost the same as for a normal business. You’ll need the right business permit, have to register your business, and handle taxes and paperwork the same way.
Belgium has seen its e-commerce sector grow a lot. This growth is thanks to more people using digital tech and changing the way they shop. If you want to start an online business in Belgium, this is a great time. The country’s solid digital network and technologically skilled people mean your business could do well.
Starting an online business in Belgium has its perks. You’ll spend less to get started and can sell to more customers at home and abroad. Knowing the rules and taking advantage of Belgium’s busy e-commerce scene can set your online business in Belgium up for success.
Foreign Companies Opening a Branch or Subsidiary
Foreign companies looking to be in Belgium can choose between opening a branch or a subsidiary. The decision depends on how much control they want, and the business needs.
Branch vs. Subsidiary
A branch lets the foreign company act as an extension of its original self in Belgium. In this case, the parent company is fully responsible for all the branch’s dealings. On the other hand, a subsidiary operates as its own entity with limited liability. This means it’s legally and financially independent from the parent company.
Registration Requirements
Foreign companies in Belgium must register with the Crossroads Bank for Enterprises. They follow the same steps as Belgian companies when opening a branch or subsidiary in Belgium. This involves handling paperwork, permits, licenses, and meeting tax and admin duties.
The country wants to make sure all companies, both local and foreign, play by the same rules. This push for fairness also ensures the business environment stays open and fair.
Starting a Non-Profit Company in Belgium
Belgium is a great place to set up a non-profit organization. The process is clear, making it easy for those who want to help their communities. You can start a non-profit to tackle social issues, support causes, or share interests.
To begin, you must meet certain rules and needs. These include naming your goal, writing the bylaws, and getting the NPO recognized. You don’t have to worry about a minimum amount of money to get started. This means people and groups from all walks of life can start a non-profit company Belgium.
A big benefit in Belgium is the tax breaks and ability to get donations. Non-profits can seek tax-free status, which lets them use more money towards their goals. Also, there are paths for people and businesses to donate money that’s tax deductible. This helps starting non-profit company Belgium financially.
If you care about helping others, nature, or keeping culture alive, Belgium’s non-profit scene is ready for you. By starting a non-profit company Belgium, you help your local community and leave a big impact with your group’s work.
Business Administration and Taxation
Running a business in Belgium means you need to know the rules on administration and taxes. You have to set up your business bank account and make sure you’re following tax rules. You must also think about insurance for your employees.
Business Banking
To start, create a business bank account in Belgium. You have to get a VAT number and an EORI-number for customs use. If you’re self-employed, you need to contribute to social insurance.
Tax Obligations
Belgian businesses must pay their share in taxes. This includes corporate taxes, VAT, and payroll taxes. You also have to list the real owners of your business in the UBO-register. Knowing and meeting these tax obligations Belgium is vital to avoid trouble.
Insurance Requirements
Your business might need extra insurance like health and disability plans. When you hire, you’ll also need to work with a payroll company. Making the right moves with the Social Security Office is crucial too.
Conclusion
Starting a business in Belgium can be fulfilling and thrilling. The country offers a great environment for entrepreneurs. You’ll need to know about the business etiquette and laws. Plus, you must get the right permits and licenses, which the country helps with. Many government resources and private sector programs are there to assist.
Belgium has a strong service sector and growing manufacturing industry. It also has great potential for e-commerce. So, whether your business idea fits these or something else, Belgium could be a great place to start. Make sure to research the market well and use available support networks.
As you start your business in Belgium, stay adaptable and committed. Understanding the local business culture is key. With a strong plan and using the resources available, you can build a successful business. Belgium is both vibrant and welcoming to entrepreneurs from near and far.
