Belgium is a country located in Northwestern Europe. The country is bounded by the Netherlands, Germany, Luxembourg, France, and the North Sea. The country’s capital is Brussels.
Belgium is one of the world’s industrialized and trading nations, with primary exports consisting of machinery and equipment, chemicals, finished diamonds, metals and metal products, and foodstuffs. Belgium’s economy is globalized, and it is also a member of the European Union.
One needs to be familiar with the procedures and steps involved in registering a limited liability company in Belgium before actually setting it up. It is advisable to form a Belgian limited liability company for any kind of commercial activity that takes place in Belgium.
Common forms of company in Belgian
Explained below are the different forms of companies in the country:
Naamloze Vennootschap (NV)
The company is focused on raising capital and there is only one founder.
Besloten Vennootschap (BV)
The company is a limited company with few mandatory regulations, only one founder is needed to set a BV.
Cooperative vennootschap (CV)
This is a cooperative firm with shareholders who are working toward a cooperative ideal to address the financial and social needs of shareholders, and the company needs three founders to be started.
Vennootschap onder firma (VOF)
It is a general partnership, which means that there are multiple and joint liable partners, which results in unlimited liability. The votes of the majority decide everything that happens here.
Commanditaire Vennootschap (CommV)
One or more partners can be held jointly and severally liable in a limited partnership, in which case the partners may also be referred to as managing partners or limited partners. The partners are collectively referred to as management, and every decision is reached through consensus based on their input.
Vereniging Zonder Winstoogmerk (VZW)
This non-profit association is a group of people pursuing a charitable goal consisting of at least two people.
Internationale Vereniging Zonder Winstoogmerk (IVZW)
This is an international non-profit association with a group of persons pursuing a charitable goal for international benefit.
Benefits of a limited liability company
- Foreigners are allowed to own shares
- Shareholder’s liability is limited to the amount contributed to the share’s capital
- A sole share proprietor can appoint themself as the director to control the company
- A low minimum capital requirement of £18,500 with two-thirds paid up when incorporating
- As a member of the EU, Belgian companies can do business across the continent
Belgian limited liability company
It is possible to form a limited liability company in Belgium with just one shareholder and one director; in addition, both individuals do not need to be Belgian residents to initiate the formation process. A mandatory capital payment of at least 18,550 pounds sterling is made, and the government may decide to make it even higher.
Requirements
To carry out incorporation, all Belgian companies are to have the following requirement:
- A Belgium corporate account has already been opened
- A business plan
- Office space as a registered business address is not sufficient
Incorporation
- The founder should ensure that the proposed company name is available and approved
- Initial capital must be deposited with a local bank, which will issue a certificate
- The filing of a financial plan with a notary
- The publication of the new company on the official gazette of Belgium
- Filing of the deed of incorporation with the registered office and the local commercial court
- Inclusion in the register of legal entities
- Issuance of a unique identification number
- The company registers with the social insurance fund within 3 months of incorporation
