Choosing to set up a Belgium subsidiary is a big decision for any company. While you’ll benefit from global business relationships, new opportunities, and talented team members, you also have to tackle the challenges that come with the incorporation process. Companies looking to establish a subsidiary have to learn a whole new state of corporate and tax laws, meet international employment compliance standards, and continue to run a business.
As experts in global employment, G-P is well-versed in Belgium subsidiary laws and can help simplify the expansion process. With us, you won’t have to learn how to set up a Belgium subsidiary. By leveraging our entity infrastructure, you can start hiring in minutes without the stress of compliance management.
How to set up a Belgium subsidiary
Before starting the Belgium subsidiary setup process, you should consider certain factors, such as your business goals, desired location, language fluency, and more. Costs, availability, and regulations often vary based on the city or region your office space is in.
Belgium is unique in that it has 2 official languages — Dutch and French. Most businesses need contracts in both French and Dutch when working with employees or other local companies. If you do not have someone in your company who is fluent in both languages, you’ll need to hire some additional team members or a translator.
Your company goals also play a role in how you should set up a Belgium subsidiary. The country permits several different subsidiary structures, including private limited company (SRL/BV), joint-stock corporation (SA/NV), partnership branch, and representative office. Every entity allows for a different level of activity and operation in Belgium, so you need to choose the structure that best fits with your goals.
Many companies choose to incorporate as an SRL since is suitable for small and medium-sized businesses and does not require a minimum capital. The steps to set up a Belgium subsidiary as an SRL may include:
- Defining your business’ purpose and economic activities.
- Designating at least 1 shareholder.
- Choosing a legal representative to be appointed as director of the new company. Non-nationals can be appointed.
- Obtaining a physical office space in the selected location.
- Drafting the Founding Act, along with additional incorporation documentation that must be prepared by a local attorney.
- Obtaining documents from the new company’s shareholders. These include certificates of registration, articles of association, tax registrations, powers of attorneys, among others. Some of these documents may need to be notarized and apostilled.
- Preparing a comprehensive business plan that includes your business idea, market analysis, financial planning, and growth strategies.
- Creating an account with a Belgian credit institution
- Depositing the business plan with a notary.
- Signing the deed of incorporation and by-laws in the presence of a notary.
- Registering and publishing the deed of incorporation.
- Registering and obtaining a company number and VAT number.
- Registering with the social insurance fund.
- Acquiring necessary business licenses and permits.
Belgium subsidiary laws
Belgium’s subsidiary laws may vary depending on the type of entity you chose as each one has unique advantages and drawbacks. For example, an SRL will not require a minimum capital, however, you may still consider budgeting for a specific amount since local banks may want to evaluate the adequacy of your capital before providing services.
Corporate governance in this country is also very important. Subsidiary laws in Belgium include an extensive amount of maintenance for the SRLs and noncompliance with these obligations may result in penalties and fines for the Belgium subsidiary.
Benefits of setting up a Belgium subsidiary
After you incorporate, you can finally begin hiring employees, adding them to your payroll, and doing business in Belgium. Many companies opt to set up an SRL because of its limited liability structure. If you do the same, your parent company will not have to worry about litigation from the subsidiary. Plus, you’ll get the opportunity to run your subsidiary using a process that works best for Belgium.
However, G-P can take the hassle out of setting up a subsidiary by hiring employees on your behalf. When you work with G-P, we will manage compliance so that you can stay focused on growing your company in a new location.
Other important considerations
If you decide to set up your Belgium subsidiary on your own, we recommend planning for everything you’ll need. Try to set aside time for the incorporation process as well as a large budget for the numerous fees involved. It will also help to work with an expert in Belgium subsidiary laws who can help you stay compliant.
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