Belgian Corporation – Small in Size, Large in Benefits.
Belgian corporation is desired by many investors and business owners because Belgium lies at the very center of the European Union economically and politically if not geographically. One of the smaller EU states physically, its benefits to the foreign businessman or woman are anything but tiny. Known as one of the more cosmopolitan of the EU states, their approach to the Free Market business model is absolute. There are almost no restrictions placed on foreign businesses that operate under one of the two more common Belgian corporation designations.
A company limited by shares (S.A./N.V.) is said to operate as a subsidiary, and functions as a corporation ruled by Belgian law, while a private limited liability company (S.P.R.L./B.V.B.A.) or Branch is ruled by the law where the parent company is based. These two attractive designations each operate with some similarities, and also some differences, so knowing exactly how they differ is crucial. File for the wrong type of Belgian corporation and time and money are both at risk of being wasted.
Belgian corporation as an S.A./N.V. simply requires a notary filing, and articles of business association must be published in the Belgian Official Gazette. The language of the documents must be French or Dutch according to the predominant spoken language you file in, and an initial two year plan must also be filed. Th branch office must file the parent company’s accounts with the Bank of Belgium, and in return is rewarded no nationality or residency requirements.
A local service office is highly recommended, and actually makes any needed communications much easier, since you will invariably be employing a local-language-speaking staff. The minimum share capital allowed for Belgian corporation as an S.A./N.V. Is 61,500 euros.
The minimum allowable share capital for Belgian corporation as an S.P.R.L./B.V.B.A. Is 18,600 euros. At least a third of this capitalization must be paid up before filing can take place, and at least one shareholder and only one director must be named. An attractive feature here is that shareholders can only be held liable for any assets they brought into the business.
Belgian corporation can offer attractive tax and capital gains benefits to the foreign business owner. The key is in filing the tight type of business designation, and in the right city. For instance, unemployment runs high in French speaking Wallonia, and very low in Dutch speaking Flanders, where there are excellent IT and other highly skilled employees available. This is also the most prosperous city in Hungary, and has a robust economy.
These are the types of day to day updates you need from your European company formation specialist. This up to the minute knowledge of business regulations and designations can only come from a firm that deals daily with attorneys and accountants on the field that live in the respective countries and cities you show an interest in. Local professionals know best how, when and where to act in the business and legal circles of influence they inhabit, and make your Belgian corporation a guaranteed success.