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Register Your Limited Liability Company in Belgium

by | Feb 24, 2025 | Corporate Structuring

Belgium Company Registration: How to Set Up Your Belgian SARL

Belgium is an attractive destination for entrepreneurs and investors looking to establish a business in Europe. With a strong economy, strategic location, and favorable business climate, setting up a limited liability company (SRL/BV) in Belgium offers numerous advantages. This guide explores key aspects such as Belgium’s economy, share capital requirements, hiring employees, social security, and corporate income tax.

Belgium’s Economy: A Strong Business Hub

Belgium boasts a stable and well-developed economy, ranking among the most prosperous countries in Europe. As a founding member of the European Union, it benefits from seamless trade and investment opportunities. The country’s GDP was approximately €589 billion in 2023, with strong performance in sectors such as finance, logistics, pharmaceuticals, and manufacturing. Moreover, Belgium’s central location makes it an ideal gateway to European markets, including Germany, France, and the Netherlands.

Legal Framework and Share Capital Requirements

In Belgium, the most common business structure for foreign investors is the Société à Responsabilité Limitée (SRL) / Besloten Vennootschap (BV), which corresponds to a limited liability company (LLC). One of the most attractive features of an SRL/BV is that there is no minimum share capital requirement, making it accessible for entrepreneurs of all sizes. Instead of a fixed minimum capital, founders must ensure the company has sufficient initial funding to sustain operations.

Company Formation Process

Registering an SRL/BV in Belgium involves the following steps:

  1. Draft the Articles of Association – These must be notarized by a Belgian notary.
  2. Deposit the Initial Capital – Though no minimum capital is required, founders must justify the company’s financial sufficiency.
  3. Register with the Crossroads Bank for Enterprises (CBE) – This assigns the company a unique business number.
  4. Register for VAT – Businesses exceeding the annual turnover threshold (typically €25,000) must register for VAT.
  5. Open a Corporate Bank Account – Essential for handling financial transactions.

Hiring Employees in Belgium

Belgium has a well-regulated labor market with strong employee protections. When hiring employees, companies must adhere to Belgian labor laws, which include:

  • Employment Contracts – Fixed-term, indefinite, and part-time contracts are common.
  • Minimum Wage – As of 2024, the national minimum wage is €2,100 per month.
  • Working Hours – A standard workweek is 38 hours, with overtime rules in place.
  • Social Security Contributions – Employers must register employees with the Belgian social security system and make monthly contributions.

Social Security and Employer Contributions

Belgium has one of the most comprehensive social security systems in Europe. Employers and employees contribute to this system, which covers pensions, healthcare, unemployment benefits, and workplace accidents. The contribution rates are:

  • Employer’s Contribution: Around 25% to 27% of gross salary
  • Employee’s Contribution: Approximately 13.07% of gross salary These contributions provide extensive benefits to employees, ensuring a high standard of living.

Corporate Income Tax in Belgium

Belgium’s corporate tax system has undergone significant reforms to remain competitive. The corporate income tax (CIT) rates are:

  • Standard CIT rate: 25%
  • Reduced CIT for SMEs: 20% on the first €100,000 of taxable income, subject to conditions Companies are also subject to other taxes, such as the withholding tax on dividends (30%), but reductions may apply under double taxation treaties.

Advantages of Setting Up an LLC in Belgium

  1. Strategic Location – Access to major European markets.
  2. No Minimum Capital Requirement – Flexible financial entry.
  3. Attractive Tax Regime for SMEs – Reduced CIT on lower earnings.
  4. Highly Skilled Workforce – A multilingual and educated labor market.
  5. Robust Infrastructure – Excellent transport and digital connectivity.

Registering a limited liability company in Belgium is a strategic move for businesses looking to expand in Europe. With a stable economy, flexible capital requirements, and a favorable tax environment, Belgium offers a strong foundation for entrepreneurial success. Contact your Damalion expert and accredited partner to navigate the registration process smoothly and leverage Belgium’s advantages to grow their ventures.