Thanks to its geographical location in central Europe, Belgium has become one of the most popular countries to start a business. Here's how to proceed so you can have a prosperous future in Belgium.
Why start a business in Belgium?
There are many reasons to start a business in Belgium. Some of them include its ideal location within Europe, its international harbors, and its undeniable presence on the international scene, thanks to the European institutions present in Belgium. However, this country also has a relatively simple administration when it comes to starting a business, so that it won't be too much of a hassle.
Because of its location within the Old Continent, Belgium is dynamic and experienced. This attracts people who wish to be their own boss. Belgium offers attractive advantages and professional opportunities.
Key sectors in Belgium
Belgium has many dynamic key sectors, most of which involve manufacturing. For instance, some significant areas of manufacturing in the Belgian economy include chemicals and chemical products, food products, beverages, tobacco products, and basic pharmaceutical products and pharmaceutical preparations. We can break this down into four major areas: chemical, food and drink, pharmaceutical, and basic/fabricated metals.
Here are some key sectors in more detail:
Textile industry: Textiles have a substantial history in the country and offer many possibilities to foreign entrepreneurs. Textile products made in Belgium always use materials coming from Europe, and the country makes sure its products are of high quality. Belgium cares about innovation and sophisticated products. Around 70% of the production of Belgian textiles goes to foreign countries.
Innovation and design: Brussels, the capital city, is one of the best in creative design. This phenomenon uses dynamism and savoir-faire and impacts all sectors. It embodies renewal and innovation that benefits city planning, the textile industry, and interior design.
Pharmaceutical and chemical industry: This is a significant sector of the economy concerning research and sales. Nearly 200 firms within the pharmaceutical industry are implemented on Belgian soil, and the nation is the third-largest exporter of medicines in Europe, following only Switzerland and Ireland.
Belgium has an essential role among international leaders within the chemistry sector. Its expertise in chemistry is recognized worldwide, especially in ethylene, propylene, butadiene, benzene, toluene, and xylene.
Finally, the end of industrial and environmental biotechnology has led to Belgium counting famous names among its chemistry industries: Johnson and Johnson, Pfizer, GlaxoSmithKline, UCB, BASF, Bayer, Borealis, Chevron, BP, and Monsanto.
The agri-food industry: Professionals are interested in Belgian's various vegetables, potatoes, wheat, and beetroot. The country's main foods manufactured are dairy, sugar, chocolate, and beverages. However, Belgium has to import many agricultural products because of the country's small size.
How to start a business in Belgium
After learning about the various sectors in Belgium, you might be curious about how to start a business in this nation. Here are the key steps you need to take.
EU/EFTA vs. non-EU/EFTA citizens
If you're an EU/EFTA citizen, then the good news is that you can start a business without a permit. If you're a non-EU/EFTA citizen with a residence permit to live in Belgium, you won't have to apply for a business permit.
Otherwise, you'll have to apply for a Professional Card ("carte professionelle" or "beroepskaart"), which permits you to not only move to Belgium but also to start a business. You must apply for this in your home country at a Belgian embassy or consulate.
Choosing a business name
Of course, you'll have to choose a business name after determining what you want to do. What's excellent about opening a business in Belgium is you're free to choose any name so long as no other business already has it. You can check on the FPS website to double-check if someone has already taken your desired company name.
Opening a professional bank account
This bank account is for the business only and can't be related to any personal or private bank account. This account number must be on every commercial document the company produces. The bank account must be opened under the company's name, and the bank must be established in Belgium.
Registering with the Crossroads Bank for Enterprises
This database has all the information for the businesses on Belgian soil. You must go to one of the 154 desks at one of Belgium's eight approved business counters to register.
You'll then need to get administrative authorizations to access some functions. This process verifies conditions when accessing regulatory positions in Belgium. You'll have to prove that you have sufficient knowledge in management, a diploma in the area of specialization, and professional experience. You can ask someone to testify for you.
After registering with the Crossroads Bank of Enterprises, you'll receive a unique business number.
Registering for VAT
Once you have a business number, you must register at the office that controls VAT. Each town has one, and it's free of charge. You'll need to visit the one where your business was implemented.
Enrollment in Social Insurance and a Mutual Fund
It's mandatory to have/receive health insurance, family benefits, and a retirement pension. Without this enrollment, you're considered an illegal worker.
Because you're self-employed in Belgium, you won't have an employer to take care of enrollment for you. You'll have to research and make arrangements for your social security, social insurance, and health insurance. Belgium is stringent regarding respecting the law, and administrative fines can't be negotiated. So ensure you take care of these things as soon as you create a business.
What types of businesses can you create in Belgium?
Generally, you can form non-profit companies, limited liability companies, partnerships, and cooperatives.
Non-profit companies
If you're interested in a non-profit company, it's formed of three people minimum. Making money is not the aim of the company.
Limited liability companies
Public limited company: This company must be formed by at least two people and have at least three directors. The founders have to invest a fixed amount of capital for shares. A public limited company is usually best for large businesses.
Private limited company: This company is formed by people who invest money in it as shareholders. It's similar to a limited liability company. It can be created by just one person or two or more. Private limited companies are great for SMEs, as well as family businesses.
Individual companies are:
- Easy to create;
- Only one physical person (the creator);
- No distinct funds between the company and the creator's estate;
- The creator is responsible for any debts in the individual company;
- The creator's estate (as well as their partner) can be taken as a guarantee if the company has debts.
Otherwise:
- The founder is responsible for all the company's debts;
- In the event of indebtedness, the creator's estate (and his partner) may be taken as collateral.
Partnerships
Limited partnership: This company comprises one or more associates who are responsible together and one or more funding partners. This sort of company comes in handy when entrepreneurs don't have sufficient funds to start their businesses.
Formed partnership: This company comprises associates responsible and supportive of each other. It's for commercial or civil activities in the social area.
Joint control company: This company is formed by one or more associates. They're all responsible and supportive of one another. It can also be created by one or more associate sponsors who invest a determined capital.
Cooperatives
Cooperative company with unlimited liability: This type of company must have at least three shareholders and can be managed by one or more people. The amount of money they invest varies.
Cooperative company with limited liability: This type of company must also have at least three shareholders. However, the amount of money they invest is fixed. It's also run by one or more managers.
Other types of businesses
European Economic Interest Grouping: This is for existing companies. This grouping helps companies develop their economic activity. It's a new association and not a new company.
Unincorporated association: An unincorporated association comprises one or two people who wish to work towards the public interest. This type of company has no legal status and isn't entitled to any rights or obligations.
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