How to start and invest in a business in Belgium: A comprehensive guide for EU and Non-EU entrepreneurs
Belgium, known for its central location in Europe, multilingual culture, and robust economy, is becoming an increasingly attractive destination for entrepreneurs. Whether you’re an EU citizen or coming from outside the EU, starting a business in Belgium, either online or physically, can open doors to European markets and offer strong financial incentives.
In this guide, we’ll explore the benefits of investing in Belgium, legal requirements, tax policies and how to navigate the business setup process.
Why Belgium? The key benefits of starting a business here 🔑
Belgium is home to the European Union headquarters in Brussels, making it a strategic gateway to the broader European market. It offers a stable economy, highly skilled workforce, and excellent infrastructure. All of which create fertile ground for new ventures. 🌱
- Access to European markets:
Belgium’s central location and membership in the European Union allow businesses to access the Single Market, providing seamless trade opportunities across EU countries.
- Multilingual workforce:
With three official languages—Dutch, French, and German—Belgium’s workforce is diverse and multilingual, essential for serving customers across borders. English is widely spoken in the North and South.
- Government incentives: Belgium offers several incentives for entrepreneurs, including tax exemptions, grants and R&D subsidies. Regions like Flanders and Wallonia have their own initiatives to support startups and innovation.
For a detailed breakdown of the current subsidies and incentives, check out Invest in Flanders, a resource that outlines the advantages of starting a business in Flanders.
Understanding legal structures for businesses in Belgium 🗺️
Choosing the right business structure is crucial when starting your company in Belgium. The legal framework provides several options:
- Sole Proprietorship (Eenmanszaak/Entreprise individuelle):
Ideal for small-scale businesses or freelancers. It’s the simplest legal form but comes with personal liability.
- Private Limited Company (BV/SRL):
A popular choice among foreign investors. This structure limits your personal liability and is suitable for medium to large enterprises. You need a minimum capital of €1 to start.
- Public Limited Company (NV/SA):
Best for larger businesses, especially those planning to list on the stock market. It requires a higher minimum capital but offers more flexibility for shareholders.
For more detailed information on legal structures, visit the FPS Economy (Federal Public Service Economy) website.
Legal requirements and Permits for Non-EU Investors
If you’re a non-EU resident, starting a business in Belgium involves additional steps. First, you will need a professional card (carte professionnelle/beroepskaart) to legally work as a self-employed person. You’ll also need to secure a work visa and residency permit.
Non-EU investors should familiarize themselves with the Belgium Foreign Investment Agency, which provides comprehensive information on the visa application process and other requirements.
Online business in Belgium: What you should know! 📲
Belgium is an excellent hub for online businesses due to its strong digital infrastructure and high internet penetration rate. Whether you’re setting up an e-commerce platform or offering digital services, make sure to adhere to Belgian regulations for online businesses, such as:
- VAT Registration:
Any business in Belgium must register for VAT if their annual turnover exceeds €25,000.
- Data Privacy Laws:
Belgium follows the General Data Protection Regulation (GDPR), which governs how you collect and store customer data.
You can learn more about VAT and GDPR compliance on FPS Finances.
Taxation in Belgium: What Entrepreneurs should know! 🖩
Belgium has a relatively high tax rate, but with proper planning, you can benefit from several deductions and allowances:
- Corporate Tax:
The corporate tax rate is 25%, but small and medium-sized enterprises (SMEs) can benefit from a reduced rate of 20% on the first €100,000 of profits.
- R&D Tax Credit:
If you’re investing in innovation or technology, you may be eligible for significant R&D tax credits and deductions.
- Dividend withholding tax:
Belgium has treaties with many countries to reduce withholding taxes on dividends, making it attractive for foreign investors.
For an in-depth understanding of Belgium’s tax structure, visit PwC Belgium, which offers resources for international tax planning.
How to set up a Business: A step-by-step guide 🦮
Business plan:
Start by drafting a detailed business plan that outlines your goals, target market, and financial projections. This will also be helpful when applying for grants or loans.
Register your business:
You must register with the Crossroads Bank for Enterprises (CBE), which is the national register for companies in Belgium. This gives you a company number.
Open a bank account:
You’ll need a Belgian bank account for your business transactions. Many local banks like KBC and ING Belgium offer specialized accounts for startups.
Obtain necessary permits:
Depending on your business type, you might need specific permits, such as an environmental permit or health inspection certificate.
(Optional) Hire staff:
If you’re hiring employees, you’ll need to comply with Belgian labor laws, including minimum wage requirements and social security contributions.
Tips for Success: scaling your business in Belgium 👍🏻
- Network locally:
Belgium has a strong entrepreneurial ecosystem. Leverage networks like Startups.be and Co.Station to connect with local startups and investors. Also think about Reddit-groups to start a conversation. Many Belgians will be happy to help and inform!
- Consider regional differences:
Belgium is divided into three regions— Flanders, Wallonia, and Brussels-Capital — each with its own economic policies. Research these differences to identify the best location for your business.
Conclusion: Why Belgium is worth the investment
Starting a business in Belgium, whether online or physical, offers numerous advantages. From access to the European market to government-backed incentives.
However, to succeed, it’s essential to be aware of the legal requirements and regulations. With proper planning and a clear understanding of the market, your business can thrive in this growing economy.
For a deeper dive into investment opportunities and economic trends in Belgium, visit the Belgian Federal Portal, an invaluable resource for both EU and non-EU entrepreneurs.
Links you might be interested in:
- Invest in Flanders: https://invest.flandersinvestmentandtrade.com/en
- FPS Economy Belgium: https://economie.fgov.be/en
- PWC: https://www.pwc.be/
- Reddit Group: https://www.reddit.com/r/belgium/
