Keep my number?
Tips for a smooth transition to a limited company
Are you considering converting your sole proprietorship into a limited company? Then you'll encounter important tax and administrative questions, such as: Can you keep your VAT number? How do you arrange the cessation of your sole proprietorship? What about the incorporation of your private limited company?
In this article, we'll give you clear answers, discuss the crucial points of attention and help you with practical steps for a smooth transition. This way, you can make this switch without any worries!
Can you keep your VAT number when switching?
When transitioning from a sole proprietorship to a company, it is generally not possible to keep your VAT number. A sole proprietorship is taxed via personal income tax, while a company is subject to corporate tax. As a company is a legal entity and thus forms a different legal entity than a natural person, a new VAT number must be requested.
When VAT changes, differences in liability can also arise. In the case of a sole proprietorship, there is unlimited liability (personally liable for debts), whereas most companies have limited liability, such as a private limited company (BV).
Your sole proprietorship is being discontinued.
The cessation of a sole proprietorship must be correctly handled at the enterprise counter. This involves the following steps:
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Closing your sole proprietorship and reporting its closure to the tax authorities. This service will cost you €60.50
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Apply for a company number for your company.
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To deregister your sole proprietorship.
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To file a tax return for your last income as self-employed.
If you need help with any of these steps, contact us for a no-obligation chat and we'll be happy to assist you.
How do you correctly close your VAT number?
To close a VAT number, you must use form 604C. This must be submitted to the VAT administration to officially deregister your business as VAT liable.
Don't forget to submit all outstanding VAT returns to avoid fines either.
Form 604C
You or your authorised representative must submit form 604C within one month of the closure of the liquidation or bankruptcy. This form is essential for the correct registration of the cessation of your VAT number.
This form must be submitted online via the e604 application. You can voluntarily submit form 604C at any time, even when the VAT status in the KBO – Public Search has already ended.
Practical points to consider during the transition
When transitioning from a sole proprietorship to a limited company, you need to consider various legal and fiscal actions:
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The incorporation of your company and having the articles of association drawn up.
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To draw up a financial plan for the company.
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Registering your business for VAT.
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Implementing changes in contracts and business relationships.
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Registering your new company with the KBO.
Hoe kan ik btw-problemen bij de overgang voorkomen?
To avoid VAT administration problems, it is crucial to complete all administrative formalities punctually. Ensure your VAT number is correctly deactivated and your new company is registered as VAT taxable in good time.
What about existing contracts and invoices?
During the transition, you must consider how ongoing contracts and invoices will be handled. The new company must be correctly listed on all (new) documents to avoid tax issues.
How do you avoid interruptions to your activity?
Good planning prevents interruptions in your freelance activity. Have yourself assisted by an accountant to ensure a smooth handover and make sure your new company is immediately operational. Should you have any questions, we are here to support you where needed. Schedule a no-obligation call with one of our advisors.
Can I temporarily freeze my VAT number?
No, a VAT number cannot be temporarily frozen. When switching to a limited company, you must close the VAT number of your sole proprietorship and apply for a new VAT number.
Therefore, you must re-register with the KBO. When your VAT number is being processed, it is possible to issue invoices. You then state ‘By the way, number in request’ on your invoice.
How much does it cost to switch from a sole proprietorship to a private limited company?
The transition to a private limited company involves various costs, including:
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Notary fees for the incorporation of the company and the drafting of the articles of association. This varies between 1,000 and 1,500 euros.
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Registration fees at the business counter. This is a one-off fee of 109 euros.
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Costs for tax and accounting support. This varies greatly from company to company; budget between €1,000 and €2,500 per year.
The total cost of switching to a private limited company typically ranges between €2,000 and €5,000, depending on complexity and guidance.
With Bizantium, enjoy a fast, inexpensive, and fully digital setup!
Would you like a personalised quote for your conversion? Contact us below!
A hassle-free incorporation via Bizantium
An new company in 3 steps
Bizantium gathers all information in an intuitive flow, generates the necessary documents, including the financial plan, and keeps all parties informed with real-time updates. Once the file is complete, the incorporation is completed at the notary with a digital power of attorney.
- Collecting data
- Generate financial plan
- Incorporation by notary
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