Setting up a company

Every entrepreneur's dream starts with the establishment of a sole proprietorship or a limited company. The establishment of your company is therefore an important step for entrepreneurs.

In Belgium, you have various company forms, such as the private limited company (bv), public limited company (nv), and the limited partnership (Commv), all with legal personality. You can also opt for a simpler form like the partnership (maatschap) (without legal personality) or the general partnership (VOF).

In this article, we'll get you ready to set up a company. We'll explain the costs, advantages, disadvantages, and much more. So, if you want to set up a company but still have doubts, keep reading!

For the quick deciders:

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Why would you set up a company?

1. Limited liability

A significant advantage of (most) companies is limited liability. For private limited companies (BVs) and public limited companies (NVs), the partners' liability is limited to what was contributed to the company. Your personal assets are therefore protected against potential creditors in the event of bankruptcy. With a sole proprietorship, unlimited liability applies, meaning you are not protected.

2. Fiscal benefits

Companies in Belgium are eligible for a wide range of tax benefits. These include the reduced corporate tax rate of 20.1% for SMEs and the carry-forward of losses, etc.

3. Legal structure

Lastly, a private limited company has a clear legal form and structure. This helps with the division of responsibilities and decision-making. This is stated in the company's articles of association and also provides transparency and certainty.

How much does it cost to start a company?

The costs of a company vary from one company to another. Below are some of the most important costs.

Notary costs

For a public limited company or private limited company, you must go to a notary who will then draw up a notarial deed. These costs range between €1000 and €2500. For sole proprietorships, deeds drawn up privately suffice. The involvement of a notary is not required here.

Minimum capital
For a public limited company (NV), a starting capital of €61,500 is required. For a private limited company (BV), since 2019, no minimum share capital is mandatory, but sufficient initial funds (adequate capital) to finance the activities are. You must also provide a financial plan to a notary. In this plan, you demonstrate that you have sufficient financing for the coming years.

Registration with the Crossroads Bank for Enterprises (KBO)
The registration fee at the KBO in 2024 will be €105.5. This is a one-off cost.

Publication costs (registration of incorporation deed)/ court registry fees
The deed of incorporation must be published in the Belgian Official Gazette, which will cost you €271.98.

Accounting and legal fees
Professional support with the establishment is recommended. At the start, the costs are often not that high. It is certainly advisable to have a good bookkeeper or accountant on hand. Bizantium will put you in touch with a suitable bookkeeper after your establishment.

Other costs

Other costs may arise, such as opening a business current account. This can be done with a financial institution of your choice.
It is also possible that registration fees apply to a number of documents.

Reclaim your setup costs through Bizantium

A digital incorporation with Bizantium guarantees a smooth start for your company. Furthermore, you can easily recoup your incorporation costs through our partner network. You will receive discounts on all sorts of software, insurance, leased vehicles, and other items.

Would you like more information about our partner network? Give us a call!

De nadelen van een vennootschap kunnen zijn: * **Complexiteit en formaliteiten:** Het oprichten en beheren van een vennootschap brengt meer administratieve lasten en juridische formaliteiten met zich mee dan bij een eenmanszaak of vennootschap onder firma. Denk aan het opstellen van statuten, het inschrijven bij de Kamer van Koophandel en het voeren van een gespecificeerde boekhouding. * **Kosten:** De oprichtingskosten zijn over het algemeen hoger door notariskosten en eventuele advieskosten. Ook de jaarlijkse kosten voor administratie en accountants kunnen oplopen. * **Dubbele belasting:** Afhankelijk van de rechtsvorm van de vennootschap (met name een besloten vennootschap - BV), kan er sprake zijn van dubbele belasting. De vennootschap betaalt vennootschapsbelasting over de winst, en de aandeelhouders betalen inkomstenbelasting over de uitgekeerde winst (dividendbelasting) of over hun salaris. * **Minder flexibiliteit:** Het wijzigen van de structuur of het nemen van grote beslissingen binnen een vennootschap kan meer tijd en formele procedures vergen dan bij eenvoudigere rechtsvormen. * **Aansprakelijkheid (afhankelijk van rechtsvorm):** Hoewel de BV bijvoorbeeld de privéaansprakelijkheid van de ondernemers beperkt, betekent dit niet altijd dat er geen enkele aansprakelijkheid is. In specifieke gevallen (bijvoorbeeld bij onbehoorlijk bestuur) kunnen bestuurders toch persoonlijk aansprakelijk gesteld worden. * **Complexiteit bij verkoop of overdracht:** Het verkopen van aandelen of het overdragen van de vennootschap kan complexer zijn dan het verkopen van de activa van een eenmanszaak. * **Afhankelijkheid van het bestuur:** Beslissingen worden genomen door het bestuur, wat kan leiden tot situaties waarin individuele aandeelhouders minder directe invloed hebben, zeker als ze geen deel uitmaken van het bestuur.

One of the significant disadvantages is the cost involved in a business, as explained above, these costs can run into thousands of euros. With a sole proprietorship, on the other hand, there are far fewer formalities and costs.

How much does a company cost per year?

Below is an overview of the most common recurring costs for a limited company.

What is the process for setting up a company?

  • Choose the company structureChoose the correct legal structure (private limited company, public limited company, etc.).
    Not sure about the ideal business structure for you? Use our free simulator!

  • Draft (required) memorandum of associationHave a notary draft and sign the deed of incorporation. Then, file your deed of incorporation with the competent commercial court.

  • Capital contributionBring in capital (if applicable).

  • Registration with the KBORegister the company with the Crossroads Bank for Enterprises (KBO).

  • Filing of memorandum/articles of association with the registryPublish the deed of incorporation in the Belgian Official Gazette.

  • Open a business bank accountOpen an account in the company's name. You will receive a certificate once the required amount has been deposited.

  • Accounting and VAT numberEngage an accountant and apply for a VAT number if necessary.

  • Filing of Annual Accounts

When setting up a company, you must also take into account the ultimate beneficial owner, the UBO, as those who are indirectly or directly owners must be identified, which is part of the anti-money laundering legislation. During the general meeting, decisions can also be made that directly affect the UBO and the share register and shareholders.

Create a financial plan

Below is a concise version of the financial plan for a private limited company:

    1. ObjectivesSet clear financial objectives, considering strategy and sales growth.

    2. Income: Estimate the expected revenue from products and services, according to a realistic budget.

    3. CostsIdentify fixed (rent, salaries) and variable costs (raw materials).

    4. Profit and Loss StatementCreate an overview of expected income and expenses.

    5. Cash flowForecasting of cash inflows and outflows to prevent liquidity problems.

    6. Balance sheetProvide an overview of expected assets and liabilities.

    7. Funding requirementDetermine if additional capital is required and what options are available.

    8. Risk analysisIdentify and evaluate potential risks.

    9. MonitoringRegularly evaluate and adapt the plan.

Filing the deed of incorporation

A private deed and the maintenance of a share register play an important role in the incorporation of a company. When incorporating a private limited company (bv) or a public limited company (nv), a deed of incorporation must be drawn up, which is normally prepared and registered by a notary (authentic deed).

However, for some company structures, such as a general partnership (VOF), the deed of incorporation can be drawn up as a private deed. This means that the founders can draw up and sign the deed themselves, without the intervention of a notary. The legal requirements are not as complex here.

The use of a private deed for these company forms offers flexibility and lower costs, but it is important that the deed is carefully drawn up to prevent future legal disputes. The deed must include the following elements, such as the name of the company, the objective, the contribution of each of the partners and the distribution of profit and loss.

Register your company online via Bizantium

Bizantium collects all necessary information through an interactive flow, generates the required documents, and keeps all parties informed via a real-time dashboard. Once your file is complete, the incorporation is finalised by the notary using a digital power of attorney.

In short: a carefree, digital setup!

As already mentioned above, you can also easily recoup your start-up costs through our partner network. 

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What if your company doesn't make a profit?

If your company doesn't make a profit, this can have several consequences:

1. Fiscal consequences

  • Loss offsetYou may be able to offset your company's losses against future profits, which is a deductive item on the company tax return.
  • Corporation taxNo obligation to determine taxes if not profitable. However, pay attention to the continuity of your company.

2. Financial health

  • Liquidity problemsA lack of profit can lead to cashflow problems, meaning you won't be able to pay your suppliers.

What is better: salary or dividend?

The choice between salary and dividends depends on various factors and can vary depending on your personal situation. Salary offers certainty, as you will have a nice amount in your bank account every month. A disadvantage, however, is that salary is subject to personal income tax. It comes as no surprise that Belgian personal income tax is very high.

A dividend can, conversely, be more tax-advantageous than salary. It is often taxed at a lower rate than salary. It also offers flexibility because you can decide yourself (provided the articles of association and the company's health allow it) when to pay it out. The disadvantage, however, is that a dividend depends on the profit of your company, and in the early years, this is usually not much.

In many cases, a combination of salary and dividend can be the best strategy, depending on your financial needs and the structure of your company.

Ready to get started?

Register your account today!

Ready to get started?

Register your account today!

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