Is Starting a Business in Belgium Worth It? Key Insights for 2025

Belgium, a small but strategically located country in Western Europe, has long been an attractive destination for entrepreneurs looking to establish or expand businesses. Known for its stable economy, skilled workforce, and central location within the European Union, Belgium offers a variety of advantages to foreign investors and startups. But is starting a business in Belgium worth it in 2025? In this article, we will explore the key insights into starting a business in Belgium, touching on economic factors, regulations, taxes, and business opportunities.

Why Belgium is an Attractive Destination for Entrepreneurs

1. Strategic Location in Europe One of the most compelling reasons for choosing Belgium as a base for your business is its strategic location in Europe. Belgium is at the heart of the EU and is bordered by France, Germany, Luxembourg, and the Netherlands, providing access to a market of over 500 million people. Brussels, the capital city, is also home to the European Union headquarters, which adds to the city’s political and economic importance.The country’s location makes it a prime spot for international trade, logistics, and transportation. The country boasts world-class ports, airports, and railways that offer easy access to both EU and global markets, making it particularly attractive for businesses engaged in import-export and supply chain management.

2. Favorable Business Environment Belgium offers a stable and conducive business environment, with a highly educated and multilingual workforce. The country’s government has invested heavily in infrastructure, technology, and innovation, making it an ideal place for businesses in various sectors including technology, finance, logistics, pharmaceuticals, and more.In recent years, the government has also introduced several reforms aimed at making the business climate more favorable for foreign investors. Belgium is known for having a transparent regulatory environment that ensures fair competition and supports business growth.

   
   

Company Formation in Belgium: The Basics

Before you decide whether to start your business in Belgium, it is essential to understand the process of company formation. Fortunately, Belgium has streamlined the process of starting a business to attract foreign investments and encourage entrepreneurship. Here’s what you need to know:

1. Types of Business Structures in Belgium Belgium offers several options for company formation, including:

   • Sole Proprietorship (Eenmanszaak / Entreprise individuelle): Ideal for small businesses and freelancers. This structure is simple, low-cost, and doesn’t require a minimum capital investment.

   • Private Limited Liability Company (BV / SPRL): This is the most popular form of company for small and medium-sized businesses. The company shareholders have limited liability, and the minimum capital requirement is EUR 1.

   • Public Limited Liability Company (SA / NV): This structure is suitable for larger businesses and requires a minimum capital of EUR 61,500. It’s ideal for companies planning to list on the stock exchange or that require significant investments.

   • Branch Office: Foreign companies can establish a branch office in Belgium, which is considered an extension of the parent company and requires less capital and fewer formalities.

     
     

2. Business Registration Process The process of company registration in Belgium is relatively simple and can be completed in a few steps. Key steps include:

   • Choosing a Legal Structure: First, you need to decide on the type of company you want to form.

   • Registering Your Company Name: Ensure that your business name is available and register it with the Belgian government.

   • Notary Deed: A notary must be involved in the process, particularly for limited liability and public limited liability companies.

   • Tax Registration: All businesses need to register for VAT with the Belgian tax authorities and obtain a company tax number.

   • Social Security and Employee Registration: If you plan to hire employees, you’ll need to register with the Belgian social security system and obtain employee-related documentation.

     
     

3. The whole process can take anywhere from a few days to several weeks, depending on the complexity of your business structure.

   
   

Taxation in Belgium: What Entrepreneurs Need to Know

Belgium offers an attractive tax environment for businesses, though there are several key factors that entrepreneurs should consider:

1. Corporate Income Tax (CIT) Belgium has a relatively competitive corporate tax rate compared to other EU countries. The standard CIT rate is 25%, but small and medium-sized enterprises (SMEs) with profits below EUR 100,000 can benefit from a reduced rate of 20%. Belgium has also introduced a range of tax credits and incentives to encourage investment in research and development (R&D) and innovation.

   
   

2. Value-Added Tax (VAT) Belgium follows the EU standard for VAT, with a rate of 21% on most goods and services. Reduced rates of 6% and 12% apply to certain items, such as food products, books, and medical supplies.

   
   

3. Withholding Tax Belgium applies withholding tax on dividends, interest, and royalties paid by Belgian companies. The standard rate is 30%, but tax treaties with other countries can reduce this rate significantly for foreign investors.

   
   

4. Tax Incentives Belgium offers several tax incentives, including tax exemptions for R&D activities, investments in environmentally friendly technologies, and certain tax advantages for holding companies. Entrepreneurs and business owners should explore these incentives to reduce their tax burden and maximize their profits.

   
   

Labor Market and Hiring in Belgium

Belgium has a well-educated, multilingual workforce, making it attractive for businesses in many sectors. However, hiring employees in Belgium does come with certain obligations:

1. Minimum Wage and Benefits The minimum wage in Belgium is regulated by law, with rates varying by age and experience. Belgium also has comprehensive social security laws that require employers to contribute to various social programs such as pensions, unemployment insurance, and healthcare.

   
   

2. Employee Rights and Benefits Employees in Belgium enjoy strong rights, including paid vacation, sick leave, and a mandatory 13th-month bonus. Entrepreneurs must also comply with labor laws regarding working hours, contracts, and other employee-related matters.

   
   

3. Foreign Workers Belgium has a relatively open labor market for foreign workers, particularly those from other EU countries. For non-EU nationals, work permits are required, but the process is fairly straightforward for highly skilled workers or employees in sectors facing skill shortages.

   
   

Financing Your Business in Belgium

Belgium offers several options for financing a business, including:

1. Bank Loans Belgium has a well-developed banking sector, and obtaining financing through a bank loan is one of the most common ways to fund a new business. However, banks typically require a strong business plan and collateral to secure the loan.

   
   

2. Venture Capital Belgium has a growing venture capital sector, particularly for tech startups and innovative companies. There are several venture capital firms that specialize in financing early-stage businesses, and many EU funding programs are available to entrepreneurs.

   
   

3. Government Grants and Subsidies The Belgian government offers a variety of grants and subsidies to encourage entrepreneurship, particularly in innovation and sustainable business practices. Entrepreneurs can access financial support for R&D activities, training programs, and business expansion.

   
   

4. Crowdfunding Crowdfunding is becoming increasingly popular in Belgium, particularly for smaller businesses and startups. Platforms such as Kickstarter and GoFundMe provide entrepreneurs with an alternative source of capital.

   
   

Challenges of Starting a Business in Belgium

While Belgium offers many advantages for entrepreneurs, there are also some challenges to consider:

1. High Cost of Labor Belgium has relatively high labor costs, particularly in comparison to other EU countries. Employers must factor in the cost of salaries, social security contributions, and other employee benefits.

2. Regulatory Compliance Like many other EU countries, Belgium has a complex regulatory environment. Entrepreneurs must comply with various laws related to labor, tax, environmental, and health regulations. Navigating these regulations can be time-consuming and require expert legal advice.

3. Competition Belgium has a competitive business environment, particularly in major cities like Brussels and Antwerp. Entrepreneurs must be prepared to compete with both local and international companies in their chosen sector.

   
   

How B2B Hub Can Help

At B2B Hub, we specialize in company formation in Belgium and can guide you through the entire process of setting up your business. From choosing the right business structure to registering with the authorities, we handle all the paperwork and legal requirements to ensure a smooth and efficient setup.

We also offer additional services, such as:

• Assistance with obtaining financing and grants

• Helping you navigate the Belgian tax system and apply for tax incentives

• Offering advice on labor laws and employee regulations

• Supporting your business expansion and international trade

B2B Hub offers comprehensive company formation and corporate services in any jurisdiction of your choice.

For inquiries, please contact us at +44 770 018 3107, visit our website at b2bhub.ltd, or send us an email at reg@b2bhub.ltd.

By partnering with B2B Hub, you can ensure that your business in Belgium gets off to the best start possible, without the hassle of dealing with complex legalities and paperwork.