Relocating to Belgium to Start a Business: What You Should Know

Belgium, situated at the heart of Europe, is an ideal location for entrepreneurs looking to start a business. With a well-established infrastructure, favorable business environment, access to international markets, and a skilled workforce, Belgium offers numerous advantages for new business ventures. Whether you’re relocating from abroad or considering Belgium for your new entrepreneurial endeavor, understanding the key steps and the business landscape is critical to ensure your business succeeds in this vibrant market.

In this article, we will explore why Belgium is an attractive destination for new businesses and provide an in-depth guide to the steps you need to take to set up your company in Belgium.

Why Relocate to Belgium?

Belgium offers several unique advantages that make it an attractive destination for entrepreneurs looking to relocate their businesses:

1. Strategic Location in Europe

Belgium’s central location within Europe gives businesses access to the European Union’s single market, which consists of over 500 million consumers. As part of the EU, Belgium is a gateway to international markets, making it an ideal location for companies seeking to expand their footprint in Europe. Belgium is also well connected to other key markets in the EU, such as France, Germany, and the Netherlands.

2. Favorable Business Environment

Belgium has a business-friendly environment with competitive corporate tax rates, a stable legal and financial system, and excellent infrastructure. The government offers various incentives and grants to foreign investors, particularly in sectors like technology, research and development, and green energy. Additionally, Belgium has an efficient regulatory framework that supports business growth and innovation.

3. Skilled Workforce and Multilingual Capabilities

Belgium has a highly educated, multilingual workforce. The country is home to a pool of skilled professionals, particularly in sectors such as technology, engineering, finance, and logistics. Many Belgians speak multiple languages, including Dutch, French, and English, which is beneficial for international businesses.

4. Access to Capital and Financing

Belgium offers various funding options for startups and entrepreneurs. From government grants and subsidies to venture capital and angel investors, there are numerous opportunities for securing financing. The Belgian government actively supports startups, especially in innovative industries like technology, biotech, and renewable energy.

5. Innovation and Technology Hub

Belgium has become a hotspot for technology startups, particularly in cities like Brussels, Ghent, and Antwerp. The country has established itself as a leader in research and development, fostering innovation and attracting tech-savvy entrepreneurs from around the world. The Belgian government has created policies that encourage innovation, making it a great place for tech startups to thrive.

Steps to Relocate and Start a Business in Belgium

Starting a business in Belgium is a streamlined process, but it’s essential to understand the key steps involved. Below are the main steps to follow when relocating to Belgium and setting up your business:

Step 1: Choose the Right Business Structure

The first step in starting a business in Belgium is selecting the appropriate legal structure. There are several options available depending on your business goals, size, and type of activities. The most common business structures in Belgium include:

• Private Limited Liability Company (BV/SRL): This is the most popular structure for small and medium-sized enterprises (SMEs). It offers flexibility in management and limits the shareholders’ liability to the amount of their investment.

• Public Limited Liability Company (SA/NV): Suitable for larger businesses that want to issue shares or attract significant capital investment.

• Sole Proprietorship: A simpler option, usually chosen by freelancers or solo entrepreneurs.

• Cooperative (CVBA): For businesses that involve multiple partners or stakeholders.

The structure you choose will determine how you pay taxes, how your business is managed, and your liability as a business owner.

Step 2: Register Your Business with the Crossroads Bank for Enterprises (CBE)

In Belgium, all businesses must register with the Crossroads Bank for Enterprises (Kruispuntbank van Ondernemingen). The registration process is straightforward and can be done online. You will need to provide the following information:

• Company name

• Company structure

• Legal address in Belgium

• Details of the directors and shareholders

• Description of business activities

Once your business is registered, you will receive a company number, which is required for all legal and tax-related matters. This process typically takes a few days, depending on the complexity of your business.

Step 3: Obtain a VAT Number (If Applicable)

If your business is involved in selling goods or services, you will need to register for VAT (Value Added Tax). A VAT number allows you to charge VAT to your customers and reclaim VAT on business expenses. Registration can be done through the Belgian tax authorities (Service Public Fédéral Finances). Once registered, you will receive a VAT number that must be displayed on invoices and other business documents.

Step 4: Open a Business Bank Account

To manage your business finances, you will need to open a business bank account in Belgium. This is a necessary step for handling payments, paying taxes, and maintaining financial transparency. Belgium has a robust banking sector, with numerous banks offering services tailored to businesses. Choose a bank that offers features like online banking, multi-currency accounts, and easy international transfer capabilities.

Step 5: Hire Employees and Comply with Employment Regulations

If you plan to hire employees for your business in Belgium, you will need to comply with Belgian labor laws. This includes registering with the National Social Security Office (ONSS/RSZ), which manages social security contributions. Belgium has strict labor regulations, including rules for working hours, minimum wages, and employee rights. Employers are responsible for withholding social security contributions from employee wages and remitting them to the government.

Step 6: Set Up Accounting and Taxation Systems

In Belgium, businesses are required to maintain accurate financial records and file annual tax returns. The corporate tax rate in Belgium is generally 25%, but there are tax exemptions and deductions available for certain types of businesses. It’s important to hire an accountant or use accounting software to keep track of your income, expenses, and tax obligations. Belgium also has a system for taxing digital services, so online businesses must comply with these regulations.

Step 7: Obtain Necessary Licenses and Permits

Depending on the type of business you are starting, you may need to obtain specific licenses or permits. For example, if you are opening a restaurant or retail business, you will need food safety certifications, alcohol licenses, or other industry-specific approvals. It’s essential to research the requirements for your particular business sector and apply for the necessary licenses before operating.

Costs of Starting a Business in Belgium

The costs of starting a business in Belgium can vary depending on the structure, location, and size of the business. However, here are some common costs you should consider:

1. Company Registration Fees: The cost of registering a business in Belgium typically ranges from €250 to €1,000, depending on the business structure and complexity.

2. VAT Registration: There are no direct fees for obtaining a VAT number, but businesses must comply with VAT filing requirements and submit periodic VAT returns.

3. Legal and Accounting Fees: Hiring legal and accounting professionals will cost additional fees. Legal fees can range from €100 to €300 per hour, while accounting services may cost between €100 and €500 per month.

4. Business Bank Account Fees: Business bank accounts in Belgium usually have setup fees and monthly maintenance charges, which can range from €10 to €30 per month.

5. Licenses and Permits: Depending on your industry, you may need to pay for specific licenses or permits.

   
   

How B2B Hub Can Help

Relocating to Belgium and starting a business requires navigating legal, tax, and regulatory landscapes. B2B Hub specializes in company formation in Belgium and can help you through the entire process, from business registration to opening a bank account and obtaining permits.

Our services include:

• Business registration with the Crossroads Bank for Enterprises (CBE)

• VAT registration and tax compliance

• Opening a business bank account

• Assistance with licenses and permits

• Legal and accounting advisory

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. Let us help you establish and grow your business in Belgium!