Starting A Business In Belgium In 2024? Here’s What You Need To Know

Belgium, a country at the heart of Europe, is a great location for any business looking to break into a new market.

And it’s an exciting economy to enter, with forecasts predicting a steady increase of around 1.3% for 2024 and 2025, according to the European Commission.

But starting a company as a foreigner in Belgium isn’t as simple as just turning up and kicking off. Here, we take you through everything you need to know, including laws, taxes and key lifestyle considerations. Let’s get into it..

Key Considerations Before Moving To Belgium

On paper, Belgium is an amazing place to live. From bustling Brussels to the gorgeous countryside, it’s an amazing place to live and work. However, before moving it’s important to know what you’re getting yourself in for. Including:

Cost of Living

Depending on where you decide to open a business, the cost of living in Belgium can be quite high. Like in most places Brussels, the capital, tends to be more expensive than smaller cities like Liège or Ghent.

For reference, according to Wise, the average cost of a 1 bedroom apartment in Brussels city centre costs around €828.87. This makes it a more expensive place to live and work than other countries further towards Eastern Europe, but you do get a high standard of goods and public services.

Language

Belgium is split into three regions—Flanders, Wallonia, and Brussels-Capital—each with its own official languages (Dutch, French, and a bit of German).

Depending on where you live, understanding and learning the local language can be beneficial for both living and working.

Visa Type

If you are a non-EU/EFTA citizen, you mat need a work permit to start a business. First, have a look at any work agreements that exist between the country you are from and Belgium to see the visas required and the costs.

Starting Your Business In Belgium: A Step-By-Step Guide

So you’ve decided that you want to move to Belgium to start up a business. It’s now time to get into the nitty gritty. Here are some elements you’ll need to think about:

Step 1: Your Business Structure

Belgium has a number of options when it comes to business structure. The right one depends on the size of the business, industry and how many people are in charge of running it.

Some options include:

• Sole Trader (Eenmanszaak/Entreprise Individuelle): This is perfect for any one man band and works in a similar way to freelancers. The owner is fully liable for the business’s debts, documents and taxes.
• Partnership (SNC/Société en Nom Collectif): A business owned by two or more people, with all partners equally liable for the company’s debts.
• Limited Liability Company (BV/SRL – Besloten Vennootschap/Société à Responsabilité Limitée): A popular choice for SMEs. The company is set up like a LLC. The owners are only liable for the amount invested at the time the company was founded and the company pays the corporate tax rate.
• Public Limited Company (SA/NV – Société Anonyme/Naamloze Vennootschap): Similar to the above but better for larger businesses that are looking to raise capital publicly. They require a minimum capital investment of €61,500.

Step 2: Get The Paperwork You Need

Once you have decided your business structure, it’s important to make sure you have the right to work in Belgium.

If you are a non-EU/EFTA national, you will need to apply for a professional card, which acts as a work permit. You can apply for this card at a Belgian embassy in your home country or when you apply for a visa.

If you are a EU/EFTA national, you don’t need a permit to start a business.

Step 3: Register Your Business

Every business in Belgium has to be registered with the CBE, which will then give you a unique company number.

It costs around €70 to register your business in Belgium, however you might also need to pay for elements like VAT registration, admin fees and a fee to publicise your articles of association.

To register, you will need to show a valid ID, a plan for the business and a registered office in the country. It’s worth also having a business bank account ready, as personal bank accounts won’t be accepted.

Step 4: Pull The Documents Together

Before approving your business, the Belgian government will want to know what the business plan is. If you are registering as a limited or public company, having your articles of association together will mean that your company’s structure, purpose and shareholders are clearly laid out.

This will also need to include some kind of financial plan, showcasing that what you have planned is viable and achievable.

Step 5: Check If You Need Extra Permits

Depending on the nature of your business, you may need some extra permits or licences. For example, if you are a lawyer, doctor or working in food and drink, you might need some extra documentation.

If your business has any negative environmental impact, you may also need to apply for environmental permits.

Step 6: Get To Know Local Employment Laws

If your business involves hiring employees, you’ll need to get to know local labour laws.

The standard workweek in Belgium is capped at 38 hours. The minimum wage is currently around €2,o70 per month for full-time employees, making it one of the highest minimum wage countries in the world.

Employees are entitled to a minimum of 24 days off per year, on top of sick leave and public holidays.

Step 7: Understand Tax

The standard corporate tax rate in Belgium is 25%, however for profits under €100,000, SMEs can benefit from a reduced rate of 20%.

When it comes to income tax, the lowest rate (up to €15,200) sits at 25%, whilst those earning over €46,440 are taxed at 50%.

VAT sits at 21%, however businesses must only pay VAT if their business turns over more than €25,000 per year. However, there are some essential items that have a reduced VAT of around 6%.

Should You Start A Business In Belgium?

Starting a business in Belgium can be an exciting move for any company looking to expand into Europe. With careful planning and consideration, the process can be simple, efficient and easy to manage.

Veel geluk!