Doing business

Belgium

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Besloten vennootschap met beperkte aansprakelijkheid (BVBA) is a Private Limited Company. EUR 18,550 entirely subscribed and released up to minimum EUR 6,200. EUR 12,400 in case of one shareholder.	At least one shareholder Partners' liability is limited to the amount contributed.
Naamloze vennootschap (NV) is a Public Limited Company. 61,500 € totally subscribed and released.	Minimum 2 shareholders. Partners' liability is limited to the amount contributed.
Vennootschap Onder Firma (VO) is a general partnership. No minimum capital.	Minimum 2 partners. Partners' liability is joint and several.
Commanditaire Vernootschap (CV) is a limited partnership. No minimum capital.	Two types of partners: active partners and sleeping partners. Active partners' liability is joint and several, while the sleeping partners are liable for debts until the amount of the sum contributed.
The co-operative company (SC) with unlimited and joint liability (SCRIS) or gathers a group of companies. No minimum capital.	Maximum 3 partners. Partners' liability is joint and unlimited on their whole personal assets.
The co-operative company with limited liability (SCRL) is similar to the BVBA / SPRL. EUR 18,550 released up to EUR 6,200.	Maximum 3 partners. Partners' liability is limited to the amount contributed.

Business setup procedures

Setting up a company	Belgium	OECD
Procedures (number)	3.0	5.6
Time (days)	4.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Belgium.
COFACE, Belgian companies register.
The competent organization: The bank, the notary and the business one-stop shop.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	109,956	23,595	61,714
FDI stock (millions USD)	671,084.4	862,503.3	670,013.4
Performance Index*, ranking on 141 economies	4	28	-
Potential Index**, ranking on 141 economies	15	-	-
Number of Greenfield investments***	182	101	-
FDI inwards (in % of GFCF****)	96.3	109.0	-
FDI stock (in % of GDP)	132.9	177.2	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Belgium

Strong points

Belgium's strong points are:
- A highly educated, productive, multilingual and flexible workforce;
- Quality business infrastructures;
- The country's strategic location at the center of Europe;
- A tradition openness to international trade; and
- Good quality of life.

Weak points

Belgium's weak points are:
- High cost of salaries;
- A damaged financial system.

Government measures to motivate or restrict FDI

The Belgian government recently introduced the notional interest. This is a new and innovative measure in the field of international tax law, by which all companies subject to Belgian corporate tax will be able to deduct from their taxable income an amount equal to the interest they would have paid on their capital in the case of long-term debt financing. In addition, the 0.5% registration fee on capital contributions has been abolished. For more information on the notional interest and investing in Belgium, please go to Invest in Belgium.

With regard to the financial crisis, the outcome from the authorities was quick, with the hardening of lending conditions on the inter-banking market. Nevertheless, the Belgian government will develop and implement withdrawal strategies later, aimed at avoiding having the state hold a long-term stake in the creation.

Procedures relative to foreign investment

Freedom of establishment: Belgium has in place policies to facilitate the free flow of financial resources. Credit is allocated at market rates and is available sufficiently to foreign and domestic investors without discrimination. Belgium is fully served by the international banking community and is implementing all relevant EU financial directives.

More than 100 different banks are represented in Belgium; 54 Belgian or foreign-owned institutions are incorporated under Belgian law, and 50 institutions are incorporated under foreign law.
Acquisition of holdings: Legal.
Obligation to declare: Direct foreign investments are not submitted to a preliminary authorization, but in some activity sectors, the investor has to ask for an authorization from the government: banks, insurances, food products production or sale, retail trade.
Competent organization for the declaration

Finding assistance for further information

Investment aid agency: Invest in Belgium.
Other useful resources: OECD