Domiciliation in Belgium for Foreign Companies

Why Establish in Belgium?

Belgium occupies a strategic position at the heart of Europe. Sharing borders with France, the Netherlands, Germany, and Luxembourg, it constitutes an ideal entry point to access the European market of 450 million consumers.

Belgium's main assets for foreign companies are:

• Central location: quick access to major European markets
• EU headquarters: proximity to European institutions and policymakers
• Qualified and multilingual workforce: French, Dutch, English, German
• Transport infrastructure: ports of Antwerp and Zeebrugge, dense motorway network
• Competitive tax regime: SME rate of 20% on the first EUR 100,000

Establishment Options

Option 1: The Branch (Succursale)

A branch is a permanent establishment of the foreign company in Belgium. It has no separate legal personality: it is an extension of the parent company.

Advantages:

• No capital contribution needed
• Simplified creation procedure
• Results consolidated with the parent company

Disadvantages:

• The parent company is fully liable for the branch's debts
• Belgian accounting and tax obligations
• Filing of the parent company's annual accounts at the clerk's office

Formalities:

Option 2: A Belgian Subsidiary (SRL or SA)

A subsidiary is a separate company under Belgian law, created by the foreign company. It has its own legal personality and constitutes an autonomous entity.

Advantages:

• Liability limited to the subsidiary's capital
• Access to the SME rate (20% on the first EUR 100,000)
• Image of a local Belgian company
• Eligibility for regional aids and subsidies

Disadvantages:

• More burdensome creation procedure (notarial deed, financial plan)
• Starting equity required
• Double accounting and reporting

Option 3: A Representative Office

For a light presence without direct commercial activity, a representative office may suffice. It is mainly used for prospecting, market research, or liaison activities.

The Role of Domiciliation

Domiciliation is a valuable tool for foreign companies as it enables them to:

• Obtain an official Belgian address without renting offices
• Satisfy the legal requirement for a registered office in Belgium
• Manage official mail (tax administration, CBE, courts)
• Have a local contact for administrative formalities
• Access meeting rooms for appointments with local partners

Specific Obligations for Foreign Companies

Tax Obligations

• Corporate tax: the branch or subsidiary is taxed on profits generated in Belgium
• VAT: mandatory VAT registration and filing
• Withholding tax on salaries: source deduction on employees' wages in Belgium
• Double tax treaty: Belgium has signed treaties with over 95 countries

Accounting Obligations

• Mandatory double-entry bookkeeping
• Annual filing of accounts with the National Bank of Belgium
• Audit of accounts if certain thresholds are exceeded

Anti-Money Laundering Obligations

Foreign companies are subject to the same anti-money laundering obligations as Belgian companies. Registration in the UBO register (Ultimate Beneficial Owner) is mandatory.

Practical Steps

Conclusion

Are you a foreign company wishing to establish in Belgium? LegalBelgique offers a turnkey solution: domiciliation at a prestigious address, assistance with creating your branch or subsidiary, and ongoing administrative support. Make Belgium your gateway to Europe with LegalBelgique!