Mandatory Financial Plan for SRL/SA in Belgium: Practical Guide
What is a Financial Plan?
The financial plan is a mandatory document when creating an SRL or SA in Belgium. It demonstrates that the initial capital is sufficient to ensure the company's operations for at least 2 years.
Why is it Mandatory?
Since the Companies and Associations Code (CSA), founders must ensure their company has sufficient means to cover:
- Initial investments
- Operating expenses
- Working capital needs
- For a minimum period of 2 years
Founders' liability: in case of bankruptcy within the first 3 years, the court may presume insufficient capital if the financial plan was manifestly inadequate.
Mandatory Content
The financial plan must include at minimum:
1. Description of Intended Activity
- Business sector
- Products or services offered
- Target market
- Competition and positioning
2. Required Investments
Detailed list of investments:
| Investment Type | Estimated Amount |
|---|---|
| Goodwill | €20,000 |
| Computer equipment | €5,000 |
| Office furniture | €3,000 |
| Vehicle | €15,000 |
| Initial stock | €10,000 |
| Total | €53,000 |
3. Available Financial Resources
- Share capital (cash and in-kind contributions)
- Bank loans
- Subsidies and grants
- Personal loan from founders
- Shareholder current account
4. Projected Income Statement (2 years)
Monthly or quarterly projection of revenues and expenses:
Year 1
- Projected turnover
- Direct costs (purchases, subcontracting)
- Personnel costs
- Other fixed costs (rent, insurance, energy)
- Depreciation
- Net result
Year 2
- Same items with realistic evolution
5. Projected Cash Flow Plan (2 years)
Monthly cash flows to identify:
- Peak cash needs
- Risks of temporary deficit
- Working capital requirements
6. Projected Opening Balance Sheet
- Assets: fixed assets, inventory, receivables, cash
- Liabilities: capital, long-term debt, short-term debt
- Balance verification: Assets = Liabilities
Simplified Financial Plan Example
Starting Assumptions
Sector: IT Consulting
Share capital: €18,600
Bank loan: €30,000
Initial investments: €40,000
Projected Income Statement - Year 1
| Item | Annual Amount |
|---|---|
| Turnover | €120,000 |
| Purchases and variable costs | -€20,000 |
| Gross margin | €100,000 |
| Salaries and charges | -€60,000 |
| Rent | -€12,000 |
| Other fixed costs | -€15,000 |
| Depreciation | -€8,000 |
| Net result | €5,000 |
Cash Flow Plan - First Quarter
| Month | Jan. | Feb. | March |
|---|---|---|---|
| Receipts | €8,000 | €10,000 | €12,000 |
| Disbursements | -€15,000 | -€9,000 | -€9,000 |
| Monthly balance | -€7,000 | +€1,000 | +€3,000 |
| Cumulative cash | €41,000 | €42,000 | €45,000 |
Mistakes to Avoid
- Too optimistic projections: don't overestimate revenues
- Forgetting expenses: include all costs (insurance, licenses, taxes)
- Neglecting working capital: working capital needs can be tricky (payment terms)
- Insufficient capital: better to plan generously to avoid cash flow problems
- No risk sensitivity: include a pessimistic scenario
Who Can Help?
- Accountant: most qualified to establish a realistic financial plan
- Business creation advisor: can guide you through assumptions
- Banker: to validate coherence in the context of a loan application
How to Keep the Financial Plan?
The financial plan is not published and remains confidential. However:
- Keep it carefully in your archives
- It can be requested by a court in case of bankruptcy
- It constitutes proof of your prudence as a founder
Conclusion
The financial plan is more than a formality: it's a management tool that allows you to verify your project's viability. Take time to do it correctly.
Need help establishing your financial plan? LegalBelgique supports you in writing and validating your compliant financial plan.
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