Belgium is a highly developed economy located at the heart of Europe, serving as the political and economic center of the European Union. Home to major EU institutions and NATO headquarters, Belgium offers unparalleled access to European markets and decision-makers. The economy is highly diversified, with services accounting for approximately 77% of GDP, industry contributing around 22%, and agriculture about 1%. Key growth sectors include pharmaceuticals, chemicals, automotive, logistics, and financial services. Belgium’s strategic location, multilingual workforce, and excellent infrastructure make it an ideal hub for European operations.
Unlock growth opportunities in Belgium with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Belgium’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Belgium, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Belgium’s employment and tax laws, helping you scale confidently and compliantly.
The most popular type of company in Belgium and is basically a private limited liability structure. The BV/SRL no longer requires a minimum share capital upon incorporation, however, the chosen amount needs to be sufficient for the intended business activities. This entity offers limited liability protection and operational flexibility, making it ideal for most international businesses seeking to establish operations in Belgium and access EU markets.
A public limited company suitable for larger operations requiring significant capital investment or planning public offerings. Formation of a Belgium joint-stock corporation can be done with i) two shareholders ii) three directors and iii) a minimum share capital of €65,550. This structure is governed by strict corporate governance requirements and is ideal for companies planning stock exchange listings or substantial growth with external investors.
Allows foreign companies to conduct business activities in Belgium under the parent company’s name. Requires registration with the Crossroads Bank for Enterprises (KBO/BCE) and compliance with local regulations. No minimum capital requirement, but the branch operates under the liability of the parent company and must maintain local accounting records.
A limited presence allowing foreign companies to conduct market research, liaison activities, and represent the parent company’s interests. Cannot engage in commercial activities or generate revenue in Belgium. Suitable for companies exploring the Belgian and EU markets before full establishment.
The shareholders of the BV/SRL can appoint one or more persons as directors, acting individually or as a board. No legal requirement for Belgian resident directors, providing complete flexibility for international companies. Foreign nationals can serve as directors without restriction, though having local representation can facilitate banking and government relationships.
Must have a board of directors with at least three members for companies meeting certain size criteria. No residency requirements for board members, allowing full foreign ownership and management. Larger companies must comply with additional corporate governance requirements including supervisory boards.
Requires appointment of a person authorized to represent the branch, who must be registered with Belgian authorities. This person is responsible for the branch’s activities and compliance with Belgian regulations, including filing requirements and tax obligations.
Must appoint a chief representative responsible for the office’s activities and compliance with Belgian regulations. Registration required with relevant Belgian authorities and KBO/BCE.
Belgian bank account setup follows EU banking compliance procedures with excellent international connectivity:
Bank Account Setup in Belgium: Process and Requirements
Before Incorporation:
After Incorporation:
Note:
All banking activities must comply with EU anti-money laundering regulations and Belgian banking law.
Required documents include KBO/BCE registration extract, articles of association, directors’ identification documents, proof of registered office address, and VAT registration documents.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Employment in Belgium is governed by the following primary legislation:
Employment contracts must be in writing in Belgium for contracts exceeding specific durations and provided to employees before commencement of work.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Permanent Employment Contract (Overeenkomst van Onbepaalde Duur)
The standard form of employment providing ongoing job security and comprehensive employment protections. Provides full access to statutory benefits and strongest employee protections under Belgian employment law. Can be full-time or part-time arrangements with proportional benefits.
Fixed-Term Employment Contract (Overeenkomst van Bepaalde Duur)
Used for temporary positions with specific end dates or completion of particular projects. Limited to maximum 4 successive contracts over 3 years before automatic conversion to permanent employment. Provides same entitlements as permanent employment during the contract term.
Temporary Work Contract (Uitzendovereenkomst)
Employment through temporary work agencies for specific assignments. Provides flexibility for both employers and employees while maintaining employment protections and benefits during assignment periods.
Probation periods were abolished in 2014 for most standard contracts, except for specific exceptions (e.g., temporary work, students, or interim agency work).
The standard working hours in Belgium are typically 8 hours per day and 38-40 hours per week, depending on sector and collective agreements. Maximum working time is limited by EU Working Time Directive to 48 hours per week on average.
Overtime
Belgium has a system of voluntary overtime wherein an employee can agree to work 120 overtime hours. Additionally, sector CBAs can increase this to 360 hours per year, and the agreement is only valid for a renewable period of 6 months.
Notice periods in Belgium vary based on employee status and length of service:
Blue-collar workers:
White-collar workers:
Severance pay may be required in certain circumstances, particularly for dismissals without notice or redundancies.
EU/EEA and Swiss citizens can live and work in Belgium without restrictions. However, non-EU/EEA nationals must obtain appropriate work authorization before beginning employment.
Work Visa & Permit Options in Belgium
1. Single Permit (Gecombineerde Vergunning)
Combines residence and work permits for non-EU nationals employed by Belgian companies.
2. EU Blue Card
For highly skilled professionals with university degrees and high-salary job offers.
Key Requirements:
Whether you’re hiring from within the EU or abroad, Belgium offers streamlined work and residence authorization routes through the Single Permit and EU Blue Card systems—making it easier for companies to bring in global talent efficiently and compliantly.
Employees are entitled to a minimum of 20 days (4 weeks) paid annual leave per year. Many collective agreements provide additional days, commonly 25-28 days total. Part-time employees receive proportional entitlements based on working patterns.
Female employees are entitled to 15 weeks of maternity leave – up to 6 weeks before birth and minimum 9 weeks after birth. Maternity leave is paid through social security at approximately 82% of salary for the first 30 days, then 75% thereafter, subject to caps.
Male employees are entitled to 20 days of paternity leave following birth or adoption – 10 days at 82% of salary (first 3 days paid by employer) and 10 days at flat rate through social security. Leave must be taken within 4 months of birth.
Each parent is entitled to 4 months of parental leave per child, which can be taken full-time, part-time, or in blocks. This leave is compensated at a flat rate by the ONEM/RVA (Belgian unemployment agency).
Sick leave is fully paid by the employer for the first 30 calendar days. Thereafter, it is partially compensated (around 60%) by the health insurance fund (mutualité).
The following statutory national holidays are observed in Belgium:
Payroll frequency in Belgium is typically monthly, with salary payments required by the end of each month. Some sectors may have different payment cycles based on collective agreements. Employers must issue detailed monthly payslips and submit DIMONA declarations for each employee hire, change, or termination to Belgian social security
Belgium commonly provides 13th month bonus (double holiday premium) and single holiday premium, typically paid in May/June. While not universally legally required, these are standard practice in most sectors through collective agreements.
Combined social security contributions total around 45% of gross salary, with 25% paid by employers and approximately 20% by employees (subject to income brackets and sector).
The mandatory and statutory benefits in Belgium are:
Belgian accounting follows Belgian GAAP based on EU directives, with larger companies also required to comply with International Financial Reporting Standards (IFRS) for consolidated accounts.
All Belgian companies must file annual accounts with the National Bank of Belgium.
Mandatory audit required for companies meeting certain criteria:
Medium-sized companies may qualify for limited review instead of full statutory audit.
A global minimum tax of 15% applies to multinational groups with annual consolidated revenue ≥ €750 million, effective January 2024, in line with OECD Pillar Two.
The standard VAT rate is 21%.
Reduced VAT rates include 6% (e.g., food, books, medicines), 12% (e.g., restaurant services excluding alcohol), and 0% for exports and certain exempt items.
The filing deadline for annual corporate income tax returns is typically 4 months after the balance sheet date, with extensions possible for companies with approved accounting periods.
Penalties include interest on unpaid taxes, administrative fines for late filing, and potential criminal liability for serious tax evasion. Belgian tax authorities have comprehensive penalty regimes with substantial financial consequences.
Belgium has comprehensive transfer pricing rules aligned with OECD guidelines:
Belgium implements CbC reporting requirements:
Transfer pricing documentation is mandatory for Belgian companies involved in controlled transactions exceeding specified thresholds.
Master File
Local File
Deadline: Transfer pricing documentation must be available upon request by tax authorities, typically within specified timeframes following formal requests.
GDPR is directly applicable, and Belgium’s Data Protection Authority (Gegevensbeschermingsautoriteit / Autorité de protection des données) oversees compliance.
The Belgian Data Protection Authority (DPA) ensures enforcement and compliance with GDPR and national privacy laws.
Belgium’s AML framework is governed by the Law of July 18, 2017, implementing EU AML directives and regularly updated to meet evolving international standards.
Key requirements:
Obligated entities: Banks, insurance companies, investment firms, real estate professionals, accountants, lawyers, notaries, and other financial service providers.
Penalties: Administrative and criminal penalties including substantial fines, imprisonment, and potential license revocation for serious violations.
Reasons you should setup legal entity in Belgium:
Cerity Global ensures your business expansion in Belgium is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Belgium business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Belgium.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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