Establish Belgian BV (formerly BVBA)

VAT number application

The PLLC must apply for a VAT number after you have been assigned a company number by the Crossroads Bank for Enterprises and before you start the economic activity subject to VAT.

To do this, you must file a declaration of the commencement of your activity Form 604 A with a VAT control office or send this declaration by mail. You can download the form at www.myminfin.be, in the Finform section.

The competent VAT control office is:

• For natural persons: the VAT control office competent for the area of domicile, which is the domicile listed in the national register.
• For legal entities: the VAT control office competent for the area where the company’s administrative headquarters is located, namely where day-to-day management takes place, and where the central accounts are kept.

The application for a company number and a VAT identification number may be made by the taxpayer himself, by a third person or by an authorized business office duly authorized by the taxpayer.

We can of course assist you in applying for a Belgian VAT number for your PLLC.

Tax burden BVBA Belgium

The corporate tax rate is set at 33%. (with crisis contribution 33.99%). However, when the taxable income (profit) does not exceed 322,500 euros, the tax is determined as follows:

• from 0 to 25,000 euros: 24.25%;
• from 25,000 euros to 90,000 euros: 31%;
• from 90,000 euros to 322,500 euros: 34.5%;
• 322,500 euros and above: 33 %

To take advantage of the reduced rate (lower than 33%), you must meet the following conditions:

• The dividends paid by the company cannot exceed 13% of the paid-up capital at the beginning of the taxable period; (i.e. if the paid-up capital is 18,550, a maximum of 2,411 dividends can be paid)
• financial companies that own participations whose investment value exceeds 50% are exempt from the low rate;
• The company must grant to at least one of its managers a remuneration charged to the result of the taxable period of at least 36,000 euros . If the company’s taxable income is less than 36,000 euros, the company must provide at least one of the company’s managers with remuneration that is not less than the taxable income.
• The company must not be part of a group to which a coordination center belongs.
• The shares representing the share capital may not be owned half or more by other companies. So more than half must be owned by natural persons.

Belgium has a 15% “withholding tax” (dividend tax) on a dividend distribution to a natural person. If a BVBA pays dividends to a European company (e.g. a Dutch BV holding the shares of the BVBA) that holds at least 25% of the shares, there is no withholding tax, as this is at 0% tax based on the European Parent-Subsidiary Directive.

VAT rates Belgium
VAT rates in Belgium are as follows:

• 6% mainly for basic products and services provided with a social character (e.g.: vital products, passenger transport, agricultural services)
• 12 % for certain goods and services provided that are important from an economic or social point of view (for example: coal, margarine, pay TV subscription)
• 21 % for all other transactions involving goods or services

If you have questions about the applicability of the BVBA in your situation please contact us.

Nederlandse BV als aandeelhouder

Hierdoor wordt het gemakkelijk om kapitaal of leningen in te brengen, en kunnen dividenden volgens de Europese regels zonder dividendbelasting naar de Nederlandse BV worden overgeboekt. De Nederlandse BV is tevens de bestuurder van de Belgische BV, waardoor er een management fee in rekening gebracht kan worden aan de Belgische dochtervennootschap. 1 aandeelhouder is voldoende en uiteraard kunnen dat er ook meerdere zijn.

VAT rates Belgium

VAT rates in Belgium are as follows:

• 6% mainly for basic products and services provided with a social character (e.g.: vital products, passenger transport, agricultural services)
• 12 % for certain goods and services provided that are important from an economic or social point of view (for example: coal, margarine, pay TV subscription)
• 21 % for all other transactions involving goods or services

Financial plan

The notary in Belgium will want to receive a financial plan for the formation of the PLLC. This plan includes a summary of projected revenues and expenses, available financial resources and investments needed. You also explain your business strategy, and you make clear how that strategy will keep the LLC financially sound. We are happy to assist you in preparing the financial plan.

If you would like to receive a draft financial plan, please contact us.

Registration Crossroads Bank

After incorporation, the PLLC is entered in the register. This register is known in Belgium as the Crossroads Bank.

More info can be found at this link: Crossroads Bank Belgium

Bank account BVBA

If you do business in Belgium, a Belgian bank account is actually a must. You should also deposit the minimum capital into this account so that the bank can issue a bank statement / bank certificate to the notary.

Wj can assist you in opening a bank account for the PLLC.

Minimumloon bestuurder

In België is het mogelijk dat de bestuurder / zaakvoerder zijn werkzaamheden onbezoldigd (dus zonder vergoeding) uitvoert. Voorwaarde is dan wel dat de bestuurder daadwerkelijk geen vergoedingen in een andere vorm ontvangt. Indien er buiten de BV andere inkomstenbronnen zijn, dan is te bewijzen dat de zaakvoerder van een ander inkomen zijn privé verplichtingen voldoet. Indien dit niet het geval is dan dient de bestuurder toch een salaris uit de Belgische BV op te nemen. Dit is te voorkomen door een Nederlandse BV bestuurder te laten zijn van de Belgische BV.