Doing Business in the European Union 2021: Austria, Belgium and the Netherlands

Comparing Business Regulation for Domestic Firms in 24 Cities in Austria, Belgium and the Netherlands with Other European Union Member States

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Contents

Doing Business in Belgium...... 1 Main findings...... 3 Except for Liège, each city is a top performer or a runner-up in at least one area...... 3 All three regions have good practices to share...... 4 Except for in starting a business, regulatory performance varies among cities...... 4 The time to do business varies widely across the country, but the overall quality of regulation is uniform...... 5 What’s next?...... 6 Combining subnational good practices shows Belgium’s potential for improvement ...... 6 Belgium could also look to other EU member states and international best practices to improve its business environment...... 7 Starting a Business ...... 11 Starting a business is uniform across all cities and regions...... 11 Starting a business in Belgium is faster than the EU average, but there is room for improvement on procedural complexity and cost...... 11 How does an entrepreneur start a business in Belgium?...... 12 What can be improved?...... 16 Dealing with Construction Permits...... 20 Antwerp performs best, but no one city excels in all measures of efficiency...... 20 Dealing with construction permits in Belgium requires fewer procedures and is less expensive than in most other EU member states, but takes longer...... 20 Procedural differences across Belgian cities stem largely from different water and sewage connection applications and municipal requirements after construction...... 20 Municipal procedures account for nearly two-thirds of the time to deal with construction permits...... 23 Building permits and water and sewage connection fees drive cost variations...... 24 What can be improved?...... 25 Getting Electricity...... 28 Electrical service is reliable, but Belgium could improve the efficiency of getting electricity...... 28 Obtaining electricity requires the same procedural steps, but time and cost vary substantially across locations...... 29 The time to get excavation approvals is the main driver of time variations...... 30 Electricity supply is most reliable in Antwerp, Bruges, Brussels, and Ghent...... 31 What can be improved?...... 31 Registering Property...... 35 On average, property registration is fastest and least expensive in Flanders...... 35 Registering property in Belgium takes longer and is more expensive than in most other EU member states...... 35 Registering property requires the same eight procedures across all Belgian cities...... 35 The time to obtain certificates and the transcription and registration of the notarial act drive variations in time...... 37 Registration taxes make up the largest portion of the cost to transfer a property...... 38 Belgian cities perform on par with the EU for quality of land administration, but there is room for improvement...... 39 What can be improved?...... 40 Enforcing Contracts...... 43 Commercial litigation in Belgium is faster and cheaper than the EU average...... 43 Contract enforcement is fastest in Namur and Charleroi and takes the longest in Bruges and Brussels...... 45 What can be improved?...... 47 City Snapshots and Indicator Details...... 55 Acknowledgments...... 74 ii Doing Business in BELGIUM

Bruges Antwerp

Ghent

Brussels

Liège

Namur Charleroi 2 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Doing Business in Belgium benchmarks business regulation applying to small and medium enterprises in seven cities representing Belgium’s three regions: Antwerp, Bruges, and Ghent (Flemish Region), Brussels (Brussels-Capital Region), and Charleroi, Liège, and Namur (Walloon Region). The study analyzes the regulatory environment across five Doing Business areas (starting a business, dealing with construction permits, getting electricity, registering property, and enforcing contracts).

Strong performance in one area coexists with weak performance in another. Except for Antwerp (which scores among the top three cities for all areas benchmarked) and Liège (which ranks in the bottom half in four areas), all other cities rank in the top half in at least one area and the bottom half in another. The different strengths of these cities mean they have something to learn from each other.

The largest subnational variations in the ease of doing business score are in enforcing contracts and registering property. Resolving a commercial dispute is easiest in Namur, where it takes only 10 months and a half—faster than in any EU capital—and costs less than the EU average. A combination of relatively high costs and the longer time required to resolve a commercial dispute (almost 17 months) places Brussels below the EU average. These variations in regulatory performance can help policy makers identify and adopt in-country good practice examples to improve regulatory performance in their jurisdictions and take the steps needed to close the gap.

Starting a business is the only area in which the Belgian cities perform homogeneously. There is a high level of centralization—with one-stop shops monitored at the federal level—and national digital infrastructure to carry out most processes in this area. Moreover, small and medium enterprises (SMEs) that do not pose environmental risks or are not subject to special licensing are exempted from most local permit authorizations.

Time is the main source of variation among the performances of the Belgian cities benchmarked. Firms in Brussels spend more productive hours complying with regulatory requirements in the five areas benchmarked than elsewhere in the country: entrepreneurs in the Belgian capital spend nine months more on compliance than their peers in Namur. Wide variations in time reflect the efficiency of local, regional, and federal agencies. Even where legislative requirements are similar—for example, property transfer and contract enforcement—service provision standards can diverge, with either positive or negative consequences for entrepreneurs.

Local good practices, which can be easily replicated, exist in all three regions, especially in dealing with construction permits and enforcing contracts. In starting a business, getting electricity, and registering property, Belgium can also look elsewhere in the European Union and globally to boost its competitiveness. DOING BUSINESS IN BELGIUM 3

ocation matters. Despite its small European Commission’s Small Business Region), Brussels (Brussels-Capital size, Belgium’s geographical loca- Act principles, Belgium performs in line Region), and Charleroi, Liège, and Namur Ltion has made it one of Europe’s with the EU average but lags in the area (Walloon Region).4 By highlighting sub- economic and administrative nerve cen- of entrepreneurship.³ national good practices and benchmark- ters—and an ideal place to do business. ing cities with others across the European However, entrepreneurs must navigate The business regulation analyzed in Union, the report aims to inspire better different regulations and business this report is legislated either federally regulatory practices to improve the busi- environments depending upon where or regionally. Company incorporation, ness environment for small businesses they decide to establish their business property rights, and commercial litiga- and encourage entrepreneurship. within Belgium. A federal state, Belgium tion are governed at the national level comprises three regions (the Brussels- by the Belgian Code of Companies and Capital Region, the Flemish Region, Associations, the Mortgage Act, and the MAIN FINDINGS and the Walloon Region). In addition, Judicial Code. In contrast, the rules and Belgium has three Communities based regulations relating to electricity distribu- Except for Liège, each city is a on language (the Flemish Community, tion and building permitting are set at top performer or a runner-up in the French Community, and the German- the regional level. Still, how Belgian cities at least one area speaking Community). implement regulation varies significantly, Belgian entrepreneurs face different even within the same region. Moreover, regulatory hurdles depending on where Entrepreneurs play a crucial role in the alongside national and regional legisla- they establish their business. It is easi- economy by contributing directly to tive frameworks, local authorities also est to deal with construction permits in job creation and employment growth. set regulations, policies, and incentives, Antwerp, obtain an electricity connection Evidence from across the globe suggests leading to notable variations in the ease in Ghent, register property in Bruges, and that excessive or inefficient regulation of doing business. These differences can resolve a commercial dispute through the can discourage private sector activity help policy makers identify opportunities local court in Namur (table 1). and foreign direct investment. Roughly to improve administrative processes and two-thirds (65%) of Belgian workers are build local institutional capacity. Strong performance in one area coex- employed by SMEs.¹ However, barriers ists with weak performance in another. to entrepreneurship—including burden- This report aims to fill the knowledge Except for Antwerp (which scores among some regulation—can hinder the abil- gap on the quality of business regulation the top three cities in all benchmarked ity of SME owners to start, operate, and and the efficacy of local bureaucracy in areas) and Liège (which ranks in the expand their companies. Belgium per- Belgium. The report uses regional-level bottom half in four areas), all other cities forms below the EU average on the ease data to measure the regulatory hurdles rank in the top half in at least one area and of doing business,² ahead of Luxembourg facing entrepreneurs in seven cities the bottom half in at least one area. For and Italy, but behind Germany, France, representing Belgium’s three regions: example, Ghent ranks 1 (highest) for get- and the Netherlands. Regarding the Antwerp, Bruges, and Ghent (Flemish ting electricity but 7 (lowest) for dealing

TABLE 1 Antwerp, Bruges, Ghent, and Namur are the top performers

Dealing with Starting a business construction permits Getting electricity Registering property Enforcing contracts Rank Score Rank Score Rank Score Rank Score Rank Score City (1–7) (0–100) (1–7) (0–100) (1–7) (0–100) (1–7) (0–100) (1–7) (0–100) Antwerp 1 87.56 1 78.18 2 73.56 3 57.80 3 66.80 Bruges 1 87.56 4 75.70 6 71.18 1 58.52 6 65.55 Brussels 1 87.56 2 76.51 7 70.46 7 51.84 7 64.85 Charleroi 1 87.56 3 76.02 3 72.79 4 53.76 2 69.47 Ghent 1 87.56 7 72.63 1 76.07 2 58.52 4 66.71 Liège 1 87.56 6 74.03 5 72.53 5 53.64 5 66.29 Namur 1 87.56 5 75.29 3 72.79 6 53.28 1 72.00 Source: Subnational Doing Business and Doing Business databases. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only two digits are displayed in the table. The indicator scores show how far a location is from any economy’s best performance on each Doing Business indicator. The scores are normalized to range from 0 to 100 (the higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and the Netherlands.” Data for Brussels are not considered official until published in the Doing Business 2021 report. 4 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

with construction permits. Brussels ranks charge is one-quarter of that paid by firms entrepreneurs complete nine proce- 2 for dealing with construction permits, in Wallonia. The utility in the Flemish dures (compared to 12 in the Flemish but 7 in three other areas (getting elec- Region determines the fees for external and Walloon cities benchmarked). tricity, registering property, and enforcing connection works independently, which This procedural difference stems from contracts). Similarly, Bruges is the top the regional regulator then approve. The varying water and sewage connection scorer for registering property but ranks cost of construction permitting in Bruges requirements; local water and sewage 6 for getting electricity and enforcing and Ghent is the lowest in Belgium and the regimes reflect the different models contracts. These cities’ varying strengths European Union, thanks to low-to-no-cost used by Belgium’s neighbors, France and mean they all have something to learn building permitting strategies targeting the Netherlands.5 In Brussels, service from each other. investment in these cities. applications are combined and submitted to one utility company; in the other All three regions have good In Namur, which scores slightly below cities, entrepreneurs must submit sepa- practices to share France and Luxembourg, contract enforce- rate applications, doubling the required Ghent and Bruges are the cities with the ment is faster than in any EU capital city procedures. highest number of good practices, six and and less expensive than the EU average. five, respectively (table 2). Getting the Locally, contract enforcement in Namur Except for in starting a business, zoning certificate to transfer a property takes six and a half months less than in regulatory performance varies is two weeks faster in Ghent and Bruges Brussels, where the volume of incoming among cities than in the other cities benchmarked, cases slows procedures. Hearing planning Starting a business is the only Doing mainly because notaries can apply for in Namur is usually agreed upon between Business area in which all Belgian cities and receive this certificate electronically. the judge and parties during a pretrial perform homogeneously. Belgium has The efficiency of Antwerp’s local utility hearing; the judge requires only a meet- achieved consistency in this area by company gives the city Belgium’s fastest ing date to decide the case. In contrast, transitioning to online systems, monitor- times for processing water and sewage waiting periods between hearing dates ing one-stop shops at the federal level, connections. Antwerp scores close to in Brussels can last up to three months and exempting SMEs that do not pose Germany—a top-five performer in the longer. Legal fees also tend to be lower in environmental risks or are not subject to European Union—for dealing with con- Namur, likely because of lower demand special licensing from most local permit struction permits. for judicial services. Despite falling under authorizations. The business startup the same court system as Namur, enforce- process is faster in Belgium than the EU The Flemish cities also perform well on ment proceedings in Liège take more than average, but the cost is higher, and more regulatory cost. Connecting a warehouse a month longer (its higher population procedures are required. to the electrical grid is the least expensive results in a greater workload). in Antwerp, Bruges, and Ghent. The meter In the other four areas measured, subna- installation fee is more than EUR 500 Dealing with construction permits is tional variations in regulatory performance cheaper than in Brussels; the capacity most streamlined in Brussels, where can help policy makers identify and adopt

TABLE 2 Bruges and Ghent have the most regulatory good practices

Dealing with Getting Registering Enforcing construction permits electricity property contracts Number of top Fewest Shortest Least Shortest Least Best reliability Shortest Least Shortest Least performances procedures time expensive time expensive of supply time expensive time expensive Ghent 6 ü ü ü ü ü ü Bruges 5 ü ü ü ü ü Antwerp 4 ü ü ü ü Brussels 2 ü ü Namur 2 ü ü Charleroi 0 Liège 0 Source: Subnational Doing Business and Doing Business databases. Note: The table does not show indicators or subcategories in which all cities record an equal result. These indicators or subcategories are starting a business, building quality control index, procedures to obtain a new electricity connection, procedures to register property, quality of land administration index, and quality of judicial process index. Data for Brussels are not considered official until published in the Doing Business 2021 report. DOING BUSINESS IN BELGIUM 5

in-country examples of good practice to evidence; in Antwerp, Ghent, and Bruges, cities determine the process for getting improve regulatory performance in their this hearing’s main purpose is to agree on a new electricity connection. On average, jurisdictions. The regulatory gap between the pleading schedule for the organization Belgium is the second most expensive the highest score and the lowest is widest of case proceedings. These factors influ- country in the EU to register property in the area of contract enforcement (figure ence the time to complete the contract (behind only Malta). Subnational varia- 1). In this area, all Walloon cities, Antwerp, enforcement process, ranging from 235 tions in this area are the result of registra- and Ghent perform above the EU average, days in Namur to 400 days in Brussels. tion taxes, which are set at the regional while Bruges and Brussels fall below the level and range from 10% in the Flemish EU average. Variations in performance In getting electricity and registering Region to 12.5% in Wallonia and Brussels. stem mainly from local courts’ approach property—in which all benchmarked to adjournments, judge workload, and Belgian cities perform below the EU Construction permitting is the one area hearing session availability in the court average—the performance gap between where all benchmarked Belgian cities roster, which affect the time to complete the highest and the lowest score is also perform above the EU average, mainly the trial and judgment phase. In Charleroi, significant. The various electricity dis- because of the relatively low cost of the first hearing is an opportunity to gather tributors operating in the benchmarked construction permitting and the high quality of building regulations. Overall, dealing with construction permits is FIGURE 1 Score variations are widest in enforcing contracts and registering property easiest in Antwerp; it is most difficult in Ghent, where water and sewage connec- Doing Business score (0–100) tions and municipal consultations take Starting a Dealing with Getting Registering Enforcing business construction electricity property contracts the longest in Belgium. permits 100 EU best The time to do business varies EU best (Germany) EU best (Greece) (Lithuania) widely across the country, but the overall quality of regulation EU average EU best 90 (Denmark) is uniform Time is the main source of variation All 7 Belgian cities among the performances of the Belgian EU best cities benchmarked. Complying with 80 Antwerp (Lithuania) bureaucratic requirements takes nine Ghent months longer in Brussels than in Namur

Namur (figure 2). The time to obtain a construction permit or a new electricity connec- Ghent 70 Brussels tion and to enforce a contract varies the most. Dealing with construction permits

Brussels takes five months in Antwerp, but almost eight months in Ghent. Entrepreneurs 60 Bruges spend four months getting electricity in Charleroi, Ghent, Liège, and Namur, but more than 5.5 months in Bruges and Brussels. The time to register a property 50 Brussels ranges from 35 days in Bruges and Ghent to 56 days in Brussels. And contract enforcement takes 6.5 months longer

0 in Brussels than in Namur (313 days). Highest score in country Lowest score in country Country average Such wide variations in time reflect the efficiency of local, regional, and federal agencies. Even where legislative require- Source: Subnational Doing Business and Doing Business databases. ments are similar—for example, property Note: The score indicates how far a location is from the best performance achieved by any economy on each Doing Business indicator. The score is normalized to range from 0 to 100 (the higher the score, the better). Averages for transfer and contract enforcement—ser- Belgium are based on data for the seven cities benchmarked. Averages for the European Union are based on economy- level data for the 27 EU member states. Other EU member states are represented by their capital city, as measured by vice provision standards can diverge, with global Doing Business. For more details, see the chapter “About Doing Business and Doing Business in the European either positive or negative consequences Union 2021: Austria, Belgium and the Netherlands.” Data for Brussels, EU averages, and EU best performances are not considered official until published in the Doing Business 2021 report. for entrepreneurs. 6 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 2 Namur has the fastest turnaround times overall Belgium average EU average (815 days) (964 days)

Namur 681

Charleroi 694

Antwerp 784

Liège 842.5

Ghent 869

Bruges 887

Brussels 949.5

0 100 200 300 400 500 600 700 800 900 1,000 Time (days)

Time to start a business Time to obtain construction permits Time to obtain electricity Time to register property Time to resolve a commercial dispute

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels and EU averages are not considered official until published in the Doing Business 2021 report.

Although the time to comply with and tradeoffs between how smooth a bureaucratic requirements varies signifi- WHAT IS NEXT? bureaucratic process is and its cost. These cantly across Belgian cities, the quality of changes may include merely administra- regulation is relatively uniform nationwide The findings of this report provide Belgian tive improvements, but they could make (except for getting electricity). Variations policy makers at different levels—fed- a significant difference for local SME in the getting electricity process stem from eral, regional, and local—with evidence owners. Regional and local-level reforms the frequency and duration of electricity to support strategic choices in promot- would impact the benchmarked cities’ outages. Cities in Flanders and Brussels ing a better regulatory environment for standings vis-à-vis each other and make had the most reliable electricity supply development and economic growth. This a difference globally. in 2019, with each customer experienc- report points to possible improvements ing, on average, 0.4 service interruptions in that direction (table 3). Eliminating By Brussels aggregating the good lasting a total of 23 minutes on average. unnecessary red tape and improving practices of each benchmarked city, Outages were most frequent in Wallonia, bureaucratic effectiveness can reduce Belgium would raise its score in each where customers experienced around 1.2 the cost of doing business by local firms, Doing Business area by more than 5 points service interruptions on average lasting enhancing their efficiency and ability to (except in starting a business, where approximately 46 minutes. When com- compete abroad. all Belgian cities score the same). The pared with the European Union, Belgium’s potential for improvement is greatest performance is on par for all regulatory Combining subnational good in contract enforcement (figure 3). If quality indexes except that for enforcing practices shows Belgium’s potential Namur (instead of Brussels) represented contracts. Belgian courts are not auto- for improvement Belgium in Doing Business for the ease of mated, and they lag in case management The authorities can implement easily rep- enforcing contracts, the country’s score techniques for judges, lawyers, and parties licable local good practices in the short would improve to 72.00 (from 64.85). to a dispute at the national level. These term. Local officials and local offices of Similarly, by making the construction areas point to the critical role of the federal central agencies can use this report to permitting process as fast as in Antwerp and regional governments in improving identify the policies of their better-per- and as affordable as in Bruges and Ghent, the local business environment and help- forming peers and take the steps needed Belgium’s score would improve from ing Belgian cities adopt good international to close the gap. Nevertheless, several 76.51 to 81.80, ahead of Germany and practices. factors can determine if replicating a among the European Union’s top five good practice is desirable, including local performers for getting a construction economic priorities, resource allocation, permit. If Brussels were to cut its time DOING BUSINESS IN BELGIUM 7

FIGURE 3 Except for starting a business, adopting domestic good practices would improve Belgium’s score by more than 5 points in each indicator Belgium (Brussels) Best of Belgium Ease of doing business score (0–100) Potential score (0–100)

Dealing with construction permits 9 procedures (Brussels), 152.5 days (Antwerp), 81.80 0.1% warehouse value (Bruges, Ghent), 12 points on building quality control (all cities)

Dealing with construction permits Getting electricity 6 procedures (all cities), 120 days (Ghent), 9 procedures, 211 days, 76.51 76.07 0.9% warehouse value, 109.8% income per capita (Antwerp, Bruges, Ghent), 12 points on building quality control 8 points on reliability of supply (Antwerp, Bruges, Brussels, Ghent) Getting electricity 72.00 Enforcing contracts 313 days (Namur), 11.3% claim value (Namur), 6 procedures, 171 days, 70.46 131.9% income per capita, 8 points on quality of judicial processes (all cities) 8 points on reliability of supply Enforcing contracts 64.85 505 days, 16.4% claim value, 8 points on quality of judicial processes

58.52 Registering property 8 procedures (all cities), 35 days (Bruges, Ghent), 10.2% income per capita (Antwerp, Bruges, Ghent), 23 points on quality of land administration (all cities) Registering property 51.84 8 procedures, 56 days, 12.7% income per capita, 23 points on quality of land administration

Source: Subnational Doing Business and Doing Business databases. Note: The starting a business indicator is not represented in the figure as the process is homogeneous nationwide. As represented by Brussels, Belgium scores 87.7 for the ease of starting a business. Data for Brussels are not considered official until published in the Doing Business 2021 report. to obtain an electricity connection to In addition to having a single identifica- The Belgian authorities and utilities could that of Ghent (120 days) and the cost to tion number, economies with the most create an online platform similar to that that of Flanders (109.8% of income per efficient business registration systems of the French distribution utility, Enedis, capita), Belgium’s score for the ease of use a single electronic interface between to streamline the process of getting getting electricity would improve by 5.6 the user and authorities and a central, electricity. Since Enedis adopted both points (from 76.07 currently). Finally, by interoperable database linking the relevant externally and internally facing platforms reducing the time to transfer property agencies. Belgium should continue its in 2017, the time to obtain a connection to 35 days, as in Bruges and Ghent, and efforts to achieve interoperability across has decreased by nearly three weeks. the cost to 10.2% of income per capita, administrations and move toward a single Externally, customers use the online as in Flanders, Belgium’s global score interface connecting the entrepreneur portal to submit connection requests would improve by 6.7 points from 51.84 with all agencies. In Luxembourg, the along with all supporting documenta- to 58.52. notary can file the required information tion. Internally, Enedis implemented to register a company through the one- a unified data management solution, Belgium could also look to other EU stop-shop (Guichet.lu.). In a single inter- Teradata’s Unified Data Architecture member states and international action, the notary registers the articles of (UDA), allowing both the customer best practices to improve its association with the tax administration, service department and the new connec- business environment files for both value-added tax (VAT) and tion department to receive and process Belgium would continue to lag most social security, enters the company in connection requests. The UDA facilitates other EU member states even after the Trade and Companies Registry, and the internal tracking of applications, adopting the good practices identified at files the ultimate beneficial owner (UBO) speeding the electrical engineer’s analy- the subnational level in starting a busi- information with the Registry of Beneficial sis and allowing them to respond faster ness, getting electricity, and registering Owners. Belgium could reduce the cost to clients. It also allows the connection property. Looking at good practices else- of its business startup process by giving department to assign the external works where in the European Union and globally entrepreneurs access to the business reg- to engineers in a more efficient manner. can boost Belgium’s competitiveness on istration system to file the incorporation Belgium could also expedite the process these indicators. act themselves. of getting a simple electricity connection 8 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

by defining requirements and legal time Although Belgium scores relatively well the United Kingdom, and the Republic of limits based on project complexity. In in construction permitting and contract Korea. Korea’s comprehensive e-court the Netherlands, the Municipality of enforcement, replicating international good system allows judges to adjudicate up Enschede differentiates between two practices and digitalizing additional ser- to 3,000 cases a year and hear up to categories of works on public domain vices could be beneficial (box 1). Creating 100 pleas a month. Austria’s integrated based on the connection length. or enhancing a digital construction permit- system is comprehensive, and most ting platform—to include a centralized of its functions are available to both Belgium has room for substantial efficien- repository of relevant legislation—would judges and lawyers. Most processes are cy improvements in property registration. reduce the time to deal with construction at least semi-automated, including the Belgium could emulate Italy, where the permits. Belgium could also consider generation of court orders. Austria offers land registry and cadaster databases are introducing risk-based inspections, which a model of how to develop such a system. connected, allowing notaries to conduct could streamline the construction permit- The Austrian Ministry of Justice took both the title search and the cadastral ting process and allow municipalities and a gradual approach and developed its search in a single step. Belgium could builders to allocate resources where they case management system in collabora- assess the possibility of making a one- are most needed, making the process faster tion with stakeholders, including judicial stop-shop available to notaries through and more efficient without compromis- officers and external users, to ensure that which they could obtain the mortgage ing safety. In the European Union’s best the system meets their needs. certificate, the cadastral excerpt, and performer, Denmark, no preconstruction the tax certificates. Belgium could also clearances are required, and builders can perform revenue impact studies and tax complete the construction permit applica- simulations to assess whether the prop- tion entirely online. erty transfer tax rate can be reduced in a revenue-neutral way. Greece reduced its Belgium would also benefit from incorpo- property tax from 10% of the property val- rating more automation in its court sys- ue to 3%, and Slovakia stopped levying tax tem to connect judges and other users. on property transfers altogether. Property Belgian policy makers could follow the purchases are subject only to VAT, income example of jurisdictions with advanced tax, and a yearly municipal tax.6 court systems, including Austria, Canada,

TABLE 3 Opportunities for regulatory improvement in Belgian cities (continued)

Relevant ministries, agencies and other stakeholders* Regulatory area Good practices National level Local/regional level Starting a Allow for automatic verification of the proposed company name • Federal Public Service (FPS) • Accredited business counter or business Economy, SMEs, Self-Employed one-stop shop (OSS) Make third-party involvement optional and provide public access to and Energy • Accredited social service the business registration system • Crossroads Bank for Enterprises provider Continue simplifying and streamlining postincorporation requirements • FPS Finance • Local tax office at OSS • General Administration of Taxes • Company Court registry Create a single electronic interface for starting a business • UBO register • Insurance company • FPS Justice • Royal Association of • Royal Federation of Belgian Accountants and Bookkeepers Notaries (FEDNOT) of Belgium • Belgian Official Gazette • Institute for Tax Advisors and Accountants • National Social Security Office • Labor Inspectorate Dealing with Streamline preconstruction requirements and consolidate permitting • Administration for Measurements • Regional governments construction legislation and Assessments (Cadaster) • Local municipalities permits Improve coordination among agencies involved in the water and • Associations of Cities and sewage connections process Municipalities • Engineers and Architects Introduce and improve electronic permitting systems Associations Consider introducing risk-based inspections • Fire Department Improve regulatory expertise in collaboration with the private sector DOING BUSINESS IN BELGIUM 9

TABLE 3 Opportunities for regulatory improvement in Belgian cities (continued)

Relevant ministries, agencies and other stakeholders* Regulatory area Good practices National level Local/regional level Getting Streamline the approvals process for getting electricity • Commission for Electricity and Gas • Electricity distribution utilities electricity Regulation (CREG) • Electricity suppliers Introduce strict legal time limits for completing external connection works • Brussels Regulatory Commission Increase transparency and accountability by collecting and publishing for the Gas and Electricity statistics Markets (BRUGEL) • Flemish Regulator of the Allow electrical suppliers to submit new connection applications Electricity and Gas Market (VREG) Review the cost of obtaining a new electricity connection and provide the option to pay connection fees in installments • Walloon Energy Commission (CWaPE) Replace third-party certifications with compliance self-certification • Local municipalities Improve the reliability of electricity supply • Local police departments • Engineers Associations • Associations of Cities and Municipalities Registering Fully implement existing regulation enabling notaries to obtain the • Administration for Measurements • Office of Legal Security property mortgage certificates online and Assessments (Cadaster) • Local municipalities • Administration of Legal Security Assess the possibility of streamlining and fully digitalizing notary • Flemish tax administration interactions with FPS Finance • Royal Federation of Belgian (VLABEL) Notaries (FEDNOT) Reduce the time to get the municipal zoning certificate • General Administration of Taxes Assess the feasibility of lowering registration taxes for property • FPS Finance transfers • FPS Justice Consider introducing a fast-track procedure for the transcription of the notarial act for an extra fee Increase transparency by publishing the list of documents required to complete property transfers and official statistics on land transactions Increase the transparency of the land administration system by collecting and compiling statistics on land disputes for each applicable local court Introduce publicly available and binding service delivery standards for all services provided by the Office of Legal Security and Cadaster Establish a compensation mechanism to cover losses incurred by parties who engage in good faith property transactions Consider setting up a separate and specific mechanism to handle complaints regarding property mapping at the Cadaster Enforcing Expand the use of virtual hearings and electronic document filing • FPS Justice • Local commercial courts contracts Introduce more e-features in courts, especially for commercial litigation and small claims Optimize the electronic case management system for judges and lawyers Set legal limits on the granting of adjournments Encourage alternative dispute resolution

*The list includes the main ministries and agencies relevant to each regulatory area, but other might also be implicated. Note: All good practices are detailed at the end of the respective indicator section. 10 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

BOX 1 Digitalization of the business environment in Belgium—the road ahead

Periods of remote work during the COVID-19 lockdown highlighted the importance of digital platforms and solutions in Belgium’s business environment. As in-person interactions became more challenging, the federal and regional governments adopted new measures to expand these platforms.

A new law, adopted in April 2020, included provisions governing the notarial profession.a Before the lockdown, the notarial act establishing a company or authenticating the act of sale had to be carried out in person with the parties involved. The new law allows this to take place remotely via videoconference. The parties no longer have to appear in person before the notary to execute a power of attorney or the notarial act for which a power of attorney is granted. Despite the economic impact of COVID-19, in 2020 entrepreneurs created 2,342 limited liability companies across the Belgian cities benchmarked, only six fewer companies than in 2019.b

Some regions used digital tools for construction permitting and getting electricity before the pandemic; others adapted as the crisis unfolded. Flanders implemented a digital platform on January 1, 2018, encompassing several environmental permits (omgevingsvergunningen), including those for construction in all Flemish municipalities; paper-based permit applications are only available in exceptional cases. Brussels began a phased rollout of its permitting platform in December 2020, which will include construction permits. The platform is currently available for use by different Brussels-area municipalities and several Brussels-based companies. Wallonia has yet to announce a digitalization plan.c

Brussels has already taken steps to consolidate the necessary approvals into a single authorization to obtain a new electricity connection. Through the Osiris platform created in 2014, the distribution utility coordinates excavation works with other service utilities and fulfills the requirements to start the works. Online platforms in other cities allow users to obtain only some of the required authorizations. For example, in Charleroi, Liège, and Namur, users manage worksite coordination and obtain road opening authorization through the Powalco platform. The GIPOD platform in Antwerp, Bruges, and Ghent is used only for worksite coordination purposes.

Belgium’s judiciary has also increased its use of electronic technology during the pandemic. Several temporary measures, including the electronic filing of complaints and using videoconference technology for hearings, were extended in May 2020.d These measures have increased court efficiency while maintaining public access to justice.

Permanently adopting and enhancing electronic platforms would streamline Belgium’s business environment and minimize the impact of future external disruptions. Local and regional authorities will need to engage in peer-to-peer learning and strengthen their commitment to reform to complete Belgium’s digital transformation.

a. The law of April 30, 2020 containing various provisions on justice and the notarial profession in the context of the fight against the spread of the coronavirus COVID-19 entered into force on May 4, 2020 (http://www.ejustice.just.fgov.be/eli/wet/2020/04/30/2020041028/justel). b. According to March 2021 statistics from the Federal Public Service (FPS) Economy, SMEs, Self-Employed and Energy. c. The platforms of the Flemish Region and Brussels-Capital Region are available at https://omgevingsloket.be/ and https://mypermit.urban.brussels/, respectively. In Wallonia, the 2019–24 Digital Wallonia strategy includes an initiative, Construction 4.0, to incentivize the digitalization of the construction industry. In collaboration with the Walloon Construction Federation, the initiative focuses on the digitalization of Walloon construction activities. The project does not include the digitalization of construction-related public sector offices. For more information, see https://www.digitalwallonia.be/en. d. Act of May 20, 2020 (Belgian Official Gazette May 29, 2020). http://www.ejustice.just.fgov.be.kuleuven.ezproxy.kuleuven.be/mopdf/2020/05/29_1 .pdf#Page9. Also see Act of July 31, 2020, containing various emergency provisions on justice, Belgian Official Gazette August 7, 2020. DOING BUSINESS IN BELGIUM 11

Starting a Business

Starting a business is uniform to the use of online systems, federal- The fees charged by the notary to create across all cities and regions level monitoring of one-stop shops (OSS, the notarial act—determined based on The Belgian Code of Companies and guichet d'entreprises/ondernemingsloket), the amount of share capital— are calcu- Associations (BCCA) governs company and exemptions for certain SMEs from lated using the same formula across the incorporation nationally. This version of most local permits or approvals. More country.10 the Company Code, which entered into than half of the procedures to start a busi- force on May 1, 2019, introduced several ness—five out of eight in total—can be Of the Belgian cities benchmarked, changes to increase flexibility for Belgian completed electronically in 0.5 days,9 while only Ghent reimburses the business entrepreneurs, including a company struc- two procedures can be completed within a registration fee paid to the OSS for CBE ture with no minimum capital requirement. day (figure 4). The exception is finalizing company registration. This fee is fixed the registration with the Crossroads Bank by Royal Decree and indexed every Belgium’s regional governments set and for Enterprises (CBE) and registering for year. New enterprises of any size can enforce laws and regulations governing VAT at an accredited business counter or request fee reimbursement from the business incentives, environmental regu- OSS. This step takes two days due to the support point for Entrepreneurs in Ghent lations, and land zoning. Depending on the various formalities performed (company (Ondersteuningspunt Ondernemers Gent, type of activity that the company carries activity and business unit registration, skills OOG).11 out and its environmental impact, entre- verification, and the company’s and direc- preneurs may need to apply for permits or tors’ social insurance fund affiliation). Starting a business in Belgium is request additional authorizations from the faster than the EU average, but municipality or provincial government.7 More than three-quarters (77%) of the there is room for improvement on These requirements do not apply to the cost to start a business in Belgium is procedural complexity and cost Doing Business case study scenario.8 attributable to notary fees and various Entrepreneurs complete eight procedures, other notarial charges, including admin- wait 6.5 days, and pay the equivalent of The process of starting a business in istrative costs (figure 5). 5.1% of income per capita to start a busi- Belgium is uniform across regions owing ness in the Belgian cities benchmarked.

FIGURE 4 Starting a business takes less than a week in Belgium

Time Cost (% of (days) income per capita) 8 6 Cost 7 Cost 5.1% 4.8% Total time 6.5 days 5 6 4 5

4 3

3 2 2 1 1

0 0 Verify Deposit ﬁnancial File notarial Finalize company Register Register as Undersign File labor company plan and sign act and obtain registration UBOs employer and insurance for regulations name notarial act company and register ﬁle “Dimona In” work-related number for VAT statements accidents Less than one day (online procedure)

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. 12 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 5 Notary costs account for the bulk of startup expenses in Belgium other EU member states and 120 Doing Business economies worldwide with no such requirement. Six EU states require a deposit of less than 0.1% of income per Business registration fee (CBE): 4.2% capita.13 VAT registration service fee (OSS): 2.6% Registration duty: 2.4% Notary costs: Written documents: 4.5% How does an entrepreneur start 77.4% a business in Belgium? Publication cost - Belgian Ofﬁcial Gazette: 9.0% Entrepreneurs across Belgium complete the same eight procedural steps to start a limited liability company (LLC) (Société à Responsabilité Limitée (SRL)/Besloten

Source: Subnational Doing Business and Doing Business databases. Vennootschap (BV)) (figure 7). They Note: “Written documents” refers to a flat-rate tax paid to the government on every notarial act. “Registration duty” must use the services of a notary to refers to company registration-related fees paid to FPS Finance (Administration of the Cadaster, Registration and complete the registration process. First, Domains). The data are rounded up to one decimal point. Data for Brussels are not considered official until published in the Doing Business 2021 report. entrepreneurs or someone acting on their behalf (such as a notary) check the avail- Starting a business in Belgium involves Greece, and Slovenia—can start a busi- ability and appropriateness of the com- two more procedures and is nearly twice ness in just three steps. At 5.1% of income pany name. Second, the notary draws up as expensive as the EU average but takes per capita, Belgium’s business startup the notarial act. For the act to be drawn about half the time (figure 6).12 Within the process is also among the European up, the founders submit a detailed finan- European Union, only Austria, the Czech Union’s most expensive, surpassed only cial plan as proof of sufficient initial equity Republic, and Germany (all with nine pro- by Croatia, Cyprus, Germany, Italy, Malta, to carry out the firm’s planned activities. cedures) have more complex processes and Poland. The notarial act is then signed in person than Belgium. In contrast, an entrepreneur by the founders or their representative in the EU’s best-performing economies on Belgium eliminated the paid-in minimum and the notary. The authorities have procedural complexity—Estonia, Finland, capital requirement in 2019, joining five allowed a digital identification procedure

FIGURE 6 Starting a business in Belgium is faster but more expensive and complex than the EU average

Procedures Time Cost (number) (days) (% of income per capita) 1 1 Slovenia (EU best) 0

France, Greece France (EU best) 2 5 1 All 7 Belgian cities Luxembourg 4 member states* Netherlands 2 (EU best) 3 10 EU average Germany EU average 3 4 15 Luxembourg Netherlands 4 France, Luxembourg, Netherlands 5 20

5 All 7 Belgian cities EU average 6 25 6 Germany 7 30 7

8 All 7 Belgian cities 35 13 Poland Austria, Czech Republic, Germany 9 40 Italy 14

Source: Subnational Doing Business and Doing Business databases. Note: EU averages use economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by Doing Business. Data for Brussels, EU averages, and EU comparator economies are not considered official until published in the Doing Business 2021 report. * Estonia, Finland, Greece, Slovenia. DOING BUSINESS IN BELGIUM 13

FIGURE 7 How does the business registration process work in Belgium?

PROCEDURE AGENCY Preregistration

1. Verify company name Crossroads Bank for Enterprises eRegistration (FPS Economy) FPS Finance 2. Deposit financial plan and sign notarial act Notary FPS Justice Registration Electronic registry of the 3. File notarial act and obtain company number Crossroads Bank for Enterprises eNotariat Company Court (via eNotariat) (FPS Economy) FPS Economy Crossroads Bank Postregistration for Enterprises eDepot 4. Finalize company incorporation and register for VAT One-stop shop Belgian 5. Register ultimate beneficial owners UBO register Official Gazette 6. Register as employer and file "Dimona In" statements* National Social Security Office Notary Articles of 7. Undersign insurance for work-related accidents* Insurance company Association Government agency database 8. File labor regulations* Labor Inspectorate

* Simultaneous with previous procedure

Source: Subnational Doing Business and Doing Business databases. Note: Under article 2:6 paragraph 1 of the Company Code, a company acquires legal personality after the notary submits the notarial act to the Company Court. Data for Brussels are not considered official until published in the Doing Business 2021 report. for powers of attorney—enacted in Company Court’s electronic registry (to registering the company activity and response to the COVID-19 pandemic— add the extract of the notarial act to the business units with the CBE database and since May 4, 2020. As such, the notary official register), and the Belgian Official verifying the founders’ business manage- and company founders can now sign an Gazette (for the official publication of the ment skills. In Wallonia and the Brussels- authentic digital power of attorney via extract). Since May 2019, notaries can Capital Region, founders must prove that videoconference (box 2). also use eDepot to file the company’s they have the necessary management articles of association with the Articles knowledge and professional competence The third step in the company registra- of Association Database (Base de don- for certain activities. Flanders eliminated tion process is filing the notarial act to nées des statuts/Statutendatabank).16 To these requirements on September 1, register the company and obtain the comply with fiscal requirements, notaries 2018, and January 1, 2019, respectively. company number. The notarial act can be also file a certified copy of the notarial act Companies and directors in Belgium submitted physically or electronically via with FPS Finance via eRegistration, which must be affiliated with a social insurance the eDepot system, accessible through is also part of the eNotariat portal. fund;17 this can also be arranged through the eNotariat portal.14 If submitted in the OSS. paper form, the Company Court registry Once the notarial act is registered with clerk enters the company’s identification CBE, the notary immediately obtains The entrepreneur then completes VAT data manually into the CBE, which auto- the company number electronically and registration by requesting the activation matically grants the company number. shares it with the entrepreneur either in of the company number as the VAT num- The CBE, the central business register person or by email. The company number ber.18 This can be done directly with the operated by the FPS Economy, SMEs, is a unique identification number used to local tax office, through the OSS, or with Self-Employed and Energy, contains basic identify the company with the various an accountant’s assistance. Most entre- data on companies and their business administrations. preneurs prefer the OSS approach—they units. Most notaries in Belgium use eDe- can finalize company registration with pot, which is faster and more convenient In the fourth step in the startup process, the CBE and submit the VAT identifica- than submitting the notarial act in paper the OSS checks whether the com- tion request form (Form 604A) in one form. Across the Belgian cities bench- pany meets the legal requirements for its trip. The OSS submits the VAT form on marked, 98% of LLCs are registered intended activity and finalizes registration behalf of the entrepreneur to the local tax electronically through eDepot.15 The in the CBE database. In Belgium, federally office using the E604 electronic system. eDepot system allows notaries to file the accredited private organizations operate This local office will inform the company notarial act with CBE (for company reg- the OSS system, which offers one-stop of the activation via registered mail. There istration and the company number), the access to mandatory public services like is no need to wait for the letter; they can 14 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

BOX 2 Digital notary services and electronic means of communication during COVID-19

Entrepreneurs can register their LLC online in Belgium, but only with the assistance of a notary. Only notaries can access the eDepot system to deposit the electronic notarial act to the relevant administrative databases. Entrepreneurs or their appointed representatives must appear in person before the notary to sign the notarial act for company incorporation.

During the COVID-19 pandemic, Belgium enacted a new lawa allowing company founders to sign an authentic digital power of attorney online. Notaries can now check identities remotely via videoconference through two means of electronic identification—the Belgian electronic identity card (e-ID) or the Itsme application—to execute and sign the notarial act.

Entrepreneurs were restricted from using the OSS in person to prevent the spread of FIGURE B 2.1 Firm creation was stable in 2020 despite the pandemic COVID-19. Although some OSS opened for pre- LLCs registered (number) scheduled appointments, most OSS preferred providing client services by telephone, online, 800 or via videoconference. Meanwhile, insurance 700 companies in Belgium report only a slight shift toward a lower degree of interpersonal inter- 600 action, since their client contacts took place 500 primarily by email or telephone before the pandemic. 400 300 Despite the economic impact of COVID-19, entrepreneurs created 2,342 LLCs across the 200

seven Belgian cities benchmarked in 2020, only 100 six fewer companies than in 2019 (figure B 2.1).b 0 Belgium’s legislative efforts to combat COVID-19 Brussels Ghent Antwerp Liège Bruges Charleroi Namur have brought the process of starting a business January-December (2019) January-December (2020) a step closer to being fully online. However, the

country still requires all parties to appear before Source: Subnational Doing Business using statistics from FPS Economy, SMEs, Self-Employed and Energy. a notary via videoconference.

confirm the activation of the company’s Registration is completed through the to cover work-related accidents. Finally, VAT number by calling the local office or MyMinfin platform—either by the entrepreneurs file the company’s labor checking the CBE database. Currently, company’s legal representative or a third regulations with the Labor Inspectorate22 only OSSs and tax offices have access to party—or eStox, a digital tool used by electronically by email or—more recent- the E604 electronic system. The Belgian notaries, accountants, and tax advisors. ly—online using a web-based application government has floated the idea of allow- Most entrepreneurs use MyMinfin.20 (introduced in May 2019).23 ing tax accountants and companies to submit Form 604A electronically using The company then registers as an Belgium has carried out reforms aimed MyMinfin, an FPS Finance application. employer with the National Social at improving the business environment The aim is to reduce the use of paper Security Office (NSSO) using WIDE,21 since 2003 (box 3). Some of these forms and develop digital services. an online service. Firms must also improvements have had a direct impact Currently, companies must submit all immediately file a declaration for each on indicators measured by Doing Business. their VAT returns electronically using the employee via Dimona (Déclaration Although key steps have been taken to Intervat application.19 IMmédiate ONmiddellijke Aangifte), an make starting a business more efficient, electronic notification system used by the process continues to lag regional The fifth procedure is registering the entrepreneurs to register new employees good practice. company’s ultimate beneficial own- with the NSSO. Firms then obtain insur- ers (UBOs) with the UBO register. ance directly from an insurance company DOING BUSINESS IN BELGIUM 15

BOX 3 Regulatory reforms have made starting a business easier in Belgium

Over the past two decades, Belgium has enacted regulatory reforms to enhance its business environment. In 2003, Belgium established the OSS system and created the CBE, both run by FPS Economy, SMEs, Self-Employed and Energy. A centralized database and business register, the CBE simplified company identification and registration by storing basic company data in one place and making it available to the public and other public sector administrations (mainly FPS Finance, FPS Justice, and the NSSO). The CBE replaced the databases of administrations such as the former national register of legal entities and the former trade register. Thanks to the CBE, each company is assigned a unique identification number, allowing authorities to access information on companies in real-time.

One-stop shops are private organizations accredited, inspected, and monitored at the federal level, responsible for registering a company’s activities and business units in the CBE database. Across the country, OSSs offer entrepreneurs additional services outside of this legal mandate, such as registering for VAT, registering with the social insurance fund, and applying for permits, allowing them to complete various administrative formalities in one location. Before July 1, 2003, entrepreneurs had to visit multiple administrations to complete these formalities. Within the framework of the EU Services Directive, in 2009 OSSs were given the task of being the Point of Single Contact for entrepreneurs in Belgium.

The introduction of the eDepot system in 2005 allowed notaries to achieve in one electronic transaction what previously took three paper-based steps. The eDepot system allows notaries to file the notarial act and incorporation documents electronically, triggering automatic registration in the electronic registry of the Company Court and CBE database as well as publication in the Belgian Official Gazette. The use of eDepot reduced the time to start a business in Belgium by 21 days, thereby raising its score for starting a business as measured by Doing Business (figure B 3.1).

FIGURE B 3.1 Reforms have improved Belgium’s score for starting a business

Starting a business score (0–100) 100

40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Doing Business year

Score procedures Score time Score cost Score paid-in-minimum capital

Source: Subnational Doing Business and Doing Business databases. Note: The score is normalized to range from 0 to 100 (the higher the score, the better). For details on the scores, please refer to the data notes. Between Doing Business 2004 and Doing Business 2021, Belgium recorded four positive business reforms on the Doing Business starting a business indicator set. In Doing Business 2005, Belgium made starting a business easier by creating single access points for entrepreneurs; in Doing Business 2007, Belgium halved startup costs by abolishing the registration fee and also piloted online registration; in Doing Business 2008, Belgium made an electronic registration and publication system available to all notaries; in Doing Business 2020, Belgium eliminated the paid-in minimum capital requirement. Data for Brussels are not considered official until published in the Doing Business 2021 report.

More recently, in 2019, the BCCA introduced major changes to Belgium’s existing legal framework for businesses, streamlining the types of companies into fewer categories. The BCCA introduced a flexible private LLC (the BV/SRL, replacing the BVBA/SPRL) and eliminated the requirement that entrepreneurs deposit EUR 6,200 in cash as paid-in minimum capital upon incorporation. 16 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

BOX 3 Regulatory reforms have made starting a business easier in Belgium (continued)

As part of its process to simplify business startup, Belgium is gradually implementing electronic platforms for some procedures, facilitating interactions between entrepreneurs and public agencies, and enhancing access to information and quality data. In May 2019, FPS Labor allowed the electronic filing of company labor regulations with the Labor Inspectorate. Previously, entrepreneurs had to submit the document to the regional directorate either via post or through email. Since May 2019, entrepreneurs can consult all versions of the articles of association of companies resulting from notarial acts executed in Belgium online and free of charge.a The consolidated articles of association of all companies incorporated by notarial act drawn up prior to May 2019 are available for consultation in person at the registry of the Company Court.b

a. These can be accessed through the website, available at https://statuten.notaris.be/costa_v1/enterprises/search. b. Fednot (Royal Federation of Belgian Notaries). 2019. “The online statutes database: get your statutes to hand faster.” May 27. http://nl.enot.be/nieuws -pers/detail/de-online-statutendatabank-sneller-je-statuten-bij-de-hand.

company registration application. In the to establish a company. Notaries also play WHAT CAN BE IMPROVED? early 2000s, Australia, Canada, and the a central role in the business startup pro- United States introduced clear rules to cess in other EU member states; however, Allow for automatic verification of determine whether proposed company notary fees there are a fraction of those the proposed company name names were identical or similar to existing in Belgium. For example, in the Czech While the legal responsibility for check- companies or required specific consent. Republic, entrepreneurs starting a simple ing the availability of a company name This approach allows for the automatic LLC pay a fee of CZK 2,000 (approxi- falls to the entrepreneur,24 notaries in rejection or acceptance of the company mately EUR 77) to draft and notarize the Belgium have the legal duty to inform name at the time of registration, increas- articles of association. entrepreneurs, prior to company incor- ing both transparency and efficiency in poration, of their legal rights, obligations, name clearance and company registration. Entrepreneurs in Belgium also pay a fee and burdens and to give advice, including Some economies allow entrepreneurs to (equivalent to 9% of the total cost) to on the desired company name. Thus, choose from a list of preapproved com- publish the extract of the notarial act it is common practice for notaries to pany names. In Portugal, entrepreneurs in the Official Gazette. The notary col- check the availability and admissibility can choose from a list on the business reg- lects the payment and transfers it to the of the proposed company name and to istry’s website25 and register the company Official Gazette. In many EU member ensure its compliance with minimum through a single contact point, Empresa states, the business register manages the legal requirements. Notaries use several na Hora.26 In Estonia, entrepreneurs can publication of the extract at no cost to the sources to check the name, including the check the proposed company name online company. Belgium could follow this good Official Gazette and the CBE’s public using the E-Business Register,27 which practice and centralize the publication of search web service, to avoid any poten- accesses county court registry databases the extract at one site, such as the CBE tial discrepancies. Once the notary and displays real-time data on all legal business registry. Doing so would elimi- submits the notarial act to the CBE, no persons registered in Estonia. In the nate the costs associated with multiple further verification of the accuracy of the United Kingdom, the online registration transmissions of the same information company’s incorporation documents is website alerts entrepreneurs if the desired from one authority to another, resulting performed. Centralizing the publication company name cannot be used and in lower administrative costs and publi- of a company’s information, including provides guidance for choosing another cation fees. the notarial act, into a single electronic company name.28 database would reduce errors and dis- The Belgian authorities could also crepancies and allow entrepreneurs— Make third-party involvement reduce the cost of starting a business by rather than the notary—to verify that the optional and provide public access to introducing standardized incorporation proposed company’s name complies with the business registration system documents for private LLCs. In the case of legal requirements for registration. Starting a private LLC in Belgium costs simple corporate structures, standardiza- the entrepreneur the equivalent of 5.1% tion could facilitate automatic information Various economies worldwide have rede- of income per capita. This process is more validation. The authorities could also signed the registration process to allow for expensive in only six other EU member allow the public to access the business the automatic verification of the proposed states. In Belgium, the bulk of the cost to registration system, thereby allowing company name upon submission of the start a business stems from hiring a notary entrepreneurs to file the incorporation DOING BUSINESS IN BELGIUM 17

act themselves. Belgium has piloted a in the 10 EU countries with the lowest cost finalizing company registration with the similar approach—nonprofit associa- to start a business.32 Entrepreneurs pay no CBE. Only Partena and Securex offer all tions and other legal entities constituted fees when using SPOT,33 Slovenia’s elec- five postregistration procedures, includ- through private acts29 can register using tronic one-stop shop, to start a simple LLC. ing UBO registration (table 4).36 Most an online portal (e-Greffe/e-Griffie).30 This procedure makes use of standardized entrepreneurs either complete UBO Larger companies with more complex electronic articles of association and can registration electronically or delegate structures and special requirements could be used by both single-member LLCs the task to a lawyer or accountant work- continue soliciting the services of third- (one founder) and multi-member LLCs ing on their behalf. Except for Eunomia, party professionals and using customized (several founders). Portugal successfully an independent one-stop shop, all incorporation documents. made third-party involvement optional other OSSs partner with a social service for companies using registry-provided provider (secretariat social/sociaal sec- Other economies have shown that requir- standard incorporation documents.34 retariaat)37 offering services for the final ing businesses to use legal services for three postregistration requirements.38 registration is not necessary to ensure Continue simplifying and Most entrepreneurs shop around as accuracy and compliance with the law, streamlining postincorporation they can choose among multiple social particularly for simpler businesses, such requirements at OSS service providers—partnered with an as partnerships and LLCs. Globally, the The authorities have made progress in OSS or not—that provide guidance and assistance of third-party agents for start- consolidating several postincorporation support with payroll processing require- ing a business is mandatory in less than requirements to start a business using ments. Integrating the services offered half of the economies measured by Doing the country’s accredited one-stop shop by OSS and social service providers to Business (figure 8). Across regions, the system,35 but more remains to be done. cover all postregistration procedures overall cost of starting a business is lower Most entrepreneurs register for VAT with a single agency would make the in economies with no third-party involve- purposes and request affiliation with the process of starting a business more ment.31 Third-party agents are not required social insurance fund at the OSS while efficient.

FIGURE 8 Starting a business costs more in economies with third-party involvement

Total cost to start a business (% of income per capita) 14

Italy Spain Poland Malta Croatia Cyprus Austria Latvia Estonia Greece France Finland Ireland Germany Belgium Hungary Portugal Bulgaria SwedenLithuaniaRomaniaDenmark Slovenia EU averageNetherlands Luxembourg Czech RepublicSlovak Republic

EU member states with third-party involvement in business incorporation EU member states with no third-party involvement in business incorporation

Source: Subnational Doing Business and Doing Business databases. Note: Values for Austria, Belgium, and the Netherlands are based on data for the cities benchmarked in this report; other EU member states are represented by their capital city as measured by Doing Business. Data for Brussels, EU average, and EU comparator economies are not considered official until published in the Doing Business 2021 report. 18 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

TABLE 4 Not all OSSs and their partner social service providers offer all postregistration services

Services offered Acerta Eunomia Formalis Liantis Partena Securex UCM Xerius Finalize company incorporation, register for VAT and ü ü ü ü ü ü ü ü affiliate to a social insurance fund through the OSS Register ultimate beneficial owners with the UBO register ü ü Register with the National Social Security Office and file ü ü ü ü ü ü ü "Dimona In" statements* Undersign insurance for work-related accidents with ü ü ü ü ü ü ü insurance company**

Draft labor regulations for Labor Inspectorate* ü ü ü ü ü ü ü Locations served - Antwerp - Antwerp - Antwerp - Antwerp - Antwerp - Antwerp - Bruges - Bruges - Bruges - Bruges - Bruges - Brussels - Brussels - Brussels - Brussels - Brussels - Brussels - Brussels - Brussels - Charleroi - Charleroi - Charleroi - Charleroi - Charleroi - Ghent - Ghent - Ghent - Ghent - Ghent - Ghent - Ghent - Liège - Liège - Liège - Liège - Liège - Liège - Namur - Namur - Namur - Namur - Namur - Namur Source: Subnational Doing Business based on OSS representatives and websites. * Service executed by social service provider ** Services usually offered by social service providers but executed by an external partner of the organization, such as an insurance company

Authorities could also review whether Belgian entrepreneurs must file work multiple agencies for company identifica- they could streamline business incor- regulations with the Labor Inspectorate tion. However, entrepreneurs still must poration by merging several existing within eight days of their entry into force. interact with seven separate agencies to postregistration steps with the step of Other EU member states have stream- start a business. In addition to a single finalizing company registration in the lined postregistration formalities. In the identification number, economies with CBE. In Belgium and eight other EU Netherlands, companies have a month the most efficient business registration member states,39 entrepreneurs, their from the start of employment to provide systems also have single electronic inter- representatives, or a third-party must employees with a contract outlining all faces to facilitate interactions between separately register or report their benefi- aspects of the employment agreement; the user and the authorities as well as cial owners to the UBO register, thereby there is no requirement to formalize the central, interoperable databases for the adding an additional procedure. In other contract with a government agency.40 relevant agencies. A single electronic European economies, this information In Denmark, simply reporting a wage platform for business startup has its is submitted during incorporation. In payment for the first time notifies the advantages: procedural requirements Austria, for example, once a company like authorities that the business has become become more transparent and accessible, the one in the Doing Business case study an employer; no further formalities are error rates decrease, and consistency ris- is registered, all relevant data regarding required. es within the public administration—the the beneficial owner is transferred auto- time and cost for business registration matically from the commercial registry The process of starting a business could both decline. Moving toward a single to the UBO register; therefore, it does also be simplified for SMEs in Wallonia interface for business registration could not constitute a separate procedure. In and the Brussels-Capital Region by benefit Belgium’s business community Germany, if the entrepreneur files all eliminating the requirements that and government. relevant information with the company founders prove their management skills register, they are not required to file the and professional competence. Flanders Slovenia’s SPOT portal unifies the data- beneficial ownership structure sepa- eliminated these requirements starting bases of the agencies involved in the rately with the Transparency Register. In in 2018 and is in line with global good process of starting a business. After a Estonia, UBO information is submitted practices. single registration with SPOT, entrepre- through the company portal as part of neurs are automatically registered with company registration in the Commercial Create a single electronic interface the court, statistical office, tax author- Register. In Luxembourg, the notary can for starting a business ity, and health institute. Entrepreneurs file UBO registration online with the Belgium has successfully created a in Italy can file a single electronic notice Register of Beneficial Owners at the unique identification number for compa- (Communicazione Unica or ComUnica) same time as submitting the company nies, reducing the administrative burden with the Register of Enterprises, auto- registration. of submitting the same information to matically registering the company with DOING BUSINESS IN BELGIUM 19

the Revenue Agency and the social security administration, as well as for accident insurance. In most cities, ComUnica also notifies the municipality of the commencement of business operations. In Luxembourg, a notary can file all the required information to register a company through the one-stop shop (Guichet.lu). In a single interaction, the notary registers the articles of association with the tax administration, files for both VAT and social security, registers the company with the Trade and Companies Registry, and registers UBO information with the Registry of Beneficial Owners. Malta’s online one-stop shop41 allows new companies to register for VAT, obtain the employer number (PE), and register employees at Jobsplus. Norway has gone even further: since 2005, all public registers and authorities are legally obliged to use the data registered in the Central Coordinating Register for Legal Entities, eliminating the need for companies to resubmit this data to the relevant agency. 20 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Dealing with Construction Permits

With an urbanization rate of 98%, and requires the same number of proce- Procedural differences across Belgium is among Europe’s most urban- dures as Antwerp, it takes almost three Belgian cities stem largely from ized economies.42 Although the federal months longer. different water and sewage government maintains a national policy connection applications and for urban development focused on social Dealing with construction municipal requirements after cohesion and housing, regional develop- permits in Belgium requires construction ment and building codes in Belgium fewer procedures and is less Although some steps are uniform across are decentralized to the country’s three expensive than in most other EU Belgium, the requirements to obtain a regions: the Brussels-Capital Region member states, but takes longer construction permit can vary significantly (Brussels), Flanders, and Wallonia.43 On average, dealing with construc- from region to region (figure 10). Before At the local level, municipalities (com- tion permits across the Belgian cities construction, a developer must complete munes/gemeenten) apply regional measured requires completing 11.6 four procedures, which differ from city to legislation and approve the building plans procedures over 198.8 days at a cost of city. In Flanders, it is common practice required to erect a building. 0.4% of the warehouse value. On aver- for developers to conduct a consultation age, the process in the European Union with the municipality before building plan Antwerp performs best, but no is more than two weeks faster (figure 9) submission. In Wallonia and Brussels, one city excels in all measures of but requires two more procedures than developers apply directly for the building efficiency Belgium and costs more (1.9%).44 In permit after consulting with the local fire The Belgian cities benchmarked show Germany, construction permitting costs department (also a practice in Flanders). notable differences in the efficiency of are triple those in Belgium, and in France The consultation with the fire department the construction permitting process. and the Netherlands, they are 10 times is not required by law. Still, it helps ensure Obtaining construction approvals is higher. On the building quality control that the building plans comply with local easiest and fastest in Antwerp, where the index, each Belgian city scores 12 out of fire safety regulations and avoid potential process takes 12 procedures, 152.5 days, 15 points, slightly above the EU average rejections of the building permit by the and costs 0.6% of the warehouse value (11.6 points), but behind Luxembourg, municipality. Brussels is the only city (table 5). It is most difficult in Ghent. the European Union’s best performer, and where the developer is required to provide While Ghent’s process is cheaper (0.1%) France (15 and 13 points, respectively). proof of land ownership. In Flanders and Wallonia, the municipality can confirm land ownership directly with the Cadaster. TABLE 5 Construction permitting is easiest in Antwerp and Brussels, and most difficult in Liège and Ghent Upon securing preconstruction approv- Cost Building quality als, the developer requests the building Score Procedures Time (% of warehouse control index City Rank (0–100) (number) (days) value) (0–15) permit from the municipality. In Brussels and Flanders, the building permit applica- Antwerp 1 78.18 12 152.5 0.6 12 tion can be submitted online (box 4). Brussels 2 76.51 9 211 0.9 12 Submission is paper-based in Wallonia, Charleroi 3 76.02 12 186.5 0.3 12 and Walloon municipalities require an Bruges 4 75.70 12 195.5 0.1 12 onsite inspection to verify the property’s declared soil, terrain, and topographi- Namur 5 75.29 12 196.5 0.3 12 cal characteristics before approval. In Liège 6 74.03 12 212 0.5 12 all cities, the developer notifies the Ghent 7 72.63 12 237.5 0.1 12 municipality before starting construction.

Source: Subnational Doing Business and Doing Business databases. Cities in Flanders and Wallonia require Note: Rankings are calculated on the basis of the unrounded scores, while scores with only two digits are displayed the developer to post a notice of permit in the table. Rankings are based on the average scores for the procedures, time, and cost associated with dealing with construction permits, as well as for the building quality control index. The score is normalized to range from 0 to approval at the construction site—visible 100 (the higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in to the public—30 days before the start the European Union 2021: Austria, Belgium and the Netherlands.” Data for Brussels are not considered official until published in the Doing Business 2021 report. of construction works. In Brussels, this DOING BUSINESS IN BELGIUM 21

FIGURE 9 Dealing with construction permits in Belgium costs one-quarter of the EU average

EFFICIENCY OF CONSTRUCTION PERMITTING BUILDING QUALITY CONTROL

Procedures Time Cost Index (number) (days) (% of warehouse value) (0–15) 1 1 0 Luxembourg 15 4 member states Bruges, Ghent (EU and global best) (EU best)* Charleroi, Namur Denmark 7 60 Belgium average Liège (EU and global best) Denmark Luxembourg Antwerp 14 8 (EU best) 80 Germany 1 Brussels Germany 9 Brussels France 13 120 France 10 Germany EU average 2 140 Luxembourg 11 12 All 7 Belgian Antwerp cities Belgium average Luxembourg EU average 12 6 Belgian cities 160 3 11 Netherlands 13 EU average 180 Netherlands Charleroi EU average 14 Bruges Belgium average 200 France Netherlands 10 Namur Netherlands 4 20 France Brussels Germany 220 Liège 9 21 Ghent 240 8 22 Czech Republic, Slovak Republic 8 23 500 Cyprus Croatia Romania 24 520 9 0

Source: Subnational Doing Business and Doing Business databases. Note: Data for EU average use economy-level data for the 27 member states of the European Union. The averages for Belgium are based on the seven cities benchmarked. Data for individual economies are for their capital city as measured by Doing Business. Data for Brussels, EU averages, and EU comparator economies are not considered official until published in the Doing Business 2021 report. * Czech Republic, Estonia, Poland and Slovak Republic.

FIGURE 10 Only seven of the construction permitting procedures are common across regions

Stage Region (city)

Preconstruction Brussels-Capital Flanders Wallonia (Brussels) (Antwerp, Bruges, Ghent) (Charleroi, Liège, Namur)

Preliminary consultation with municipality Obtain recent proof of land ownership Consultation/clearance from Fire Department Request and obtain building permit Receive onsite inspection Inform municipality of commencement of work and post yellow signage*

Water and sewage connections Apply for water and sewage connection Receive inspection for water and sewage Obtain water and sewage connection

Postconstruction Receive onsite inspection from ﬁre department Inform municipality of completion of construction File application and receive inspection by Cadaster

Local administration National agency Utilities Individual procedure

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. * In Brussels, the municipality does not require to post yellow signage upon notification of commencement of works. 22 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

BOX 4 Digitalization of the construction permitting process across Belgian regions: COVID-19’s impact and the road ahead

Periods of forced remote work during the COVID-19 pandemic underscored the importance of digitalization. They also highlighted the varying levels of digitalization among Belgium’s three regions. Flanders fully implemented a digital permitting platform in 2018 that encompasses several environmental permits, including those for construction. Brussels began a phased rollout of its permitting platform in December 2020, which will also be used for various types of permits, including construction permits. Wallonia has not yet announced any digitalization plan.

Flanders’ electronic permitting platform, Omgevingsloket,a was implemented in phases beginning in February 2017 with the simple goal of reducing the time to obtain permits. By 2018 it was fully operational, with paper-based permit applications available only in exceptional cases. Omgevingsloket was launched alongside digital transformation reforms that streamlined several permits—the construction permit, nature permitting, and environmental permit—into a single environment permit (omgevingsvergunning). The platform allows the developer to track permit application status and communicate with both the municipality and building inspectors. Omgevingsloket has gone through several updates since its launch, informed by feedback from its users, including developers and municipalities. The regional government’s Environment Department has lead platform improvements. An emergency decree issued in March 2020 allowed the Flemish government to either accelerate or decelerate official permit issuance in response to the COVID-19 pandemic.

Brussels recently started the phased rollout of its online permitting platform, MyPermit,b and is further expanding its functionalities. Throughout 2020, the platform was tested with various users and adjusted based on their feedback. It is currently available for use by different Brussels-area municipalities and several Brussels-based companies such as Vivaqua, the water and sewage management company for Brussels; Infrabel, the company in charge of the Belgian railway network; and Telenet Group, a cable broadband services provider. With the next update of MyPermit, construction permits will be added to this list. Until then, applications can be made either via post or in person. Brussels temporarily suspended the in-person handling of permit applications due to COVID-19— applications could only be made by post—and extended legal time limits to accommodate lockdown-related delays.

The digitalization of the building permitting system has not yet begun in Wallonia. System users must submit all building permit applications on paper. Digital Wallonia includes an initiative to incentivize the digitalization of the construction industry, Construction 4.0,c in its 2019–24 strategy. The project, a collaboration with the Walloon Construction Federation, focuses on the digitalization of Walloon construction companies. However, the project does not include the digitalization of public sector offices tasked with construction-related issues like permitting. As in Brussels, Wallonia temporarily suspended official municipal deadlines due to the pandemic.

The improvement and replication of digital platforms for building permitting across Belgium would reduce the complexity associated with the approval of building plans and reduce disruptions by externalities like the COVID-19 pandemic. Further ex- changes, peer-to-peer learning events, and cost-benefit analyses—accompanied by strong political will and a commitment at the local and regional levels—will need to follow for Belgium to complete its digital transformation.

a. The Flemish platform is available at https://omgevingsloket.be/. b. The Brussels platform can be accessed via https://mypermit.urban.brussels/. c. For more information, see https://www.digitalwallonia.be/en.

requirement came into force on January of three steps (application, inspection, responsibility of the developer, not the 1, 2021.45 and connection). In Flanders, despite company (like in Flanders). As in Brussels instances where the same local util- and Flanders, public companies provide Procedures to connect to water and ity company performs both services,47 water connections and the connection sewage are the primary source of developers need to submit separate works in Wallonia. variation across regions—unsurprising applications, doubling the procedures given that the water and sewage regimes compared to Brussels. In Wallonia, water After construction, Brussels and Wallonia are inspired by the models in use in and sewage services are provided by dif- require an onsite inspection from the fire neighboring countries (France and the ferent utilities. The developer requests department before the new building can Netherlands).46 In Brussels, applications sewage services from the local intermu- be occupied. In Flanders, only specific for these services are combined and nicipal sanitation utility, which inspects structures are required to comply with requested from a single utility company; the sewage and drainage works. However, a final inspection (such as schools and thus, the developer must complete a total in Wallonia, the connection works are the offices). Once the construction works are DOING BUSINESS IN BELGIUM 23

complete, developers in Brussels do not population size. However, the efficiency the building permit varies slightly across need to notify the municipality. However, of the utility company also plays a role. regions, with different reasons accounting in Flanders and Wallonia, the notification Antwerp has the fastest time to connect for delays. Recent and significant legal is a formal requirement as it serves to to water and sewage, despite having reforms in Flanders—notably the stream- certify that the building is ready for lawful twice the population of Ghent and five lining of several permits into one envi- occupation and that it has been inspected times that of Bruges. In Wallonia, a lack ronmental permit (see box 4)49—mean by a qualified professional. These notifica- of coordination between water and sew- that both developers and the municipal tions can be sent via the Omgevingsloket age utilities creates additional delays for authorities are still adapting to the new online platform and email, respectively. developers, particularly regarding the regulations and the new online process. sewage connection due to additional Walloon regulations give local authorities Finally, all Belgian cities require that the requirements in flood-prone areas.48 the discretion to approve permits, leading developer report the new construction to to arbitrary interpretation in some cases. the Cadaster. An agent from the Cadaster Regional variations also stem from Municipalities can require changes that visits the new building and determines its municipal procedures, which comprise are not explicitly required in the regula- property tax value. the bulk of the time to deal with constructions, such as additional parking spaces, tion permitting. In Flanders, the prelimi- changes to the exterior façade, or height Municipal procedures account for nary consultation with the municipality limits that are not in the building code. nearly two-thirds of the time to adds two weeks in Antwerp and Bruges Such practices introduce a degree of deal with construction permits and more than 1.5 months in Ghent. unpredictability to the permitting process, The time to deal with construction per- Private sector contributors in Ghent resulting in permit rejections and delays. mits ranges from 152.5 days in Antwerp report understaffing as the main reason to 237.5 days in Ghent. The main deter- for delays. Even though construction Lastly, consultations with the fire authori- minant of this variation is the time to con- regulations are available online, develop- ties also vary by region. The process takes nect to water and sewage and to consult ers in Flanders prefer to conduct the pre- three times longer in Wallonia than it with the fire department (figure 11). liminary consultation—the online system does in Brussels and Flanders (where it is not unified, and regulations are spread takes two weeks on average). The level Although Brussels requires the fewest across multiple websites and platforms, of coordination between the local fire number of procedures, utility connec- making it difficult for architects to know department and the municipality has a tions take the longest, reflecting the which laws they need to comply with on direct impact on the time for building plan higher demand that comes with its larger any given project. The time to approve review and approval.

FIGURE 11 Water and sewage connection times and fire department procedures show the most subnational variation

Antwerp 120.5 17 14 1

Charleroi 117.5 22 46 680.5 1

Bruges 120.5 60 14 1

Namur 117.5 32 46 1

Belgium 123.9 27.9 average 45 2

Brussels 111 77 15 8

Liège 118 47 46 1

Ghent 162.5 60 14 1

0 50 100 150 200 250 Time (days)

Municipal procedures Utility: water and sewage Fire department procedures Other

Source: Subnational Doing Business and Doing Business databases. Note: “Other” includes proof of land ownership (required only in Brussels) and file application and receive an inspection by the Cadaster (required in all cities). Data for Brussels are not considered official until published in the Doing Business 2021 report. 24 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Building permits and water and apply for permits to gauge the municipal- control aspects, Belgium does not get full sewage connection fees drive ity’s response to their project. The higher marks in quality control during construc- cost variations volume of permit applications creates tion (2 out of 3 points) and professional The average cost of dealing with con- extra work for municipal officers and certification requirements (2 out of 4 struction permits across the Belgian cities increases delays for legitimate applica- points).51 benchmarked is 0.4% of the warehouse tions. In Ghent, only construction projects value—equal to EUR 8,263—ranging requiring public surveys50 need to pay the During construction, inspections are from 0.1% in Bruges and Ghent to 0.9% in building permit fee. carried out in practice by an in-house Brussels. This variation is primarily driven engineer from the building company, by water and sewage connection fees Other fees, such as those paid to local fire who oversees the building’s construc- and, to a lesser extent, building permit departments, also vary across Belgium’s tion throughout the entire construction fees (figure 12). Connecting to water and regions. In Wallonia, consultations with period. However, the legislation does sewage systems in most Belgian cities is a the fire department cost around EUR not require risk-based inspections. Risk- costly endeavor for developers. They can 100—the same as the average cost in based inspections consider the potential expect to pay EUR 7,200 on average in Flanders—but developers in Walloon risks imposed by a particular building fees, or 87% of the total cost of dealing cities need to pay an additional EUR 100 instead of applying the same inspection with construction permits. These fees are on average when the fire department per- standards to all buildings. The potential set by local water and sewage utilities forms its final inspection. In Brussels, the risks considered can include environmen- and can range from EUR 1,025 in Bruges final inspection is free of charge, but the tal factors, as well as the building type to EUR 16,602 in Brussels. fire department clearance fee is 17 times and intended purpose.52 more than in the other regions. Instead of Building permit fees are set at the local a flat fee as in the other cities, in Brussels In Belgium, professionals working in the level and depend on the building’s the charge includes an application fee and construction industry must have mini- intended use and size. For a project like is calculated based on a fee of EUR 1.20 mum technical qualifications. Both the the Doing Business case study, these fees per square meter. professionals reviewing the plans and vary from no cost in Bruges and Ghent those supervising the construction on the to EUR 2,739 in Antwerp. In Bruges, the On the Doing Business building quality con- ground must hold a university degree in no-cost policy is the result of an initiative trol index, all Belgian cities benchmarked architecture, engineering, or construction to attract businesses to the city by lower- score 12 out of 15 points and benefit from management and be registered members ing barriers to entry. The downside to strong quality control mechanisms (table of the national association of architects or the no-cost policy is that developers can 6). Despite its strength in most quality engineers. However, they are not required

FIGURE 12 Utility connection fees account for 87% of the cost of dealing with construction permits

Bruges 1,493

Ghent 2,168

Charleroi 6,945

Namur 6,980

Belgium average 8,263

Liège 9,443

Antwerp 11, 634

Brussels 19,178

0 5,000 10,000 15,000 20,000 Cost (EUR)

Utility: water and sewage Building permit approval Fire department procedures Proof of land ownership

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. DOING BUSINESS IN BELGIUM 25

TABLE 6 Belgian cities have robust quality control mechanisms before and after construction

All seven Belgian cities (score) BUILDING QUALITY CONTROL INDEX (0–15) 12

Quality of building regulations Are building regulations easily accessible? 1 (0–2) Are the requirements for obtaining a building permit clearly specified? 1 Quality control before construction Which entity(ies) is/are required by law to verify the compliance of the building plans with 1 (0–1) existing building regulations?

Quality control during construction Are inspections mandated by law during the construction process? 1 (0–3) Are inspections during construction implemented in practice? 1

Quality control after construction Is a final inspection mandated by law? 2 (0–3) Is a final inspection implemented in practice? 1 Is any party involved in the construction process held legally liable for latent defects once the 1 building is in use? Liability and insurance regimes (0–2) Is any party involved in the construction process legally required to obtain a latent defect liability—or decennial (10-year) liability—insurance policy to cover possible structural flaws or 1 problems in the building once it is in use? Are there qualification requirements for the professional responsible for verifying that the 1 Professional certifications architectural plans or drawings are in compliance with the building regulations? (0–4) Are there qualification requirements for the professional who conducts the technical 1 inspections during construction?

Maximum points obtained Source: Subnational Doing Business and Doing Business databases. Note: For details on the scoring of each question, see the data notes. Data for Brussels are not considered official until published in the Doing Business 2021 report. to have a minimum number of years of practice of visiting the plot in person In the United Kingdom, the Ministry of practical experience or pass a certifica- before building permit approval—rather Housing, Communities, and Local tion exam. Almost 50% of EU economies than relying on digital infrastructure53— Government publishes online guidance— attain the maximum score in this area by could be eliminated or carried out on an called Approved Documents—on ways having these two requirements. as-needed basis. Reducing the need for architects can meet building regulations. in-person visits by establishing internal The online platform includes all relevant guidelines on the use of digital assets, regulations nationwide and provides WHAT CAN BE IMPROVED? including existing geoportals like geo.be, practical examples on how to avoid could ease the administrative burden of issues that commonly result in building Streamline preconstruction municipalities and developers. permit application rejections. requirements and consolidate permitting legislation Belgian cities could also consider In Denmark, the European Union’s best There is room for improvement in eliminating the need for fire department performer, there are no required precon- preconstruction measures in all bench- consultations. By ensuring the relevant struction clearances, and the building marked cities, and there are local good legislation is clear, up-to-date, and eas- permit application is managed and practices that can reduce bottlenecks ily accessible, cities could eliminate the completed online. Reducing the number elsewhere. In the Brussels region, the need for a separate meeting between of procedures and time required in the developer must obtain recent proof of the developer and the fire department. preconstruction stage can improve the land ownership from the Cadaster before Flemish cities could eliminate preliminary overall construction permitting process applying for the construction permit; in consultations with the municipality. for entrepreneurs and developers. all other benchmarked cities, the munici- Currently, the legislation is accessible pality checks land ownership, saving online, but because it is not streamlined Improve coordination among the developer time and one procedure. in one website, it is challenging to find. agencies involved in the water and Municipalities within Brussels should By consolidating the legislation on the sewage connections process consider adopting this approach while permitting platform, developers could Developers in most Flemish and Walloon strengthening communication with the avoid having to consult with the munici- cities must complete nearly twice the Cadaster. In Wallonia, the long-standing pality to ensure their projects’ feasibility. number of procedures to connect to water 26 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

and sewage as developers in Brussels The Flemish experience underscores the and procedures during construction for (where both services are requested in complexity of introducing electronic plat- low-risk buildings. In contrast to phased a single application). In several Flemish forms. Training for municipal employees inspections, risk-based inspections allow cities, the same utility company is and dependencies on how to operate and municipalities and builders to allocate responsible for water and sewage con- maintain electronic systems is crucial. resources where they are most needed nections. In these cities, the authorities Such platforms are typically linked to without compromising worker and could consider merging all water and ambitious regulatory reforms and online public safety. The standard, phase-based sewage processes into one application, government programs. In the long term, approach to inspections can lead to making the process more efficient. Belgian cities could explore the advan- delays and reduce efficiency, especially Belgian cities could also look to existing tages of adopting Building Information for relatively routine and straightforward good practices in neighboring countries. Modelling (BIM) systems, which incor- projects. In the Netherlands, the developer applies porate building regulation parameters into for most utility connections through the project design.55 BIM systems help profes- Belgium already incorporates risk clas- mijnaansluiting54 platform, regardless of sionals plan projects that comply with sifications in building permit applications the company providing the service. The national and local regulations and make and could consider a similar approach for entire application process is standard- conducting post-design checks easier and a more targeted, risk-based inspection ized. The Belgian authorities could set up faster for public authorities. In Finland, regime. France and Australia have been a similar streamlined application system, all relevant parties—owners, developers, using the risk-based approach the longest eliminating the need for the developer to architects, and government officials—col- and have comprehensive classifications submit double applications. laborate through a single BIM system of building categories and risks based platform, Lupapiste. Of Finland’s 100,000 on size and use.59 As Belgium’s current Introduce and improve electronic annual building permit applications, 95% inspection regime allows certified private permitting systems pass through this system. The platform is experts to carry out inspections and The level of process digitalization varies built on a private, secure cloud and links certifications, adopting a more risk-based substantially across the Belgian cit- the Cadaster, corporate and personal data, approach should require minor changes. ies measured (see box 4). Leveraging and the municipality that reviews and technology can significantly reduce the approves the application. Various stake- Improve regulatory expertise in time to deal with construction permits, holders independently track progress and collaboration with the private sector enabling building departments and can find the source of any approval delays. Construction permitting is a complex related agencies to streamline and The platform also integrates BIM formats process involving multiple stakehold- automate their planning, zoning, and (instead of two-dimensional drawings), ers. Managing this process requires building procedures. The COVID-19 allowing the models to be machine read adequately staffed permit-issuing agen- pandemic highlighted the importance of and the building review to be checked cies. Staff should have professional case digitalization, particularly in facilitating automatically. The system has accelerated management knowledge and be trained communication between developers and the process and made it less discretionary appropriately on the relevant technol- municipalities. and more predictable. ogy. Developers in the Belgian cities measured cited inadequately trained or At the subnational level, Walloon munici- Online permitting systems are increas- understaffed permit-issuing offices as palities can look to the experience of ingly common in Europe. The European a reason for delays in dealing with con- Flanders and Brussels municipalities with Commission classifies electronic applica- struction permits. creating IT systems. Although Flanders’ tions for building permitting as among online platform is relatively new, and that the 20-primary e-government services.56 More robust qualification requirements in Brussels is going through a phased Belgian cities can find examples of loca- for the professionals involved in construc- launch, both regions could consider tions successfully implementing similar tion permitting and control may be ben- expanding and integrating their platforms programs in Hungary (the building regu- eficial. Across Belgium, the professionals further. For example, creating a page on latory support documentation system approving standard case building plans the platform that centralizes relevant ÉTDR)57 and Germany (Hamburg).58 and supervising construction are required legislation could eliminate the need for only to have a university degree in archi- preconstruction contact with the munici- Consider introducing risk-based tecture or engineering and be a registered pality and reduce application errors. inspections architect or engineer. In Luxembourg, by As digitalization efforts continue, user Categorizing building projects based on contrast, these professionals must also feedback will be particularly important in risk and adopting risk-based inspections have a minimum number of years of future platform development. can streamline preconstruction approvals experience and pass a certification exam. DOING BUSINESS IN BELGIUM 27

Introducing a certification exam and requiring minimum years of experience would automatically increase the permitting agencies’ technical competency. Globally, more than 80% of economies measured by Doing Business require these four qualifications from professionals reviewing building plans and supervising the construction on the ground.

In the medium term, expanding the role of certified private sector professionals in the permitting process could help to reduce understaffing. Although this may require legislative action, the benefit of having a highly specialized, flexible workforce could be substantial. Most EU member states have shifted from public to private governance mechanisms in building regulation, reflecting a desire to improve the quality of regulation, reduce the administrative burden for applicants, and support a greater focus on risk miti- gation.60 Australia, Singapore, and the United Kingdom are among the countries that have adopted a system of third- party contractors to expand regulatory coverage and expertise.61 Doing Business research shows that construction permitting is more efficient in economies that rely on some form of private sector participation in construction permitting or control processes. However, such a system needs adequate safeguards like robust qualification requirements for professionals approving building plans. 28 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Getting Electricity

Regional-level regulators establish and these steps takes 138 days on average, reliability of supply and transparency of monitor the rules and regulations gov- 1.5 months slower than the EU average.63 tariffs index. Antwerp, Bruges, Brussels, erning the distribution of electricity in The average cost in Belgium (122.1% and Ghent obtain the maximum 8 points Belgium. In the Brussels-Capital Region, of income per capita) is slightly below on the index, while Charleroi, Liège, and the regulator is the Brussels Regulatory the EU average. Overall, Belgian cit- Namur score 7 points (figure 14).64 Commission for the Gas and Electricity ies perform well on the Doing Business Markets (BRUGEL). The Flemish Regulator of the Electricity and Gas Market (VREG) is the regulator in Flanders; the Walloon MAP 1 Electricity distributors operate in designated geographic zones Energy Commission (CWaPE) is the regulator in Wallonia. At the federal level, Bruges Antwerp a fourth regulator, the Commission for Fluvius Electricity and Gas Regulation (CREG), Fluvius Ghent oversees the high-voltage electricity Fluvius network and ensures that the electricity Brussels market remains transparent and operates Sibelga under fair competition standards. Liège RESA Namur Distribution system operators (DSOs)— Charleroi ORES also referred to as “electricity distribu- ORES tors” and “distribution utilities” in this chapter—are key players in the connection process and serve a designated geographical area. Various DSOs operate in the seven benchmarked cities: Sibelga in Brussels; Fluvius in Antwerp, Ghent, and Bruges; ORES in Charleroi and Namur; and RESA in Liège (map 1). Source: Subnational Doing Business and Doing Business databases. Obtaining an electricity connection is easiest in Ghent and Antwerp and most TABLE 7 Getting electricity is easiest in Ghent and Antwerp and most difficult in difficult in Bruges and Brussels (table Bruges and Brussels 7). Differences in time and cost are substantial: getting a connection takes Cost Reliability of supply and Score Procedures Time (% of income transparency of tariffs index anywhere from four months (in Charleroi, City Rank (0–100) (number) (day) per capita) (0–8) Ghent, and Namur) to nearly six months Ghent 1 76.07 6 120 109.8 8 (in Brussels), and the cost varies from Antwerp 2 73.36 6 145 109.8 8 109.8% of income per capita in Antwerp, Charleroi 3 72.79 6 121 127.2 7 Bruges, and Ghent to 139.3% in Liège. Namur 3 72.79 6 121 127.2 7 Electrical service is reliable, Liége 5 72.53 6 123 139.3 7 but Belgium could improve the Bruges 6 71.18 6 165 109.8 8 efficiency of getting electricity Brussels 7 70.46 6 171 131.9 8 An entrepreneur seeking a new electricity Source: Subnational Doing Business and Doing Business databases. connection for a warehouse completes Note: Rankings are calculated on the basis of the unrounded scores, while scores with only two digits are displayed in the table. Rankings are based on the average scores for the procedures, time, and cost associated with getting six procedural steps in all Belgian cities electricity and the reliability of supply and transparency of tariffs index. The score is normalized to range from 0 to benchmarked, more than most other EU 100 (the higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in 62 the European Union 2021: Austria, Belgium and the Netherlands.” Data for Brussels are not considered official until member states (figure 13). Completing published in the Doing Business 2021 report. DOING BUSINESS IN BELGIUM 29

FIGURE 13 Belgium lags its EU peers on procedural steps and time to get electricity

EFFICIENCY OF GETTING ELECTRICITY Procedures Time Cost (number) (days) (% of income per capita) 1 1 0 20 France (EU best) Germany (EU best) Lithuania (EU best) 2 30 20 40 Netherlands EFFICIENCY OF GETTING ELECTRICITY Czech Republic, Germany, France Latvia, Sweden 3 50 Procedures Luxembourg Time Cost Luxembourg (number) (days) (% of income per capita) 60 Germany 40 1 1 0 EU average 90 France (EU best) France, Netherlands* 4 20 Netherlands 100 100 EU average Germany (EU best) 30 20 110 Lithuania (EU best) 2 Netherlands Luxembourg 5 Antwerp, Ghent, Bruges40 Luxembourg Czech120 Republic,Ghent Germany, France Germany Charleroi, Namur 40 Latvia, Sweden 3 120 50 130 Liège Belgium average Luxembourg 6 All 7 Belgian cities EU average Charleroi, Namur60 Belgium average 140 Brussels 60 Antwerp EU average 90 150France, Netherlands* 4 140 Liège 7 Netherlands 100 160 EU average 80 Bruges 110 170 BrusselsLuxembourg 5 All 7 Belgian cities 900 8 120 Ghent 180 Charleroi, Namur 100 130 260 Romania Liége Antwerp, Ghent, Bruges Bulgaria 6 Belgian average 140 Belgian average Romania 9 270 920 Antwerp 120 150 EU average Charleroi, Namur 7 Brussels 160 140 Liége Source: Subnational Doing Business and Doing Business databases. Bruges Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by Doing Business.170 Brussels Data for Brussels, EURELIABILITY averages, and OF EU SUPPLYcomparator AND economies are not considered official until published in the Doing Business 2021 report. 8 180 900 * Austria, Croatia,TRANSPARENCY Denmark, Ireland, OF Italy, TARIFFS Malta andINDEX Poland also have four procedures. (0–8) Bulgaria 260 Romania 9 270 920 Obtaining16 EU economies electricity (EU best)* 8 requiresAntwerp, Bruges Romania Belgium average Brussels, Ghent the same proceduralEU average steps, but FIGURE 14 Four Belgian cities score among the best-performing EU member states for Luxembourg 7 Charleroi, Liège, electricity reliability and transparency time and cost vary substantiallyNamur across locations RELIABILITY OF SUPPLY AND TRANSPARENCY OF TARIFFS INDEX The procedures, time,6 and cost to get (0–8) an electricity connection depend on the 16 EU economies (EU best)* 8 Antwerp, Bruges Brussels, Ghent availability of bothMalta low-5 and medium- Belgium average EU average voltage infrastructure. Doing Business Luxembourg 7 Charleroi, Liège, Namur studies, the hypothetical4 case of a local firm that needs a 140-kilovolt-ampere 6 (kVA) electricity connection3 for a newly built warehouse located in a commercial area outside a city’s historical center. Malta 5 2 In all Belgian cities, new warehouses typically connect to the medium-voltage 4 1 underground network. 3 The process to connect0 a warehouse to the grid requires six procedural steps in 0 all locations benchmarked (figure 15). The customer submits an application form along with a cadaster map, details Source: Subnational Doing Business and Doing Business databases. Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual on the requested capacity, and the economies are for their capital city as measured by Doing Business. Data for Brussels, EU averages, and EU comparator transformer’s technical characteristics economies are not considered official until published in the Doing Business 2021 report. * Belgium (as represented by Brussels in the global Doing Business study), Cyprus, the Czech Republic, Estonia, Finland, to the distribution utility. In all cities France, Germany, Ireland, Latvia, Lithuania, the Netherlands, Poland, Slovak Republic, Slovenia, Spain, Sweden. 30 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 15 Getting electricity involves given its approval and the works have uses an online platform to notify the the same six steps across cities in Belgium been coordinated with other utilities, the other service utilities for worksite coordi- developer obtains authorization to install nation and obtains excavation approvals. Procedure Agency road signs from the police department (to This procedure takes five weeks on aver- Submit application and await Distribution utility divert traffic while excavating the public age.69 Because these actions comprise estimate road).68 While the contractor obtains two separate steps in the other Belgian Conclude contract with Electricity supplier electricity supplier* the necessary approvals and materials cities, it takes significantly longer—from and plans the connection works onsite, two months in Bruges and Ghent to three Receive internal wiring inspection Approved agency by approved agency* the client installs the transformer on the months in Antwerp.70 In Antwerp, it can

Accept estimate and await completion Distribution utility private land plot and contacts the autho- be more difficult to access other utilities’ of external works by utility rized inspection agency. Finally, as a last underground infrastructure maps, result- Purchase and install transformer* Electrical contractor internal step, the utility installs the meter ing in delays.71 The time required for road

Obtain certiﬁcation of the Authorized agency and electrifies the connection. traffic signage approval can also vary. transformer by authorized agency* This process takes two days in Antwerp, The time to get excavation three days in Brussels and Liège, and one Source: Subnational Doing Business and Doing Business databases. approvals is the main driver of month in Bruges, making the latter the Note: Data for Brussels are not considered official until time variations second-slowest city for getting electric- published in the Doing Business 2021 report. Differences among the benchmarked cit- ity in Belgium (after only Brussels).72 * Procedure occurs simultaneously with previous one. ies in the time to get electricity are mainly In Bruges, emergency services must except Liège, customers apply via the determined by the time to (i) coordinate determine whether blocking the road is utility’s online platform (in Liège, cus- the excavation works with other service feasible, resulting in delays in obtaining tomers apply by email). Upon receiving utilities, (ii) obtain municipal authoriza- the traffic signage permit. the request, the DSO prepares a detailed tion to excavate, and (iii) obtain road study to ensure that the grid can support traffic signage approval. The processes The processing of new connection requests the new connection. If the connection and time frames for meeting the first by the distribution utility can also cause works are feasible, the distribution utility two requirements are regulated at the delays.73 In Bruges and Ghent, it takes one provides the applicant with a quote. After regional level; traffic signage is regu- month on average for the utility to issue accepting the quote, the client can sign a lated at the municipal level. In Brussels, a quote, nearly 10 days longer than most supply contract with one of the suppliers Charleroi, Liège, and Namur, the DSO other Belgian cities (figure 16). available on the market. In four cities, works cannot commence until the connection fee is paid; in Antwerp, Bruges, FIGURE 16 Getting electricity is fastest in Ghent, Charleroi, Namur, and Liège and Ghent, clients submit this payment Ghent 30 90 after the external connection is finalized. Charleroi 21 100 The DSO uses an online platform—shared Namur 21 100 with other service utilities, including water, sewage, and telecommunications—to Liège 23 100

facilitate coordination and announce the Antwerp 21 124 start of electrical works.65 Each region has its own platform.66 The DSO hires Bruges 29 136 a contractor to perform the external Brussels 21 150 connection works. The same contractor requests maps of the existing under- 0 20 40 60 80 100 120 140 160 180 ground cables and pipes from all relevant Time (days) service utilities to prevent damage during Processing application and issuing quote Connection works excavation. Although the utilities have seven days to respond to the request, this Source: Subnational Doing Business and Doing Business databases. Note: Because the procedures (i) “signing a supply contract”, (ii) “receiving an internal wiring inspection”, (iii) takes no more than two days in practice “installing a transformer”, and (iv) “receiving an inspection on the installed transformer” are completed simultaneously 67 with the procedures shown in the figure (“processing application and issuing quote” and “connection works”), the in the Belgian cities benchmarked. An time is counted under these procedures. Signing the supply contract and receiving the internal wiring inspection are excavation permit to cross the public completed while the DSO processes the request for a new connection; both take the same time across cities (two days and one day, respectively). Transformer installation, which is completed while the DSO completes the external road must also be requested from the connection works, takes 30 days; the transformer inspection takes one day in all cities benchmarked. For more municipality. Once the municipality has information see data notes or figure 15 for the sequence of procedural steps. Data for Brussels are not considered official until published in the Doing Business 2021 report. DOING BUSINESS IN BELGIUM 31

Electricity supply is most reliable Utilities in Belgium independently set their FIGURE 18 Transformer-related fees fees for external connection works, which in Antwerp, Bruges, Brussels, make up more than two-thirds of the cost regional regulators then approve. The fee and Ghent to get electricity in Belgium is based on three components: the connec- In addition to the efficiency of getting tion works, requested capacity, and meter electricity, Doing Business measures the installation. The first two components vary reliability of supply and the transparency of most significantly across the cities bench- tariffs using an index that scores locations marked (figure 17). The flat fee related to on a scale of 0 to 8. An automated system 30% the connection works is highest in Brussels monitors power outages and restoration 70% (EUR 12,360) and Liège (EUR 9,777). In the services in all Belgian cities, and indepen- rest of the cities, the cost is EUR 5,576 on dent energy regulators at the regional level average. In Charleroi, Liège, and Namur, the monitor utility performance. The frequency capacity charge is nearly four times higher and duration of outages vary between cit- than in Antwerp, Bruges, and Ghent.74 ies. Antwerp, Bruges, Brussels, and Ghent The meter installation fee ranges from had the most reliable electricity supply in External connection fees and other fees EUR 1,626 in Antwerp, Bruges, and Ghent to 2019, with each customer experiencing, on Transformer-related fees EUR 2,200 in Brussels. Utilities also charge average, 0.4 service interruptions lasting a fee for a detailed study to ensure that the a total of 23 minutes (figure 19). Outages Source: Subnational Doing Business and Doing Business databases. grid can support the subscribed capacity; were most frequent in Charleroi, Liège, and Note: “External connection fees and other fees” in Liège, this study costs EUR 1,066, while Namur, where each customer experienced, includes (i) the flat fee charged for the connection works, (ii) the fee based on the requested capacity, in the rest of the cities it costs between on average, around 1.2 service interruptions (iii) the meter installation fee, (iv) the fee for the EUR 612 and EUR 670. lasting a total of approximately 46 minutes detailed study, and (v) the internal wiring inspection fee. “Transformer-related fees” includes fees for (i) per year, resulting in a score of 7 out of 8 purchasing and installing the transformer and (ii) The customer can choose any transformer points on the index. In Antwerp, Bruges, the transformer inspection. Data for Brussels are not considered official until published in the Doing Business company from the market. The cost of and Ghent, DSOs compensate their cus- 2021 report. purchasing and installing a transformer— tomers when outages exceed four hours; EUR 35,000 in all cities benchmarked, or DSOs in other cities compensate their cus- 70% of the total connection cost—is borne tomers when outages exceed six hours.75 by the consumer (figure 18). The customer Electricity tariffs are available online, and WHAT CAN BE IMPROVED? also pays a small fee (around EUR 250) for utilities notify customers in advance of tariff the internal wiring inspection. changes in all benchmarked cities. Streamline the approvals process for getting electricity Entrepreneurs in Belgium face lengthy FIGURE 17 Connection and capacity charges drive cost variations waits while distribution utilities coor- Cost (EUR) dinate the excavation works with other 14,000 service utilities and obtain excavation 12,360 authorizations. Although DSOs fulfill 12,000 these requirements on the entrepreneur’s behalf, this wait lengthens the 10,000 9,777 9,398 overall electricity connection process. If 9,274 8,000 lawmakers were to define the requirements and legal time based on project 6,000 complexity, the total time for getting 5,412 5,722 4,060 electricity could be reduced. Such an 4,000 approach would expedite simple connec- 2,457 2,200 2,091 2,000 1,712 tions while allowing the approving agen- 1,626 670 1,066 cies to focus on more complex projects. 630 0 612 In the Netherlands, the Municipality of Fluvius Sibelga ORES Resa (Antwerp, Bruges, Ghent) (Brussels) (Charleroi, Namur) (Liège) Enschede differentiates works in the public domain based on their length. Works Connection fee Capacity fee Meter installation Detailed study involving a road crossing of fewer than 25

Source: Subnational Doing Business and Doing Business databases. meters do not require authorization for Note: : Data for Brussels are not considered official until published in the Doing Business 2021 report. excavation works on the public road.76 32 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 19 Charleroi, Liège, and Namur had the most frequent and longest power with multiple offices regarding the same outages in 2019 project.

To streamline the process of getting elec- 1.2 tricity, establishing online platforms—for

1.0 example, like those introduced in 2017 by the French distribution utility, Enedis—is 0.8 an option for Belgian authorities and utilities. Since Enedis adopted both externally 0.6 and internally facing platforms, the time to obtain a connection has decreased by 0.4 nearly three weeks. Externally, customers

0.2 use the online portal to submit connection requests along with all supporting docu- 0.0 mentation. Internally, Enedis implemented Antwerp Bruges Ghent Brussels Belgium Charleroi Namur Liège EU average average a unified data management solution that SAIDI (average total duration of outages in 2019 for each customer served - in hours) allowed both the customer service depart- SAIFI (average number of service interruptions experienced by a customer in 2019) ment and the new connection department to receive and process connection requests. The system facilitates the inter- Source: Subnational Doing Business and Doing Business databases. nal tracking of applications, speeding the Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. electrical engineer’s analysis and allowing

Belgium could also reduce the time to get electricity by streamlining the required FIGURE 20 In Brussels, distribution utilities obtain all authorizations through a single approvals into a single authorization. electronic platform Brussels already uses an integrated platform, Osiris, to simplify its approvals process. Through this platform, the distribution utility coordinates the excavation works with other service utilities and completes all requirements to begin the connection works (figure 20). However, even though Brussels has the most advanced and integrated platform of the benchmarked cities, the time to obtain all approvals is the same as in Wallonia (five weeks). Obtaining worksite approvals in Brussels can be institutionally and admin- istratively complex. In other cities, users can only obtain some of the required authorizations through the online platform. For example, in Charleroi, Liège, and Namur, the DSO contractor obtains traffic signage approval from the local police department but uses the Powalco platform to launch worksite coordination and obtain road opening authorization. The GIPOD platform in Antwerp, Bruges, and Ghent is only used for worksite coordination purposes. A well-designed, integrated platform could eliminate the Source: Federal Contact Point for Cable and Conduit Information need for distribution utilities to interact (https://www.osiris.brussels/Modules/Management/Pages/Login.aspx?ReturnUrl=%2f). DOING BUSINESS IN BELGIUM 33

them to respond faster to clients. It also equally important legal time limits not be Review the cost of obtaining a new allows the connection department to overly long. electricity connection and provide assign the external works to engineers in the option to pay connection fees in a more efficient manner. Increase transparency and installments accountability by collecting and New electricity connections in Belgium To reduce new connection wait times, publishing statistics can be expensive. Medium-voltage con- Belgium could study the experience of It is critical that agencies involved in the nections are particularly costly because the United Kingdom. In 2017, the UK process of getting electricity (munici- customers must purchase and install a regulator, Ofgem, approved the Incentive palities, distribution utilities, electricity transformer before the utility connects on Connections Engagement (ICE) initia- suppliers, local police departments, and the warehouse to the network. The cost tive to encourage distribution network so on) make data on processing times represents a financial burden for most operators to complete the external con- available publicly. Doing so allows SMEs. Distribution utilities also charge nection works faster. According to the ICE entrepreneurs to estimate wait times a fee—considered high by global stan- guidance, the utilities must provide data accurately. In Austria, the regulator pub- dards—to prepare a detailed study as demonstrating that they have responded lishes a standardized electricity quality part of the application process. Utilities to their customers on time and according report, the Kommerzielle Qualität Storm, in 23 other EU member states do not to their customer service engagement. which includes cross-cutting data on the charge application-related fees according DSOs can be penalized if they fail to meet electricity connection process.78 Data are to Doing Business data. Some economies these requirements. Moreover, one DSO, collected annually from utilities through a subsidize part of the connection process. UK Power Networks, implemented a new questionnaire. The report contains data In France, for example, an electric- software system, the ICP Design Fast on application processing times and the ity connection is relatively inexpensive Track and Approved Designer Scheme, time to complete a connection at differ- (EUR 2,156). The cost is significantly that allows for direct contact with sub- ent voltage levels, making the data easily lower in part because the federal govern- contractors and tracks their progress. The comparable across cities and utilities. A ment requires municipalities to finance a utility also introduced common design similar data-driven report could help portion of the connection costs, reducing and planning requirements for the works streamline Belgium’s electricity sec- the upfront cost to entrepreneurs.80 and material specifications for subcon- tor—and help entrepreneurs and utilities tractors that carry out external works. set clear and realistic expectations. Data Allowing customers to pay connection As a result of these initiatives, UK Power reporting could also serve as an indirect fees in installments or after the con- Networks reduced the time to provide a accountability measure to incentivize nection works are finalized would ben- new electricity connection by one month. utilities to boost their performance. efit entrepreneurs. In Brussels, Charleroi, It takes 46 days to complete the connec- Namur, and Liège, the connection works tion works in the United Kingdom, three Allow electrical suppliers to submit start after the client has paid the con- times faster than the average of the seven new connection applications nection fee in full. Local good practices Belgian cities benchmarked. Allowing customers to apply for a are already in place in Belgium: custom- connection through an electrical sup- ers in Antwerp, Bruges, and Ghent pay Introduce strict legal time limits for plier—rather than directly through the the distribution utility only after the completing external connection works distribution utility—reduces the number external connection. Belgium could look All three Belgian regions have legal time of procedures to get electricity. This to Croatia, where the external works limits for the processing of new connec- approach combines two steps: applying start once the entrepreneur has paid at tion applications by distribution utilities. for a new connection and signing the least 50% of the connection fee.81 The Still, only Flanders stipulates a time frame supply contract. In Italy, where getting remaining 50% is paid shortly before the within which the utilities must complete electricity requires four procedures—two connection is electrified. the external connection works.77 In fewer than in Belgium—customers can several EU member states, including apply through their chosen supplier. Replace third-party certifications Italy, the Netherlands, Poland, and Belgian utilities and suppliers already with compliance self-certification Spain—all of which have legal time limits share an internal platform, Atrias, to Entrepreneurs in Belgium must hire an at the national level—the regulator fines communicate about the connection external agency to inspect the ware- utilities if they fail to complete the con- works and supply contract.79 The authori- house’s internal wiring and certify the nection within the established limit. The ties could expand this platform to allow transformer after installation. These lack of legally prescribed deadlines and suppliers to notify the utility of a new agencies issue a certificate stating that automatic penalties for failure to comply connection request without the customer the installation was done in accordance allows utilities to delay the process. It is having to contact the utility first. with regulatory and safety standards; 34 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

this certificate is required to complete framework are key factors in determining the process of getting electricity. supply reliability.82 According to Doing Business data, 15 EU member states—among them Denmark and Germany—allow entrepreneurs to self-certify, eliminating the need for third-party certification. Third-party certifications can be eliminated when certified electrical contractors complete the electrical network wiring and assume responsibility for certifying their work’s quality and regulatory compliance. The same could apply to transformer installation certification. This change would reduce the time and procedures to get electricity in Belgium without compromising safety. Proper regulation of the electrical engineering profession is key when introducing such a measure. Legal provisions specifying qualification requirements and professional liability parameters should accompany a self- certification system.

Improve the reliability of electricity supply Most EU member states, including Belgium, impose financial penalties on distribution utilities for failing to provide a reliable electricity supply to their customers. Financial penalties create incentives for distribution utilities to maintain supply reliability throughout the year and across their entire service zone. However, financial sanctions alone are not enough. Minimizing the number and duration of power outages is critical for the economy and society. Understanding why the out- age duration and frequency is higher in Charleroi, Namur, and Liège than in the other four Belgian cities benchmarked is valuable knowledge that the authorities could use to improve electricity supply reliability. A distribution utility is a final link in the supply chain for electricity; many actors play key roles in generation, transmission, and distribution. Moreover, multiple interdependent factors directly affect reliability. Evidence suggests that investment levels in electricity generation, tariff levels and bill collection rates, the operational efficiency of the utilities, and the overarching regulatory DOING BUSINESS IN BELGIUM 35

Registering Property

The government’s Coperfin Reform, which property is easiest in Bruges and Ghent economies on the subidicator 'proce- started in 2000, aimed to modernize the and most cumbersome in Namur and dures'—Portugal and Sweden—property structure and operations of FPS Finance.83 Brussels (table 8). The process can be registration can be completed in one pro- The General Administration of Patrimo- completed in just 35 days in Bruges and cedure; in the Netherlands, it takes just nial Documentation (GAPD, Administration Ghent, significantly less time than in three days. The cost to transfer a property générale de la Documentation patrimoniale/ Brussels (56 days). On average, entrepre- in Belgium is more than twice the EU aver- Algemene Administratie van de Patrimo- neurs pay EUR 51,64188 more to register age, making it the second most expensive niumdocumentatie), part of FPS Finance, a property in Brussels, Charleroi, Liège, economy in the EU to register property became the principal government agency and Namur than in Antwerp, Bruges, and (after Malta). With 23 points out of 30, responsible for property registration and land Ghent. This cost variation is primarily due Belgian cities perform well on the quality administration system management. The to higher regional registration taxes in the of land administration index, just above GAPD encompasses four administrations,84 Brussels-Capital Region and Wallonia the EU average (22.9 points) (figure 21). including the Administration for Measure- (12.5% of the property value compared ments and Assessments (Cadaster)— to 10% in Flanders).89 Registering property requires responsible for updating the cadastral plan, the same eight procedures assigning an identification number to every Registering property in Belgium across all Belgian cities plot, and allocating a cadastral income to takes longer and is more Although parties can legally agree to sell a each property—and the Administration expensive than in most other EU property without a notarial act via a private of Legal Security, which levies and collects member states contract—which the buyer or seller must registration fees and updates patrimo- In Belgium, a property transfer between then register within four months with nial documentation.85 The Administration two domestic private companies requires the Office of Legal Security—such an act of Legal Security, which was reorganized eight procedures taking on average 42 cannot be transcribed and is not oppos- in May 2018, operates 48 Office of Legal days at a cost of 11.6% of the property able to third parties in case of a dispute.91 Security branches nationwide, replacing the value. Entrepreneurs registering a property Most entrepreneurs hire a notary to obtain previous Mortgage Offices.86 in Belgium complete more procedures in the necessary documents, draw up and more time and at a higher cost than the authenticate the act of sale based on the On average, property registration is EU average.90 It takes longer to register agreement between parties, and register fastest and least expensive in Flanders a property in only three EU member the transfer to ensure the opposability of Property rights in Belgium are regu- states: Germany, Slovenia, and Poland. the sale.92 The documentation includes a lated at the federal level.87 Registering a In the European Union’s best-performing zoning certificate from the municipality describing the property’s location and list- ing the various permits and certificates, as TABLE 8 Registering property in Brussels is most costly and takes the longest of all well as an excerpt from the relevant Office benchmarked cities of Legal Security verifying third-party Cost Quality of land Score Procedures Time (% of property administration index rights over the property for 30 years. City Rank (0–100) (number) (day) value) (0–30) Bruges 1 58.52 8 35 10.2 23 The notary must also obtain tax certifi- Ghent 2 58.52 8 35 10.2 23 cates related to the seller’s good standing Antwerp 3 57.80 8 41 10.2 23 from the tax administration at the federal, Charleroi 4 53.76 8 40 12.7 23 regional, provincial, and municipal levels, Liège 5 53.64 8 41 12.7 23 a clean soil certificate from the respon- Namur 6 53.28 8 44 12.7 23 sible institution at the regional level,93 a Brussels 7 51.84 8 56 12.7 23 cadastral excerpt, and a cadastral plan. Source: Subnational Doing Business and Doing Business databases. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only two digits are displayed After the parties have signed the notarial in the table. Rankings are based on the average scores for the procedures, time, and cost associated with registering property as well as for the quality of land administration index. The score is normalized to range from 0 to 100 (the act, the notary registers the act (box 5) higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in the and applies for its transcription within European Union 2021: Austria, Belgium and the Netherlands.” Data for Brussels are not considered official until published in the Doing Business 2021 report. 15 days at the Office of Legal Security 36 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 21 Belgian cities lag EU member states on measures of efficiency but perform well for land administration quality

EFFICIENCY OF PROPERTY REGISTRATION QUALITY OF LAND ADMINISTRATION

Procedures Time Cost Index (number) (days) (% of property value) (0–30) Portugal, Sweden 1 1 Slovak Republic 0 30 (EU and global best)* (EU and global best)** Netherlands 2 (EU best) 5 1 29 Lithuania, Netherlands 4 (EU and global best)*** 28 3 25 Luxembourg EU average 5 EU average 27 4 30 Netherlands 6 26 France, Netherlands, Germany EU average 5 35 Bruges, Ghent 7 France Luxembourg 25 Germany 6 40 Charleroi 8 France Antwerp, Liège France 24 Namur Luxembourg 7 45 9 Germany 23 All 7 Belgian cities Luxembourg 10 Antwerp, Bruges EU average 8 All 7 Belgian 50 Ghent 22 cities Germany 11 9 55 Brussels 12 6 Brussels, Charleroi, Greece 10 175 Poland 13 Liège, Namur 5 Malta Greece 11 180 14 0

Source: Subnational Doing Business and Doing Business databases. Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by Doing Business. Data for Brussels, EU averages, and EU comparator economies are not considered official until published in the Doing Business 2021 report. * Georgia and Norway also have one procedure. ** Belarus, Georgia, Kazakhstan, Kiribati, and Saudi Arabia also have a cost of 0.0% of the property value. *** Rwanda and Taiwan, China also score 28.5 points.

BOX 5 Notaries in Belgium completed most tasks for property registration electronically even before the COVID-19 pandemic

Over the past two decades, the work of notaries in Belgium has become increasingly digitalized. Today, a notary can request most due diligence documents online using the eNotariat portala managed by the Royal Federation of Notaries (Fednot), which provides centralized access to government applications. Soon—once the reform allowing users to obtain the 30-year mortgage certificate via the self-service platform takes effect—notaries will only need to request the municipal zoning certificate indi- vidually for all cities (each municipality operates its own process). In the Brussels-Capital Region, notaries must also request the clean soil certificate directly from the Brussels Environment Agency’s website. In contrast, in Wallonia and Flanders, these certificates are obtained via the regional agency platforms integrated in eNotariat.

The COVID-19 pandemic spurred further changes. Until 2020, the parties needed to sign the notarial act in person at the notary’s office. However, to facilitate the continuation of property transfers during COVID-19, the authorities enacted a new lawb containing various provisions relating to the notarial profession and enabling the execution of an authentic digital power of attorney by videoconference. As a result, the parties must no longer appear in person before the notary to execute a power of attorney or the notarial act for which a power of attorney is granted.c

a. The eNotariat portal, launched in 2001, links and integrates notary software packages, providing notaries with applications to simplify their administrative load across practice areas in partnership with federal and regional government agencies. For property transfers like the Doing Business case study, the eNotariat portal offers notaries a centralized platform to request and obtain tax notifications, clean soil certificates (for Flanders and Wallonia), and cadastral records as well as for the registration and transcription of the notarial act. The eNotariat portal can be accessed at https://www.e-notariaat. be/tb/html/pages?TAM_OP=selectidp&code=1fa9c21b-98d3-4874-92c4-ac0701244150&comparison=EXACT&relaystate=f1171977 -5dbb-4f81-869a-d24766241c8f&authnmethod=28. For more information on the resources made available by Fednot, see https://www.fednot.be/. b. Act of April 30, 2020 (Belgian Official Gazette May 4, 2020) amending Article 18quinquies Ventôse Act (the organic law on the notary’s office). c. The parties can identify themselves with the app ‘Itsme’ (a mobile app allowing identification verification through a fingerprint or access code (https://www.itsme.be/en/) or with a card reader using e-ID (the Belgian electronic identity card) and the correct pin code. See https://finance.belgium .be/en/faq/creating-and-stopping-power-attorney#q1. DOING BUSINESS IN BELGIUM 37

to ensure the act’s opposability by third regular mail (table 9). Delivery times are of Legal Security also varies significantly parties (figure 22). shorter in municipalities where notaries among the benchmarked cities. Once can obtain the certificate electronically, the parties have signed the notarial act, The time to obtain certificates whether through a designated portal or by the notary submits the signed act to the and the transcription and email. local Office of Legal Security for recording registration of the notarial act and transcription in the public registers, drive variations in time Depending on location, it takes between making the transfer opposable to third Variations in time mainly stem from dif- 15 and 19 days to receive the 30-year parties.97 The notary must file the notarial fering procedures to obtain the municipal mortgage certificate from the Office of act with the Office of Legal Security within zoning certificate, receive the 30-year Legal Security. This process takes slightly 15 days.98 Otherwise, the notary will be mortgage certificate from the Office of longer in Brussels (due to the high num- fined.99 The notary sends the notarial Legal Security, receive the clean soil cer- ber of transactions and bilingualism) and act’s metadata100 to the Office of Legal tificate from the regional database, and Antwerp (due to understaffing).94 Security using the eNotariat eRegistration the time for the signed notarial act to be application.101 registered and transcribed at the Office of The time to obtain the clean soil certifi- Legal Security (figure 23). cate from the regional authorities is also At the Office of Legal Security, the Mort- longer in Brussels than in the other cities, gage Office Documentation team verifies The time to obtain the zoning certificate taking 10 days on average. In contrast, it is and accepts the initial information102 sent varies most, ranging from 14 days in available online immediately for cities in by the notary before forwarding it to the Bruges and Ghent to 30 days in Brussels. Wallonia and takes two days on average Registration Service. Once both ser- In all seven cities, the notary requests in cities in Flanders.95 In Brussels—which vices have verified the documentation and the zoning certificate directly from the receives roughly 30,000 requests for approved it in their respective systems, municipality. However, procedures vary clean soil certificates annually96—nota- the notary receives two electronic stamps for submitting, processing, and releasing ries submit and receive their certificate confirming the transcription and registra- the certificates. Liège is the only city where online through the BRUSOIL web plat- tion of the notarial act. Applications are the notary requests and also receives the form. Manual processing may be needed processed fastest in Charleroi and Liège zoning certificate by registered mail. In for land plots without data in the system. (eight and nine days, respectively). The Charleroi and Namur, the municipality has same process takes 18 days in Antwerp, recently allowed for requests to be made The time for the transcription and registra- reportedly due to staffing shortages;103 it by email, but certificates are returned via tion of the property title with the Office takes the longest in Brussels (23 days).

FIGURE 22 Transferring property in Belgium involves interactions with federal, regional, and municipal public agencies

Procedure Agency level Interaction

Private sales agreement given by parties to notary In person or by email Zoning certificate obtained from municipality Process varies by municipality* 30-year mortgage certificate obtained from Office of Legal Security Requested by email and received by mail** Tax certificates obtained from tax authorities eNotariat portal Clean soil certificate obtained from regional database eNotariat portal for Wallonia and Flanders; Brussels Environment agency platform for Brussels Excerpt and plan obtained from Cadaster eNotariat portal Notarial act drawn up by notary In person or videoconference*** Notarial act sent for registration and transcription with the Office of Legal Security eNotariat portal

Notary Federal agency Regional agency Municipal agency

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. * Zoning certificates requested and received via online portal, email, or mail, depending on the municipality. See table 9 for more details. ** At time of data collection, 30-year mortgage certificates were requested by email and delivered by mail. Following the Royal Decree of November 11, 2019, a reform is underway with the creation of a self-service platform for notaries to allow them to obtain mortgage certificates online from the relevant Office of Legal Security. Implementation of the reform is expected by spring 2021. As an intermediate measure, since December 2020, notaries have the option of receiving the 30-year mortgage certificate directly in their My e-Box application. This secure, electronic mailbox can receive, store, and manage official documents sent on behalf of government institutions and agencies. The intermediate measure was used sporadically in practice at the time of publication. *** Since May 4, 2020, parties can grant an authentic digital power of attorney to sign the notarial act on their behalf. 38 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 23 Obtaining the zoning certificate and transcribing the notarial act are the Properties with a higher sale turnover and procedures with the greatest variations in time multiple owners slow processing times at the Brussels Offices of Legal Security.

15 2 Bruges Registration taxes make up the 15 largest portion of the cost to 14 transfer a property 15 2 The cost of registering property comprises Ghent the regional registration tax,104 other fees 15 14 set at the national, regional, and munici-

8 pal level, and notary fees. The regionally 0.5 Charleroi set registration tax is levied against the 15 property value and paid by the buyer. This 29 tax, which ranges from 10% in Flanders105 18 2 to 12.5% in Wallonia and the Brussels- Antwerp Capital Region,106 constitutes 98.1% of the 19 18 total cost to transfer a property in Antwerp, 9 Bruges, and Ghent, and 98.5% in Brussels, 0.5 Liège Charleroi, Liège, and Namur (figure 24). 15 Among the cities benchmarked, Bruges 29 records the lowest overall cost to transfer 16 0.5 a property (EUR 210,740) and Brussels Namur 107 15 the highest (EUR 262,451). 25 23 Before signing the notarial act, the buyer 10 Brussels must pay all fees, including registration 17 tax, to the notary. Once the act is signed, 30 the notary pays the registration tax by 0 10 20 30 40 50 60 bank transfer, usually via an outstand- Time to complete a procedure (days) ing account with the Office of Legal Obtain zoning certificate Obtain mortgage certificate Security and sends the metadata for the Obtain clean soil certificate Transcription and registration of notarial act transcription of the act to the Office of Legal Security. In Brussels and Wallonia, Source: Subnational Doing Business and Doing Business databases. the buyer pays the registration tax before Note: In Wallonia (Charleroi, Liège, and Namur), users can obtain the clean soil certificate immediately online. Data for Brussels are not considered official until published in the Doing Business 2021 report. requesting transcription processing; if they do not, the registration office rejects the request after four days. In Flanders, TABLE 9 Delivery times are faster in municipalities that allow the electronic issuance where the payment has not been a pre- of zoning permits requisite for registration since 2016, the Certificate request Certificate received Delivery time notary receives a tax assessment from City by notary by notary (days) the Flemish tax administration (VLABEL) Bruges Online platform* Online platform 14 following registration with the Office of Ghent Email Email 14 Legal Security.108 The notary pays the Antwerp Online platform** Online platform 18 registration tax in the VLABEL’s account Namur Regular mail or email Regular mail 25 no later than the last day of the month; Liège Registered mail only Registered mail 29 otherwise, the notary is charged a late Charleroi Regular mail or email Regular mail 29 payment and interest. Brussels Email Regular mail 30 Source: Subnational Doing Business database. Notary fees, which are standard across Note: The legal time frame to deliver the zoning certificate is the same in all municipalities (30 calendar days). Belgium and determined on a degressive * In Bruges, notaries can submit and receive their request for a zoning certificate via the online platform 109 (https://www.brugge.be/vastgoedinfo). scale, make up the second-largest ** In Antwerp, the application and processing procedure for both the urban planning information and urban planning component of the cost to transfer prop- extract are entirely digital. Notaries can submit and receive the certificates through the online platform (http://vastgoed.antwerpen.be/aanvraag/aanvraagnotaris.aspx). erty. Nationwide, they total EUR 3,484.83, DOING BUSINESS IN BELGIUM 39

FIGURE 24 Registration tax represents 98% or more of the total cost of transferring property

3.5 Antwerp 206.7 0.6 3.5 Bruges 206.7 0.6 3.5 Ghent 206.7 0.6 3.5 Brussels 258.4 0.6 3.5 Charleroi 258.4 0.6 3.5 Liège 258.4 0.6 3.5 Namur 258.4 0.6

0 50 100 150 200 250 300 Cost (EUR, thousands)

Registration tax Notary fees Due diligence fees

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. representing 1.33% of the total cost in land administration index. The index All Belgian cities score 3 out of 6 points Brussels and Wallonia and 1.65% in measures five dimensions: reliability of on the transparency of information com- Flanders. Due diligence fees for notary infrastructure, transparency of informa- ponent, which measures whether and how research before drafting the notarial act tion, geographic coverage, land dispute the land administration system makes comprise the remaining cost (ranging from resolution, and equal access to property land-related information available to the EUR 554 in Charleroi and Liège to EUR 638 rights.113 public. Anyone who pays the official fee in Ghent). In all cities, the fees associated can obtain information on land ownership with federally-mandated procedures— On the reliability of infrastructure compo- from the Administration of Legal Security. whereby the notary obtains documents nent, which measures whether the land Also, FPS Finance makes fee schedules from the Office of Legal Security, Internal registry and mapping system (Cadaster) for all types of property transactions pub- Revenue, and Cadaster110—and the final have adequate infrastructure to guar- licly available on its website.114 However, registration fee charged by the Office of antee high standards and reduce errors, the Administration for Measurements Legal Security for the transcription of the all Belgian cities score 6 out of 8 points. and Assessments does not set a clear notarial act total EUR 473.80.111 The fee Although all maps are kept in a fully digital deadline to deliver the updated cadastral for the clean soil certificate, set regionally, format at the Cadaster (Administration map when necessary. And the Office of varies from EUR 30 in Wallonia to EUR 38 for Measures and Assessments), many Legal Security does not publicly commit in Brussels-Capital region and EUR 54 in titles are only scanned at the immov- to delivering a legally binding document Flanders.112 An administrative fee for issu- able property registry (Office of Legal that proves property ownership within a ing the municipal zoning certificate is the Security). Belgium has had an electronic specific timeframe. Furthermore, official only local fee associated with the prop- database for checking encumbrances in statistics tracking the number of transac- erty transfer process. This fee is highest in electronic format for the past 20 years— tions are not publicly available. Finally, Ghent (EUR 110); the other benchmarked fully digitalizing all land titles would despite having a specific and separate cities charge between EUR 30 (Bruges) increase the system’s reliability, allowing mechanism for filing complaints with and EUR 90 (Antwerp). the benchmarked locations to obtain the the Office of Legal Security, there is no maximum score for this component. In mechanism for problems arising with the Belgian cities perform on par addition, although the Cadaster and Land Cadaster, which is also housed under the with the EU for quality of land Registry maintain separate databases, General Administration of Patrimonial administration, but there is room they are linked and integrated into a single Documentation. for improvement database, PATRIS (Patrimony Information All Belgian cities benchmarked score System), facilitating the correlation of The geographic coverage component 23 out of 30 points on the quality of property data. measures the extent to which the land 40 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

registry and mapping system provide process. Three of these interactions are cities. Antwerp and Bruges have existing complete geographic coverage of privately at the due diligence stage. The notary electronic platforms that allow users to held land parcels. All Belgian cities score requests the 30-year mortgage certificate request the certificate. Fully electronic the maximum points on this component from the Office of Legal Security, the systems reduce the administrative burden (8 out of 8 points) as all privately held land cadastral excerpt from the Cadaster, and on municipal staff by directly entering the plots are mapped and registered. the federal tax notifications from the requested data into the system (eliminat- Internal Revenue Service—all of which are ing the need to process paper forms). The land dispute resolution component housed under FPS Finance. FPS Finance When considering whether to set up measures the accessibility of conflict could assess the possibility of establishing such a platform, cities should assess their resolution mechanisms and the extent a one-stop shop for notaries to obtain the existing IT systems to identify potential of liability for entities or agents recording mortgage certificate, cadastral excerpt, upgrades that would speed the search for land transactions. It also considers how and tax certificates in one interaction. the required certificate information. Owing efficiently the courts (as a last resort) to a lack of IT system integration, the handle disputes. All Belgian cities per- In Italy, the land registry and cadastral process in Liège is cumbersome despite form well on this component, scoring 6 databases are linked, allowing notaries the city’s use of electronic platforms. First, out of 8 points. Property disputes that go to conduct both the title search and the municipal agents consult the GIG portal to court in Belgium are resolved relatively cadastral search in a single step. When (a paid service with regional jurisdiction), quickly (1–2 years). Establishing a com- applying to register a new deed, notaries which automatically generates the certifi- pensation mechanism to cover losses use a single online form (Adempimento cate layout. Then, before completing the incurred by potential mistakes in the Unico Telematico) to lodge records and certificate manually, the agent accesses information provided by the land registry register ownership rights online. In a single the city’s URBAN software (containing (Office of Legal Security) and publishing electronic transmission digitally signed by permit files) to locate information on statistics on land disputes would allow the notary, the following information is sent: any previous permits associated with the the benchmarked locations to improve (i) data concerning the payment of taxes; property (back to 1977) and any planning their scores for this component. (ii) the offices of destination (Tax Agency violations. The URBAN and GIG systems for tax registration, Land Agency for the could be linked to allow the automatic Land Registry and Cadastral office (jointly)); entry of municipal data. WHAT CAN BE IMPROVED? (iii) the certified copy of the deed with attachments. Taxes are credited directly to Finally, all cities could consider offering Fully implement existing regulation the central Revenue Office, and the various a fast-track procedure for an extra fee. enabling notaries to obtain the offices retain the competence to verify the Brussels has an expedited procedure, but mortgage certificates online correctness of the payment. Land registry it only applies to judicial sales of property. In 2019, Belgian authorities took a sig- and cadastral information are updated auto- nificant step to digitalize the land transfer matically. Such system integration facilitates Assess the feasibility of lowering process by adopting a regulation allowing rapid property transfers, which in Italy take registration taxes for property notaries to obtain the mortgage certificate only four procedures in 16 days. transfers online.115 However, implementation remains Property transfer taxes are an important pending; getting the paper mortgage cer- Reduce the time to get the municipal source of government revenue. But when tificate and having it delivered by post still zoning certificate transfer fees and taxes are too burden- takes between 15 and 19 days in the bench- The benchmarked cities can reduce some, entrepreneurs may undervalue marked cities. Although technical and legal zoning certificate delivery times. As a their property. With the regional registra- aspects were reportedly resolved—allowing first, short-term step, Liège can explore tion tax set at 10% of the property value the system to go live in spring 2021—it is the possibility of allowing the notary to in Flanders and 12.5% in Brussels and too soon to assess how the system works in request certificates by email and along Wallonia, the average cost to transfer practice. Belgian authorities could conduct with Brussels, Charleroi, Namur consider property is 11.6% of the property value, an outreach and communication campaign returning them via the secure My e-Box more than twice the EU average. Belgium to stimulate uptake. application. Doing so would accelerate could consider lowering registration taxes the process by eliminating the need to to make property transfers more afford- Assess the possibility of send documents via postal mail. able and more attractive for property streamlining and fully digitalizing investment. notary interactions with FPS Finance Establishing online portals to request and Notaries interact with FPS Finance four deliver the zoning certificate electroni- The authorities could conduct revenue times during the property registration cally could also benefit the benchmarked impact studies and tax simulations to DOING BUSINESS IN BELGIUM 41

assess whether the property transfer tax The authorities could consider establish- a property transfer publicly available rate could be reduced in a way that is ing a fast-track application processing removes informational discrepancies and revenue neutral or revenue positive. Over procedure for an extra fee. Other European improves transparency. Publishing this the past decade, more than 50 economies economies have introduced similar proce- information also allows the parties to worldwide lowered transfer taxes and dures with positive results. In Lithuania, begin gathering the required documents other government fees related to property it typically takes 10 business days to even before contacting the notary, reduc- registration. Croatia lowered its property complete registration with the Real Estate ing the time between the signing of the transfer tax in 2017 from 5% of the prop- Register. Entrepreneurs who wish to have private act and the notarial act. Given the erty value to 4%. Greece also reduced its their property registered sooner can pay delays in obtaining the zoning certificate, property transfer tax, lowering it from 10% a higher registration fee for faster service: the seller could request this document of the property value to 3%. And, in 2005, 30% more than the standard fee for when putting the property up for sale. Slovakia stopped levying tax on property registration in three business days, 50% transfers altogether. Property purchases more for registration in two business Publishing information on land transac- are subject only to VAT, income tax, and days, and 100% more for registration in tions (number, type, and value) would yearly municipal tax.116 one business day. Similarly, in Portugal, allow third parties to determine property entrepreneurs can register their property ownership and study real estate market Consider introducing a fast-track in one to two business days by paying a trends. It would also strengthen a culture procedure for the transcription of 100% markup on the registration fee. of accountability in the Office of Legal the notarial act for an extra fee Security. In the European Union, 16 out of The Office of Legal Security processes Increase transparency by publishing 27 economies publish property transfer applications for transcription of the the list of documents required statistics (figure 25). Land registries in notarial act in the order in which they are to complete property transfers Lithuania, Norway, and Romania—and received, and all applicants pay the same and official statistics on land many other EU economies—publish these transcription fee of EUR 220. Although transactions statistics on a monthly basis. the Office of Legal Security sets an inter- The authorities do not publish a compre- nal processing time frame, the time for hensive list of the documents required to Increase the transparency of the land notarial act transcription can vary depend- transfer property in Belgium on the FPS administration system by collecting ing on the complexity of the transaction Finance website.118 Belgium and Poland and compiling statistics on land and the office’s workload of the office.117 are the only EU member states that do not disputes for each applicable local court There is currently no fast-track procedure publish this information. Making the list of When land disputes occur, ensuring to submit the data and pay the fees. documents and requirements to complete that they clear the courts quickly is

FIGURE 25 Most EU economies publish land-related information and property transaction statistics

Land-related information Property transactions statistics

Source: Doing Business database. 42 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Establish a compensation important—citizens’ resources should FIGURE 26 Economies that publish not be unnecessarily tied up in the legal mechanism to cover losses incurred service standards tend to be more efficient system. However, Belgium does not by parties who engage in good faith in completing property transfers make information on land disputes in the property transactions courts publicly available. Such statistics The state guarantees Belgium’s immov- Average time to complete property transfer (days) inform citizens about the court’s true able property registration system. 70 performance. They also provide the court However, no specific compensation with information on current bottlenecks mechanisms exist to cover losses by 60 and challenges that can inform future parties engaging in good faith property 50 reform initiatives. transactions due to erroneous informa- 40 tion provided by the Offices of Legal Court statistics should be published Security. Instead, the courts typically set- 30

continuously and updated regularly. tle these matters, which can be a costly 20 Authorities in Norway publish detailed and lengthy process. Some countries cre- and disaggregated statistics on land ate funds to compensate parties suffering 10 transactions and update them on each losses, especially when mistakes cannot 0 Economies without Economies with quarter. Croatia, Ireland, Slovenia, and be corrected without affecting bona fide service standards service standards the United Kingdom also publish court titleholders. The United Kingdom has a

statistics on land disputes. statutory compensation scheme under Source: Doing Business database. which claims for indemnity are made Introduce publicly available and directly to HM Land Registry. Parties corruption or unnecessary disputes with binding service delivery standards for can submit claims for mistakes in the land registry authorities. Third, correcting all services provided by the Office of register or other reasons, such as the administrative errors in property registra- Legal Security and Cadaster loss or destruction of records. Similarly, tion reduces the potential of future legal The Office of Legal Security sets internal the Irish Property Registration Authority disputes, which could become costly for processing times for entering the data allows claimants to file for compensation both the plaintiff and the government. into the relevant mortgage and cadastral directly with them; the Swedish Land registries, but these are not public or Code provides that the state compensate The United Kingdom’s Independent binding. Although the Cadaster pub- the claimant for losses in case of a mis- Complaints Reviewer (ICR)120 is an lishes binding deadlines to provide the take by the property registry. example of good practice that Belgium cadastral excerpt (within 48 hours for could emulate. The ICR handles com- automatically generated documents or Consider setting up a separate plaints related to the HM Land Registry 10 business days for others) on its web- and specific mechanism to handle only. The ICR—neither a civil servant nor site, there is no deadline for updating the complaints regarding property an employee of the HM Land Registry—is cadastral map.119 Both administrations mapping at the Cadaster funded by HM Land Registry but entirely could consider establishing deadlines Belgium lacks a specific complaints independent. and making them public. mechanism for problems with the mapping of a land plot at the Cadaster. Service delivery standards allow the ben- Currently, parties must file a complaint eficiaries of public services to know what through the FPS Finance website or notify to expect in terms of timeliness and accu- the Cadaster of a potential error via the racy. Economies that do not establish ser- customer service contact form or web vice tend to complete property transfers support email address. Neither of these less efficiently (figure 26). Publishing this is independent. Having access to an information—including clear definitions, independent and specific mechanism indicators, timetables, and the names of would be beneficial in several ways. officers in charge—would boost service First, having a mechanism specifically quality, facilitate monitoring and evalua- for property cases provides an appropri- tion, and strengthen citizen confidence in ate level of attention to the real estate Belgium’s institutions. The Netherlands, industry, a major component of the the Slovak Republic, and Sweden cur- economy. Second, the mechanism’s rently publish property transfer service independence can increase efficiency standards. in handling complaints and minimizing DOING BUSINESS IN BELGIUM 43

Enforcing Contracts

Social distancing measures during the 430 days to resolve a commercial dis- index measures whether an economy has COVID-19 pandemic led to the suspen- pute—nearly eight months shorter than adopted a series of good practices in its sion of in-person court hearings around the EU average (653 days). Courts in all court system in the areas of court struc- the world. Belgium’s courts responded by Belgian cities benchmarked enforce con- ture and proceedings, case management, expanding their use of technology, includ- tracts faster than the EU average (figure court automation, and alternative dispute ing electronic filing of complaints through 27). Even Belgium’s slowest performance resolution. All benchmarked Belgian cit- the Digital Platform for Attorneys (DPA) of 505 days (in Brussels) is faster than in ies score 8 out of 18 points on this index, and hearings by videoconference.121 These 17 EU member states. better than only the Netherlands among temporary measures improved court effi- EU member states and 3.5 points below ciency and maintained access to justice. Enforcing contracts in Belgium is signifi- the EU average. Notably, Belgium scores cantly less costly than the average in the just 1 out of 6 points on the case manage- Strong and efficient judicial institutions European Union and globally. At 15.1% ment component and 0 out of 4 points will play an important role in the path to of the claim value, contract enforcement for court automation. economic recovery when the global pan- costs just three-quarters of the EU average demic ends. Efficient courts matter for (20.4%) and less than half the global aver- Belgium’s commercial courts (Tribunal de economic activity because they increase age (32.9%). Any Belgian city would rank l’entreprise/Ondernemingsrechtbank)124 the participation of firms and investors in among the 10 least expensive EU capital and commercial divisions of courts of the market.122 cities measured by Doing Business. In first instance have jurisdiction to hear the Namur, enforcing a contract is less expen- Doing Business case—a breach of contract Commercial litigation in Belgium sive (11.3% of the claim value) than every dispute between two companies valued is faster and cheaper than the EU EU capital except Luxembourg (9.7%). At at EUR 82,679 (200% of income per average 14%, Ghent is similarly inexpensive, with capita).125 These courts are presided over Enforcing contracts is most efficient in the contract enforcement costing more than by specialized judges (juges au tribunal city of Namur, where resolving the Doing only Luxembourg and Slovenia (13.5%) de l’entreprise/rechters in de ondernemi- Business case study’s standardized com- among EU member states. ngsrechtbank), who are jurists appointed mercial dispute is the fastest and least for life, and lay judges (juges consulaires/ expensive (table 10). Contract enforce- Despite its relatively efficient and inex- rechters in handelszaken), who are lay- ment in Namur takes 313 days, faster pensive contract enforcement process, men, tradesman, and businessmen that than any other EU capital as measured by Belgium lags other EU member states temporarily assume a judicial function.126 Doing Business.123 Across Belgium, it takes for the quality of judicial processes. This Belgium has nine commercial courts, including two in Brussels (a French- TABLE 10 Enforcing contracts in Belgium: where is it easiest? speaking one and a Dutch-speaking one),127 Score Time Cost Quality of judicial which consist of one or more divisions. Of City Rank (0–100) (day) (% of claim) processes index (0–18) the benchmarked cities, there is no stand- Namur 1 72.00 313 11.3 8 alone commercial court in Bruges, Namur, Charleroi 2 69.47 340 16.1 8 and Charleroi. Instead, dedicated divisions Antwerp 3 66.80 439 16.0 8 at the Ghent, Liège, and Hainaut commercial courts serve these locations. Ghent 4 66.71 470 14.0 8

Liège 5 66.29 460 15.9 8 The Judicial Code (Code Judiciaire/ Bruges 6 65.55 485 16.0 8 Gerechtelijk Wetboek) governs litigation Brussels 7 64.85 505 16.4 8 in Belgium. Cases brought before the Source: Subnational Doing Business and Doing Business databases. commercial court typically comprise Note: Rankings are calculated on the basis of the unrounded scores, while scores with only two digits are displayed three stages (figure 28). in the table. Rankings are based on the average enforcing contracts score for time and cost associated with enforcing a contract, as well as for the quality of judicial processes index. The enforcing contracts score is normalized to range from 0 to 100 (the higher the score, the better). For more details, see the chapter “About Doing Business and Doing In the first phase, the case is filed with Business in the European Union 2021: Austria, Belgium and the Netherlands.” Data for Brussels are not considered official until published in the Doing Business 2021 report. the registrar (and the judge is notified), 44 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

FIGURE 27 Contract enforcement is efficient, but there is room for improvement in the quality of judicial processes

EFFICIENCY OF CONTRACT ENFORCEMENT QUALITY OF JUDICIAL PROCESSES

Time Cost Index (days) (% of claim value) (0–18) 1 0 18 9 300 Luxembourg (EU best) Lithuania (EU best) 15 Luxembourg (EU best) Namur 10 Charleroi 350 11 Namur 14 12 400 13 Belgium average 14 Ghent Antwerp Germany France 450 Germany Liège Belgium average 15 Liège France 12 Ghent 16 Bruges, Antwerp Germany 500 Bruges EU average Netherlands Charleroi Brussels 17 11 France Brussels 550 18 10 600 19 EU average 20 9 650 EU average 21 Luxembourg 8 All 7 Belgian cities 700 23 Netherlands 24 1,700 Netherlands 7 Greece 33 1,750 Czech Republic 34 0

the court summons the defendant, and the delivery of the summons and the pre- influence trial dynamics. In some cities the parties meet at a preliminary hearing liminary hearing to prepare. The hearing (Charleroi), the first hearing is an oppor- (audience d’introduction/inleidingszit- generally serves the purpose of filtering tunity to gather evidence; in others ting).128 In commercial disputes, the bailiff out straightforward cases from those (Antwerp, Ghent, and Bruges), the hear- serves a certified copy of the writ to the that require additional attention. At this ing is mainly used to agree on a pleading defendants in person. In ordinary pro- hearing, the parties agree on a schedule schedule to organize case proceedings. ceedings, the service of process period to exchange briefs.130 In Ghent and Bruges, cases are often takes a minimum of eight days under referred to pleading sessions without penalty of nullity.129 The parties usually Given the judge’s high level of discre- prior investigation during the preliminary have a minimum of three weeks between tion in trial management, local practices hearing, resulting in structural backlogs at the local divisions.131 In the Dutch- speaking Brussels Commercial Court, FIGURE 28 Ordinary judicial administration before Belgium’s Commercial Court the COVID-19-related suspension of consists of three steps preliminary hearings between March 13 and May 29, 2020, resulted in a sizeable Introduction Handling of case Judgment case backlog.132 Over the summer, however, the court held numerous “catch-up” sessions, ensuring that 2020 processing times remained similar to those recorded * Court ﬁling * Preparing and * Closure of debates * Summoning the exchanging briefs * Judgment in 2019. other party * Pleading * Appearance at the In the second phase of commercial case introductory hearing litigation, the parties exchange briefs and the case is deemed ready for adjudica- 133 Source: Subnational Doing Business and Doing Business databases. tion. For the Doing Business case study Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. scenario, anywhere from two to four DOING BUSINESS IN BELGIUM 45

hearings are required to make a judgment. Contract enforcement is fastest of magistrates slowed the speed of the COVID-19 lockdowns and social distanc- in Namur and Charleroi and judicial system. ing measures facilitated a technological takes the longest in Bruges and shift for these hearings that otherwise Brussels Ghent’s Commercial Court has separate may not have happened so soon; many In Namur, the average contract enforce- divisions to hear commercial cases were conducted via videoconference dur- ment trial is nearly seven months shorter from Ghent and Bruges. According to ing the pandemic for the first time. than in Brussels, the Belgian city where contributors to this study, the process of contract enforcement takes the longest integrating these two divisions—ongo- In the third and final phase, the judge (figure 29). Adjournments are not ing since 2013—remains incomplete. deliberates and pronounces a judgment granted easily in Namur. Hearing plan- Furthermore, the court faces staffing after reviewing the evidence (including ning is usually agreed upon between the challenges in 2021, with six judges expert reports) and listening to argu- judge and parties during the introduc- assigned to the Ghent division but only ments. Lawyers interviewed for this study tory hearing. The judge only requires a three judges assigned to the Bruges divi- commended the pragmatic approach of meeting date before rendering a verdict. sion. Contributors report that judges tend some Belgian judges toward evidence In Brussels, adjournments occur more to not weigh or filter cases effectively gathering. In Charleroi, for instance, frequently, and waiting periods between during the first hearing. Instead, cases judges have informed their judgments hearing dates tend to be longer (up are sent directly to pleading chambers. by going onsite, duly accompanied by a to three months). In 2019, the Dutch- Furthermore, judge shortages may result technical professional, to gather firsthand speaking Brussels Commercial Court suf- in more adjournments. Judges are also information. Court officials estimate that fered from several structural problems, reluctant to refer cases to alternative dis- onsite assessments can expedite the including work overload and understaff- pute resolution (ADR); an ongoing pilot trial.134 ing challenges.142 Although the staffing project in Ghent encourages judges to rate of professional judges was 91% in take a more active role early in the judicial Following debate closure, the judge Antwerp, 89% in Ghent, 94% in Liège, process.144 has one month to render the verdict.135 90% in Hainaut, and 93% in the French- However, the French-speaking Brussels speaking Commercial Court in Brussels, Antwerp also faces staffing issues in Commercial Court falls short in this the average staffing rate of judges in the 2021. Staff shortages at the registry regard: in 2019, the court released less Dutch-speaking Brussels Commercial mean longer processing times for than half (48%) of verdicts within a Court in 2019 was only 64%.143 The lack pleadings,145 and judicial vacancies slow month.136 The Dutch-speaking Brussels Commercial Court performs slightly better (78% of cases), but even so, the court FIGURE 29 The trial and judgment phase in Namur is six months shorter than in Brussels failed to meet the deadline in 22% of cases.137 Within eight days of the verdict, the clerk sends an unsigned copy to each Namur 10 235 68 138 party or their lawyers by postal mail. Charleroi 10 240 90 Belgium Enforcement—a separate judicial average 18 324 89 process—is managed by a bailiff (huis- Antwerp 20 326 93 sier de justice/ gerechtsdeurwaarder), a Liège 10 350 100 private enforcement agent with the legal authority to execute court orders, seize Ghent 30 350 90 debtor’s assets, and organize auction Bruges 30 365 90 sales.139 Once the final judgment generates the execution title, which becomes Brussels 15 400 90 fully enforceable after one month, the EU average 41 469 143 bailiff may attach the debtor’s assets upon serving the debtor.140 The sale of 0 100 200 300 400 500 600 700 the debtor’s assets can then proceed; this Time to resolve a commercial dispute (calendar days) typically occurs in the bailiff’s auction Filing and service Trial and judgment Enforcement of judgment room, other public facilities, or electroni- Source: Subnational Doing Business and Doing Business databases. cally as determined by law.141 Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by Doing Business. Data for Brussels and EU averages are not considered official until published in the Doing Business 2021 report. 46 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

contract enforcement. The shortage of a judge renders the decision—can range larger towns. For example, Ghent, a met- judges is the result of too few candidates from 235 days in Namur to 400 days in ropolitan area of 500,000 inhabitants, passing the October 2020 exam to Brussels, still faster than the EU average has only 50 business lawyers, whereas become a judge (accès à la magistrature/ (469 days). Adding to trial delays caused Antwerp has more than three times that magistratenexamen).146 Since 2013, the by staffing shortages, in Antwerp, Ghent, number (165), despite the city having number of candidates taking or passing and Bruges, experts often take up to six only twice Ghent’s population.154 Lower the exam has fallen across Belgium. In months to deliver their report, which is fees are likely the result of lower demand 2020–21, only 33 of 48 open positions in significantly longer than in Namur and for judicial services on account of the Belgium were filled. To increase the num- Liège (where it takes three months at presence of fewer commercial entities.155 ber of candidates, the High Council of most). Organizational issues in Ghent Justice added a second exam each year. and Bruges challenge the ability of judges The court fees required to start judicial Until demand can be fully met, substitute to perform effective supervision of the proceedings in a commercial case are judges will continue to be called upon to expert’s work. Consequently, experts the lowest in the European Union and prevent unnecessarily long determina- take a longer time to compile their uniform across Belgian cities.156 What tion periods and further suspensions of reports. In contrast, in Liège and Namur, varies across Belgian cities is the expert chambers. where staffing is not an issue, judges fee. Expert fees are slightly higher in closely monitor the expert’s work and are Charleroi and Brussels. However, there In Charleroi and Namur—where courts more likely to visit the site to assess the is neither uniformity nor effective control are appropriately staffed—contract situation firsthand. over the expert’s fees and expenses.157 enforcement is relatively fast, particularly The parties and counsel can be hesitant in the trial and judgment phases. Parties The creditor works with the bailiff to question the expert’s statement of can typically schedule the introductory to enforce the judgment against the fees and expenses due to perceived hearing within 10 calendar days, faster debtor’s assets. The time required to dependence on the expert’s goodwill in than in Bruges (three weeks), where enforce a judgment is largely determined future appointments. As a result, they judges have heavier caseloads. by the type of attachment performed. rarely challenge the statement of fees The bailiff serves the debtor with a court and expenses.158 The process initiates when the bailiff order for attachment.149 The sale may serves process.147 During the COVID-19 proceed after one month, normally in Since February 1, 2019, clerks’ offices can pandemic, the government temporar- the bailiff’s auction room.150 Enforcement no longer require litigants to pay court fees ily allowed the filing with the registry of procedures take from 68 days in Namur (droit de rôle/rolrechten) before their case complaints and petitions addressed to to 100 days in Liège, two cities under the is filed. Instead, court fees are due and the judge, either by email from lawyers same court’s jurisdiction. Differences are payable to the tax authorities when the and bailiffs or through the electronic filing mainly the result of the higher workload final decision is issued.159 Regardless of the system (DPA-Deposit).148 In practice, it of the 74 bailiffs working in the Liège value of the claim, all commercial courts takes between 10 and 30 days for lawyers judicial arrondissement (compared to 31 impose the same court fee of EUR 165.160 in Belgium to prepare the complaint, reg- bailiffs in the less-populated Namur judi- ister the claim with the court, and serve cial arrondissement).151 Enforcement time Enforcement costs, which are regulated the defendant. With the process taking is similar across the other benchmarked by Royal Decree, vary minimally from one an average of 18 days across cities, filing cities, ranging from 90 days (Brussels, court to another. They primarily depend and serving the complaint is significantly Charleroi, Ghent, and Bruges) to 93 days on the cost to identify the defendant’s faster in Belgium than the EU average (41 (Antwerp). There is no incentive for bai- assets and store the seized goods and days). liffs to delay enforcement proceedings— the cost of organizing the public sale.161 their fees are fixed by Royal Decree.152 The client or bailiff advances the cost of The time to complete the trial and judg- organizing the sale; this amount is then ment phase of the dispute, which drives The low cost of contract enforcement deducted from the proceeds. the overall performance of courts across across Belgium is the result of modest the country, varies mainly depend- attorney and court fees (figure 30). With the legal framework applied con- ing on the local courts’ approach to Attorney fees, which comprise the bulk of sistently nationwide, all Belgian courts adjournments, judge caseloads, and the the cost, are unregulated and tend to be follow the same judicial processes as availability of hearing sessions in the lower in the Walloon cities.153 In Flanders, measured by Doing Business.162 All courts court schedule. The trial and judgment where more than 60% of Belgian score 8 out of 18 possible points on the phase—the period between the moment businesses are located, most lawyers quality of judicial processes, below the a defendant is served and the moment specializing in business law operate in global average of 8.8 points (figure 31). DOING BUSINESS IN BELGIUM 47

166 FIGURE 30 Attorney fees comprise the bulk of litigation costs in Belgium, which are not offer pretrial conferences in com- lower than the EU average mercial litigation. The case management system also suffers from a lack of court Belgium (average) EU (average) digitalization. Paper files are the rule in Total cost: 15.1% of claim value Total cost: 20.4% of claim value Belgian courts—electronic case management systems are usually limited to 2.8% 4.0% the presentation of written arguments. Other standards for court structure and 3.2% 11.7% 9.1% 4.7% proceedings, and commercial arbitration regulation, are more in line with Belgium’s European Union peers. For example, small claims courts are available, with Attorney Court Enforcement a fast-track procedure that allows self- representation. Belgian litigants also have Source: Subnational Doing Business and Doing Business databases. access to nine specialized commercial Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by Doing Business. Data for Brussels and EU averages are not courts and divisions across the country, considered official until published in the Doing Business 2021 report. which supports consistency in the application of the law and increases pre- Notably, court automation in Belgium is and March 31, 2021.164 Previously, they dictability for court users. Like courts in not well developed. had to be filed manually or paid in per- 162 other economies worldwide, Belgian son. Furthermore, few commercial court courts randomly assign cases to judges; The availability of electronic means for judgments are published,165 preventing this process is done manually in Belgium. case management is among the low- litigants from fully assessing their rights. est in the European Union.163 However, Regarding commercial arbitration, valid some electronic features were allowed Belgium also lags in case manage- arbitration clauses are enforced in prac- temporarily as part of the government’s ment techniques for judges, lawyers, tice. Voluntary mediation is permitted, response to COVID-19. For example, and parties to a dispute. For example, although there are no financial incentives system users could submit initial com- although efforts are underway to man- to encourage ADR.167 plaints or electronic court fee payments age cases more actively early on (during electronically between March 18, 2020, the preliminary hearing), Belgium does WHAT CAN BE IMPROVED? FIGURE 31 The level of court automation and case management is low across Belgium Expand the use of virtual hearings Court structure and proceedings (-1–5) and electronic document filing 6 In addition to fully staffing its courts, a 5 main challenge for the Belgian judiciary 4 will be to transition toward court auto- 3 mation. In response to the COVID-19 2 pandemic, a Royal Decree provided the 1 Alternative dispute Case management (0–6) legal framework for the temporary use resolution (0–3) of written arguments and the possibility of virtual hearing in place of physical hearings.168 Judges can grant or deny the use of videoconferencing technology in their case, but the written procedure is Court automation (0–4) recommended. Virtual meetings—lack- Belgium average EU average EU best ing a set legal framework—are a second- ary option and available only in special Source: Subnational Doing Business and Doing Business databases. circumstances. Note: The average for the European Union is based on economy-level data for 27 EU member states. Among EU member states, Croatia, Poland, and Romania score highest on the court structure and proceedings index. Latvia has the highest score on the case management index. Estonia, Lithuania, and the Slovak Republic, score highest on the Providing the legal framework to make court automation index. Germany, Hungary, Italy, Lithuania, Latvia, Poland, Romania, and Spain score highest on the virtual hearings a permanent option to alternative dispute resolution index. Data for Brussels, EU average, and EU best performance are not considered official until published in the Doing Business 2021 report. litigants would provide more flexibility in 48 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

organizing litigation. Doing so could make court fees can streamline and accelerate certain date; instead, parties would have it easier to agree on a suitable hearing date, the process of commencing a lawsuit. But to file documents through the LexNET reduce lawyers’ waiting times at hearings, court automation has broader benefits. system. and eliminate commuting time to court. Electronic records tend to be more con- Furthermore, virtual hearings could reduce venient and reliable. Reducing in-person Optimize the electronic case the impact of common circumstances that interactions with court officers results management system for judges and currently warrant a hearing adjournment in better access to courts. Furthermore, lawyers (such as the unavailability of a hearing studies show that when electronic filing is Courts and lawyers in Belgium have used room or minor health condition of one implemented in courts, the accessibility of the DPA platform since June 2017.176 The of the parties). Belgium could follow the information increases and access to and platform consists of the DPA-Box, the example of other economies with a legal delivery of justice improves consider- lawyer’s personal archive system, and the framework allowing litigation to occur ably.173 These features also reduce the cost DPA-Deposit, a digital tool permitting the remotely. In Estonia, users can complete to enforce a contract—court users save exchange of briefs and documentation all steps of a legal dispute remotely, from in courthouse visits, while courts spend with the courts, confreres, or third par- initiating the case to the publication of less on storage costs, archiving costs, and ties.177 The system has limited capabilities the decision. During the 2020 COVID-19 court officers’ costs. in its current state. Judges, for example, lockdown period, around 61% of hearings cannot send simple notifications or were held online in Estonia, keeping con- To highlight those features that would emails directly to lawyers. Lawyers can- stant the number of cases decided from be most helpful to the Belgian judi- not track the status of a case and are not the previous quarter (when there was ciary, a delegation of policy makers and able to file the case electronically or view no lockdown).169 In Singapore, the Chief selected judges could look to jurisdic- court orders and decisions. The Belgian Justice of the Supreme Court cited time tions with more advanced automated government issued a temporary measure and cost efficiencies as the justification to court systems, such as Canada, Estonia, in 2020 allowing the electronic filing resume most cases virtually (and continue the Republic of Korea, and the United of petitions or requests addressed to virtually on a permanent basis).170 Kingdom. In the context of the Asia- judges only in response to the COVID-19 Pacific Economic Cooperation Ease of pandemic. Introduce more e-features in courts, Doing Business Action Plan,174 Korea has especially for commercial litigation provided assistance to Indonesia, Peru, Economies with virtual courts have and small claims and the Philippines, in this area. Korea effective electronic systems to support COVID-19 has highlighted the suboptimal has also hosted several workshops to case management. Korea provides a nature of courts around the world. In share knowledge and provide techni- comprehensive e-court system that many jurisdictions, the shift toward virtual cal assistance in the field of contract allows judges to adjudicate up to 3,000 justice is gaining momentum and improv- enforcement and judicial organization.175 cases a year, manage up to 400 cases a ing court efficiency. However, with a low month, and hear up to 100 pleas a month. level of court automation, Belgium lags Introducing new electronic features to Among other features, the system assists in this regard. The Belgian Judicial Code Belgium’s courts will require an accompa- in writing judgments and can generate does not provide for electronic service of nying public outreach campaign as well court orders semiautomatically.178 Korea’s process or electronic payment of court as training opportunities for its intended system also maintains an electronic fees. Although DPA-Deposit has been users. Early stakeholder engagement database of judicial files and decisions, rolled out in recent years,171 there is still no is essential to ensure that lawyers are which provides reliable recordkeeping fully-fledged electronic case file system. aware of the new system, understand its and easy access to case law for inter- The clerk’s office of the Dutch-speaking benefits, and know how to use it. Making ested parties. Lastly, the system ensures Brussels Commercial Court still prints all the new features mandatory is one way to a random assignment of cases through procedural documents uploaded via e/ promote the new system. Spain passed a an automated process, reducing the risk DPA-Deposit and case-related communi- law in 2015 mandating that all stakehold- of lawyer influence in the selection of cations sent via email and attaches them ers involved in judicial proceedings use judges. to the (traditional) paper file.172 As a result, electronic communications through the the benefits of automatization are limited, existing LexNET system to present any Set legal limits on the granting of and understaffed registries are burdened document to the courts, including the adjournments with additional (and unnecessary) work. initial complaint. In addition, the Dean of Part of good case management is estab- the Courts of Madrid approved an order lishing, together with the parties, a clear, Electronic features such as e-filing of cas- whereby submission of paper documents reasonable, and realistic timeline for a es, e-service of process, and e-payment of would no longer be permitted after a case, as well as clear rules limiting the DOING BUSINESS IN BELGIUM 49

use of adjournments. However, timelines Italy provides a tax credit to incentiv- NOTES require rules to be enforced. As early ize mediation.184 All cases filed in the as 1984, the Committee of Ministers of Western Australia district courts are 1. STATBEL. 2020. Statistiques structurelles sur les the Council of Europe advised against subject to an ADR conference prior to entreprises 2018. Brussels: STATBEL. having more than two hearings (prepa- setting the trial date.185 ADR conferences https://statbel.fgov.be/fr/themes/entreprises /statistiques-structurelles-sur-les-entreprises. ratory and trial hearing). It also recom- include an initial pretrial conference that 2. The data for Brussels and for comparator mended that adjournments should not the parties and lawyers are required to economies used in this report are not be granted unless “new facts appear attend. considered official until published in the Doing Business 2021 report. or in other exceptional and important 3. European Commission. 2019. 2019 Small circumstances.”179 Only nine EU member In Italy, each year Florence’s Giustizia Business Act Fact Sheet, Belgium. Brussels: states (Belgium is not one of them) Semplice program provides scholar- European Commission. Belgium performs above the EU average in the areas of access impose limitations on adjournments ships to 10 post-graduate scholars with to finance, skills, and innovation. The SBA that are respected in practice.180 Norway knowledge of civil procedure and ADR fact sheets are part of the SME Performance regulates adjournments strictly and to support judges in determining which Review (SPR), the European Union’s main 186 vehicle for economic analysis of SME issues. ensures that hearings and trials are held cases should be referred to mediation. Produced annually, they help to organize as scheduled.181 At the Tingrett Nedre The scholars each assist two judges the available information to facilitate SME Romerike District Court in Norway, the by reviewing case details, preparing a policy assessments and monitor SBA implementation. They comprise a set of policy court’s case administrators work actively draft list of the individual judges’ pend- measures organized around 10 principles to schedule cases within the set deadlines ing cases that may be candidates for ranging from entrepreneurship and responsive and targets, and lawyers are expected mediation, discussing the list with the administration to internationalization. 4. The cities were selected based on to conduct the case within official time judges, and writing the draft mediation demographic and geographical criteria. Each limits. If the lawyer is unavailable, the order for those cases the judges agree to city belongs to a different NUTS2 region (the administrators push for a transfer of the refer to the Organismo di Conciliazione Nomenclature of Territorial Units for Statistics, or NUTS, is a geocode standard for referencing case to another lawyer at the same firm. di Firenze. The number of pending cases the subdivisions of countries for statistical The court’s practice on adjournments is in Florence’s courts has fallen consis- purposes developed by the European Union). restrictive and mainly limited to illness tently since 2013 when the program The selection of cities was agreed upon 182 between the World Bank project team, the documented by a doctor’s certificate. was created. Piloting a similar program European Commission’s Directorate-General in Belgium could shift perceptions about for Regional and Urban Policy, the Federal Encourage alternative dispute ADR and raise mediation to the standing Public Service Finance, and the Federal Public Service Foreign Affairs, Foreign Trade and resolution of traditional litigation. Development Cooperation. Belgium has a robust framework for both 5. Aubin D., and F. Varone. 2004. “The Evolution arbitration and mediation,183 but the of the Water Regimes in Belgium.” In Kissling- Näf I., and S. Kuks (eds) The Evolution of courts could increase the use of these National Water Regimes in Europe. Environment ADR mechanisms. Attorneys interviewed & Policy, vol 40. Springer, Dordrecht. https:// for this study suggest that ADR solutions doi.org/10.1007/978-1-4020-2484-9_5. 6. World Bank. 2018. Doing Business in the could be promoted more effectively European Union 2018: Croatia, the Czech during the introductory hearing. Judges Republic, Portugal and Slovakia. Washington, could take a more active role at the outset DC: World Bank. 7. The full list of activities that pose a threat to of the judicial process to identify cases the environment based on the environmental that are good candidates for settlement. policy regulation for Brussels is available at Mediation is generally a cost-effective https://app.leefmilieubrussel.be/easyPermit /Search.aspx?sector=196; for Wallonia, at mechanism for resolving disputes—it http://permis-environnement.spw.wallonie can reduce costs by eliminating attorney, .be/fr; and for Flanders, at https://navigator expert, and court fees, as well as enforce- .emis.vito.be/mijn-navigator?woId=70073. 8. The Doing Business case study business ment costs. It can also lower the number performs general industrial or commercial of cases heard by the courts. activities, such as the production or sale to the public of goods or services. It does not use heavily polluting production processes. For One means of increasing the use of more details on the case study assumptions, mediation is to automatically direct cases see the data notes. For companies requiring falling below a monetary threshold to business premises authorization, the regional governments of Wallonia and Flanders use mediation in an attempt at conciliation. an integrated application procedure (permis Belgium could also consider providing unique/omgevingsvergunning) for urban financial incentives for the use of ADR; planning, environmental, and retail permits. 50 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Entrepreneurs can obtain an integrated www.reglementdetravail.belgique.be (website accidents, and drafting labor contracts for the permit through a single application. For more in French), www.arbeidsreglement.belgie.be Labor Inspectorate. information on the integrated permit, see (website in Dutch). The share of labor 39. Entrepreneurs, their representatives, or http://permis-environnement.spw.wallonie. regulations submitted via these links for the a third party must separately register or be/fr/j-ai-un-projet/dois-je-entreprendre- period January 1 to June 30, 2020, is 39.3% in report their beneficial owners to the UBO in une-demarche-administrative#unique; Wallonia, 51.8% in Flanders, and 53.3% in the Croatia, Czech Republic, Finland, Ireland, the https://www.omgevingsloketvlaanderen.be Brussels-Capital Region. Statistics provided by Netherlands, Poland, Slovenia, and Sweden. /aanvraag-omgevingsvergunning. FPS Employment, Labor and Social Dialogue in 40. See Article 7:654 of the Dutch Civil Code, 9. As per the Doing Business methodology, it is October 2020. available at https://wetten.overheid.nl/jci1.3:c:B assumed that the minimum time required 24. According to Article 2:3 of the Company WBR0005290&boek=7&titeldeel=10&afdeling for each procedure is one day, except for Code, checking the company name is the =6&artikel=654&z=2021-01-01&g=2021-01-01. procedures that can be fully completed online, entrepreneur’s responsibility. 41. For more information on registering a for which the minimum time required is 25. For more information, see the business registry’s company in Malta, see the website at recorded as 0.5 days. website at http://bolsafirmasdenominacoes https://mbr.mt/formation-and-registration-of 10. According to the Royal Decree of December .justica.gov.pt/index.php. -companies/. 16, 1950. 26. World Bank. 2018. Doing Business in the 42. According to the United Nations Population 11. For more information on the OOG, see https:// European Union 2018: Croatia, the Czech Division World Urbanization Prospects: 2018 stad.gent/en/invest-ghent/doing-business Republic, Portugal and Slovakia. Washington, Revision, available at https://population -ghent/contact-point-entrepreneurs. DC: World Bank. .un.org/wup/Publications/. 12. The data for Brussels and for comparator 27. For more information on Estonia’s E-Business 43. In Flanders: The Flemish Public Planning economies used in this report are not Register, see the website at www.rik.ee. Code of May 15, 2009 (Vlaamse Codex considered official until published in the Doing 28. For more information on registering a Ruimtelijke Ordening). In Wallonia: The Business 2021 report. company with Companies House, see the Code for Territorial Development of July 20, 13. Belgium, Cyprus, Finland, Ireland, the website at www.gov.uk/limited-company 2016 (Code du Development territorial). In Netherlands, and Portugal do not require -formation/register-your-company. Brussels-Capital : The Brussels Public Planning any paid-in minimum capital at the time 29. General partnerships (Société en nom Code of April 9, 2004 (Code Bruxelois de of business startup. In Bulgaria, the Czech collectif/Vennootschap onder firma) and amenagement du territoire (CoBaT)/Brussels Republic, France, Greece, Italy, and Latvia, it is ordinary limited partnerships (Société en Wetboek van Ruimtelijke Ordening (BWRO)) less than 0.1% of income per capita. commandite simple/Gewone commanditaire 44. The data for Brussels and for comparator 14. See the website at https://portal.fednot.be/. vennootschap) can be established by private economies used in this report are not 15. FPS Economy, SMEs, Self-Employed and act. considered official until published in the Doing Energy statistics as of December 2020. 30. For more information, see the website at Business 2021 report. 16. For more information, see the website at https://www.egriffie.be. 45. For more details, see https://urbanisme.irisnet www.notaris.be/statuten. 31. Coste, Cyriane, Marie Delion, Adrián .be/actualites-accueil/nouvelles-obligations 17. According to Articles 88 and 89 of the Law González, Frédéric Meunier, Nathalie -pour-le-demandeur-de-permis. of December 30, 1992, all companies subject Reyes, and Yuri Valentinovich. 2019. “The 46. Aubin D., and F. Varone. 2004. “The Evolution to the Belgian corporate tax or nonresident Involvement of Third-Party Professionals in of the Water Regimes in Belgium.” In Kissling- tax system must register with a social Business Registration and Property Transfer.” Näf I., Kuks S. (eds) The Evolution of National insurance fund within three months of their World Bank Research and Development Water Regimes in Europe. Environment & Policy, establishment or within three months of the Center in Chile, Indicators Group Research vol 40. Springer, Dordrecht. https://doi company being subject to nonresident tax. Note. World Bank, Washington, DC. .org/10.1007/978-1-4020-2484-9_5. Moreover, according to the Company Law, 32. The 10 EU member states where starting 47. In Flanders, water and sewage companies directors and members of the management a business is the cheapest are Denmark, operate in assigned areas. Companies charged and supervisory board of an LLC must join a Estonia, Finland, France, Greece, Ireland, with sewage in a particular area are not social insurance fund for the self-employed Lithuania, Romania, Slovenia and Sweden. necessarily charged with water in the same before the start of business operations. 33. For more information on SPOT, see the area. For the three cities benchmarked in 18. In Belgium, businesses supplying goods and website at https://spot.gov.si/. Flanders, the company charged with sewage services with a turnover not exceeding EUR 34. World Bank. 2019. Doing Business in the connections is also charged with water 25,000 are exempt from paying VAT or filing European Union 2020: Greece, Ireland and Italy. connections. periodic VAT returns (Art. 56bis. VAT Code). Washington, DC: World Bank. 48. Municipal planning rules concerning runoff as However, these small businesses still must 35. Belgium has eight accredited OSSs (Acerta, well as federal-level environmental regulations register for VAT purposes. Eunomia, Formalis, Liantis, Partena, Securex, require that all new constructions submit an 19. For more information on Intervat, see the UCM, and Xerius) with more than 160 offices assessment of their flood risk impact. Zones Ministry of Finance website at www.minfin across the country. Partena and Acerta with a high flood hazard impose stricter .fgov.be. are the only OSS present in all seven cities requirements such as the installation of 20. According to statistics provided by the FPS benchmarked. Although in Antwerp Acerta cisterns or terrain modifications. Extensive Finance UBO Register, in October 2020, 46% has a contact point for entrepreneurs and geospatial risk maps are available and free of of entrepreneurs used the company’s legal not a recognized enterprise counter. UCM charge to the construction community to plan representative, 52% delegated registration to operates in Brussels and Wallonia only. new buildings according to flood risk. an accountant, attorney, or OSS, and 2% used 36. Securex and Partena offer UBO registration, 49. For more information on the environmental eStox. but for Partena it is executed by MyB2B, an permit in Flanders, see http://www 21. For more information on WIDE, see the external partner. For more information, see .vlaanderen.be/omgevingsvergunning. website of the NSSO at https://www Partena’s website at https://www2.partena Wallonia introduced a permis unique .socialsecurity.be/site_fr/employer/applics .be/myb2b-ubo-register. (integrated permit) that consolidated several /wide/index.htm. 37. For example, Xerius has a partnership with permits into one. For more information, see 22. The Law of April 8, 1965, establishes work the social service provider SD Worx. Formalis' http://permis-environnement.spw.wallonie regulations in Belgium. For more information, social service provider is Group S. All other .be/fr/j-ai-un-projet/dois-je-entreprendre see https://werk.belgie.be/nl/themas OSS and their social service providers have the -une-demarche-administrative#unique. /arbeidsreglementering/arbeidsreglement. same name. 50. In certain cases in Flanders, a public survey 23. Entrepreneurs can use the following links to 38. These are registration with the NSSO, (openbaar onderzoek) is part of the permit file the labor regulations: undersigning insurance for work-related application review. In these instances, the DOING BUSINESS IN BELGIUM 51

application dossier for a project is made public, covered in the study with the exception of other service utilities (Article 17.1 of the Code allowing the community to comment or express Brussels, for which data are sourced from the for Infrastructure and Utility Works Along concerns during the permit review process. Doing Business database. Data for Brussels and Municipal Roads. If the distribution utility For more information on the public study, see for comparator economies used in this report requests an individual excavation permit, the https://www.omgevingsloketvlaanderen.be are not considered official until published in municipality is required to issue a decision /publiek-loket. the Doing Business 2021 report. within two months (Article 17.2 of the same 51. For more information on the Doing Business 64. To measure the reliability of supply and law). Service utilities have 10 business days to methodology, see https://www.doingbusiness transparency of tariffs, Doing Business uses an respond to the worksite coordination request .org/en/methodology/dealing-with index that is scored from 0 to 8 points. The (Article 13.2 of the same law). -construction-permits. index measures the duration and frequency of 71. Consultative meeting with the municipality of 52. World Bank. 2013. “What Role Should Risk- power outages, role of the energy regulator, Antwerp for this study. based Inspections Play in Construction?” the systems used to monitor power outages 72. In Flanders, municipalities have one month Doing Business Case Studies. World Bank, and restore supply, whether financial to issue the signage permit, as established by Washington, DC. https://www.doingbusiness deterrents exist to limit outages, and whether the Code for Infrastructure and Utility Works .org/en/reports/case-studies/2013/what effective tariffs are available online and Along Municipal Roads, Article 21. In the -role-should-risk-based-inspections-play-in customers are notified of a change in tariff a Brussels-Capital Region and Wallonia, each -construction. full billing cycle in advance. For more details, local police department sets its own time 53. In Wallonia—as in the other regions—the see the data notes. frame for clients to submit a request for a topographical characteristics and soil 65. This is an internal step and therefore not traffic signage permit. information are publicly available through counted as an additional procedure. 73. In the Brussels-Capital Region, the utility geoportals. For more information, see 66. These platforms are Osiris in the Brussels- has 10 calendar days to determine whether www.geo.be. Capital Region (https://www.osiris.brussels the new connection application is complete 54. The platform is available at /Modules/Management), GIPOD in Flanders and to inform the client that a detailed study www.mijnaansluiting.nl. (https://overheid.vlaanderen.be/informatie is necessary (Article 103 of the Technical 55. Srinivasan, Jayashree, Enrique Orellana Tamez, -vlaanderen/producten-diensten/generiek Regulations for the Distribution of Electricity in Kamal Chakaroun, Farrukh Umarov, and -informatieplatform-openbaar-domein-gipod), the Brussels-Capital Region). Once the client Lodovico Onofri. 2020. “From Paper to the and Powalco in Wallonia (https://registration pays the fee for the detailed study, the utility Cloud: Improving Building Control through .powalco.be/). has 15 calendar days to complete it and send E-permitting.” Doing Business Case Studies. 67. In Wallonia, the DSO contractor obtains the map the quote to the client (Article 105). After Washington, DC: World Bank. from Federal Contact Point for the Cable and the client accepts the quote and pays in full, http://documents.worldbank.org/curated Pipe Information Database via the KLIM-CICC the utility has 20 calendar days to send the /en/705331592344507733/From-Paper platform (https://klim-cicc.be/information). In connection contract (Article 109). In Flanders, -to-the-Cloud-Improving-Building-Control the Brussels-Capital Region, the contractor can the utility has 30 business days to (i) determine if the application is complete (a response is due -through-E-permitting. either obtain the map directly from the KLIM- within the first 10 days), (ii) perform a detailed 56. European Commission. 2016. E-government CICC platform or through the Osiris platform (see note 6), which is integrated with the KLIM- study, and (iii) issue a quote (Article 2.2 of the Benchmark 2016: A Turning Point for CICC system. In Flanders, the map is obtained Technical regulations for the Distribution of eGovernment Development in Europe? from the Geographic Information Flanders Electricity in the Flemish Region). In Wallonia, Luxembourg: Publications Office of the Agency through the KLIP platform (http://www the utility has 10 business days to determine if European Union. .vlaanderen.be/klip). the request for a new connection is complete 57. World Bank. 2016. Doing Business in the 68. In Brussels, the DSO contractor obtains this and to inform the client that a detailed study European Union 2017: Bulgaria, Hungary and authorization electronically from the local is required (Article 90.1 of the Technical Romania. Washington, DC: World Bank. police department through the Osiris platform. Regulations for the Distribution of Electricity 58. For more information on Hamburg’s online In the other cities, the DSO contractor in the Walloon region). Once the client pays permitting system, see the website at https:// requests and obtains the authorization the fee for the detailed study, the utility has www.hamburg.de/start-digitale-verfahren/. via email. It is obtained from the local 30 working days to complete the study and 59. World Bank. 2013. “What Role Should Risk- municipality in Flanders and from the local send the quote (Article 82.1). Once the client based Inspections Play in Construction?” police department in Wallonia. accepts the quote and pays in full, the utility Doing Business Case Studies, Washington, DC: 69. In the Brussels-Capital Region, local has 10 working days to submit the connection World Bank. https://www.doingbusiness municipalities have 60 days to issue an contract (Article 83.1). .org/en/reports/case-studies/2013/what excavation permit (30 days to acknowledge 74. These estimates are based on the Doing -role-should-risk-based-inspections-play-in the receipt of the application, and 30 days Business case study, which consider a 140 kVA -construction. to notify the client with the decision), as connection. 60. Visscher, Henk, and Frits Meijer. 2005. regulated by Articles 31 and 36 of the 75. For the Brussels-Capital Region, see the “Certification of Building Control in The Ordinance on Construction Sites on Public Ordinance of the Organization of the Netherlands.” OTB Research Institute for Roads of the Brussels-Capital Region (https:// Electricity Market in the Brussels-Capital Housing, Urban and Mobility Studies. Delft www.etaamb.be/fr/ordonnance-du-03- Region, Article 32bis (https://www.ejustice University of Technology, The Netherlands. mai-2018_n2018012008.html). Other .just.fgov.be/cgi_loi/change_lg.pl?language 61. Moullier, Thomas. 2017. “Building Regulatory service utilities have 15 days to respond to =fr&la=F&cn=2001071901&table_name=loi). Capacity Assessment: Level 2—Detailed the worksite coordination request (Article For Flanders, see the Energy Decree, Article Exploration.” World Bank, Washington, DC. 25.1 of the same law). In Wallonia, local 4.1.11/5 par. 1 sub 1 (https://codex.vlaanderen 62. Obtaining electricity in Bulgaria requires six municipalities and other service utilities have .be/Zoeken/Document.aspx?DID=1018092& procedures, on par with Belgium. In Romania, a total of 37 days to respond to the worksite param=inhoud&AID=1173782). For Wallonia, nine procedures are required. All other EU coordination request and issue the excavation see the Organization of the Regional Electricity member states require five procedures or less. permit, as regulated by the Powalco Decree on Market Decree, Article 25bis (https://www 63. Averages for the European Union and other Information, Coordination, and Organization .ejustice.just.fgov.be/cgi_loi/change_lg groups of countries are calculated using data of Construction Sites of April 30, 2009 _2.pl?language=fr&nm=2001027238&la=F). from the Doing Business database measuring (http://www.ejustice.just.fgov.be 76. See the General Regulation Underground the main business city as a proxy for each /mopdf/2009/06/18_1.pdf#Page91). Infrastructure Enschede 2018, Article 2.8 economy covered by Doing Business 2021. 70. In Flanders, local municipalities must issue a (https://dloket.enschede.nl/loket/sites Averages for Belgium are calculated using decision on the excavation permit within six /default/files/IMG/AVOI%20Enschede%20 Subnational Doing Business data for each city weeks if the permit is requested jointly with 2018.pdf). 52 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

77. This limit is set at 18 weeks from the time 87. Property rights are regulated at the federal Notaries can request the certificate directly the client accepts a quote. See the Technical level by the Mortgage Act of December 16, via the web counter of the Flemish agency Regulations for the Distribution of Electricity 1851, an integral part of the Civil Code with OVAM, accessible at https://www.ovam.be in the Flemish Region, Article 2.2.39 par. 3. its own numbering of Articles (Book III, Title /bodemattest, or via the eNotariat platform. 78. For more information on Austria’s electricity XVIII), subsequently amended by several 96. According to officials from Brussels quality report, see the website of the Austrian special acts, among them amendment by the Environment interviewed by Subnational Doing regulator at https://www.e-control.at Law of February 9, 1995. As of September 1, Business team between July and December /marktteilnehmer/erhebungen/erhebungen 2021, the Mortgage act will be implemented 2020. -zur-qualitaet-der-netzdienstleistung. in the Code Civil, Book III. See the Law of 97. Article 1 of the Mortgage Act 1851. 79. The Atrias platform (https://www.atrias.be/) February 4, 2020, containing Book III ‘Goods’, 98. Article 2 of the Mortgage Act 1851. manages the market facilitation documentation Belgian Official Gazette March 17, 2020. 99. In Flanders, the fine is 1% of the registration on behalf of and in close cooperation with 88. Based on the value of the property transferred tax for not registering the notarial act on time the distribution utilities Fluvius, ORES, RESA, in the Doing Business case study of EUR (within 30 calendar days after the deadline), and Sibelga. The utilities assign a unique EAN 2,066,973.60. a minimum of EUR 100 (Article 3.18.0.0.11, code (International Article Number, originally 89. The registration tax is regional in accordance section III, Flemish Tax Code). In Wallonia European Article Number) to a connection with the special Law of January 16, 1989, and Brussels, the fine is a minimum of EUR that is used in communications with suppliers. amended by the Special Law of July 13, 2001. 25 (Article 41, 1° of the Act of Registration, The connection contract notifies the customer In Flanders, Art. 2.9.4.1.1. of the Flemish Tax Mortgage and Court). of this code. The supplier uses the code as an Code sets the registration tax. In the Brussels- 100. The appendix to the Royal Decree of March identifier when it notifies the distribution utility Capital Region and the Walloon Region, the 14, 2014, Belgian Official Gazette March of the signing of the electricity supply contract registration tax is set by Art. 44 of the Code of 21, 2014, lists the metadata that must be on the Atrias platform. Registration, Mortgage and Court Fees. included in the electronic transmission (name, 80. This requirement is in accordance with the 90. The data for Brussels and for comparator identification number of the parties, and so Energy Code (Article L342-11), which specifies economies used in this report are not on). Available at http://www.ejustice.just.fgov that urban planning commissions are to bear considered official until published in the Doing .be/cgi_loi/change_lg.pl?language=fr&la=F&c the cost of extension works for the electricity Business 2021 report. n=2014031402&table_name=loi. grid provided that the network extension can 91. For more information by region, see 101. The eRegistration platform was launched in benefit future residents and firms. https://finances.belgium.be/fr/particuliers 2015. 81. World Bank. 2018. Doing Business in the /habitation/acheter-vendre/droits 102. The notary must send the metadata European Union 2018: Croatia, Czech Republic, -enregistrement/wallonie#q6; accompanied by the documents listed in Portugal and Slovakia. Washington, DC: World https://financien.belgium.be/nl/particulieren Article 3.2. 1° of the Royal Decree of March Bank. https://www.doingbusiness /woning/kopen-verkopen/registratierecht 14, 2014. To accept the notarial act the Office .org/content/dam/doingBusiness/media /brussel#q5; https://financien.belgium.be of Legal Security checks whether the dispatch /Subnational-Reports/DB18-EU2-Report /nl/particulieren/woning/kopen-verkopen is certified, if it mentions the register number -ENG.PDF. /registratierecht/vlaanderen. and that it is signed by the notary. The Office 82. Arlet, Jean, Diane Davoine, Tigran Parvanyan, 92. Article 5 of the Mortgage Act 1851. of Legal Security is obliged to register the acts Jayashree Srinivasan, and Erick Tjong. “Getting 93. The three agencies are Brussels Environment or writings on the date they are presented Electricity: Factors Affecting the Reliability in the Brussels-Capital Region, Banque de if they have met the legal conditions in of Electricity Supply.” in World Bank. 2016. données de l'état des sols wallons (BDES) accordance with Article 6 of the Code of Doing Business 2017: Equal Opportunity for All. in the Walloon Region, and Openbare registration rights. Washington, DC: World Bank. afvalstoffenmaatschappij (OVAM) in the 103. According to experts interviewed by the 83. The Ministry of Finance became FPS Finance Flemish Region. Subnational Doing Business team between under the Coperfin reform. 94. Information received during interviews held September and December 2020. 84. The Administration of Patrimonial Services and with experts by the Subnational Doing Business 104. The registration tax is regional in accordance the Administration of Information Exchange team between October 2020 to January 2021. with the special Law of January 16, 1989, and Collection are also part of the General 95. Obtaining a clean soil certificate is mandatory amended by the Special Law of July 13, 2001. Administration of Patrimonial Documentation. in all three regions. In Brussels, a clean soil 105. Article 2.9.4.1.1. of the Flemish Tax Code. Their competencies relate to organizing sales of certificate is legally mandated on the basis 106. Article 44 of the Code of Registration, state-owned property, expropriating property of the Ordinance on the management and Mortgage and Court Fees (Brussels-Capital in the public interest, and the collection remediation of polluted soils of March 5, Region and Walloon Region). and exchange of patrimonial information. A 2009 (http://www.ejustice.just.fgov.be 107. Based on the value of the property transferred detailed list of services undertaken by the four /mopdf/2009/03/10_1.pdf#Page258). The in the Doing Business case study of administrations is available at https://finance certificate can be obtained online on the EUR 2,066,973.64. .belgium.be/en/about_fps/structure_and Brussels environment BRUSOIL platform 108. See the Law amending the Code of Registration, _services/general_administrations (http://brusoil.environnement.brussels/nl Mortgage and Court Fees, following the transfer /patrimonial_documentation. /home.html). In Wallonia, obtaining the clean of the service of regional registration fees to the 85. The Office of Legal Security replaced the soil certificate is legally mandated by the Flemish Region on May 26, 2016. Mortgage Offices in 2018. The tasks, Decree on soil management and remediation 109. Notary fees are calculated according to the powers, and seat of operational services of of March 1, 2018 (https://sol.environnement following declining and successive scale set the different administrations making up the .wallonie.be/files/Document/CWBP/V04 by Royal Decree of December 16, 1950, on Administration for Patrimonial Documentation /GRPA/20181126_GRPA_V04_final.pdf). The Notary fees, Belgian Official Gazette December are set by Article 1 of the decision of the certificate can be downloaded immediately 25, 1950 (regularly updated): EUR 7,500 at Chairman of the Executive Committee of the online through the Walloon soils database, 4.56%; EUR 10,000 at 2.85%; EUR 12,500 FPS Finance of December 18, 2014, Belgian which is accessible via the eNotariat platform at 2.28%; EUR 15,495 at 1.71%; EUR 18,600 Official Gazette December 31, 2014. for notaries and at http://bdes.wallonie.be/por at 1.14%; EUR 186,000 at 0.57%; above EUR 86. The name, territorial jurisdiction, and seat tal/#BBOX=-19150.307552281738,351597 186,000 charged at 0.057%. of the 48 Office of Legal Security offices are .8297773263,13847.68757937511,188142 110. All of these Administrations are housed listed in the table attached to the decision of .3070019473. In Flanders, the certificate is under the Federal Public Service Finance (FPS the President of FPS Finance of June 15, 2018, legally mandated on the basis of the Decree Finance). available at http://www.ejustice.just.fgov.be/ on soil remediation and soil protection 2007, 111. Fees are available at https://finances.belgium cgi_loi/change_lg.pl?language=fr&la=F&cn=2 available at http://www.ejustice.just.fgov .be/fr/particuliers/habitation/cadastre/extrait 018061501&table_name=loi. .be/mopdf/2007/01/22_1.pdf#Page45. -cadastral/myminfin#q12; Art. 1, 5°/12° juncto DOING BUSINESS IN BELGIUM 53

art. 4 (index) of the Royal Decree of September 122. Esposito, Gianluca, Lanau, S., and Pompe, S. 137. See page 26 of the Dutch-speaking Brussels 14, 2016, Belgian Official Gazette October 10, 2014. “Judicial System Reform in Italy—A Commercial Court’s operational report for 2016. Key to Growth.” IMF Working Paper 14/32, 2019, available at https://www.rechtbanken 112. Fee schedules are available on the relevant International Monetary Fund, Washington, DC; -tribunaux.be/sites/default/files/or_brussel agency websites for all three agencies. In the OECD (Organisation for Economic Co-operation /files/werkingsverlag-2019.pdf. Brussels-Capital Region, fess for the Brussels and Development). 2013. “What Makes Civil 138. Article 792 of the Judicial Code. environment agency are available at https:// Justice Effective?” OECD Economics Department 139. Article 519 of the Judicial Code. environnement.brussels/thematiques/sols Policy Notes, No. 18, June. 140. Article 1495, first and second section of the /lattestation-du-sol/combien-ca-coute-et 123. The data for Brussels and for comparator Judicial Code. -comment-payer. For the OVAM agency in economies used in this report are not 141. Articles 1520 and 1522 of the Judicial Code. Flanders, fees are available at https://www considered official until published in the Doing 142. See page 4 of the Dutch-speaking Brussels .ovam.be/bodemattest. In Wallonia, fees for Business 2021 report. Commercial Court’s operational report for the BDES agency are available at https://sol 124. Before November 1, 2018, the commercial 2019, available at https://www.rechtbanken .environnement.wallonie.be/home/sols/sols court was named Rechtbank van Koophandel/ -tribunaux.be/sites/default/files/or_brussel -pollues/banque-des-donnees-de-letat-des Tribunal de Commerce. See the Act of April 15, /files/werkingsverlag-2019.pdf; Press -sols-bdes/les-extraits-conformes.html#3. 2018 (Belgian Official Gazette April 27, 2018) Statement, Brussels Commercial Court 113. According to the Doing Business methodology, on the reform of commercial law. February 5, 2019, available at https://www the quality of land administration includes 125. Doing Business considers the applicable court .rechtbanken-tribunaux.be/nl/nieuws a fifth component which measures legal to be the local court with jurisdiction over /persbericht-nederlandstalige provisions on equality of access to property commercial contract cases worth 200% of -ondernemingsrechtbank-brussel. rights for women and men. This subindicator is income per capita. Court procedure rules in 143. Data from the Dutch-speaking Brussels not discussed in Doing Business in the European Belgium are national and applied uniformly Commercial Court, available at https://www Union as women and men enjoy the same across the country (Articles 573 and 574 of the .rechtbanken-tribunaux.be/sites/default/files ownership rights in all EU member states. Judicial Code). Small claims courts (Justice de /or_brussel/files/1-09-2019-vacatureplan.pdf. 114. Available in French and Dutch at paix/Vredegerechten) are the lowest courts 144. For more information on Ghent commercial https://finances.belgium.be/fr/catalogue-des of first instance (Article 590 of the Judicial court’s pilot ADR project, see https://www -produits and https://financien.belgium.be/nl Code) with a monetary threshold of EUR 5,000. .rechtbanken-tribunaux.be/sites/default /productencatalogus. Claims above this amount must be filed at a /files/or_gent/files/protocol%20inzake%20 115. Royal Decree of November 11, 2019, commercial court. pilootproject%20schikkingskamers_0.pdf. concerning the request by notaries and 126. Article 85 of the Judicial Code. 145. See page 79 of Antwerp Commercial Court’s registered users of mortgage information and 127. The nine commercial courts are Antwerp, 2019 operational report, available at its delivery by the General Administration of Brussels (Dutch-speaking court), Brussels https://www.rechtbanken-tribunaux.be Patrimonial Documentation, Belgian Official (French-speaking court), Louvain, Ghent, /sites/default/files/or_antwerpen/files /werkingsverslag-2019_1.pdf. Gazette March 21, 2014. http://www.ejustice Eupen, Liège, Hainaut, and Wallonian Brabant 146. Conversation with public sector contributors in .just.fgov.be/cgi_loi/change_lg.pl?language (https://www.rechtbanken-tribunaux.be/fr /tribunaux-et-cours/tribunal-de-lentreprise). Antwerp, November 2020. =fr&la=F&cn=2014031402&table_name=loi. 128. Article 700 and subsequent articles of the 147. Article 700 of the Judicial Code. 116. World Bank. 2018. Doing Business in the European Judicial Code. 148. DPA-Deposit for attorneys is connected Union 2018: Croatia, the Czech Republic, Portugal 129. The summons period is the period between to e-Deposit (the tool to electronically and Slovakia. Washington, DC: World Bank. the time when the defendant is notified by file documents with the court). For more 117. According to data received from experts the bailiff and the date when the parties must information, see https://dp-a.be/fr/features interviewed by the Subnational Doing Business appear in court (Articles 707 and 710 of the /dpa-deposit; International Bar Association. team between October and December Judicial Code). This term is reduced to two 2020. “Covid-19 Pandemic: Impact of 2020, the workload can vary substantially days in summary proceedings (Article 1035 of COVID-19 on Court Operations and by location. For example, the office in Namur the Judicial Code). Litigation Practice.” London: International Bar processed 7,627 transcriptions in 2019, 130. The case study would not qualify for ‘short Association. whereas the three Antwerp offices processed debates’, a simplified procedure where no 149. Article 1495 of the Judicial Code. over 34,000 requests in the same time period. briefs must be submitted. 150. Articles 1520 and 1522 of the Judicial Code. 118. The FPS Finance website houses information 131. Subnational Doing Business research, interviews 151. Data on the number of bailiffs extracted from pertaining to the General Administration for with court officials and litigation attorneys, the National Chamber of Bailiffs, available at Patrimonial Documentation–Offices of Legal November 2020. https://www.gerechtsdeurwaarders.be Security. 132. “Werkingsverslag over het Jaar 2020 /bailiff?page=1. 119. For processing time deadlines for a range of Nederlandstalige ondernemingsrechtbank 152. The Royal Decree of November 30, 1976 documents, see https://finances.belgium.be Brussel.” p. 40. https://www.rechtbanken (Belgian Official Gazette February 8, 1977) /fr/particuliers/habitation/cadastre/extrait -tribunaux.be/sites/default/files/or_brussel fixing the rate for acts executed by bailiffs in -cadastral/myminfin#q17. /files/werkingsverslag-norb-2020.pdf. See civil and commercial matters and the rate of 120. A step-by-step guide to the complaints also various newsletters from the Brussels bar some tariffs (https://www.ejustice.just.fgov procedure in the UK is available at https:// at https://www.baliebrussel.be/wp-content .be/cgi_loi/change_lg.pl?language=fr&la=F&c www.gov.uk/government/organisations/ /uploads/2020/03/Coronanieuwsbrief-1.pdf. n=1976113030&table_name=loi). land-registry/about/complaints-procedure. 133. Article 736 of the Judicial Code; Articles 742 153. See European Justice, Dispositions relatives For more information on the Independent and 745 of the Judicial Code. aux honoraires des professions juridiques, Complaint Reviewer (ICR), see https://www 134. Subnational Doing Business research and available at https://e-justice.europa.eu .icrev.org.uk/. interviews with court officials, January 2021. /content_costs_of_proceedings-37-be-fr 121. Act of May 20, 2020 (Belgian Official Gazette 135. Article 770 of the Judicial Code. .do?member=1. May 29, 2020) containing provisions on 136. Only 424 of 889 judgments were pronounced 154. Data available at https://www.unizo.be/sites justice in the context of the fight against the within one month. See page 46 of the /default/files/kmo-rapport_2019_nl_def.pdf. spread of the coronavirus. (http://www French-speaking Brussels Commercial Court’ 155. Data are from Statbel and available at .ejustice.just.fgov.be.kuleuven.ezproxy operational report for 2019, available at https://en.populationdata.net/maps/belgium .kuleuven.be/mopdf/2020/05/29_1 https://www.rechtbanken-tribunaux.be -commercial-density-2009/. .pdf#Page9). Also see Act of July 31, 2020 /sites/default/files/te_bruxelles/rapport 156. European Commission. 2020. The 2020 EU (Belgian Official Gazette August 7, 2020) -de-fonctionnement-tefb-2019-approuve Justice Scoreboard. Luxembourg: European containing various urgent provisions on justice. -le-19.05.2020_0.pdf. Commission. See Figure 25. Referring to data 54 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

provided by the Council of Bars and Law as the extension of the time limits of judicial 182. European Commission for the Efficiency of Societies of Europe. and written proceedings before the court and Justice. 2011. Reports on the implementation 157. After the expert appointment under article tribunals. of the CEPEJ guidelines for judicial time 972, §2, 4° of the Judicial Code, the expert is 169. Ministry of Justice of the Republic of Estonia. management in 7 pilot courts/institutions. only required to disclose “the estimate of the 2020. “Digital Justice in Estonia.” Tallinn: Strasbourg: European Commission for the general cost price of the expert examination, Ministry of Justice. https://www.youtube Efficiency of Justice. https://rm.coe.int or at least the way in which the costs and .com/watch?v=K3WUzJfhYJM. /168074828a. fees of the expert and any technical advisors 170. International Bar Association. November 5, 183. Article 730/1 et seq. and 1734 et seq. of the will be calculated.” However, the expert can 2020. An interview with Justice Quentin Loh Judicial Code. de facto change their prices/rates afterward of the Singapore High Court. https://www. 184. The tax credit is up to EUR 50,000. See without the court’s approval. ibanet.org/Article/NewDetail.aspx?ArticleUid Article 17 of Italian Law Decree 28/2010. 158. Article 991 of the Judicial Code. =8FD1B23A-9B7A-4CD9-8D2A-162EF4A12DFC. 185. Gramckow and others 2016. 159. Through an electronic means, the clerk’s office 171. Ministerial Decision of June 20, 2016, 186. World Bank. 2019. Doing Business in the sends all the data to FPS Finance, which then determining the introduction of the e-Box European Union 2020: Greece, Ireland and Italy. sends an invitation to pay to the person owing network and the e-Deposit system, as referred Washington, DC: World Bank. the court fees. For information on collection to in article 10 of the Royal Decree June methods, see Royal Decree of January 28, 2019 16, 2016 (Belgian Official Gazette June 22, (Belgian Official Gazette January 31, 2019). 2016) regarding electronic communication in 160. Article 269, 2° of the Code of Registration, accordance with Article 32ter of the Judicial Mortgage and Court duties, amended by Code. the Law of October 14, 2018 (Belgian Official 172. See page 17 of the Brussels Commercial Gazette December 20, 2018) amending the Court’s 2020 operational report at https:// Registration, Mortgage and Registrar’s Duties www.rechtbanken-tribunaux.be/sites/default Code to reform the Registrar’s Duties (http:// /files/or_brussel/files/werkingsverslag-norb www.ejustice.just.fgov.be/cgi_loi/change_lg -2020.pdf. .pl?language=fr&la=F&cn=2018101418&tab 173. Berkman Center for Internet and Society at le_name=loi). Harvard University. 2010. “Best Practices in 161. The Royal Decree of November 30, 1976 the Use of Technology to Facilitate Access (Belgian Official Gazette February 8, 1977) to Justice Initiatives.” Preliminary report fixing the rate for acts executed by bailiffs in prepared for Dina E. Fein, First Justice, civil and commercial matters and the rate of Housing Court Department, Western some tariffs (https://www.ejustice.just.fgov Division of Massachusetts, and Special .be/cgi_loi/change_lg.pl?language=fr&la=F&c Advisor to the Trial Court for Access to n=1976113030&table_name=loi). Justice Initiatives. Cambridge, MA; Zorza, 162. For an overview of the enforcing contracts Richard. 2013. “Principles and Best Practices indicators and quality of judicial processes for Access-Friendly Court Electronic Filing.” index, see the data notes. Electronic Filing and Access to Justice Best 163. European Commission. 2020. The 2020 EU Practices Project, Legal Services Corporation, Justice Scoreboard. Luxembourg: European Washington, DC. Commission. See figure 27. 174. For more information, see https://www.apec 164. Article 4, 2° and article 22 of the act of May .org/Groups/Economic-Committee/Toolkit 20, 2020 (Belgian Official Gazette May 29, -for-Structural-Reform/EoDB-Action-Plan. 2020), containing various provisions on 175. Sung, Lee Jae. 2017. “Making it Easier to justice in the context of the fight against the Enforce Contracts in the Asia-Pacific Region: spread of the coronavirus. (https://www Recommendations and Challenges.” .ejustice.just.fgov.be/cgi_loi/change_lg.pl?l http://www.moj.go.kr/bbs/moj/166/205642 anguage=fr&la=F&cn=2020052008&tab /download.do. le_name=loi), amended by the Royal Decrees 176. For more information, see the DPA’s website of June 15, 2020 and September 13, 2020 and at https://dp-a.be/fr/faq-deposit. Article 49 of the Act of December 20, 2020 177. Article 32ter of the Judicial Code. laying down various temporary and structural 178. Bosio, Erica, and Julien Vilquin. “Improving provisions on justice in the fight against the Court Efficiency: the Republic of Korea’s spread of the coronavirus COVID-19 (https:// E-Court Experience.” in World Bank. 2013. www.ejustice.just.fgov.be/cgi_loi/change_lg. Doing Business 2014: Understanding Regulations pl?language=fr&la=F&cn=2020122002&tab for Small and Medium-Size Enterprises. le_name=loi). Washington, DC: World Bank. 165. In 2013, the Registry of the Antwerp Court of 179. Council of Europe, Committee of Ministers. Appeal established a databank with scanned 1984. “Recommendation No. R (84) 5 of the digital versions of judgments (Vonissen Committee of Ministers to Member States on Arresten Judgement Arrêts, VAJA). However, the Principles of Civil Procedure Designed to it had no legal basis and was not, therefore, Improve the Functioning of Justice” Council of supported by the justice minister. Europe, Strasbourg, p. 2. 166. Doing Business defines the pretrial conference 180. These economies are Bulgaria, Croatia, as a meeting presided by the judge and Estonia, Germany, Greece, Latvia, Lithuania, designed to narrow down contentious issues the Netherlands, and Poland. and evidentiary questions before the trial. 181. Gramckow, Heike, Erica Bosio, Silva Mendez, 167. Articles 1676–1723 of the Judicial Code. and Jorge Luis. 2016. “Good practices for 168. Article 2, § 2 of the Royal Decree no. 2 Courts: Helpful Elements for Good Court (Belgian Official Gazette April 9, 2020) relating Performance and the World Bank’s Quality to the extension of limitation periods and of Judicial Process Indicators.” World Bank, other time limits for taking legal action, as well Washington, DC. CITY SNAPSHOTS AND INDICATOR DETAILS 55

City Snapshots and Indicator Details

BELGIUM Antwerp Starting a business (rank) 1 Dealing with construction permits (rank) 1 Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 78.18 Procedures (number) 8 Procedures (number) 12 Time (days) 6.5 Time (days) 152.5 Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.6 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 2 Registering property (rank) 3 Score for getting electricity (0–100) 73.36 Score for registering property (0–100) 57.80 Procedures (number) 6 Procedures (number) 8 Time (days) 145 Time (days) 41 Cost (% of income per capita) 109.8 Cost (% of property value) 10.2 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 3 Score for enforcing contracts (0–100) 66.80 Time (days) 439 Cost (% of claim value) 16.0 Quality of judicial processes index (0–18) 8.0

Bruges Starting a business (rank) 1 Dealing with construction permits (rank) 4 Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 75.70 Procedures (number) 8 Procedures (number) 12 Time (days) 6.5 Time (days) 195.5 Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.1 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 6 Registering property (rank) 1 Score for getting electricity (0–100) 71.18 Score for registering property (0–100) 58.52 Procedures (number) 6 Procedures (number) 8 Time (days) 165 Time (days) 35 Cost (% of income per capita) 109.8 Cost (% of property value) 10.2 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 6 Score for enforcing contracts (0–100) 65.55 Time (days) 485 Cost (% of claim value) 16.0 Quality of judicial processes index (0–18) 8.0 56 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Brussels

Starting a business (rank) 1 Dealing with construction permits (rank) 2

Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 76.51

Procedures (number) 8 Procedures (number) 9

Time (days) 6.5 Time (days) 211

Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.9

Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 7 Registering property (rank) 7

Score for getting electricity (0–100) 70.46 Score for registering property (0–100) 51.84

Procedures (number) 6 Procedures (number) 8

Time (days) 171 Time (days) 56

Cost (% of income per capita) 131.9 Cost (% of property value) 12.7

Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 7

Score for enforcing contracts (0–100) 64.85

Time (days) 505

Cost (% of claim value) 16.4

Quality of judicial processes index (0–18) 8.0

Charleroi

Starting a business (rank) 1 Dealing with construction permits (rank) 3

Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 76.02

Procedures (number) 8 Procedures (number) 12

Time (days) 6.5 Time (days) 186.5

Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.3

Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 3 Registering property (rank) 4

Score for getting electricity (0–100) 72.79 Score for registering property (0–100) 53.76

Procedures (number) 6 Procedures (number) 8

Time (days) 121 Time (days) 40

Cost (% of income per capita) 127.2 Cost (% of property value) 12.7

Reliability of supply and transparency of tariffs index (0–8) 7 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 2

Score for enforcing contracts (0–100) 69.47

Time (days) 340

Cost (% of claim value) 16.1

Quality of judicial processes index (0–18) 8.0

Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. CITY SNAPSHOTS AND INDICATOR DETAILS 57

Ghent

Starting a business (rank) 1 Dealing with construction permits (rank) 7

Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 72.63

Procedures (number) 8 Procedures (number) 12

Time (days) 6.5 Time (days) 237.5

Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.1

Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 1 Registering property (rank) 2

Score for getting electricity (0–100) 76.07 Score for registering property (0–100) 58.52

Procedures (number) 6 Procedures (number) 8

Time (days) 120 Time (days) 35

Cost (% of income per capita) 109.8 Cost (% of property value) 10.2

Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 4

Score for enforcing contracts (0–100) 66.71

Time (days) 470

Cost (% of claim value) 14.0

Quality of judicial processes index (0–18) 8.0

Liège

Starting a business (rank) 1 Dealing with construction permits (rank) 6

Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 74.03

Procedures (number) 8 Procedures (number) 12

Time (days) 6.5 Time (days) 212

Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.5

Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 5 Registering property (rank) 5

Score for getting electricity (0–100) 72.53 Score for registering property (0–100) 53.64

Procedures (number) 6 Procedures (number) 8

Time (days) 123 Time (days) 41

Cost (% of income per capita) 139.3 Cost (% of property value) 12.7

Reliability of supply and transparency of tariffs index (0–8) 7 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 5

Score for enforcing contracts (0–100) 66.29

Time (days) 460

Cost (% of claim value) 15.9

Quality of judicial processes index (0–18) 8.0 58 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Namur

Starting a business (rank) 1 Dealing with construction permits (rank) 5

Score for starting a business (0–100) 87.56 Score for dealing with construction permits (0–100) 75.29

Procedures (number) 8 Procedures (number) 12

Time (days) 6.5 Time (days) 196.5

Cost (% of income per capita) 5.1 Cost (% of warehouse value) 0.3

Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 12

Getting electricity (rank) 3 Registering property (rank) 6

Score for getting electricity (0–100) 72.79 Score for registering property (0–100) 53.28

Procedures (number) 6 Procedures (number) 8

Time (days) 121 Time (days) 44

Cost (% of income per capita) 127.2 Cost (% of property value) 12.7

Reliability of supply and transparency of tariffs index (0–8) 7 Quality of land administration index (0–30) 23

Enforcing contracts (rank) 1

Score for enforcing contracts (0–100) 72.00

Time (days) 313

Cost (% of claim value) 11.3

Quality of judicial processes index (0–18) 8.0 CITY SNAPSHOTS AND INDICATOR DETAILS 59

The UBO Register was launched on 31 October 2018 for new companies. launched on 31 October 2018 for new companies. UBO Register was The information on the UBO can be entered into register through (i) online platform The a mandate to third party, by a legal representative of the company or granting “MyMinFin” accountants which is only accessible for notaries, or through (ii) eStox, for example an accountant, and tax advisors. Entrepreneurs must finalize the company’s incorproation in the CBE by providing additional Entrepreneurs must finalize the company’s In requisite information at the one-stop shop (OSS) (guichet-entreprises or ondernemingsloket). founders must prove at and the Brussels-Capital Region, Wallonia order to start a business in the OSS that they have necessary management knowledge and professional competence for 1, and January 2018, Flanders eliminated these requirements on September 1, certain activities. respectively. 2019, VAT number either directly from the local VAT of the company may request the activation The or through an accountant recognized OSS. administration required information The fund. Companies and directors are also obliged to join a social insurance can be submitted through the OSS. registration) fee) + EUR 55 (VAT cost includes: EUR 89.5 (business unit registration The The eNotariat portal (via eDepot) allows notaries to electronically file the notarial act with The Public Service (FPS) the electronic registry of Federal Crossroads Bank for Enterprises (CBE), notaries file a In order to comply with fiscal requirements, Justice and the Belgian Official Gazette. which is also part of the certified copy of the notarial act with FPS Finance via eRegistration, eNotariat portal. the notary receives Once the company is registered with Crossroads Bank for Enterprises, and shares it with the entrepreneur. company number electronically, The notarial act for incorporating a company has to be signed in person by the founders and notarial act for incorporating The the law has allowed for a digital identification procedure powers of During Covid-19, notary. attorney. the notary requires: the notarial act, In order to draft personal information. 1) Founder's for at plan must show that the initial equity will cover company operations This 2) Financial plan. least the first 2 years. duty of EUR 50 + 95 (on written documents) cost includes: Fixed registration The (electronic filing) + notary fees of EUR 1,138 VAT publication cost of EUR 190.10 excluding costs). costs of EUR 500 (such as administrative notary's various depend on the amount of notary fee rates 1950, Decree of December 16, According to the Royal share capital. Comments according of the company name is responsibility entrepreneur, Checking the availability To to do it before incorporation. and it is common practice to article 2:3 of the Company Code, the entrepreneur (or someone on behalf of such as check the availability, on notary) can – inter alia consult the Belgian Official Gazette or use information available the Crossroads Bank for Enterprises' website.

Namur

Liège Liège

Ghent

Charleroi Charleroi Brussels Brussels See cost for procedure 2

Less than one day (online procedure) Less than one day (online procedure) Less than one day (online procedure)

Bruges Bruges Antwerp Time (days) Time Cost (EUR) No cost No cost No cost No cost No cost No cost No cost Cost (EUR) 144.5 144.5 144.5 144.5 144.5 144.5 144.5 Time (days)Time 2 2 2 2 2 2 2 Time (days) Time Cost (EUR) Cost (EUR) 1,973.5 1,973.5 1,973.5 1,973.5 1,973.5 1,973.5 1,973.5 Time (days)Time 1 1 1 1 1 1 1 Time (days) Time Cost (EUR) No cost No cost No cost No cost No cost No cost No cost 5. Register ultimate beneficial 5. owners in the UBO register 4. Finalize company 4. and register incorporation for VAT 3. File the notarial act online 3. through eDepot and obtain the company number 2. Deposit a financial plan 2. with a notary and sign the notarial act for incorporation in the presence of notary STARTING A BUSINESS IN BELGIUM - PROCEDURES REQUIRED TO START A BUSINESS, BY CITY (continued) A BUSINESS, START TO IN BELGIUM - PROCEDURES REQUIRED A BUSINESS STARTING Standard company legal form: Société à responsabilité limité/besloten vennootschap (SRL/BV) none minimum capital requirement: Paid-in 2021 December 31, Data as of: 1. Verify the availability of the the availability Verify 1. company name 60 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

According to the Accidents at Work Act of 10 April 1971, before hiring their first employee, new before hiring their first employee, April 1971, Act of 10 Work Accidents at According to the policy against accidents at work and on companies are legally required to undersign an insurance to and from work. the way the type of company that offers the policy, cost of the policy will depend on insurance The their the number and type of employees covered, activity of the company taking out policy, among others. level, remuneration However, company. Entrepreneurs usually complete this procedure directly with the insurance some one-stop shops also offer this service. employer must file a copy of the work regulations with regional office Labor The document can now be submitted online This within eight days of its entry into force. Inspectorate (NL). (FR); www.arbeidsreglement.belgie.be via www.reglementdetravail.belgique.be Comments company must identify itself and be registered with the National Social Security Office (NSSO) The procedure is usually completed online with the help of This WIDE. through the online service Once the identification a social service provider but may also be done through email or post. the and before a new employee may begin working, procedure is completed by the company, for each employee (Déclaration employer must notify the NSSO by filing a DIMONA IN declaration Immédiate/ Aangifte). Onmiddellijke

Namur

Liège Liège

Ghent

Charleroi Charleroi Brussels Brussels Cf. details of the procedure Cf.

Less than one day (online procedure) Less than one day (online procedure)

Bruges Bruges Antwerp Cost (EUR) (days) Time Cost (EUR) No cost No cost No cost No cost No cost No cost No cost Time (days)Time 1 1 1 1 1 1 1 Time (days) Time Cost (EUR) No cost No cost No cost No cost No cost No cost No cost Subnational Doing Business and databases. 8. File the Labor Regulations 8. with the Labor Inspectorate* 7. Undersign an insurance for Undersign an insurance 7. accidents at work* STARTING A BUSINESS IN BELGIUM - PROCEDURES REQUIRED TO START A BUSINESS, BY CITY (continued) A BUSINESS, START TO IN BELGIUM - PROCEDURES REQUIRED A BUSINESS STARTING Standard company legal form: Société à responsabilité limité/besloten vennootschap (SRL/BV) none minimum capital requirement: Paid-in 2021 December 31, Data as of: Source: Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. place simultaneously with previous procedure. *Takes 6. Register as employer 6. and file the "Dimona In" statements for each employee with the National Social Security Office* CITY SNAPSHOTS AND INDICATOR DETAILS 61

Procedure 9*. Obtain water connection Procedure 6. Post yellow signage and Agency: Water Link inform municipality of commencement LIST OF PROCEDURES Time: 14 days of work DEALING WITH CONSTRUCTION Cost: EUR 7,497 Agency: Municipality PERMITS Time: 1 day BELGIUM Procedure 10. Inspection for water Cost: No cost connection Antwerp Agency: Water Link Procedure 7. Inspection for sewage Time: 1 day connection Warehouse value: EUR 2,066,974 (USD 2,367,500) Farys Data as of: December 31, 2020 Cost: EUR 156 Agency: Time: 1 day Procedure 1. Preliminary consultation Procedure 11. Inform municipality of the Cost: EUR 129 with the municipality completion of construction Agency: Municipality Agency: Municipality Procedure 8. Obtain sewage connection Time: 14 days Time: Less than one day (online procedure) Agency: Farys Cost: No cost Cost: No cost Time: 58 days Cost: No cost Procedure 2. Consultation with the fire Procedure 12. File application and department receive an inspection by the Cadaster Procedure 9*. Obtain water connection Agency: Fire department upon completion of construction Agency: Farys Time: 14 days Agency: Administration of the Cadaster Time: 42 days Cost: EUR 103 Time: 1 day Cost: EUR 1,025 Cost: No cost Procedure 3. Request and obtain Procedure 10. Inspection for water building permit Bruges connection Agency: Municipality Agency: Farys Warehouse value: EUR 2,066,974 (USD 2,367,500) Time: 105 days Time: 1 day Data as of: December 31, 2020 Cost: EUR 2,739 Cost: EUR 189 Procedure 1. Preliminary consultation Procedure 4*. Apply for water Procedure 11. Inform municipality of the with the municipality completion of construction connection and receive technical visit Agency: Municipality Agency: Municipality Agency: Water Link Time: 14 days Time: Less than one day (online procedure) Time: 14 days Cost: No cost Cost: No cost Cost: No cost

Procedure 2. Consultation with the fire Procedure 12. File application and Procedure 5*. Apply for sewage department connection and receive technical visit receive an inspection by the Cadaster Agency: Fire department upon completion of construction Agency: Water Link Time: 14 days Agency: Administration of the Cadaster Time: 14 days Cost: EUR 150 Cost: No cost Time: 1 day Cost: No cost Procedure 3. Request and obtain Procedure 6. Post yellow signage and building permit Brussels inform municipality of commencement Agency: Municipality of work Time: 105 days Warehouse value: EUR 2,066,974 (USD 2,367,500) Agency: Municipality Cost: No cost Data as of: December 31, 2020 Time: 1 day Cost: No cost Procedure 4*. Apply for water Procedure 1. Obtain a recent proof of connection and receive technical visit land ownership Procedure 7. Inspection for sewage Agency: Farys Agency: Bureau de l'enregistrement connection Time: 14 days Time: 7 days Water Link Agency: Cost: No cost Cost: EUR 75 Time: 1 day Cost: EUR 140 Procedure 5*. Apply for sewage Procedure 2. Obtain clearance from the connection and receive technical visit Fire Department Procedure 8. Obtain sewage connection Agency: Farys Agency: Fire department Agency: Water Link Time: 14 days Time: 14 days Time: 14 days Cost: No cost Cost: EUR 1,721 (EUR 100 application fee + Cost: EUR 1,000 EUR 1.20 per square meter)

Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. *Takes place simultaneously with previous procedure. 62 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Procedure 3. Request and obtain Procedure 2. Request and obtain Procedure 11. Receive technical building permit building permit inspection for sewage and drainage Agency: Municipality Agency: Municipality works Time: 110 days Time: 115 days Agency: Intermunicipal sewage association of Cost: EUR 780 (EUR 65 for the first 200 square Cost: EUR 175 Charleroi meters + EUR 0.65 per additional square Time: 1 day meter) Procedure 3*. Apply for sewage Cost: EUR 125 connection and appoint a certified Procedure 4. Inform Municipality of technician for sewerage connection Procedure 12. File application and commencement of work works receive an inspection by the Cadaster Agency: Municipality Agency: Intermunicipal sewage association of upon completion of construction Time: 1 day Charleroi Agency: Administration of the Cadaster Cost: No cost Time: 1 day Time: 1 day Cost: No cost Cost: No cost Procedure 5. Receive on-site inspection from Fire Department after construction Procedure 4*. Apply for water Ghent Agency: Fire department connection Time: 1 day Agency: Wallonia Water Association Warehouse value: EUR 2,066,974 (USD 2,367,500) Cost: No cost Time: Less than one day (online procedure) Data as of: December 31, 2020 Cost: No cost Procedure 6. File application and receive Procedure 1. Preliminary consultation an inspection by the Cadaster upon Procedure 5. Receive on-site inspection with the municipality completion of construction prior to the commencement of building Agency: Municipality Agency: Administration of the Cadaster works Time: 56 days Cost: No cost Time: 1 day Agency: Municipality Cost: No cost Time: 1 day Cost: No cost Procedure 2. Consultation with the fire Procedure 7*. Apply for water and department sewage connection Procedure 6. Post yellow signage and Agency: Fire department Agency: VIVAQUA inform municipality of commencement Time: 14 days Time: 1 day of work Cost: EUR 75 Cost: No cost Agency: Municipality Time: 1 day Procedure 3. Request and obtain Procedure 8. Receive inspection for Cost: No cost building permit water and sewage on construction site Agency: Municipality Agency: VIVAQUA Procedure 7. Receive a technical Time: 105 days Time: 1 day inspection for water on construction site Cost: No cost Cost: No cost Agency: Wallonia Water Association Time: 1 day Procedure 4*. Apply for water Procedure 9. Obtain water and sewage Cost: No cost connection and receive technical visit connection Agency: Farys Agency: VIVAQUA Procedure 8. Receive on-site inspection Time: 14 days Time: 75 days from fire department after construction Cost: No cost Cost: EUR 16,602 Agency: Fire department Time: 1 day Procedure 5*. Apply for sewage connection and receive technical visit Charleroi Cost: EUR 90 Agency: Farys Warehouse value: EUR 2,066,974 (USD 2,367,500) Procedure 9. Inform municipality of the Time: 14 days Data as of: December 31, 2020 completion of construction Cost: No cost Agency: Municipality Procedure 1. Consultation with the fire Time: Less than one day (online procedure) Procedure 6. Post yellow signage and department Cost: No cost inform municipality of commencement Agency: Fire department of work Time: 45 days Procedure 10. Obtain water connection Agency: Municipality Cost: EUR 90 Time: 1 day Agency: Wallonia Water Association Cost: No cost Time: 20 days Cost: EUR 6,465 (EUR 6,400 for the water connection + EUR 65 for the water inspection)

Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. *Takes place simultaneously with previous procedure. CITY SNAPSHOTS AND INDICATOR DETAILS 63

Procedure 7. Inspection for sewage Procedure 4*. Apply for water Namur connection connection Agency: Farys Agency: Liège Water Association Warehouse value: EUR 2,066,974 (USD 2,367,500) Time: 1 day Time: Less than one day (online procedure) Data as of: December 31, 2020 Cost: EUR 129 Cost: No cost Procedure 1. Consultation with the fire Procedure 8. Obtain sewage connection Procedure 5. Receive on-site inspection department Agency: Farys prior to the commencement of building Agency: Fire department Time: 58 days works Time: 45 days Cost: EUR 750 Agency: Municipality Cost: EUR 105 Time: 1 day Procedure 9*. Obtain water connection Cost: No cost Procedure 2. Request and obtain Agency: Farys building permit Time: 42 days Procedure 6. Post yellow signage and Agency: Municipality Cost: EUR 1,025 inform municipality of commencement Time: 115 days of work Cost: EUR 180 Procedure 10. Inspection for water Agency: Municipality connection Time: 1 day Procedure 3*. Apply for sewage Agency: Farys Cost: No cost connection and appoint a certified Time: 1 day technician for sewerage connection Cost: EUR 189 Procedure 7. Receive a technical works inspection for water on construction site Agency: Intermunicipal sewage association of Procedure 11. Inform municipality of the Agency: Liège Water Association Namur completion of construction Time: 1 day Time: 1 day Cost: No cost Agency: Municipality Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 8. Receive on-site inspection Procedure 4*. Apply for water from fire department after construction connection Procedure 12. File application and Agency: Fire department Agency: Wallonia Water Association receive an inspection by the Cadaster Time: 1 day Time: Less than one day (online procedure) upon completion of construction Cost: EUR 125 Cost: No cost Agency: Administration of the Cadaster Time: 1 day Procedure 9. Inform municipality of the Procedure 5. Receive on-site inspection Cost: No cost completion of construction prior to the commencement of building Agency: Municipality works Agency: Municipality Liège Time: 1 day Cost: No cost Time: 1 day Warehouse value: EUR 2,066,974 (USD 2,367,500) Cost: No cost Data as of: December 31, 2020 Procedure 10. Obtain water connection Agency: Liège Water Association Procedure 6. Post yellow signage and Procedure 1. Consultation with the fire Time: 45 days inform municipality of commencement department Cost: EUR 8,413 (EUR 8,348 for the water of work Agency: Fire department connection + EUR 65 for the water inspection) Agency: Municipality Time: 45 days Time: 1 day Cost: EUR 80 Procedure 11. Receive technical Cost: No cost inspection for sewage and drainage Procedure 2. Request and obtain works Procedure 7. Receive a technical building permit Agency: Intermunicipal sewage association of inspection for water on construction site Agency: Municipality Liège Agency: Wallonia Water Association Time: 115 days Time: 1 day Time: 1 day Cost: EUR 675 (EUR 175 base fee + EUR 500 Cost: EUR 150 Cost: No cost for non-housing project between 1,000 and 2,000 square meters) Procedure 12. File application and Procedure 8. Receive on-site inspection receive an inspection by the Cadaster from fire department after construction Procedure 3*. Apply for sewage upon completion of construction Agency: Fire department connection and appoint a certified Agency: Administration of the Cadaster Time: 1 day technician for sewage connection works Time: 1 day Cost: EUR 105 Agency: Intermunicipal sewage association of Liège Cost: No cost Time: 1 day Cost: No cost

*Takes place simultaneously with previous procedure. 64 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Procedure 9. Inform municipality of the completion of construction Agency: Municipality Time: Less than one day (online procedure) Cost: No cost

Procedure 10. Obtain water connection Agency: Wallonia Water Association Time: 30 days Cost: EUR 6,465 (EUR 6,400 for the water connection + EUR 65 for the water inspection)

Procedure 11. Receive technical inspection for sewage and drainage works Agency: Intermunicipal sewage association of Namur Time: 1 day Cost: EUR 125

Procedure 12. File application and receive an inspection by the Cadaster upon completion of construction Agency: Administration of the Cadaster Time: 1 day Cost: No cost CITY SNAPSHOTS AND INDICATOR DETAILS 65

DEALING WITH CONSTRUCTION PERMITS IN BELGIUM – BUILDING QUALITY CONTROL INDEX

All cities

Answer Score

Building quality control index (0–15) 12

Quality of building regulations index (0–2) 2

How accessible are building laws and regulations in your economy? (0–1) Available online; Free of charge. 1

Which requirements for obtaining a building permit are clearly specified in the building List of required documents; Fees to be paid; 1 regulations or on any accessible website, brochure or pamphlet? (0–1) Required preapprovals.

Quality control before construction index (0–1) 1

Which third-party entities are required by law to verify that the building plans are in Licensed architect; Licensed engineer. 1 compliance with existing building regulations? (0–1)

Quality control during construction index (0–3) 2

What types of inspections (if any) are required by law to be carried out during Inspections by in-house engineer. 1 construction? (0–2)

Do legally mandated inspections occur in practice during construction? (0–1) Mandatory inspections are always done in practice; 1 Inspections are not mandated by law but commonly occur in practice during construction.

Quality control after construction index (0–3) 3

Is there a final inspection required by law to verify that the building was built in Yes, in-house engineer submits report for final 2 accordance with the approved plans and regulations? (0–2) inspection.

Do legally mandated final inspections occur in practice? (0–1) Final inspection always occurs in practice. 1

Liability and insurance regimes index (0–2) 2

Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or engineer; Construction company. 1 once it is in use (Latent Defect Liability or Decennial Liability)? (0–1)

Which parties (if any) are required by law to obtain an insurance policy to cover possible Architect or engineer; Insurance is commonly taking 1 structural flaws or problems in the building once it is in use? (0–1) in practice.

Professional certifications index (0–4) 2

What are the qualification requirements for the professional responsible for verifying University degree in architecture or engineering; 1 that the architectural plans or drawings are in compliance with existing building Being a registered architect or engineer. regulations? (0–2)

What are the qualification requirements for the professional who supervises the University degree in engineering, construction or 1 construction on the ground? (0–2) construction management; Being a registered architect or engineer.

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. 66 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Before the external connection works and turn-on of must be inspected the internal wiring of warehouse meter, customer or a representative has The by an approved agency. to be present for the inspection. utility uses an online platform—shared with other service The and telecommunications to sewerage, including water, utilities, announce works,—to facilitate the coordination of excavation Each region has its own platform. the start of electrical works. A map of the existing underground cables and pipes from all service utilities to prevent damage during excavation relevant in addition to an authorization install is also requested, the public road. while excavating road signs to divert traffic The installation of the meter is done by utility. The electricity starts flowing immediately after the connection has between the supplier and if the contract been completed, customer has been registered and the report of internal inspection has been provided to the utility. and electrician of the client purchases a transformer The to be connected installs it on the ground of warehouse with the network of utility. A representative of a specialized agency comes to the to approve the installation works of warehouse price of the certification cost is approximately The transformer. EUR 200 and it is included in the price of installation transformer. An application is submitted with an unofficial map/sketch An application is submitted with an unofficial map/sketch the technical data indicating the building and public streets, of the requested connection also needs to be provided with Once the utility receives a connection request, the application. it will do a detailed study during which determine if the grid in its current state can handle the requested capacity. with a supplier. customer has to conclude a contract The through their website Most of the suppliers offer contracting is and the electricity supply contract (online) or by phone, supplier has to register the The usually concluded directly. in the national register for access to network, contract which is done within 24 hours. Comments 1 1 2 30 21 150 670 SIBELGA Brussels 18,620 (EUR 12,360 for connection fee + EUR 4,060 capacity fee at EUR 29 per EUR 2,200 for kVA+ meter installation costs) 1 1 2 30 23 100 1,066 RESA 21,266 (EUR 9,776.89 connection fee + EUR 9,398 capacity fee at EUR 67.13 per + EUR 2,091.31- kVA meter installation fee) 250 35,000 No cost No cost 612 ORES 16,708 (EUR 5,722 connection fee + EUR 9,273.60 capacity fee at EUR 66.24 per + EUR 1,712-meter kVA installation fee) 629.83 Fluvius 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 30 30 30 30 30 21 29 30 21 21 124 136 90 100 100 Antwerp Bruges Ghent Charleroi Namur Liège 9,494 (EUR 5,411.78 connection fee + EUR 2,457 capacity at +EUR 1,625.50- EUR 17.55 per kVA meter installation fee) Time Time (days) Time (days) Time (days) Cost (EUR) Cost (EUR) Cost (EUR) Cost (EUR) Time Time (days) Time Time (days) Cost (EUR) Cost (EUR) Time Time (days) Subnational Doing Business and databases. 4. Accept estimate and await Accept estimate and await 4. completion of external works by the utility Purchase and install a 5. transformer Obtain certification of works 6. by specialized agency 3. Receive internal wiring 3. inspection by approved agency* GETTING ELECTRICITY IN BELGIUM - PROCEDURES REQUIRED TO OBTAIN A NEW ELECTRICITY CONNECTION, BY CITY A NEW ELECTRICITY CONNECTION, OBTAIN TO GETTING ELECTRICITY IN BELGIUM - PROCEDURES REQUIRED 2020 December 31, Data as of: Name of utility: Source: Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. place simultaneously with previous procedure. *Takes 2. Conclude contract with Conclude contract 2. electricity supplier* 1. Submit application to utility 1. estimate and await CITY SNAPSHOTS AND INDICATOR DETAILS 67

GETTING ELECTRICITY IN BELGIUM – RELIABILITY OF SUPPLY AND TRANSPARENCY OF TARIFFS INDEX

8 (4 cities) Reliability of supply and transparency of tariffs index (0–8) 7 (Charleroi, Liège, Namur)

3 (4 cities) Total duration and frequency of outages per customer a year (0–3) 2 (Charleroi, Liège, Namur)

System average interruption duration index (SAIDI) 0.36 (Antwerp) 0.37 (Bruges) 0.37 (Ghent) 0.44 (Brussels) 0.75 (Namur) 0.76 (Charleroi) 0.80 (Liège)

System average interruption frequency index (SAIFI) 0.36 (Antwerp) 0.36 (Bruges) 0.36 (Ghent) 0.39 (Brussels) 1.11 (Charleroi) 1.15 (Namur) 1.20 (Liège)

Mechanisms for monitoring outages (0–1) 1 (all cities)

Does the distribution utility use automated tools to monitor outages? Yes (all cities)

Mechanisms for restoring service (0–1) 1 (all cities)

Does the distribution utility use automated tools to restore service? Yes (all cities)

Regulatory monitoring (0–1) 1 (all cities)

Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability Yes (all cities) of supply?

Financial deterrents aimed at limiting outages (0–1) 1 (all cities)

Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes (all cities) exceed a certain cap?

Communication of tariffs and tariff changes (0–1) 1 (all cities)

Are effective tariffs available online? Yes (all cities)

Are customers notified of a change in tariff ahead of the billing cycle? Yes (all cities)

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. 68 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS The transfer of ownership can be done by a private contract between seller and contract of ownership can be done by a private transfer The the of ownership vis-à-vis third parties, the transfer to validate However, buyer. initial sale agreement needs to be notarized and registered with the competent up a notarial act and The notary will draw Office of Legal Security by a notary. notary also The obtain all necessary documentation (see following Procedures). the copy of publication names directors in for companies, checks, the Belgian Official Gazette. obtains the certificate from corresponding regional agency (Brussels Wallonia). in Flanders and BDES OVAM Environment in Brussels-Capital region, information in connection with the sale of a property. To do so, the notary obtains do so, To information in connection with the sale of a property. the urban development information by requesting a zoning certificate from municipality. The transfer act must contain the latest cadastral information about the property act must contain the latest cadastral transfer The notary obtains excerpt and plan from the Cadaster The to be transferred. and (i) the specified address/ indicating the specific land register references, (ii) the identity if the address/location is not available, location of the property or, Notaries can now verify the most updated and address of the (assumed) owner. map on that property online and print the information to complete cadastral notaries can also request the official cadastral Since November 2018, transaction. online via the platform MyMinFin and cadastral") excerpt documents ("extrait eNotariat portal. The notary obtains an excerpt from the Office of Legal Security to verify whether The through mortgages, e.g. over the property, certain third-party rights were granted A 30-year title search will rights to construct ("opstalrecht / droit de superficie"). an notary might request a full transcription, The be included in the documents. ("kantmelding / mention marginale") or a notification extract inscription extract acts over 30 years affecting the property object to transaction. of transfer of the title or Office of Legal Security provides (i) "full transcription" The the judgment attributing title: date of acquisition full ownership or other right over the property (such as usufruct -right to use property-, the terms and conditions of acquisition superficies-right to construct), exceeding 9 years the existence of lease contracts including the purchase price, servitudes/ and information on the rights of third parties such as judgments, easements and seizures affecting the property in question for past 30 years and (ii) by "inscription" whether the right over property is encumbered a term). costs, amount, mortgage or a legal lien (beneficiary, The notary obtains tax certificates relating to the seller's position from The A request for Inland Revenue and the municipal provincial tax collectors. but the this information can be submitted online through the eNotariat portal, If there is no answer within 12 working days, response will arrive 15 days later. therefore assuming there are no the notary can process notarial act anyway, notaries have to verify at the same time seller's April 2007, Since tax issues. notary has to check with every social security fund The social security position. this process is done fully electronically, However, (there are +/- 15 of them). The procedure is simultaneously with the verification of tax position. into the existing procedure related to tax position of seller and integrated the time needed for this verification is also 15 days. 80 (Included in procedure 8) 50 (Included in procedure 8) 110 (Included in procedure 8) 50 15 1.0 0.5 (Included in procedure 8) Included in procedure 8 costs included in Procedure 8) 83 (Included in procedure 8) EUR 5 for cadastral extract online (via MyMinFin)] extract EUR 5 for cadastral 25 (Federal tax certificate - included in Procedure 8) 25 (Federal 30 (Included in procedure 8) EUR 20 [for cadastral extract requested on paper - included in Procedure 8; extract EUR 20 [for cadastral EUR 209 (EUR 152 urgent request for excerpt + 57 copy of the previous act - 90 Antwerp Bruges Brussels Charleroi Ghent Liege Namur Comments (Included in procedure 8) Time (days) Time Cost (EUR) Time (days)Time Cost (EUR) 2 54 2 54 10 38 0.5 30 2 54 0.5 30 0.5 30 The notary of land. A clean soil certificate must be obtained for every transfer Time (days)Time 30 14 30 29 14 29 25 seller is obliged to provide the buyer with necessary urban planning The Cost (EUR) Time (days) Time Cost (EUR) Time (days)Time 19 15Cost (EUR) 17 15 15 15 15 Time (days) Time Cost (EUR) Parties give private sales give private Parties agreement to the notary REGISTERING PROPERTY IN BELGIUM – PROCEDURES REQUIRED TO REGISTER A PROPERTY, BY CITY (continued) A PROPERTY, REGISTER TO IN BELGIUM – PROCEDURES REQUIRED REGISTERING PROPERTY EUR 2,066,974 Property value: 2020 December 31, Data as of: Obtain a clean soil certificate from the corresponding regional agency* Notary obtains zoning certificate from the municipality Notary obtains excerpt and plan from land register ("kadaster / cadastre") indicating the exact land register references* Notary obtains excerpt from the Office of Legal Security to verify whether certain third party rights over the were granted property and copies of acts over a the transfer 30-year period* Notary obtains tax certificates relating to the seller's tax position from tax administration (Inland Revenue)* CITY SNAPSHOTS AND INDICATOR DETAILS 69 Based on the agreement between the parties, the notary will draw up a notarial the notary will draw Based on the agreement between parties, the seller and buying company Usually, act after obtaining the required documents. / le compromis”) in agreement (“onderhandse overeenkomst enter into a private obligations of both subject matter, provisions (price, which the main contractual if any, Subject to fulfillment of certain conditions precedent, etc) are listed. parties, the title will third parties, Vis-à-vis title to the buyer. such agreement will transfer of the act with Office Legal Security referred to in pass upon registration of pre-emption Common conditions precedent are: waiver following procedure. Transfer rights over the property and obtaining of consents from local authorities. of the act with of title between parties can be made subject to the registration and fees are determined by law (Arrêté Royal), The notary’s Office of Legal Security. place duties and notary fees by the parties take the payment of registration before the signing of notarial act. The notary is required to pay the registration fees and apply for transcription of the fees and apply for transcription notary is required to pay the registration The notarial act to the local Office of Legal Security within 15 days after its execution transcription The on the basis of Mortgage Law 16 December 1851. notary pays the The publicity vis-à-vis third parties. of the notarial act guarantees fees online and sends the meta data of notarial act for transcription registration The fee for on the eNotariat portal. to the Office of Legal Security via eRegistration is indexed and Decree of 14 September 2016, based on the Royal the transcription, Office of Legal Security will verify all documentation The increases every 3 years. It will then send confirmation to the notary in its records. and complete the transfer by sending two electronic that the notarial act has been registered and transcribed Once received by the notary (s)he will then send a copy of stamps to the notary. notarial act to the client for his records. 2 Included in procedure 8 Antwerp Bruges Brussels Charleroi Ghent Liege Namur Comments Time (days) Time Cost (EUR) Time (days)Time 18 15 23 8 15 9 16 Cost (EUR) 210,746 210,686 262,413 262,380 210,766 262,380 262,410 Subnational Doing Business and databases. The notary draws up the notary draws The notarial act based on the agreement between the parties REGISTERING PROPERTY IN BELGIUM – PROCEDURES REQUIRED TO REGISTER A PROPERTY, BY CITY (continued) A PROPERTY, REGISTER TO IN BELGIUM – PROCEDURES REQUIRED REGISTERING PROPERTY EUR 2,066,974 Property value: 2020 December 31, Data as of: Source: Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. *Simultaneous with a previous procedure. N/A - not applicable The notary applies The and for registration of the transcription notarial act with the local Office of Legal Security 70 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

REGISTERING PROPERTY IN BELGIUM – QUALITY OF LAND ADMINISTRATION INDEX (continued)

Answer Score

Quality of the land administration index (0–30) 23 (all cities)

Reliability of infrastructure index (0–8) 6 In what format land title certificates are kept at the immovable property registry—in a paper format or in a Computer/Scanned 1 computerized format (scanned or fully digital)? (0–2) Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0 restrictions and the like)? (0–1) In what format cadastral plans are kept at the mapping agency—in a paper format or in a computerized format Computer/Fully digital 2 (scanned or fully digital)? (0–2) Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1 (geographic information system)? (0–1) Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept Different databases 1 in a single database, in different but linked databases, or in separate databases? (0–1) but linked Do the immovable property registration agency and cadastral or mapping agency use the same identification number Yes 1 for properties? (0–1) Transparency of information index (0–6) 3 Whether information on land ownership is made publicly available without providing the title certificate number at Anyone who pays 1 the agency in charge of immovable property registration? (0–1) the official fee Is the list of documents that are required to complete all types of property transactions made publicly available–and No 0 if so, how? (0–0.5) Is the applicable fee schedule for all types of property transactions at the agency in charge of immovable property Yes, online 0.5 registration made publicly available–and if so, how? (0–0.5) Does the agency in charge of immovable property registration formally commit to deliver a legally binding document No 0 proving ownership within a specific timeframe–and if so, how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in Yes 1 charge of immovable property registration? (0–1) Are there publicly available official statistics tracking the number of transactions at the immovable property No 0 registration agency? (0–0.5) Are cadastral plans made publicly available? (0–0.5) Only intermediaries 0 and interested parties Is the applicable fee schedule for accessing maps of land plots made easily publicly available—and if so, how? (0–0.5) Yes, online 0.5 Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and if so, No 0 how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or No 0 mapping agency? (0–0.5) Geographic coverage index (0–8) 8 Are all privately held land plots in the economy formally registered at the immovable property registry? (0–2) Yes 2 Are all privately held land plots formally registered at the immovable property registry in the measured city? (0–2) Yes 2 Are all privately held land plots in the economy mapped? (0–2) Yes 2 Are all privately held land plots mapped in the measured city? (0–2) Yes 2 Land dispute resolution index (0–8) 6 Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5 them opposable to third parties? (0–1.5) Is the system of immovable property registration subject to a state or private guarantee? (0–0.5) Yes 0.5 Is there a specific out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good No 0 faith in a property transaction based on erroneous information certified by the immovable property registry? (0–0.5) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5 checking the compliance of contracts with requirements of the law)? (0–0.5) Does the legal system require verification of the identity of the parties to a property transaction? (0–0.5) Yes 0.5 Is there a national database to verify the accuracy of government issued identity documents? (0–1) Yes 1 How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? (0–3) Between 1 and 2 years 2 Are there publicly available statistics on the number of land disputes in the first-instance court? (0–0.5) No 0 CITY SNAPSHOTS AND INDICATOR DETAILS 71

REGISTERING PROPERTY IN BELGIUM – QUALITY OF LAND ADMINISTRATION INDEX (continued)

Answer Score

Equal access to property rights index (-2–0) 0

Do unmarried men and unmarried women have equal ownership rights to property? Yes 0

Do married men and married women have equal ownership rights to property? Yes 0

Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. 72 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

ENFORCING CONTRACTS IN BELGIUM – TIME AND COST TO RESOLVE A COMMERCIAL DISPUTE, BY CITY

Time (days) Cost (% of claim) Quality of judicial processes index (0–18)

Total Total Total score

City and service Filing and judgment Trial Enforcement of judgment time Attorney fees Court costs Enforcement costs cost Court structure and proceedings (-1–5) Case management (0–6) Court automation (0–4) Alternative dispute resolution (0–3) (0–18) Antwerp 20 326 93 439 10.0 3.0 3.0 16.0 4.5 1.0 0.0 2.5 8.0 Bruges 30 365 90 485 10.0 3.0 3.0 16.0 4.5 1.0 0.0 2.5 8.0 Brussels 15 400 90 505 10.0 3.4 3.0 16.4 4.5 1.0 0.0 2.5 8.0 Charleroi 10 240 90 340 9.4 4.0 2.8 16.1 4.5 1.0 0.0 2.2 8.0 Ghent 30 350 90 470 8.0 3.0 3.0 14.0 4.5 1.0 0.0 2.5 8.0 Liège 10 350 100 460 10.0 3.1 2.8 15.9 4.5 1.0 0.0 2.5 8.0 Namur 10 235 68 313 6.3 3.1 1.9 11.3 4.5 1.0 0.0 2.5 8.0 Source: Subnational Doing Business and Doing Business databases. Note: The cost values, expressed as % of claim, are rounded to the first decimal place. Data for Brussels are not considered official until published in the Doing Business 2021 report. CITY SNAPSHOTS AND INDICATOR DETAILS 73

ENFORCING CONTRACTS IN BELGIUM – QUALITY OF JUDICIAL PROCESSES INDEX

Answer Score

Quality of judicial processes index (0–18) 8

Court structure and proceedings (-1–5) 4.5

1. Is there a court or division of a court dedicated solely to hearing commercial cases? (0–1.5) Yes 1.5 2. Small claims court (0–1.5) 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? (0–1) Yes 1 4. Are new cases assigned randomly to judges? (0–1) Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? (-1–0) Yes 0

Case management (0–6) 1

1. Time standards (0–1) 0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments (0–1) 0 2.a. Does the law regulate the maximum number of adjournments that can be granted? No 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: Yes 1 (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? (0–1) 4. Is a pretrial conference among the case management techniques used before the competent court? (0–1) No 0 5. Are there any electronic case management tools in place within the competent court for use by judges? (0–1) No 0 6. Are there any electronic case management tools in place within the competent court for use by lawyers? (0–1) No 0

Court automation (0–4) 0

1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0 (0–1) 2. Is it possible to carry out service of process electronically for claims filed before the competent court? (0–1) No 0 3. Can court fees be paid electronically within the competent court? (0–1) No 0 4. Publication of judgments (0–1) 0 4.a. Are judgments rendered in commercial cases at all levels made available to the general public through No publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available No to the general public through publication in official gazettes, in newspapers or on the internet or court website?

Alternative dispute resolution (0–3) 2.5

1. Arbitration (0–1.5) 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of Yes the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—that No cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation (0–1.5) 1 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or section Yes of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No conciliation is successful, a refund of court filing fees, income tax credits or the like)? Source: Subnational Doing Business and Doing Business databases. Note: Data for Brussels are not considered official until published in the Doing Business 2021 report. 74 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS

Acknowledgments

Doing Business in the European Union 2021: Shrikant Bhaskar Shinde. The report was Land Registry and Mapping Agency Austria, Belgium and the Netherlands was edited by Bronwen Brown, and the layout (Kadaster), the Netherlands Authority for produced by a team led by Carlos I. Mejia, produced by Luis Liceaga. Consumers and Markets, the Council for Tommaso Rooms and Julien Vilquin. the Judiciary as well as local courts and The team comprised Razvan Gabriel The study was funded by the European municipalities in the Netherlands. Antonescu, Leo Henricus Bouma, Julia Commission, Directorate-General Regional Constanze Braunmiller, Federico Cardenas and Urban Policy. It was undertaken under Data collection was carried out in Chacon, Lilla Marta Fordos, Philipp Hlatky, the auspices of the Federal Chancellery collaboration with (i) the Austrian Valerie Erica Marechal, Maximilian Martin and the Federal Ministry of Finance Chamber of Civil Law Notaries (team Meduna, Hannelore Maria L. Niesten, of Austria; the Federal Public Service led by Stephan Verweijen and Stephan Enrique Orellana Tamez, Madalina Finance and Federal Public Service Foreign Matyk-d’Anjony), the Austrian Chamber Papahagi, Alberto Pellicanò, Kimberley Affairs, Foreign Trade and Development of Tax Advisors and Public Accountants Maria Margaretha Roeten, Ana Santillana, Cooperation in Belgium; and the Ministry (team led by Anna Weber), Brauneis Veerle Margo Verhey, Marilina Vieira and of Economic Affairs and Climate Policy of Klauser Prändl Rechtsanwälte GmbH (team Lisa Weekers. The report was prepared the Netherlands. led by Alexander Klauser), the Federal under the direction of Pilar Salgado Otónel. Chamber of Architects and Chartered The project team extends special thanks Engineering Consultants, Heinisch Weber The team is grateful for valuable peer for information and assistance provided Rechtsanwälte OG (team led by Lukas review comments provided by colleagues throughout the project to (i) the Austrian Weber), the Austrian Bar Österreichischer from across the World Bank Group. Association of Cities and Towns, the Rechtsanwaltskammertag (ÖRAK); (ii) Mohammad Amin, Isfandyar Zaman Austrian Federal Economic Chamber, Monard Law (team led by Xiufang (Ava) Khan, Austin Kilroy reviewed the full text. the Business Service Portal, the Federal Tu and Karen Braeckmans), the Royal Experts in each of the five areas mea- Ministry of Finance, the Federal Ministry Federation of Belgian Notaries and the sured were consulted when drafting the for Digital and Economic Affairs, the International Council of the Belgian notariat, individual chapters: Youmna Al Hourani, Federal Ministry of Justice, the Office of the Order of Architects (team led by Koen Jean Nicolas Arlet, Karim O. Belayachi, Metrology and Surveying, the regulator Vidts, Deborah Ashimwe and Hans Erica Bosio, Camille Bourguignon, Klaus for electricity and natural gas markets Vanden Driessche), the Walloon Union of Decker, Marie Lily Delion, Viktoriya E-Control, as well as district courts, fed- Architects (team led by Gaëtan Doquire); Ereshchenko, Maria Antonia Quesada eral states, local tax offices, municipalities, (iii) BarentsKrans (team led by Joost Fanoy Gamez, Marton Kerkapoly, Raman and regional courts across Austria; (ii) and Michiel Martin, including Karlijn Maroz, Frederic Meunier, Nadia Novik, the Wallonia Export-Investment Agency de Groes) and the BNA (team led by Oleksandra Popova, Jayashree Srinivasan, (AWEX), the Flanders Investment & Alexander Pastoors) in the Netherlands. and Alessio Zanelli. Trade (FIT), the Brussels Agency for Business Support (hub.brussels), the More than 550 lawyers, notaries, engi- Julie Biau, Catherine Doody, Veronique Federal Public Service (FPS) Economy, neers, electricians, architects, construction Jacobs, Norman Loayza, Massimiliano SMEs, Self-employed and Energy, FPS experts, utility providers, public officials, Paolucci, Ralf Retter, Linda Van Gelder Finance, FPS Justice, FPS Social Security, judges and enforcement agents contribut- and Gallina Vincelette provided guidance the Commission for Electricity and ed to Doing Business in the European Union and leadership. Antonio Borges, Daria Gas Regulation (CREG), the Brussels 2021: Austria, Belgium and the Netherlands. Goldstein, Anastasiia Iarovenko, Joyce Regulatory Commission for the Gas and The team would like to express its special A. Ibrahim, Anna Karpets, Trimor Mici, Electricity Markets (BRUGEL), the Flemish gratitude to the national and local public Monique Pelloux, Patrizia Poggi, Serge Regulator of the Electricity and Gas Market officials and members of the judiciary who Randriamiharisoa, Lada Strelkova, Goran (VREG), the Walloon Energy Commission participated in the project and who made Tinjic, Erick Tjong and Nina Vucenik pro- (CWaPE), as well as local commercial valuable comments during the consulta- vided valuable assistance at various stages courts, local tax offices and municipalities tion and data review period. The names of the project. The website (http://www across Belgium; (iii) the Invest in Holland of those wishing to be acknowledged are .doingbusiness.org/EU4) was developed Network, the Netherlands Chamber of listed on the following pages. by Manasi Amalraj, Varun V. Doiphode, Commerce (KVK), the Royal Institute of Anna Maria Kojzar, Akash Pradhan and Dutch Architects (BNA), the Cadastre, ACKNOWLEDGMENTS 75

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