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Guide to Doing Business in Belgium 2014 Atomium © - SABAM 2013 P 1 Guide to doing business in Belgium 2014 www.liedekerke.com Atomium © www.atomium.be - SABAM 2013 P 1 www.liedekerke.com CONTENTS “Doing business in Belgium” is a Liedekerke guide THE COUNTRY AT A GLANCE 2 intended to provide a general and simplified overview of the country’s main laws on Tax, Corporate and Finance, Labor and GENERAL CONSIDERATIONS 4 Commercial law aspects. INVESTMENT INCENTIVES 16 FINANCIAL FACILITIES 18 EXCHANGE CONTROLS 21 IMPORT/EXPORT REGULATIONS 23 STRUCTURES FOR DOING BUSINESS 24 REQUIREMENTS FOR THE ESTABLISHMENT OF A BUSINESS 31 OPERATION OF THE BUSINESS 32 CESSATION OR TERMINATION OF BUSINESS 36 LABOR LEGISLATION, RELATIONS AND SUPPLY 43 TAX SYSTEM 58 DISCLAIMER: IMMIGRATION REQUIREMENTS 74 The materials available in this guide are strictly for informational purposes only, and do not constitute any form whatsoever of legal advice or opinion on any of the matters set out herein. For setting up EXPATRIATE EMPLOYEES 78 a business in Belgium or for any question relating to Belgian law, you should contact your attorney to obtain specific legal advice. Use of LIEDEKERKE 84 this Guide does not create an attorney-client relationship between Liedekerke and the user. Photographic credits Cover page : Atomium © www.atomium.be - SABAM 2013 - DJ Sharko, p1 © INFINITY - fotolia.com, p2 © daboost - fotolia.com, p4 © Michael Utech - getty image.be, p16 © Artjazz - shutterstock.com, p18 © Nick-nick - shutterstock.com, p21 © T. Arhelger - shutterstock.com, p23 © Jelle-vd-wolf - shutterstock.com, p24 © Andrey Yamkovoy - shutterstock.com, p31 © Kenrey. be - fotolia.com, p32 © zozifoto - fotolia.com, p36 © Tom Merton - getty image.be, p43 © CJC - fotolia.com, p55 © Colette3 - shutterstock.com, p71 © Oliver Hoffmann - shutterstock.com, p75 © Nicolas Borel - Architecte Christian de Portzamparc, p81 © Liedekerke – Jan Vreys P 2 www.liedekerke.com THE COUNTRY AT A GLANCE CONTENTS Name: Kingdom of Belgium Koninkrijk België (Dutch) Located at the heart of Western Europe, Belgium is Royaume de Belgique (French) one of the smaller European countries in terms of size. Königreich Belgien (German) It shares borders with the Netherlands (in the north), System: Parliamentary monarchy Germany (east), Luxembourg (southeast) and France (south), with access to the North Sea (west). Legal system: Civil law Due to its geographical position, at the junction of “Latin” State organization: Federal State and “Germanic” Europe, Belgium is a dynamic, multilingual, Capital city: Brussels (Brussel/Bruxelles/ multicultural country. Overall, Belgians enjoy a modern, Brüssel) Western lifestyle. There are no particular cultural or religious influences or prohibitions on business conduct. Official languages: Dutch, French, German Population: around 11,000,000 The Belgian population can be divided into three main communities: Flemings (Dutch-speaking, approximately Surface: 30,528 km² 60% of the population), the French-speaking community Time zone: GMT +1 (approximately 40% of the population, which includes the Walloon and the French-speaking Belgians who reside Currency: Euro in Brussels and represent approximately 85 to 90% of GDP: € 368,758 bn (2012)* the Belgian population in Brussels), and German-speaking GDP per capita € 27, 935 *** Belgians (approximately 70,000). All three communities are located in distinct regions (Flanders, Wallonia and the Labor Force 4.85 million*** Eastern municipalities on the German border). Unemployment: 7.6% (2012)* Originally unitary, the Belgian state institutions have Growth rate: -0.1% (2012)* undergone many reforms since the 1970s, which have transformed the country into a federal state. In sum, Budget deficit: -3.9% of GDP (2012)* it can be said that legislative and executive power in Belgium is divided between the federal state and the * NBB (Nationale Bank van België/Banque Nationale de various federated entities (Regions and Communities). Belgique): http://www.nbb.be/ Belgian federalism is based upon a split into the different ** Eurostat: http://epp.eurostat.ec.europa.eu communities making up its population. Hence, besides *** IMD: https://www.worldcompetitiveness.com/OnLine/ its federal state, Belgium consists of three Regions App/Index.htm (Flanders, Wallonia and the Brussels-Capital region) and 3 Communities (Flemish Community, French Community, and German Community), each having its own legislative and executive bodies to give effect to its individual competences and powers. The country at a glance I Guide to doing business in Belgium I 2014 P 3 www.liedekerke.com Despite this “federalization” process, the country has remained a parliamentary monarchy ever since its foundation in 1830. The reigning monarch is King Philippe I. The country’s capital city, Brussels, is also home to prominent international decision-making centers and institutions such as the European Commission, the European Parliament and NATO headquarters. Due to its history as one of the world’s leading actors in the heavy coal and steel industry, Belgium was very soon (1835) able to develop a dense, nationwide communications network comprising both railroads and roads, as well as fluvial and maritime ports. Due to its central position in Western Europe, road transportation in Belgium is highly developed. International naval and fluvial transportation is also important, the best example being the port of Antwerp, accessible to capesize ships. The port of Antwerp is the second-largest port in Europe. The number of significant Belgian airports may seem limited. However, given Belgium’s fairly small size, the nearest airport is never very far away. The most important are Brussels international airport, Charleroi international airport and Liège airport. The part played by heavy industry in the Belgian economy has declined over time. At present, Belgium’s GDP is principally accounted for by the services industry. However, the main traditional heavy industry sectors (steel, automotive, chemistry, refining, textiles, etc.) are still present in Belgium, despite their lesser importance. The Belgian workforce is considered highly skilled and productive. Traditionally, the Belgian authorities have a fairly high involvement in the economy (banking, energy, heavy industry, etc.). However, under pressure from Europe’s regulators, the energy market (gas, electricity) has recently been partly privatized. In short, the commercial aspect of energy supplies has been privatized, whilst grid management remains a national and local monopoly. P 4 www.liedekerke.com GENERAL Titre CONSIDERATIONS INvESTMENT POLICIES require any authorization, legislation does exist concerning the location and construction of industrial plants. For Belgian (regional) authorities are favorable towards foreign instance, in order to build a plant, a municipal building investment: various attractive tax regimes and investment permit may be required, which will require compliance incentives exist to facilitate and draw foreign investment with local building regulations. to Belgium. Interested investors can seek help and guidance from Diplomatic Relations the federal and regional authorities. See the following websites: Belgium is a founding member of the following international organizations: the United Nations, the European Union, Invest in Belgium http://invest.belgium.be the Council of Europe and the North Atlantic Treaty Invest in Brussels (Brussels Invest & Export) Organization (NATO). http://www.investinbrussels.com Belgium entertains diplomatic relationships with most of Invest in Wallonia (AWEX) the world’s countries. The addresses of Belgian embassies http://www.investinwallonia.be and consulates abroad and of foreign embassies and consulates in Belgium are available on the website http:// Flanders Investment & Trade diplomatie.belgium.be/en/. http://www.flandersinvestmentandtrade.be Local consulates and embassies also provide prospective GOvERNMENT entrepreneurs with information and assistance on the most efficient manner of setting up a business in any Introduction Region of Belgium. Ever since the 1970s, the then unitary Belgian State has Generally, there are no restrictions on setting up a undergone a steady transformation into a federal State, business in Belgium. It does not require special government composed of Communities and Regions, to which more authorization. However, in order to be able to carry on and more powers have been devolved over time. business, an entrepreneur has to register with the “BCE- KBO” (Banque Carrefour des Entreprises/Kruispuntbank At the present time, the organization of political power in Ondernemingen), which is a body responsible for registering Belgium is spread over the following entities: business activities in Belgium. Registration is required inter The Belgian federal state (House of Representatives, alia in order to obtain a VAT number. Senate and federal government); There are no general restrictions on foreign ownership of - 3 Regions (Flanders, Wallonia and Brussels-Capital), each businesses or real property. However, access to a number having their own legislative and executive bodies. The of activities (such as building and construction) requires Regions are mostly competent for economic matters and registration with the competent authorities. Also, even have oversight over the provinces and municipalities. though setting up a business in itself generally does not General considerations I Guide to doing business in Belgium I 2014 P 5 www.liedekerke.com - 3 Communities (Flemish, French and German), each elected by universal
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