One of the first and most important things that foreign investors need to consider when choosing to invest in Belgium is the type of company they will establish.
According to the Belgian Company Code there are nine different types of companies that can be established. There are different specifications for each of them and although some of them can prove to be advantageous for certain types of businesses, investors should take time to decide what best suits their needs.
Branches and subsidiaries are the most common choice for foreign companies that wish to expand their activities abroad. There are certain advantages and disadvantages for both of them.
We invite you to watch a video about the differences between branches and subsidiaries in Belgium:
The main characteristics for Belagian branches are:
In comparison to branches, subsidiaries have the following characteristics in Belgium:
Despite the fact that they cannot act in their own capacity, but rather as an extension of the parent company, branches have some advantages:
The subsidiary acts independently from the parent company and its main advantage is that the parent company cannot be held liable for the losses of its subsidiary. Other advantages are:
According to the type of company you choose to register in Belgium, there are necessary steps that need to be taken in order to incorporate the branch or subsidiary. The preparations are easier for branches, but other advantages and disadvantages should also be taken into consideration when making such a choice.
There are no comments