Changing Your Business Structure in Belgium
Changing Your Business Structure in BelgiumUpdated on Friday 14th April 2023
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Small Belgian companies that succeed in their particular business field can be converted into larger business structures if the owners agree that this is the most suitable business strategy. Changing the business structure in Belgium will mean that the company will move into a different taxation scheme and, in most cases, will have to comply with different and more comprehensive accounting and reporting requirements.
The experts at our law firm in Belgium present a simple guideline on company type conversion and can help you with more details and advice for your business if needed.
We invite you to watch a video on how to change the business structure in Belgium:
Starting a business in Belgium often starts with choosing the legal structure. However, if you do decide to change the legal form, our team is ready to assist you.
Main business forms in Belgium
Several types of companies are available for incorporation in Belgium and their initial requirements may determine investors to prefer one instead of the other when first incorporating the business. For example, those entrepreneurs who are just building their business may prefer the partnership or even the sole proprietorship. While the investor is fully liable when choosing to set up a sole proprietorship, he will have lower incorporation costs than in the case of the private limited liability company. This transition, from a sole trader to a corporation, is substantial and the investor will need to open a new company in Belgium.
When deciding to open a company many investors choose between the private limited liability company and the public one. Both business forms offer limited liability and are separate legal structures but the latter is a suitable option for larger companies and allows for a free transfer of shares.
Our lawyers in Belgium can give you more details on shareholder liabilities in the country and how these two types of corporations are managed.
Changing the structure of the business
When changing a private limited company into a public one, the shareholders will need to modify the company’s Articles of Association to reflect the new status of the company and the new policy for share transfer. Registration with the Trade Registry will be performed after the documents are amended.
After the company is converted, investors will need to comply with a new taxation regime and with different accounting and reporting requirements. Public limited companies in Belgium also have to comply with the existing requirements for an audit. The experts at our law firm in Belgium can give you further details about the regulations for corporations.
This change can also mean that the new business type will be subject to more complex accounting, and auditing requirements. Working with our Belgian accountants during the transitional period, and after the business structure is changed, will ensure that the company continues to observe the updated regulations, according to its type, and size. You can reach out to us for more information about our services.
Contact us for more information on the available business structures in Belgium.