Starting a business in Belgium comes with its unique advantages, especially for non-European Union (EU) companies. Belgium is not only famous for its chocolates and waffles, but also for its strategic location in the heart of Europe, making it an attractive destination for companies looking to expand their operations overseas. One of the most popular ways to do this is through branch registration in Belgium.

Belgian BV, Besloten Vennootschap, or a private limited company, is one of the most common legal entities in the country. But what if you could operate in Belgium without having to incorporate a company? This is where the concept of a branch office comes in.

Exploring the Concept of a Branch Office

A branch office is not a separate legal entity but an extension of a foreign parent company. It allows the latter to carry out commercial activities in Belgium under the same business name, without the need to form a Belgian BV or any other Belgian legal entity.

The main advantage of a branch office is its simple and fast registration process compared to incorporating a company. The parent company maintains full control over the branch, which operates under the same business activities as the parent company.

The Legal and Tax Implications

Contrary to a subsidiary, which is a separate legal entity, a branch office falls under the legal responsibility of the parent company. This means the parent company assumes full liability for the branch’s operations.

When it comes to taxation, a branch office is only taxed on its Belgium-derived income, as opposed to a subsidiary which is subject to tax on its worldwide income. This can be a substantial advantage for companies that operate in countries with high corporate tax rates.

The Registration Process

The process of branch registration in Belgium is relatively straightforward. The foreign parent company needs to issue a formal decision to open a Belgian branch and appoint a legal representative to manage it. This decision, along with certain documents like the parent company’s articles of incorporation and the appointment of the representative, needs to be filed with the company court in Belgium.

Once the branch receives its registration number, it can start its operations. It’s worth noting that the branch office doesn’t have to follow all the steps required to open a company in Belgium, like having its own articles of association, which significantly reduces the level of administrative red tape and start-up costs.

Post-Registration Requirements

After registration, a branch office must comply with Belgian accounting standards and register for VAT purposes, just like any other company operating in Belgium. It’s also required to provide an annual balance sheet, which must be translated and published in the Belgian Official Journal.

The Role of House of Companies

House of Companies helps non-EU companies register a branch office in Belgium without having to visit the country. Not only does it simplify the process, but it also offers a fixed yearly fee, making it a cost-effective solution for businesses looking to expand overseas.

House of Companies was founded by Dennis Vermeulen in Cyprus in 2007 and has since expanded to multiple European countries and Dubai, setting up over 10,000 entities. With a vision of ‘Globalisation as a Service,’ it aims to make legal processes more understandable and actionable, disrupting traditional consultancy practices.

By providing a self-governance portal, House of Companies empowers clients and supports international entrepreneurs. It caters to global entrepreneurs, positioning itself as reliable, diplomatic, and empowering. It aims to be an indispensable partner for those expanding overseas, offering services, a supportive community, and educational resources.

Concluding Thoughts

With its simple registration process and attractive tax benefits, starting a branch office in Belgium can be an excellent option for international businesses looking to expand their operations in Europe. Whether you choose to go down the route of a branch or a subsidiary will depend on your business needs and objectives.

However, navigating the legal and tax landscape of a foreign country can be challenging. This is where House of Companies comes in. Their expertise and commitment to empowering entrepreneurs make them the ideal partner for your business expansion journey. So if you’re ready to take your business to the next level, consider branch registration in Belgium with House of Companies.

Remember, in the world of business, growth isn’t just an option; it’s a necessity. And sometimes, growth means branching out—literally.