Choose the legal status
Natural person or legal entity? The choice of legal status for your company is the first step in creating your business. Of course, each has advantages and disadvantages. It’s up to you to choose based on your profile and preferences.
There are two options: self-employment (self-employed natural person) or as a company (legal entity).
Self-employment
No prior creation of a legal entity is required for this type of company. It can start up immediately.
Administrative procedures are also simplified as are the operating requirements (no double-entry accounting, no general meetings, no filing of annual financial statements, etc.). You are the sole master on board. However, you can have “assistants” (family) or employees.
Good to know: As of 8 June 2007, self-employed persons can - under certain conditions - protect their main residence via a declaration that it can’t be seized.
Company
A company is a legal entity created by one or more people who decide to contribute part of their capital to make it grow. It has a legal personality and is, therefore, distinct from the people it belongs to.
It can take several forms, each with its own specificities, as shown in the table below1:
Note that the table is based on the new Belgian Code on Companies and Associations (BCCA), which was enacted by the Parliament in February 2019.
Companies, organisations and associations which already existed have to adjust their articles of association to ensure their conformity with the new company law by 1 January 2024 at the latest.
(1) From the brochure “Réforme du droit des entreprises et des sociétés” (Notaire.be, Graydon and the FEB): https://justice.belgium.be/sites/default/files/brochure_reforme_du_droit_des_entreprises_et_des_societes_fr.pdf
