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Starting a company
If you want to start up your own business with one or more partners, then you should opt for a company form.
Check out the advantages and disadvantages for setting up a company.
Advantages
- separate assets: private and business assets are not interconnected;
- the capital is injected by several different people;
- for an bvba (ltd), nv (plc) or cvba the companies are only liable on the basis of their contributions;
- company bankruptcy rarely leads to the bankruptcy of the partners;
- the death or departure of a partner does not cause the termination of the business;
- you can set up various different companies;
- tax advantage: a company is taxed under the corporate tax system;
- the company income can be spread optimally between the partners and the company.
Disadvantages
- minimum capital is usually required;
- less flexible way of working;
- more formalities;
- more obligations as regards book-keeping;
- mandatory annual accounts.
The company form you and your business partners choose, will be influenced by:
- your contribution;
- the form of your capital;
- the policy you wish to implement in your business.
Three additional formalities for start-up companies
- Setting up and publishing a deed of partnership
- The form of your company determines whether you need to set up your deed of partnership privately (vof (cp), cv and cvoa) or by notary act (bvba (ltd), nv (plc), cvba, cva). In each case, however, you must add the statutes, financial plan and bank certificate of your company.
- This deed of partnership is to be submitted within 15 days to the Griffie van de Rechtbank van Koophandel which will make sure it is published in the Belgian Law Gazette. Only when you have submitted the deed of partnership, does your company exist and does it acquire a legal personality. This is important for limiting your personal liability.
- Submitting a financial plan
- If you have opted for an nv (plc), bvba (ltd) or cvba, you need to submit a financial plan to the notary. This contains a detailed overview of the income and expenditure that you expect in the next two years.
- A word of caution: you must draw up a realistic financial plan. If you are too optimistic and inject insufficient capital, you could be personally liable within three years for the debts of the company if it goes bankrupt.
- Requesting a bank certificate
- The bank certificate shows that you have injected sufficient capital into your company. You cannot start your business without this certificate.
human capital matters
