Starting a business
You have created a company, the notary or your accountant has given you your company number.
Congratulations !
What do you have to do now?
What are the formalities to follow and the daily tasks?
1. Success Factors
• to love what you do and be able to pass on that passion;
• to be psychologically and morally strong;
• to have a good understanding of the sector in which one is entering;
• maintain a consistent quality of products or services;
• to have a supportive personal environment;
• properly assess and respect the deadlines for completing your project;
• control costs and selling prices;
• develop a realistic business plan;
• control investments;
• control stocks;
• pay particular attention to cash flow;
• have a network of advisors and partners.
Example of a share book:
Provisional contributions and final contributions:
2. Formalities to be completed following the creation of the company
2.1 Book of shares
Mandatory, it is a book covering all of the shareholders; each shareholder/partner has a page showing his complete identity and the number of shares he has.
The register of titles is important because it is it that allows in the first place to establish the ownership of the shares (it will therefore be necessary to provide proof if one wants to establish that in fact the shares belong to someone other than the person mentioned in the register).
The administrative body has the obligation to update it on the occasion of any change in the level of the ownership of the securities (new acquisitions of shares, payments made, resignations, exclusions, losses of quality, transfers, death, etc.). It must be kept at the registered office of the company.
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2.2 Registration with a business counter
The business counter registers the company with the Banque-Carrefour des Entreprises
whether the commercial or craft enterprise fulfills all the conditions.
Each company receives a unique identification number consisting of 10 digits, preceded
of "BE". It must be included in the official documents (invoice, etc.) and communicated in
the context of commercial relations.
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2.3 Opening a bank account with a bank if it has not already been done
For a natural person, this account must be separate from the private account and be reserved for
operations related to self-employment.
If you decide to create a company, the account must be opened in its name. The company must also use the bank account for all operations within the framework of the independent activity. The merchant must include this account number, the name of the financial institution and its business number on all invoices and other commercial documents.
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2.4 Affiliation as a self-employed person - Social status of the self-employed person and social obligations
The self-employed must join a social insurance fund. This is a private organization responsible for collecting social security contributions and paying allowances. Membership is compulsory but the choice of fund is free. You can join the social insurance fund of your choice no earlier than 6 months before and you must do so no later than the day of the start of the activity.
How are your social contributions calculated?
Your social security contributions represent a legal percentage of 20.5%* of your annual net taxable professional income.
Your social contributions are always calculated on the income of a whole year.
This means that the amounts are based on an estimate of your income.
Your annual net taxable professional income* is calculated as follows:
Your turnover over one year
- your business expenses
- your social contributions
= your annual net taxable professional income
When you start, the social security contributions you pay are provisional contributions.
As a self-employed principal, you always pay a minimum contribution. These contributions must be paid, even if the actual income is lower than the flat rate income.
Concretely, in 2023, this means that as a self-employed person in your main occupation, you still pay 866.62 euros per quarter if your income is less than 16,409.20 euros.
In 3 years, you will have a regularization. If you have earned more than 16409.20 euros, you will have to pay social contributions of 20.5%* on the surplus.
Advice: If you earn more than 16409.20 euros, it is better that you increase your social security contributions. In this way, you avoid a painful regularization for your portfolio in two years.
Click here for a social contributions simulation
*20.5% for income from the first tranche
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2.5 Mutual insurance affiliation
To be able to benefit from sickness and invalidity insurance, the self-employed person must join the
mutual of his choice. The social insurance fund provides a contribution voucher to
give it to your health insurance fund. The self-employed is legally insured for both large and small
risks (for example: visit to a general practitioner, purchase of medicines).
Additional insurance for small risks is no longer necessary since these are
part of compulsory health care insurance.
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2.6 Company Affiliation
When you are in a company, you must affiliate it with a social insurance fund.
Each year, you will have to pay a company contribution of more than 300 euros.
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2.7 VAT registration
Before starting an activity, you must identify yourself for VAT.
Introduce your VAT identification request at least two days after the registration of your company in the BCE, but before starting your economic activity.
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2.8 Adding a settlement unit
Companies must have at least one establishment unit, visible at theBCE (Crossroads Bank for Enterprises)).
This corresponds to the address of an office, store, depot,... at which the company has its activity.
By establishment unit is meant any place of activity, geographically identifiable by an address, where at least one business activity is carried out or from which this activity is carried out (art. I. 2, 16° Book I of the Code of Economic Law).
We can do this work for you upon request.
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2.9 Examples of other approaches:
Customs
FASFC
Environmental permit, authorization to use public space, ... Each region has its own regulations. See the sites relating to the different regions. Municipal planning prescriptions are also specific to each municipality.
Etc...
3. Financial assistance
Each region of Belgium offers support to businesses to help them start up or grow.
4. Responsibilities
The responsibility of the founders
The founders can be held jointly liable for irregularities committed during the founding of the company (constitution of capital which was insufficient for the sustainability of the company, foundation tainted by nullity and commitments contracted by incapacitated persons).
Joint and several liability means that when several debtors incur a debt together, the creditor can claim the full amount from each of them.
The responsibility of directors and managers
As long as directors and managers properly fulfill their duties, they do not personally assume any liability. They represent the company, and only the legal entity is bound by their actions. However, the situation differs when directors commit errors in the performance of their duties. Like any agent, a director is obligated to carry out their mandate properly, in the best interests of the company.
of the principal (of the company). He is personally responsible for the proper execution of his duties and can be held liable if he fails to fulfill his mission.
Shareholder responsibility
In a limited liability company (SRL), a public limited company (SA), or a cooperative limited liability company (SCRL), shareholders are not personally liable for the company's debts. Their liability is limited to their capital contribution unless they have personally guaranteed the company's debts.
5. Sales
Sales are recorded:
- without delay
- in a faithful and complete manner
- in chronological order.
5.1 Sales Invoices
If you sell to business customers, an invoice is mandatory, even for small amounts. This also means, of course, that you can request an invoice for each purchase you make.
For individuals making purchases for personal use, you do not need to issue an invoice. You must keep a record of sales (see below). There are a few exceptions to this rule: wholesalers, vehicle sales and repairs, moving and storage services, and the sale and renovation of buildings. In these cases, you must issue an invoice.
Source: AR n°1 VAT - Invoices and documents to be issued
See the page with the information that an invoice must contain.
5.2 Recipe Log
Retail sales and services (for non-professionals) for which the issuing of an invoice is not required (note the exceptions explained above) can be accounted for by a global entry per day.
A revenue journal must be kept for each office or branch of a company.
The total amount of revenue must be recorded each day, broken down by VAT rate.
You must keep the supporting documents for these sales, till receipts, receipts, etc., and make them available in case of audit for a minimum of 10 years.
You must keep documents showing the details of your sales, including sales to individuals.
A recipe book with only daily amounts is not sufficient.
Is there a sale where the unit price of an item exceeds €250? You must then record this sale separately in the sales ledger, specifying the nature of the goods sold.
If supporting documents such as till receipts specify the exact nature of the goods sold, separate records can be replaced by a single daily aggregate entry.
6. Purchases
To be deductible expenses for your company, they must:
- relate to your business activity. Mixed expenses, which you incur for both private and professional purposes, can only be taken into account in proportion to the portion related to your professional activity. You can never declare private purchases;
- to have been incurred or supported in the year in which you acquired the income;
- generate or retain your income;
- be justified by an invoice, a receipt or other proof of your purchases.
Quotes, offers, purchase orders, delivery notes, delivery notes and pro forma invoices should not be given to the accountant.
The accountant needs the invoices, credit notes and receipts, which you can request from your supplier.
Example of a stock inventory:
8. Inventory
Every company must conduct a review and evaluation at least once a year:
- stocks (goods, raw materials, ...)
- investments (vehicles, furniture, buildings, etc.)
- receivables
- debts
Inventory management is not the accountant's job. It is the responsibility of the company's managers.
9. Accounting procedures
Every business must keep accounts.
The accounting system must be appropriate to the nature and scope of the activities.
Based on the supporting documents, the accountant enters and prepares the accounting documents below:
10. Keep the supporting documents
Invoices, credit notes, receipts, bank statements, cash book, sales journal, and other supporting documents must be kept, filed and accessible at all times, for a minimum of 10 years.