I have a project

Before you start your business, it's important to test your project against reality. This concerns your motivation, but also::

• the feasibility of your project,
• the market study,
• your commercial strategy,
• a financial study...

In other words, you should check whether your project is viable.

To make sure you don't forget anything during this essential period of reflection, UCM advisers are here for you. They provide you with personalised advice and offer tools designed to help you see things clearly and properly map out your project.

Setting up as a self-employed person involves completing a certain number of mandatory formalities, whether you start as a natural person or as a legal person (company).

All these administrative formalities can be handled by our Business Desk, which will advise and guide you to make sure you are fully compliant from the very start of your life as a self-employed person.

Should I start as a natural person or a company?

This preliminary question regarding the legal form of your business is essential when starting any activity. The choice is important because it will affect the formalities for setting up, your liability, and the accounting and financial aspects of your business.

Administrative formalities

Starting an activity as a natural person is easy, quick and inexpensive. You must go to the Business Desk to obtain your enterprise number and be registered in the Crossroads Bank for Enterprises (CBE). It can also assist you, notably, in completing the necessary formalities with the VAT authorities.

Setting up a company is more complex.

This involves the drawing up of articles of association and their publication in the Belgian Official Gazette. When creating a private limited company, you also need to draw up a financial plan and see a notary, which naturally involves a cost. You will also need to visit the Business Desk and register the company with the UCM social insurance fund. The formalities during a company's operation or at winding-up are also more burdensome than for a natural person.

Liability

A company may have limited liability (private limited company (SRL), public limited company (SA), cooperative company (SC)) or unlimited liability (general partnership (SNC), commercial company (SComm)), whereas liability is always unlimited in the case of a natural person.

The creation of a company is equivalent to creating a legal entity that is distinct from you, with assets separate from your private assets. Therefore, except in cases of gross negligence, your personal assets cannot be put at risk if your company (private limited company) were to be in difficulty. Running your business as a natural person is therefore riskier.

Note that a notarial procedure can protect your family home when you are a natural person.

Accounting and financial aspects

Company accounting must comply with stricter standards. In principle, you will need to consult an external expert to ensure compliance.

If you carry out your activity as a natural person, all your assets will be subject to personal income tax (in progressive bands).

In a company, the profit realised will be subject to corporation tax, at a flat rate (reduced for small companies).

Practically speaking, beyond a certain profit threshold, taxation becomes more favourable in a company.

Our advice

Running your business as a company is more prudent but requires greater investment and preparation.

UCM advisers guide you in choosing the legal form best suited to your project! Get support!