Open a Belgian Branch for a Foreign Company
Establish your foreign company in Belgium without creating a new legal entity
Open a Belgian Branch for a Foreign Company
We are J. Jordens, and we regularly support foreign companies wishing to develop their activity in Belgium without creating an entirely new legal entity. The most suitable solution in this case is often a branch, a still poorly understood but very effective option.
What exactly is a branch?
A branch is not a company in its own right: it is an extension of your foreign company on Belgian territory, with no own legal personality. In practice, this means that it is your parent company abroad that remains liable for the commitments made by the branch. This is a fundamental difference from setting up a subsidiary, which does constitute an independent Belgian company.
Why choose a branch rather than a subsidiary?
- Simplicity: no new articles of association to draft, no separate share capital to raise.
- Speed: the formalities are generally lighter than a full company formation.
- Accounting continuity: the accounts can, under conditions, remain linked to those of the parent company.
- Market testing: an option often chosen to assess the Belgian market before a heavier investment.
In return, since the parent company's liability is engaged, this choice must be carefully considered depending on the nature of your activity and your exposure to commercial risk in Belgium.
The documents to prepare for opening
To open a Belgian branch, your foreign company must provide a number of documents: the parent company's articles of association, translated if necessary, a decision of the management body recording the creation of the branch, the appointment of a legal representative in Belgium, as well as the parent company's identification details (registration number, registered office, etc.). These elements are then used for publication in the Belgian Official Gazette and for registration with the Crossroads Bank for Enterprises.
The steps of the procedure
Once the file is prepared, we handle the publication of the opening deed in the Belgian Official Gazette, registering the company to obtain a Belgian company number, and, if your activity requires it, activating the VAT number. A legal representative residing in or holding a clear mandate in Belgium is essential for your branch to be able to function administratively, sign official documents and represent the company before the Belgian authorities.
Cross-border expertise from Brussels
Our firm, based in Uccle, has supported companies of all nationalities in establishing themselves in Belgium since 1948. We know the documentary specifics expected depending on the parent company's country of origin, and we make sure your file is accepted the first time, without unnecessary back-and-forth with the registry.
Timelines to expect for opening
Depending on how quickly your parent company can provide the required documents, opening a branch generally takes a few days to a few weeks. The point most often underestimated concerns the translation and legalization of certain foreign documents, which can extend the timeline if not anticipated from the outset. We tell you precisely which documents to prepare in advance to limit these delays.
The taxation applicable to the branch
On the tax side, the profits generated by the branch's Belgian activity are in principle taxable in Belgium, under the rules applicable to a permanent establishment, while the parent company remains taxed in its country of origin for the rest of its activity. Bilateral tax treaties, where they exist between Belgium and the parent company's country, govern this allocation in order to avoid double taxation of the same income.
If your company wishes to establish itself in Belgium through a branch, we offer a free initial conversation to assess the relevance of this structure for your goals.