Creating a sole proprietorship

1. Preparing your project

Before you get started – even though the process is quick – keep these recommendations in mind:

• Compare the different legal forms for companies: each form has its pros and cons, so take the time to consider which one is best suited to your project.
• Check whether you meet the basic requirements and whether any special conditions apply to your business.
• Writing a business plan is not required to start a sole proprietorship, but it can help clarify and strengthen your project.

• Choose the name of your business. For a sole proprietorship, you can operate under your own name or adopt a trade name. This choice is crucial for attracting customers and setting yourself apart from the competition, thus serving an advertising purpose. A trade name is protected as soon as it is used in public for the first time.

  • Make sure you choose a name that is not already in use or similar to that of another company. In the event of confusion or unfair competition, you may be required to pay damages. You can check the availability of your name ideas by searching in the Crossroads Bank for Enterprises (CBE) or the Benelux Office for Intellectual Property (BOIP). 

• Register your trademark (optional) – the distinctive symbol you use so that your customers can identify your products or services, standing out from those of your competitors. Unlike your trade name, your trademark must be registered through a specific procedure in order to be protected. The Benelux Office for Intellectual Property (BOIP) can provide you with all the information you need to register.  

• Protect your primary residence from being seized with a notarial deed in which you declare it exempt from seizure. 
• Opening a business bank account is not required to start a sole proprietorship. However, having a business current account allows you to: 
  • Protect your personal information: Your account number must appear on all your business documents (letters, invoices, etc.) alongside your business number, your company name, and the name of your financial institution;
  • Easily manage your accounting: Your personal and business transactions are kept separate.

2. Register your sole proprietorship with the Crossroads Bank for Enterprises (CBE)

Registering with the CBE is the first official step in starting your business. 

How do you register?

• Start your sole proprietorship online
• Contact an accredited business counter
• Describe the activities you will be carrying out using the NACEBEL codes, and list all of your establishment units (where you conduct your activities) 
• You will then receive a business number 

3. Apply for a VAT ID   

If your company is subject to VAT, your business number must be activated as a VAT number with the FPS Finance before you begin operations.

How do you know if you're subject to VAT?

If you supply goods or services subject to the Belgian VAT Code, you must register with the relevant VAT authority.   

If your business engages solely in activities that are exempt from VAT – such as sociocultural activities, financial transactions, or medical services – you are not subject to VAT. If this is the case, you are not entitled to the VAT reduction either. As a small business, is your annual revenue less than €25,000? If so, you can also apply for a VAT exemption. Please note: You must also clearly indicate this exemption on your customer invoices.

Does my business need to be registered for VAT in Belgium?

VAT exemption scheme

How do you apply for a VAT ID?

• Online via a form available on the SPF Finance website (free)
• Through an accredited business counter (for a fee)
• Through a chartered accountant (for a fee) 

4. Join a social insurance fund

Every self-employed individual, business owner (except in the case of an unpaid position), active partner, corporation, etc., who is not bound by an employment contract must join a social insurance fund.

This guarantees certain social security rights and obligations, such as family allowances, sick pay and disability benefits, maternity insurance, pensions, and bankruptcy insurance.

You can find all the information about the options offered by social insurance funds in Belgium, the best time to join, and details about contributions here.

Please also note that, as a self-employed individual, you are required to join a mutual health insurance scheme when you join a social insurance fund.

You can join a social insurance fund and a mutual health insurance scheme on an individual basis. Accredited business counters also provide these services for a fee.

5. . Register as an employer (optional)

To hire employees, you must register as an employer with the National Social Security Office (NSSO). Here are the steps you'll need to follow to register:

• Identify yourself as an employer via the WIDE online service: You will receive your NSSO number
• Submit an immediate employment declaration for your first employee through the DIMONA online service
• Submit a quarterly report via the DmfA online service that includes the employment and remuneration data for all your employees