Short answer
A BV (Besloten Vennootschap / SRL) is the most popular company form in Belgium. Your personal assets are protected, there is no minimum capital requirement, and you can distribute shares flexibly. Ideal for SMEs, startups and freelancers looking to grow.
Advantages
Limited liability
A BV is a separate legal entity that bears the risk. If the BV goes bankrupt, you only lose your contribution, not your house or savings. Note: in case of bankruptcy within 3 years, you must demonstrate that your initial capital was adequate (financial plan). In cases of gross negligence or fraud, the court can still hold you personally liable (director's liability).
No minimum capital
You can start with as little as 1 euro (though that is not always advisable)
Flexible share distribution
You decide the voting rights and profit-sharing arrangements yourself
Lower overall tax burden
A self-employed person in Belgium pays up to 50% personal income tax plus social contributions. Through a BV, you can significantly reduce the overall burden by combining salary, dividends and retained earnings in the company
Growth potential
Large clients and government bodies often only work with companies. Hiring staff is easier through a BV (clear structure, less personal risk). And you can more easily obtain a loan or credit from a bank.
Continuity
The BV continues to exist if you stop, fall ill or pass away
Capital optimisation
Through a BV you can set up a group insurance, ICPP (Individual Commitment for Pension Promise) or company car that are tax-deductible for the company
Disadvantages
Notary required
Expect EUR 1,000-2,000 in incorporation costs plus a financial plan
Double-entry bookkeeping
Mandatory, including filing annual accounts with the NBB (approx. EUR 70/year)
Accountant needed
Expect EUR 1,500-3,000/year depending on complexity
Distribution test for dividends
You must demonstrate that the BV can still pay its debts after a distribution
Shares not freely transferable
Approval from other shareholders required, unless the articles of association state otherwise
Tax complexity
The advantage of a BV largely comes from optimisations (ICPP, VVPRbis, liquidation reserve, benefit in kind). This requires regular consultation with your accountant and a good understanding of what you are doing. More complexity means more mental overhead.
When to choose?
- Your gross revenue is heading towards EUR 80,000-100,000 (after your own salary and BV costs, the tax advantage must remain)
- You want to protect your personal assets against business risks
- You are hiring staff or working with large clients that expect a company structure
- You want to grow from freelancer to a proper business
- You want to build up assets within your company (e.g. for retirement)
When not?
- You are just starting out as self-employed and your revenue is still low: begin with a sole proprietorship
- You want to go public: then you need an NV (public limited company)
- You are organising a non-profit activity: choose a VZW (non-profit organisation)
- You want to do purely non-profit work: choose a VZW
3. Not sure?
Most entrepreneurs hesitate between a few legal forms. Here are the most common comparisons.
Most entrepreneurs start as a sole proprietorship and switch to a BV once profits approach EUR 100,000 per year. Important: the day-to-day risk of your profession (damage to a client, bad advice) is not covered by your legal form but by insurance. The BV only truly protects you in case of bankruptcy with unpaid debts.
For 99% of businesses, a BV is the better choice. The NV is only needed if you want to go public, issue bonds, or the law requires it (banks, insurers). The minimum capital of EUR 61,500 makes the NV much more expensive to set up.
Both are company forms, but with a VOF you have unlimited liability. A BV costs more to set up (notary required) but protects your personal assets. The VOF only makes sense if you want to save on notary costs and fully trust your partner.
How many BV's are there in Belgium?
View the exact figures, top cities, popular sectors and age distribution.
View the statistics →4. Frequently asked questions
What is a BV in Belgium?
A BV (Besloten Vennootschap / SRL) is a company form with limited liability. Your personal assets are protected, there is no minimum capital requirement, and you can draft the articles of association flexibly.
How much does it cost to set up a BV?
Expect EUR 1,000 to 2,000 in notary fees, plus potentially an accountant for the financial plan. Registration with the CBE (Crossroads Bank for Enterprises) costs approximately EUR 90.
What is the difference between a BV and a BVBA?
The BVBA no longer exists. Since the CSA reform of 2019, every BVBA has automatically become a BV. The main difference: the BV has no minimum capital requirement (the BVBA required EUR 18,550).
Can I set up a BV on my own?
Yes, you can set up a BV with just one person. You do not need any partners.
When is a BV more advantageous than a sole proprietorship?
Generally from EUR 40,000 to 50,000 profit per year. From that point, as a sole proprietor you pay up to 50% personal income tax, while a BV pays only 20-25% corporate tax.