Establish a Subsidiary in Belgium - Process and Advantages

Foreign businesses interested to establish a subsidiary in Belgium will have access to our full legal and business support services during the process of incorporation. Our Belgian company formation experts will provide assistance in selecting the right legal form, drafting the documents for incorporation, handling the notarial proceedings and registering with the Belgian authorities.

Quick Facts
Why open a subsidiary in Belgium	Establishing a subsidiary in Belgium is the option that grants the foreign company the least amount of liability for the debts and actions undertaken by its Belgian counterpart
Main characteristics of a Belgian subsidiary	It has legal autonomy from its parent company, as it has its own capital and runs under a different administration; Contact our specialists for the Belgian company formation procedure
Types of subsidiaries	Company limited by shares; Company with limited liability.
Procedure	Notarizing the documents; Preparing the business plan for the next two years; Opening a bank account; Depositing the cash contributions (minimum capital only for an SA/NV); Registering the subsidiary in Belgium; VAT registration.
Bank account required in Belgium (YES/NO)	YES
Registering the subsidiary in Belgium	The subsidiary must be listed at the centralized registry for Legal Entities and social security
VAT Registration in Belgium	There is no minimum threshold for VAT registration in Belgium; All companies, including subsidiaries, that provide services or products subject to VAT tax must include VAT registration as part of the incorporation process
Taxes	Corporate income tax (25%); VAT; Social contributions; Withholding tax on dividends; Additional taxes (payroll tax, property tax, etc.).
Parent-Subsidiary directive	The Parent-Subsidiary directive aims to provide tax advantages and eliminate double taxation within the EU when it comes to dividend payments between parent and subsidiary companies
Subsidiary limited by shares	One founder is sufficient; Minimum share capital – EUR 61,500 (fully paid up); managed by a sole director, a board of at least 3 directors or a dual board.
Subsidiary with limited liability	No minimum share capital (since 2019); founders must provide adequate initial equity backed by a financial plan; Suitable for small to medium businesses.
Documents required	Deed of incorporation; Names and addresses of all shareholders; Articles of Association of the parent company; Annual accounts of the parent company, etc.
Withholding tax on dividends	The standard withholding tax on dividends is 30%; it can be reduced to 0% (Parent-Subsidiary Directive or treaty) or to 20%/15% in specific cases (e.g. VVPR-bis shares)
Advantages of opening a subsidiary in Belgium	The subsidiary in Belgium is considered a separate legal entity, providing a level of protection for the foreign company; It is also recognized as a European company rather than a foreign company; The subsidiary benefits from many tax advantages.
How can our specialists in company formation in Belgium help you	Offering professional assistance in opening a subsidiary in Belgium; Guidance on the main steps, ensuring a smooth process; Help in the registration process; Support for any post-registration steps or procedures that may be required.

Which services do you offer for setting up a Belgian subsidiary?

Our experts help foreign businesses during the entire process of subsidiary establishment in Belgium, namely:

choosing the right Belgian company form;
verifying that the company name is available;
drawing up and examining all required incorporation documents;
helping with the financial plan;
managing the notarized incorporation process;
registering the subsidiary at the Crossroads Bank for Enterprises (CBE/KBO);
helping to register Ultimate Beneficial Owner (UBO) and VAT;
and advising regarding the subsidiary’s registered office and activity.

What are the main characteristics of a Belgian subsidiary?

A subsidiary established in Belgium is considered a legal entity separate from its parent company, because of the fact that it has its own capital and separate administration. Even if you have a firm in Italy, France, or another European country, you can set up a company in Belgium.

Below are presented the main particularities of opening a subsidiary in Belgium that also apply in 2026:

What are the steps to set up a Belgian subsidiary in 2026?

Steps to set up a Belgian subsidiary include the following:

Choosing the form of company, mostly either an SRL or SA/SC or BV or NV depending upon the choice of company.
Making a financial plan that is a compulsory procedure if the company chosen is either SRL or SA or SC.
Opening a business bank account in Belgium and arranging the financing.
Preparing the articles of association or memorandum of incorporation.
Incorporation deed before the notary, wherever required.
Company registration at the Crossroads Bank for Enterprises (CBE/KBO) along with company number.
Registration of ultimate beneficial owners (UBOs).
VAT activation if the subsidiary does VAT activities.

Which documents are required to set up a subsidiary in Belgium?

The list of the required documents depends on the form of business organization and the structure of the foreign parent company. The incorporation dossier will usually contain:

identity documents of the founders, shareholders and managers;
corporate documents of the parent company and proof of its registration;
documents relating to the chosen company name and registered office;
articles of incorporation of the company;
financial planning;
proof of the initial capital contribution;
details of the activities and NACE-BEL activity codes of the company;
UBO details and identity documents;
powers of attorney for the representatives of the parent company.

What is the main advantages of owning a subsidiary in Belgium in 2026?

An advantage of keeping a subsidiary in Belgium in 2026 is that the annual reports are less strict than for a branch, for example, it doesn’t have to present the financial statements of the foreign company. The liability of its actions is not taken by the foreign company. A subsidiary opened in Belgium is regarded as a European company, not as a foreign company, and beneficiate from the specific conditions.

We invite you to watch the following video on Belgian subsidiaries:

Are there any tax advantages for owning a subsidiary in Belgium?

The tax advantages that a company can receive from approaching this type of business are:

the subsidiary may not pay any withholding tax on the profits paid to the foreign company;
the subsidiary may benefit from the double tax avoidance regulations;
due to the EU Parent Subsidiary Directive, the dividends are not taxed in certain conditions.

How is a Belgian subsidiary taxed?

A subsidiary in Belgium is subject to the following taxes:

25%: the corporate income tax rate applicable to subsidiaries (and to branches); for subsidiaries, the worldwide income is taxed under this rate (because it is considered a resident company, not a permanent establishment);
0%: in some cases, the withholding tax on dividends is 100% reduced; in other situations, this can have a value of 30%, 20% or 15%;
21%: the standard value-added tax rate in Belgium; two other reduced rates include the 6% and the 12% rate; certain types of services or goods are exempt or subject to the 0% rate;
employment taxes – they range from 25% to 50%, based on the income threshold a person qualifies for (there are 4 tax rates, of 25%, 40%, 45% and 50%).

Please feel free to contact our company formation specialists for more details in regards to Belgian subsidiaries or other company formation issues in other countries, such as Serbia.