18 Belgian company types should be reduced to four, says minister

The number of different company structures available in Belgium needs to be reduced from 18 to just four, according to federal justice minister Koen Geens. The minister intends to submit a proposal, first launched by the Belgian Centre for Company Law, to the council of federal ministers.

The centre reported that Belgium is lagging behind other European countries in modernising the legal definitions for business structures. The most recent update took place back in 1999, the latest in a series of amendments to the original 1930s legislation, turning the legal system into a “morass” of rules, it said.

Other countries have made their company structures more flexible, reported the centre, including major competitors Germany, France and the Netherlands. The centre warns that companies may prefer to register in other countries while operating here, depriving the state of income tax.

The centre has proposed four structures: SA, or public limited company, covering large and publicly traded companies; SPRL for small- and medium-sized companies; SCRL for co-operative enterprises; and a form of trading partnership for professionals like doctors and accountants.

At the same time, the number of types of associations would also be cut from six to one. Among those slated to disappear – the ASBL, the most common form of non-profit association. Such an organisation in future would be permitted to make a profit, as long as its main purpose was not commercial.

Photo: Ingimage