Cut number of company structures from 18 to four, says Geens
Belgium’s justice minister is trying to rally support for the idea of whittling the number of legal structures applied to businesses in the country from an unwieldy 18 to just four
“Morass of rules”
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: NV, or public limited company, covering large and publicly traded companies; BVBA for small- and medium-sized companies; CVBA for co-operative enterprises; and maatschap – a form of partnership common among professionals like doctors and accountants.
At the same time, the number of associations would also be cut from six to one. Among those slated to disappear – the VZW, 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
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