Investment fund in Belgium

Belgium is an attractive jurisdiction for doing business due to many factors, such as a stable economy, favorable tax conditions for certain commercial projects and an advantageous geographical location. Entrepreneurs who decide to register an investment fund Belgium gain access to the European market, however, the procedure for establishing this type of structure has its own characteristics that must be taken into account for a successful start.

Our company has been working in the field of establishing and licensing companies for many years. We offer full consulting and practical support for our clients when obtaining an investment fund license in any jurisdiction around the world. With our professional help, you are guaranteed to quickly and efficiently launch your own business, regardless of its commercial specifics.

Benefits of Belgium investment funds

If you intend to set up and implement Belgium fund management, you should definitely take a look at all the benefits this jurisdiction offers.

1. Stable economy and high standard of living. Belgium has one of the most stable economies in Europe, which provides a solid basis for business development.
2. Attractive tax system. Some types of companies have preferential tax conditions that can significantly reduce tax liabilities. As part of Belgium investment fund taxation, it is worth noting that the following rules apply for such organizations: a tax of 24.25% is applied to profits in the amount of 0-25,000 euros; for 25001-90000 euros the percentage is 31%.
3. Advantageous geographical location: Belgium borders France, Germany and the Netherlands, and also has access to the North Sea, making it a strategically important center for trade and logistics.
4. No exchange controls: there are no exchange controls in this country, which facilitates international financial transactions and promotes free movement of capital.
5. Status of Brussels as a European Capital: Brussels, being the capital of the European Union, attracts many international organizations and companies, which creates additional business opportunities.
6. Developed infrastructure: numerous industrial and commercial facilities are concentrated in a small territory of Belgium, which contributes to the successful development of new businesses.
7. Establishing an investment fund in Belgium makes it possible to obtain a residence permit: when registering an investment fund in Belgium, entrepreneurs can obtain a residence permit, which opens up additional prospects for their family.
8. Availability of credit: Belgian banks provide large, long-term loans at low interest rates, which makes it easier to finance business projects.
9. High level of education and skilled workforce: The jurisdiction has a high level of education and skilled workers, making it easier to find competent employees for your business.
10. Developed transport network: The country has one of the most developed transport networks in Europe, which facilitates the easy and fast movement of goods and people.

Belgium fund setup: obtaining a residence permit and citizenship

Simultaneously with the registration of Belgium investment funds, entrepreneurs can apply for a residence permit. In the future, this can lead to citizenship for them and their family members if a number of conditions are met:

• age from 18 years:
• residence in Belgium for at least 5 years;
• successful social integration into Belgian society;
• working as an entrepreneur or employee for at least 2 years during these 5 years;
• successful completion of checks by the police and the Belgian Ministry of Justice;
• proof of stable income and housing.

Our lawyers are ready to provide you with comprehensive assistance in registering this type of structure in this country. In addition, we have an extensive list of ready-made options; in particular, we can offer you an alternative investment fund for sale in the Czech Republic and much more.

Belgium fund administration can also present a number of challenges that should be taken into account.

1. High costs of doing business: Belgium is known for its high taxes and social contributions, which can significantly increase the cost of doing business.
2. Difficulties of bureaucracy: procedures for registering and running a business can be quite complex and require significant time and financial costs.
3. Language barriers: official languages ​​of Belgium are French, Dutch and German, which can create additional difficulties for foreign entrepreneurs.
4. High competition: due to the large number of international companies in Belgium, there can be high competition in some industries.
5. Difficulty adapting: cultural and business differences can make it difficult to adapt to the local business community and establish business contacts.

Our lawyers will be with you at the first stages of starting a fund in Belgium, which will help you to overcome any barriers and successfully integrate into the local commercial space.

Key points in Belgium fund registration

Registering a private equity investment in Belgium can be an attractive option for entrepreneurs, but it is important to keep a few key points in mind.

Annual audit for large companies

Large companies are required to undergo an annual audit as prescribed by the local Companies and Associations Code.

Mandatory annual reporting

All Belgian companies must annually file annual accounts, which include information on the balance sheet, profit and loss, and various notes. In some cases, a cash flow statement may be required.

Language requirements

Doing business in Belgium requires knowledge of French or Dutch for preparing reports and interacting with local authorities.

Types of investment funds in Belgium

There are several types of alternative investment funds (AIFs) in Belgium, each with its own characteristics.

1. Public AIFs. These funds raise capital through public offerings in Belgium.
2. Institutional AIFs. These funds raise capital exclusively from institutional investors, both in Belgium and abroad, and are only available to qualified investors.
3. Private AIFs. These funds do not raise capital through public offerings in Belgium.

Belgium investment regulations

The Law of 19 April 2014 on Alternative Investment Fund Managers (AIFM Law) regulates these categories of AIFs and is supplemented by several Royal Decrees. The AIFM Act followed the Alternative Investment Fund Managers Directive 2011/61/EC (AIFMD), but its scope is broader. The following firms are covered under the AIFM Act.

1. Companies that raise capital from investors with the intention of investing it for the benefit of those investors according to a specific investment policy.
2. Companies not covered by the UCITS Directive (Directive 2009/65/EC).

The following entities are excluded from the scope of the AIFMD:

• holding companies;
• professional pension institutions;
• special vehicles for securitization.

Opening an investment fund in Belgium can be a profitable solution for entrepreneurs who want to expand their activities into the European market. A stable economy, favorable tax conditions and strategic location make this country an attractive investment destination. However, it is necessary to take into account possible difficulties, such as high taxes and complex bureaucratic procedures.

To receive personal advice and professional assistance in registering a private limited company in Belgium, please contact our law firm. Experienced lawyers will answer all your questions and help prepare the necessary documents, ensuring a successful start of your business in Belgium. We are also ready to help you open an investment fund in SVG, Malta, Portugal, Denmark and other countries. Contact us in any way convenient for you.