1. Sole Proprietorship (Eenmanszaak)

A sole proprietorship is the simplest and most straightforward legal form, where one person is the owner and manager of the business. This form is ideal for small businesses and self-employed individuals with limited risks and capital needs. The setup is simple and cost-efficient, but note that the owner is personally liable for all the business's debts.

2. General Partnership (Vennootschap onder Firma, VOF)

A VOF is a partnership between two or more persons who jointly establish a business. This legal form is suitable for smaller businesses with multiple founders who trust each other and are willing to be jointly responsible for the business's debts. Agreements between partners can be flexibly established, but personal liability is a key consideration.

3. Private Limited Company (Besloten Vennootschap, BV)

A BV offers more protection and flexibility than a sole proprietorship or VOF and is popular among small and medium-sized enterprises. This legal form is suitable for businesses that want to grow and attract capital while limiting shareholders' personal liability to their contributions. The setup and management of a BV require more administrative formalities and stricter accounting obligations.

4. Public Limited Company (Naamloze Vennootschap, NV)

An NV is ideal for larger companies that need significant capital injections and want to operate internationally. This legal form allows for easy capital raising through the issuance of shares, with shareholders only liable for their contributions. The setup and management of an NV are more complex and costly, with strict administrative and accounting requirements.

5. Cooperative Company (Coöperatieve Vennootschap, CV)

A CV focuses on cooperation among its members and is often used by social and cooperative enterprises. This legal form is suitable for businesses and projects aimed at collaboration and collective benefits, with members' liability limited to their contributions. Decisions are made democratically based on the principle of 'one member, one vote'.

6. Limited Partnership (Commanditaire Vennootschap, CommV)

A CommV consists of managing partners who run the business and silent partners who only contribute capital. This form is suitable for businesses where some partners only want to invest without being involved in daily management. Managing partners are personally liable, while silent partners are only liable for their contributions.

7. European Company (Societas Europaea, SE)

An SE is a legal form suitable for companies with international ambitions within the EU. This form offers the ability to expand business activities easily across multiple EU countries, with shareholders' liability limited to their contributions. However, the setup and management of an SE are complex and costly, with strict administrative requirements.

8. Non-Profit Organization (Vereniging zonder Winstoogmerk, VZW)

A VZW is intended for organizations that are not focused on making a profit, such as sports clubs, cultural associations, and charities. This legal form is suitable for organizations with a social, cultural, or community purpose, with members having limited liability. Profits cannot be distributed to members, and there are strict rules for administration and reporting.

Conclusion

Choosing the right legal form for your business in Belgium is a crucial step that depends on your business size, risk tolerance, and growth plans. Whether you are a small self-employed individual, want to form a partnership, or aim to establish a large international enterprise, there is an appropriate legal form for your situation. Carefully consider all the options and, if necessary, consult a legal advisor to make the best choice for your business.