There are different types of companies and associations, each with their own characteristics. 
- What status should I choose ? A sole trader (as a natural person) or a company (as a legal entity)?
- What type of company should I choose? (NV – a public limited company, BV – a private limited company, VZW – a non-profit association (fr), etc.)
The most common company forms are the following (fr):
- Société anonyme (SA): this is the form for companies of a certain size, where raising capital is the main focus. Only one founder is needed to set up an NV.
- Société à responsabilité limitée (SRL): a limited company is the ‘basic company form’ par excellence. Because there are very few mandatory regulations, a BV gives economic operators a lot of room to manoeuvre in forming a company that is ‘made to measure’. For example, there is freedom in the articles of association to determine how limited the BV actually is. Only one founder is needed to set up a BV.
- Société coopérative (SC): a cooperative society is a company whose shareholders pursue a cooperative ideal, which explains why it always requires three founders. The main purpose of the cooperative society is to meet the needs of its shareholders and it may also serve as a tool to meet the economic or social needs of those shareholders.
- Société en nom collectif (SNC): a general partnership is a partnership entered into between jointly and severally liable partners who have unlimited liability. All decisions must be taken unanimously, unless the partnership agreement provides for decisions to be taken by a majority.
- Société en commandite (SComm): a limited partnership is a partnership entered into between one or more jointly and severally liable partners who have unlimited liability, referred to as managing or limited partners, and one or more partners limited to contributions in cash or in kind, referred to as silent or limited partners. The managing partners are involved in the management. The silent partners are not involved in the management. All decisions must be taken unanimously, unless the partnership agreement provides for decisions to be taken by a majority.
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Société simple : an ordinary limited partnership is a partnership with joint and several liability, in which at least two natural or legal persons collaborate. This type of company is often used for the purpose of family estate planning. This form is attractive because it is simple to set up, but it involves more risk because of the personal and unlimited liability.
The most common forms of associations are (fr):
- Association sans but lucratif (ASBL): a non-profit association is a group of natural persons or legal entities pursuing a charitable goal. The non-profit association consists of at least two persons.
- Association internationale sans but lucratif (AISBL): an international non-profit association is a group of natural persons or legal persons that pursues a charitable goal of international benefit.
You can find more information in the ‘ASBL’ publication on the FPS Justice website (fr).
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Updated on 12 December 2020