Legal entity Procedure: how to create a company Human resources Taxes

Create a company in Belgian » Human resources

a. Employer's obligations

• Registrations, insurance and work regulations


Every employer must be registered with the National Agency of Social Security (ONSS/RSZ). He has to have an insurance against accidents at the workplace that also covers accidents during the travel from and to the workplace. Work regulations have to be created and an employer must keep a register of the employees.


• Salary


Every sector has several laws, regulations and collective bargaining agreements that determine the calculation of the salary of a white-collar employee. Payroll agencies can be hired to carry out these tasks for a reasonable fee. Salaries are usually negotiated on a monthly basis and are linked to the index of prices.


• Social security


Belgian social security legislation provides for unemployment benefits, pensions, sickness and disability benefits, family and child allowances, and industrial accidents and health care. 13.07% of a blue and white worker’s salary goes to social security, whereas employers pay between 32 and 38% of the gross salary to social security varying from sector to sector. This payment is compulsory.

b. Employment agreements

If you hire staff in Belgium, you will have to make up an employment contract. According to the Belgian law, this contract must comply with certain conditions in terms of shape and content. Specific clauses can be included such as a trial period, a non-competition clause and arbitration clauses.

Types of employment agreements

The nature of work:

• blue collar workers: execution of manual work
• white collar workers: execution of intellectual work
• sales representatives: primarily involves the search for and negotiation with clients.

The duration of the employment contract:

• employment contract for a fixed term
• employment contract of unlimited duration
• temporary employment contract
• contract concluded for clearly defined tasks

The time of the occupation:

• employment contract for full-time engagement
• employment contract for part-time engagement

Benefits in kind

Besides the salary an employer can also remunerate the employee by other compensations, known as "benefits in kind". These are interesting from a tax point of view and allow a company to reduce its social security contributions.

Benefits in kind can include:

• company cars, mobile phone, computer
• group insurance, pension funds and stock options

Termination of an employment agreement

If the employer or employee decides to terminate the contract a notice period must be taken into account, the duration of which depends on seniority of the employee and on the nature of work. The person who wants to terminate the agreement must give a written notice the other party, by sending a registered letter, in which he clearly mentions the duration of the notice period.