-
Our areas of expertise include
- Market development
- Administrative support
-
Corporate
- Company formation
- Acquisition of a company (M&A)
- Compliance
-
Employment
- Personnel
- Secondment
- Compliance
-
Commercial
- Distribution, contracts & GTC
- Debt collection
- Litigation
- Enforcement
The Belgian market presents a wealth of business opportunities for foreign companies. Entry into the Belgian market can also generate new export and growth prospects. A successful market entry requires thorough preparation and the guidance of legal professionals. Belgium has legal and tax peculiarities that foreign companies should be aware of and take advantage of.
To help you make the most of your export project, this page provides an overview of the market development process in Belgium. We are your first point of contact for all legal and tax questions that foreign companies may have when entering the Belgian market.
Business opportunities for foreign companies in Belgium
There are several reasons why Belgium is an interesting country when it comes to opening up foreign markets. Belgium boasts a robust economy with high purchasing power and a highly affluent population. The Belgian workforce is also one of the most productive and highly educated in the world. Due to its compact size, Belgium offers an accessible market that is highly receptive to foreign trade. Recent adaptations and flexibilisation of Belgian corporate law also make it more attractive for foreign companies to invest in Belgium.
Belgium enjoys a favourable strategic location at the heart of the European Union, and Brussels, the capital of Europe, is home to almost all the European institutions. Consequently, a presence in Brussels has become a strategic necessity for many foreign companies. Belgium’s central European location and modern infrastructure make it the logistical hub of Europe. Belgium is also well-positioned to serve as a strategic launchpad for businesses looking to expand into the neighboring markets of France, Luxembourg and the Netherlands.
Belgium has highly advanced research and development facilities and offers a range of attractive incentives, including subsidies and tax breaks, as well as significant strengths in key economic sectors, such as transport and the (bio)chemical, medical and pharmaceutical industries.
The interest of foreign companies in the Belgian market is confirmed year after year, and the success of foreign trade relations with Belgium can also be expressed in figures. Belgium is a popular trading partner. For example, the volume of trade between Germany and Belgium amounts to almost 100 billion euros. The Flemish region of Belgium receives the lion’s share of foreign investment. Brussels is also one of the top 10 investment cities in Europe.
The Belgian economy offers foreign suppliers many opportunities, as the most important economic driver in Belgium remains the exchange of goods and services with other countries. This opens up significant business prospects for foreign suppliers.
Belgium’s economy is heavily reliant on imports for a wide range of products. Exports are concentrated in specific sectors, notably chemical products. There are numerous opportunities for foreign manufacturers in Belgium, particularly in the construction, mechanical engineering, medical technology, life sciences, environmental technology and food sectors. In particular, specialised medium-sized companies with industry expertise enjoy a good reputation and are in demand. Whether as subcontractors, suppliers or cooperation partners of Belgian companies, foreign companies are highly regarded in Belgium and are always welcome.
It is evident that Belgium offers significant market potential for foreign companies.
Choice of distribution system: we open up perspectives for you in Belgium
Once a decision has been made to conduct business in Belgium, the next question is how to organise it. The next step is to choose an appropriate distribution system. There are a variety of distribution channels available to market your products in Belgium. These are typically aligned with the company’s size, the nature of its products or services, and its overarching marketing strategy. Broadly speaking, there are two types of distribution.
1. Distribution to Belgium
The most straightforward method of accessing foreign markets is to engage in export activities. Achieving sales success in the Belgian market is contingent on having a reliable sales or cooperation partner in Belgium who is well-versed in the Belgian market. Many medium-sized companies initiate their first step in Belgium through a Belgian distributor. The most suitable option, depending on the product to be marketed and the customer groups to be targeted, may be to work with an importer, distributor or commercial agent. In such cases, the foreign company operates virtually invisibly in the background.
Due to its proximity to the market, Belgium is easily accessible through a distributor. Medium-sized companies often choose to work with a sales partner in Belgium to reduce costs and risks, especially when they are unable to address and support end customers in the target market directly from their home country.
It is not always necessary to set up a company in Belgium. The process of establishing a distribution network abroad is not as extensive as one might expect. A well-drafted cooperation agreement can be of great value. However, it is essential to exercise caution and understand the legal implications involved. The legal framework and contractual options vary depending on the type of distribution partnership!
Naturally, you also have the option of selling your products to Belgium via your website or web shop. While this may appear to be a straightforward approach to market your products, it is essential to adhere to Belgian legislation, including general terms and conditions and data protection regulations.
You can find out more about this route to success in Belgium on the sales, contracts & general terms and conditions in Belgium page.
2. Market entry in Belgium
In some cases, the potential of the Belgian market can only be effectively exploited through a local presence. If you are considering entering the Belgian market, you may wish to establish a foothold there yourself. There are a number of ways to do this, for example by seconding your own employees, hiring a Belgian employee or setting up a Belgian subsidiary or branch.
Setting up a Belgian company has its advantages and disadvantages. The big advantage is that it gives the foreign company a Belgian face, which brings it closer to the Belgian customer. In addition, a Belgian branch improves market knowledge and makes it easier to comply with sector-specific regulations
If you decide to set up a Belgian branch or subsidiary, the following publications will give you a brief insight:
On the page company formation in Belgium you will find more information about the formation of a company or branch in Belgium and the support services that our firm and our partners can offer.
Should you require further information regarding the employment of personnel in Belgium or the posting of foreign employees to Belgium, we invite you to refer to our specialised pages on personnel in Belgium and secondment to Belgium.
There is no universally applicable response to the question of whether it is advisable to establish a Belgian branch in order to expand your business into the Belgian market. Each company must decide for itself which option is most appropriate. This decision is dependent on a number of factors, such as the sector in which you operate, your company’s objectives in Belgium, the resources available in terms of capital and HR, and the liability risks associated with your activities. Tax considerations are also a key factor in determining the most suitable strategy for entering the Belgian market. The tax treatment of your Belgian activities, whether in Belgium or in your home country under the double taxation treaty, also depends on your corporate structure (see our special page on international tax law). Our tax lawyers will be happy to advise you on this matter.
Drawing on our extensive experience in the field, we understand that hiring Belgian personnel and establishing a Belgian subsidiary or branch, while frequently chosen, can have far-reaching consequences. This is because it makes the foreign company partially or even completely „Belgian“. You will then come into contact with various Belgian organisations, such as a notary, a payroll office or an insurance company. This can present challenges in terms of maintaining oversight and coordination. We work closely with partners in all relevant areas so that we can act as your single point of contact and manage all aspects of doing business in Belgium for you (see International Desk and Compliance).
Do you have any questions?
Do you have any questions about market development? Do not hesitate to contact our specialist lawyer for employment and commercial law Marco Wirtz. By email at m.wirtz@euregio.law or by phone +32 11 29 47 01.
