a




p

m

 


Population: approximately 10,300,000
Territory: approximately 32,545 square kilometers

anguages: Dutch, French, erman
Climate: Western uropean maritime climate, mild winters
and pleasant summers .
overnment: Constitutional hereditary monarchy
embership: uropean nion .
 conomic Regions:
prussels, the capital (978,400); Antwerp (448,700); ent
(226,600); Charleroi (200,600);
iege (185,000), pruges
(116,800)
ndustries and Resources:
Heavy industry, metal manufacturing, petrochemicals,
transport, service industries, construction, automobile
industry, diamonds and food industries. pelgium has limited
natural resources and has to import almost all of its raw
materials.
 
 



 The pelgium economy has grown steadily over the past 10
years and inflation has remained low.
 pelgium enjoys a liberal investment climate. This is due to the
existence of a pro-market government that limits its interference
in the economy.
 One of pelgium·s chief assets is its highly qualified and
multilingual labour force. pelgium is heavily reliant upon trade
and exports 70% of all its manufactured products.
 pecause the pelgian economy depends upon a high level of foreign
investment, the government offers a wide range of tax incentives.
 Ëualifying companies may claim a deduction on their
investments and purchases in new tangible or intangible fixed
assets located within pelgium (in 1999 the deduction was
3%).
 Ëualifying companies are restricted to those that are subject
to pelgian corporate tax, have 50% of its voting shares held
by individuals and that do not benefit from a Coordination
Centre.
 pecause of its central location within urope and its efficient
rail, air, sea and road transport systems pelgium represents
an ideal base for exportation throughout urope.
 The railway network is one of the most concentrated in the
world, while the seaport of Antwerp is the second largest port in
urope.

 pelgium is also the chosen head quarters of a number of

multinational companies and international organizations such as
NATO, the uropean Commission and the Council of the
uropean nion.



 



Corporate identities in pelgium may take several forms of either
private or public limited or unlimited liability companies. The two
most common forms are the Private
imited Company and the
Public
imited Company.
 2


 
 
This has the power to issue only registered shares. ts shareholders
must approve all share transfers. However, an exception to this
approval requirement exists, subject to no provision to the
contrary in the company·s articles of incorporation, for share
transfers to specific categories of parties, spouse of the transferor,
ascendants, descendants of the transferor and other persons
mentioned and approved in the articles of incorporation.
 This can allocate shares without voting power.
imited liability of
shareholders is determined by the extent of their capital
investment (the initial minimum capital required is 18,550 uro /
approximately A$31,000).
 2


 
 
This is the most common type of corporate entity in pelgium. n
order for the company to be established as a separate legal entity,
it is first necessary to file a notary deed with the registry of the
commercial court (which makes now part of a new administrative
entity called ´Crossroad pank for nterprisesµ).
 The deed must contain the company·s articles of incorporation.
Once the deed is filed, any trademarks must be registered. Finally,
the deed must be registered with the registry of the commercial
court. This process can generally be completed within one month.
the 

 

 



 
  !  

 " 
 #
 
One or more directors manage the ppA/SPR
A unitary
structure is mandatory The SA/N, on the other hand, has a
unitary structure in general, although this is not mandatory.
Rather, the company code contains two methods by which power
may be delegated by the board of directors to other persons..
 This committee wields all the powers of the board except for the
powers of strategic management of the company and the powers
that are granted to the board by law must have at least two
members.
 O  

$   
Foreign companies are able to establish branches in pelgium. The
formalities for establishing a branch include filing certain
information regarding the head office with the registry of the
commercial court. amongst other things, the deed of
incorporation, the current articles of incorporation, the annual
accounts and consolidated annual accounts of the last financial
year. A notary public of the country of incorporation of the head
office must certify these documents
DSTRpTON
pelgium there is a special law for sales agents (
aw of 13 April
1995 regarding Commercial Agency Agreements). With one
important exception, pelgian law does not contain specific rules
governing distribution agreements; therefore the parties are free
to determine the content of the distribution agreements.
However, the
aw of 27 July 1961 on the nilateral Termination
of Certain Categories of Distribution Agreements contains specific
rules governing the unilateral termination of certain categories of
agreements. These rules are mandatory and cannot be superseded
even by the mutual consent of the parties.
The principal must show that he will continue to derive substantial
benefits from the business brought in by the agent. The annual
average commission paid to the sales agent limits his compensation
and they can compel payment.

„ 


  


% %

  &  
 
   
   
  '  
 % (

  






 ')
 


For the 2005 financial year, resident corporations were taxed at a
common rate of 33% on taxable income (see art. 215 of the
ncome Tax Code 1992). Due to the introduction of a crisis
surcharge an additional 3% crisis contribution is levied on
corporate income tax, for the benefit of the state only. Reduced
taxes can be applied when the taxable profit does not exceed
322,500 uro (approximately A$540,000).
 ')
 „


Resident individuals are taxed on their worldwide income. Non-
residents are taxed only on the income received in pelgium.
 '

')
The standard withholding tax rate on dividends is 25% (15% for
listed companies), but reduced rates can be applied in several
cases. nder most of the existing tax treaties this rate is reduced.

 #')*  
A double tax agreement exists between pelgium and Australia
(signed on 13 October 1977).
 


  

The pelgian labor force is multilingual. Nationals from other

countries must obtain work permits in advance from the
inistry of
abor. mployers cannot recruit foreign
employees without the permission of the regional
Department of
abor, however these rules do not apply to
nationals of  member countries. pelgium has a low
unemployment rate in relation to skilled workers. There is an
established minimum wages rate and working hours are
limited to 8 hours per day and 39 hours per week. Firms
with more than 100 employees are required to establish
workers councils. The labour unions negotiate wages and
collective labour agreements.

 
* % &Antwerp PO, nternational Trade Fair for roceries
and Domestic Comfort (December);
pusiness to pusiness, pusiness Contacts in the own Region (ay);

 &aintenance, Trade Fair for ndustrial aintenance

(arch),prussels: Autotechnica (April);
Salon nternational Auto-oto (January);

  
&! nternational des Artes nages, roceries and

wines.
 & 
 poat show (February);
achinemo-etal ndustry (September);

 & xpo- ifel-Ardenne, nternational Trade Fair for

Agriculture and Trade (November 

 &nternational Hobbybeurs, nternational Trade Fair

for Recreational Activities (September).

 #
*!
 +% 
Dr. Wolfgang pabeck

evel 8 Angel Place, 123 Pitt Street
Sydney NSW 2000, Australia
Tel:+61 2 8233 9500
Fax:+61 2 8233 9555
mail: Wolfgang.pabeck@daslaw.com.au
Web: www.daslaw.com.au
   '  
ric Cusas
Chausse de poondaelsesteenweg 6
1050 prussels, pelgium
Tel:+32 - 2 ² 6409697
Fax:+32 - 2 ² 6480809
mail:ecusas@verwal.net
  

; All trade fairs in pelgium can be found in the internet:
http://mineco.fgov.be/enterprises/
fairs/home_de.htm.
; http://www.doing-business-in-europe.com/