Can you freelance without a company?
Yes. As a sole trader (personne physique / eenmanszaak), you register through a business counter and start, without articles of association or minimum capital. Set-up and running costs are low and accounting is generally simplified, as the SPF Economy summarises. The steps are in how to become self-employed in Belgium.
Some clients and agencies may prefer to contract with a company, but that is a commercial preference, not a legal requirement. Ask before you decide.
What does an SRL/BV change?
Three things:
- Liability. As a sole trader, there is no separation between your private and professional assets: your whole estate answers for business debts. In an SRL/BV, shareholders are in principle liable only up to their contribution, with exceptions for founders, according to the SPF Economy
- Tax. A sole trader’s profit is taxed at progressive personal income tax rates. A company pays corporate tax, which is lower and less progressive, and you are then taxed on the director’s pay and dividends you take out
- Formalities. The articles are drawn up by a notary, and there is no minimum capital, but the starting equity must be sufficient for the planned activity, as the SPF Economy states. Accounting is heavier and closing a company also has a cost
As a company director, you remain self-employed and pay your own social contributions.
When does a company make sense?
When your profit is high enough for the tax gap to outweigh the extra costs, or when liability matters, for instance on assignments with large contractual penalties. The reduced corporate tax rate for small companies comes with conditions, including a minimum director’s pay, so the calculation is never just the headline rate.
There is no universal threshold. Ask an accountant to model both options with your expected turnover, and to show you the net amount you keep in each case, not only the tax.
Is an umbrella company an alternative?
Yes, if you want to take freelance assignments without registering at all. An umbrella company employs you, invoices the client and pays you a salary, in exchange for part of the rate. The glossary explains how it works.
It is a different trade-off: employee status and less admin against a lower share of the rate. Our definition of a freelancer covers the main statuses, and the current contract and permanent roles show the assignments available whatever structure you choose.
