Starting out as a freelance worker
Your roadmap
Company form
Deciding on the (legal) form of your company
As a freelance worker, you have the same choices as any other start-up when it comes to choosing the legal form of your business. You can either decide to become a sole-trader (i.e. a self-employed worker) or to set up as a company.
Getting started as a self-employed sole-trader is very simple. Both in terms of start-up and keeping your accounts. In addition, you do not need to consider anyone but yourself when it comes to running your business.
A company is a little more complex. There are various legal forms to choose from, each of which comes with its own benefits and drawbacks in terms of liability and continuity. Moreover, you do not set up (or ‘incorporate’ to use the formal word) a company by yourself: you choose your partners and - depending on the choice you make - you will be dealing with shareholders.
Company number
Applying for a company number
You register your business in the official register of Belgian companies with the Crossroads Bank for Enterprises (CBE or Kruispuntbank van Ondernemingen KBO). This is mandatory; the easiest way to do is through Acerta’s business counter, either at our office or online. Shortly afterwards, you are the proud owner of a unique company number.
As part of your registration, you decide the (geographical) location of your business. If you are setting up a company, you will also be required to specify your business’ head office (registered office).
VAT
Activating your VAT number
As a freelance worker, you are liable for VAT if you deliver goods or services of the kind specified in the VAT Code on a self-employed basis. Which is why you are required to activate your VAT number as a VAT payer. Another thing which Acerta takes care of for you, through a business counter in your area or online via the Self-Employed Workers Counter.
Social security
This is all about being prepared for changes in life
Every self-employed worker is under obligation to sign up with a social insurance fundbefore starting out. To be compliant with social security regulations, each quarter you pay social security contributions based on your income. In return, you enjoy social protection such as the accrual of pension entitlements, the reimbursement of medical expenses, benefits in case you become incapacitated for work, etc. Acerta works out how much you need to pay in social security contributions, you pay this sum each quarter and we transfer the amount to the government.
Sign up with Acerta’s social insurance fund:
Your enrolment with a mutual health benefit society as a self-employed worker is also mandatory. To make sure you are fully compliant with the laws and regulations as a self-employed worker, hand in the certificate from your social insurance fund to a recognised mutual health benefit society. You will be asked to pay an annual fee for this. This makes sure you are entitled to reimbursement of healthcare expenses in case of illness or an accident.
A third obligation for people working in self-employed status as a primary occupation is a so-called Voluntary Supplementary Pension Scheme for the Self-Employed (known as VSPSS for short). The statutory pension is insufficient to enjoy a comfortable lifestyle once you retire. Which is why you take out a VSPSS or Social VSPSS (Social Voluntary Supplementary Pension Scheme for the Self-Employed) as soon as you start your business as a freelance worker as a primary occupation. This not only offers social benefits, it also entitles you to tax relief.
Business account
Opening a bank account
Regardless of your business’ legal form, it is always a good idea to open a business account for your company with a bank based in Belgium. This acts to separate your private and professional transactions.