A separate establishment unit—of (corporate) importance?

In addition, your company needs an establishment unit. Under the law, this is a place that can be geographically identified by an address (in Belgium) where at least one activity of the registered entity is carried out, or from which that activity is carried out.

In principle, an establishment unit may coincide with the company’s registered office, provided that the company’s activities are actually carried out at the address where the registered office is recorded.

Since the end of last year, the FPS Economy has been taking stricter action against companies that do not have an establishment unit where the company’s activities are carried out. This stricter enforcement policy was introduced in response to frequent misuse of virtual addresses.

The FPS Economy states, for example, that an establishment unit must consist of a separate, enclosed, private physical office.

What does this mean in practice for your company:

• If you register both the registered office and the establishment unit of your company at a PO box address, this will no longer be accepted (as was already the case before). Activities must actually take place at the establishment unit.
• If you register your company’s registered office at a PO box address, you will have to register a separate establishment unit where your company carries out its activities (or one of them).

A small nuance is that a company’s establishment unit may be located in a so‑called coworking space, provided that “activities are carried out by the company on a monthly basis”. If, for example, you meet in a coworking space three times per month to perform administrative activities (as stated in your articles of association), this may also be accepted—provided that you rent the space you use each month.

If your situation is not regularised in time, you risk your personal address as director being automatically used as the establishment unit of your company, in addition to fines. The FPS Economy has announced that it will systematically check virtual establishment addresses.

Check today whether your registration is in order. Are you unsure whether your current establishment unit meets the new requirements? Our team of experts will be happy to advise you on the options and assist you with changing your establishment unit.

Do you have questions about your registered office or establishment unit, or would you like to confirm whether your current registration complies with the (new) requirements?
Feel free to contact us. We will be happy to review the options with you and guide you through the necessary formalities.