{"id":20420,"date":"2025-12-26T12:15:55","date_gmt":"2025-12-26T11:15:55","guid":{"rendered":"https:\/\/www.accountable.eu\/help-center\/what-it-means-to-be-a-one-person-company-or-partnership\/"},"modified":"2026-08-24T17:27:54","modified_gmt":"2026-08-24T15:27:54","slug":"what-it-means-to-be-a-one-person-company-or-partnership","status":"publish","type":"help_center","link":"https:\/\/www.accountable.eu\/en-be\/help-center\/what-it-means-to-be-a-one-person-company-or-partnership\/","title":{"rendered":"What it means to be a one person company or partnership."},"content":{"rendered":"<h1 class=\"font-degular\" id=\"h_49edce076f\">What is a one-person company?<\/h1>\n<p class=\"no-margin font-inter\">This is the most common business form among start-ups. You do not need a separate legal entity and therefore act as a natural person. The sole proprietorship is established by one natural person, who has unlimited liability.<\/p>\n<p class=\"no-margin font-inter\">\n<p class=\"no-margin font-inter\">This also means that there is no clear separation between your private assets and the assets of your business. If you have debts, creditors can claim all your assets. Your private home is also covered by this liability, although you can make a declaration of non-viability for seizure with a notary, so that your home is kept out of harm&#8217;s way when things go wrong.<\/p>\n<p class=\"no-margin font-inter\">\n<div class=\"intercom-h2b-video\"><iframe src=\"https:\/\/www.youtube.com\/embed\/2L-sABV4pJA?rel=0\" frameborder=\"0\" webkitallowfullscreen mozallowfullscreen allowfullscreen allow=\"autoplay; fullscreen; picture-in-picture; encrypted-media\"><\/iframe><\/div>\n<p class=\"no-margin font-inter\">\n<p class=\"no-margin font-inter\">\n<h1 class=\"font-degular\" id=\"h_660a2f8044\">How do I set up a one-person company?<\/h1>\n<p class=\"no-margin font-inter\">Before you can start, you need to complete a number of formalities:<\/p>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Prove your entrepreneurial skills.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Open a current account (checking account).<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Register your business in the Crossroads Bank for Enterprises (CBE).<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Activate your VAT status.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Apply for one or more (additional) licences.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Join a social insurance fund. <\/p>\n<\/li>\n<\/ul>\n<h2 class=\"font-degular\" id=\"h_998a624dcf\"><b>The advantages and disadvantages of a one-man business<\/b><\/h2>\n<h3 class=\"font-degular\" id=\"h_3361128f21\">1) Advantages<\/h3>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You can make decisions quickly and in a less formal way<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You decide how much profit to invest in the business<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You have limited administrative and accounting obligations<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"font-degular\" id=\"h_8a21fa5f94\">2) Disadvantages<\/h3>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You have unlimited liability and guarantee the commitments of your business with your personal assets.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Working out succession and takeover is more difficult.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">All income is taxed via personal income tax.<\/p>\n<\/li>\n<\/ul>\n<h1 class=\"font-degular\" id=\"h_4c598c8a2d\"><b>What is a company?<\/b><\/h1>\n<p class=\"no-margin font-inter\">When you set up a company, you create a new legal entity, unlike a sole proprietorship, where you act as a natural person yourself. There is a clear difference between your private assets and those of your business. The founders of a partnership enter into a contract that defines the purpose and activities of the business and aims to give the partners a capital gain. <\/p>\n<p class=\"no-margin font-inter\">There are different forms of partnership, each with its own legal framework, advantages and disadvantages.<\/p>\n<p class=\"no-margin font-inter\">\n<h2 class=\"font-degular\" id=\"h_9d40094437\"><b>The advantages and disadvantages of a partnership<\/b><\/h2>\n<h3 class=\"font-degular\" id=\"h_d2092dadcf\">1) Advantages<\/h3>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">A company has its own rights and obligations (legal entity).<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Some companies have limited liability.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">The company is taxed through corporate income tax.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">All agreements between partners are clearly written down.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You can work out a proper succession fairly easily before death.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"font-degular\" id=\"h_bd100be29a\">2) Disadvantages<\/h3>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">There are formal decisions and procedures.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You have more legal, administrative and accounting obligations, so more costs.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You have to join a social insurance fund and pay an annual company contribution.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You cannot simply touch your company&#8217;s profits for private purposes.<\/p>\n<\/li>\n<\/ul>\n<p class=\"no-margin font-inter\">\n<h1 class=\"font-degular\" id=\"h_07b3bc2466\">Difference between sole proprietorship or partnership for tax purposes<\/h1>\n<p class=\"no-margin font-inter\">The profit you make in a sole proprietorship is taxed via your personal income tax: so you do not file a separate tax return for your business. The advantage is that you decide how to spend the profit.<\/p>\n<p class=\"no-margin font-inter\">The taxable result of a company is taxed according to the corporation tax system. However, the tax advantage of a company lies not so much in the accompanying lower rates, but in the possibility to strive for an optimal income mix. <\/p>\n<p class=\"no-margin font-inter\">The trick is to balance your own income and that of your company in such a way that you pay as little tax as possible. On the other hand, you cannot simply use the profits your company makes for private purposes.<\/p>\n<p class=\"no-margin font-inter\">\n<h2 class=\"font-degular\" id=\"h_ec0b36885c\"><b>Changing your company form: how do you go about it?<\/b><\/h2>\n<p class=\"no-margin font-inter\">To launch your business, you went to the enterprise counter and maybe the notary. Switching to another business form is done via the same intermediate stations. <\/p>\n<p class=\"no-margin font-inter\">From sole proprietorship to company<\/p>\n<p class=\"no-margin font-inter\">This is the easiest transition. Your affiliation as a self-employed person simply continues. Just keep in mind that your company must also join a social insurance fund like Xerius.<\/p>\n<p class=\"no-margin font-inter\">\n<h3 class=\"font-degular\" id=\"h_d25a1b9362\">Step 1: choose your company form<\/h3>\n<p class=\"no-margin font-inter\">Converting to a company is the same as starting a new company. So the knots to cut are identical. Who do you go into business with? Which company form do you choose? How much start-up capital do you need?<\/p>\n<p class=\"no-margin font-inter\">You can find inspiration for your answers on this page about setting up a company. Of course, you can also ask your accountant. This expert can help you with another job: drawing up your financial plan.<\/p>\n<p class=\"no-margin font-inter\">\n<h3 class=\"font-degular\" id=\"h_58522ee87c\">Step 2: set up your company<\/h3>\n<p class=\"no-margin font-inter\">Have you chosen a company form? Draw up your articles of association and knock on the notary&#8217;s door for incorporation. Are you starting a vof or a comm.v.? Then you don&#8217;t need to pass by the notary.<\/p>\n<p class=\"no-margin font-inter\">\n<h3 class=\"font-degular\" id=\"h_42950f0062\">Step 3: get your one-person company removed and your company registered<\/h3>\n<p class=\"no-margin font-inter\">\n<h3 class=\"font-degular\" id=\"h_70f72d7d2d\">Step 4: adjust your social security contributions to your new situation<\/h3>\n<p class=\"no-margin font-inter\">Will your private income from the company remain more or less the same as with your sole proprietorship? Then don&#8217;t touch your social contributions.<\/p>\n<p class=\"no-margin font-inter\">Will your income increase? Then it&#8217;s a good idea to pay more social contributions. You have three excellent reasons to do so:<\/p>\n<p class=\"no-margin font-inter\">you avoid regularisations, where you have to pay a pretty penny extra.<\/p>\n<p class=\"no-margin font-inter\">you reduce your taxes. After all, higher social contributions are a bigger tax deduction.<\/p>\n<p class=\"no-margin font-inter\">voluntary additional payments end up in your annual reserve. That amount is first used when calculating your final contributions.<\/p>\n<p class=\"no-margin font-inter\">\n<p class=\"no-margin font-inter\">\n<h1 class=\"font-degular\" id=\"h_583d9484a3\">Good sources:<\/h1>\n<p class=\"no-margin font-inter\"><a href=\"https:\/\/www.liantis.be\/en\/starting-a-business-belgium-as-a-foreigner\" target=\"_blank\" class=\"intercom-content-link font-inter\">https:\/\/www.liantis.be\/en\/starting-a-business-belgium-as-a-foreigner<\/a><\/p>\n<p class=\"no-margin font-inter\"><a href=\"https:\/\/economie.fgov.be\/en\/themes\/enterprises\/starting-business\/steps-starting-business\/social-insurance-fund\/social-status-self-employed\" target=\"_blank\" class=\"intercom-content-link font-inter\">https:\/\/economie.fgov.be\/en\/themes\/enterprises\/starting-business\/steps-starting-business\/social-insurance-fund\/social-status-self-employed<\/a><\/p>\n<p class=\"no-margin font-inter\">\n<p class=\"no-margin font-inter\">Ideally you should have registered at a social secretariat like Liantis, Xerius, &#8230; So I would strongly suggest you reach out to them \ud83d\ude0a<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first choice you face when establishing a business is between setting up a sole proprietorship or a company. Each have advantages.<\/p>\n","protected":false},"featured_media":0,"template":"","help_label":[439,499],"class_list":["post-20420","help_center","type-help_center","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What it means to be a one person company or partnership. - Accountable<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.accountable.eu\/en-be\/help-center\/what-it-means-to-be-a-one-person-company-or-partnership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What it means to be a one person company or partnership. - Accountable\" \/>\n<meta property=\"og:description\" content=\"The first choice you face when establishing a business is between setting up a sole proprietorship or a company. 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