{"id":15940,"date":"2024-10-03T11:40:33","date_gmt":"2024-10-03T09:40:33","guid":{"rendered":"https:\/\/www.accountable.eu\/?p=15940"},"modified":"2024-10-03T11:40:35","modified_gmt":"2024-10-03T09:40:35","slug":"cooperative-company","status":"publish","type":"post","link":"https:\/\/www.accountable.eu\/en-be\/blog\/cooperative-company\/","title":{"rendered":"Setting up a cooperative company: what you need to know"},"content":{"rendered":"\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\"><strong>Planning to become self-employed? The first step is to choose the legal form of your business: natural person sole trader or company. Are you going down the company route? Then you have some choices here too. Each company form has its own rights, obligations and starting conditions. In this article, we look at the cooperative company or SC\/CV, a very specific company form, which might be the perfect match for your vision and goals. Read on to find out!<\/strong><\/p>\n\n\n\n<h2 id=\"what-is-a-cooperative-company\" class=\"wp-block-heading font-degular scroll-mt-32\"><strong>What is a cooperative company?<\/strong><\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">A cooperative company (\u2018soci\u00e9t\u00e9 coop\u00e9rative\u2019 (SC) \/ \u2018co\u00f6peratieve vennootschap\u2019 (CV)) is founded with the aim of meeting the needs of its shareholders and helping them develop their economic and social activities.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">In more concrete terms, you can set up a cooperative company to&nbsp;<strong>collaborate<\/strong>&nbsp;with other people&nbsp;<strong>for a societal purpose.<\/strong> This collaboration has a social or economic character.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">The priotrity of a cooperative company is not to maximise profits, but rather to&nbsp;<strong>achieve a shared objective.<\/strong> This&nbsp;<strong>social aspect is essential<\/strong>&nbsp;for starting an SC\/CV.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">To create a cooperative company, there needs to be&nbsp;<strong>at least three partners.<\/strong> You therefore can\u2019t choose this company form if you don\u2019t (yet) have any partners.<\/p>\n\n\n\n<h2 id=\"how-do-the-various-types-of-cooperatives-differ\" class=\"wp-block-heading font-degular scroll-mt-32\"><strong>How do the various types of cooperatives differ?<\/strong><\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">Before 1 May 2023, someone wanting to form a cooperative company had the choice between two legal forms: the <strong>unlimited liability cooperative company<\/strong> (\u2018soci\u00e9t\u00e9 coop\u00e9rative \u00e0 responsabilit\u00e9 illimit\u00e9e\u2019 (SCRI) \/ \u2018co\u00f6peratieve vennootschap met onbeperkte aansprakelijkheid\u2019 (CVOA)) and the <strong>limited liability cooperative company<\/strong> (\u2018soci\u00e9t\u00e9 coop\u00e9rative \u00e0 responsabilit\u00e9 limit\u00e9e\u2019 (SCRL) \/ \u2018vennootschap met beperkte aansprakelijkheid oprichten\u2019 (CVBA)).&nbsp;<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">In the unlimited liability SCRI\/CVOA, the founders were personally and indefinitely liable in the event of financial problems; in the limited liability SCRL\/CVBA, the partners were only liable up to the amount they contributed to the company.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\"><strong>These two company forms no longer exist in the new Companies Code.<\/strong>&nbsp;Today, any cooperative will be an SC\/CV by default. It\u2019s no longer possible to set up an SCRI\/CVOA or an SCRL\/CVBA.<\/p>\n\n\n\n<h2 id=\"what-are-the-advantages-of-a-cooperative-company\" class=\"wp-block-heading font-degular scroll-mt-32\"><strong>What are the advantages of a cooperative company?<\/strong><\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">Why choose a cooperative company? The name speaks for itself: it\u2019s an&nbsp;<strong>official way to cooperate with other self-employed people and create a positive impact on society.<\/strong><\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">It also has the following advantages:<\/p>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n<li class=\"font-inter text-base text-black\"><strong>No initial capital is required<\/strong>\u00a0to set up a cooperative company. Each partner must bring \u2018something\u2019 to the company: a financial investment, a contribution in kind or even their expertise.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">Another great\u00a0<strong>advantage<\/strong>\u00a0of this company form is the flexibility it offers. New partners can easily join the SC\/CV, and shareholders can leave just as easily. If you want, you can determine the formalities yourself and record them in the company&#8217;s statutes.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">Shares\u00a0<strong>are freely transferable<\/strong>\u00a0between shareholders of the SC\/CV. For the transfer of shares to third parties, you can establish rules in the register of shares (\u2018registre des titres\u2019 or \u2018aandeelhoudersregister\u2019).<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">The partners of the cooperative company have\u00a0<strong>limited liability,<\/strong> only up to the amount of their personal contribution.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">You can also set up an\u00a0<strong>approved cooperative company,<\/strong> provided certain conditions are met. The Belgian authorities grant this type of company <a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/economie.fgov.be\/en\/themes\/enterprises\/starting-business\/steps-starting-business\/forms-companies\/cooperative-societies\/approval\/advantages-relating-approval\">various<strong>\u00a0tax advantages<\/strong><\/a>, such as tax exemption on a portion of the dividends that the SC\/CV pays to the partners, a reduced tax rate, and social security for workers.\u00a0<strong><a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/economie.fgov.be\/en\/themes\/enterprises\/starting-business\/steps-starting-business\/forms-companies\/cooperative-societies\/recognition-cooperatives\">Read more about the approval of cooperative companies<\/a>.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"what-are-the-disadvantages-of-a-cooperative-company\" class=\"wp-block-heading font-degular scroll-mt-32\"><strong>What are the disadvantages of a cooperative company?<\/strong><\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">Each company form has advantages and disadvantages. Do you want to become self-employed and set up a cooperative company? Here are some disadvantages:<\/p>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n<li class=\"font-inter text-base text-black\">To form a cooperative company,<strong> at least three partners<\/strong>\u00a0are required. You\u2019ll therefore need to convince at least two other\u00a0<strong><a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/www.accountable.eu\/en-be\/blog\/main-or-secondary-occupation\/\">people who are self-employed in a main or secondary occupation<\/a>.<\/strong><\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">The creation and management of an SC\/CV involves <strong>a lot of<\/strong>\u00a0<strong>formalities<\/strong>. To establish the company you need to draw up a deed that needs to be notarised and create a financial plan. In addition, the cooperative company must keep<strong>\u00a0<\/strong>double-entry accounting.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">No starting capital is required, but you must prove that you have\u00a0<strong>sufficient assets<\/strong>\u00a0for the first two years of your SC\/CV. In other words, your personal assets must be sufficient at the start of the business to be able to support its activities.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">The SC\/CV company form is\u00a0<strong>reserved for \u2018real\u2019\u00a0cooperations that have a social goal.<\/strong> The cooperative aspect is subject to strict control. This type of company is therefore not\u00a0<strong>accessible to everyone.<\/strong> What happens if your cooperative company is deemed to have no real societal added value? Then it risks being legally dissolved.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\"><strong>As a partner in an SC\/CV, you have personal liability in certain situations.<\/strong>\u00a0What happens if your company goes bankrupt after three years? The courts will examine the company\u2019s financial plan to determine whether you started your business without enough forethought. If the judge finds this to be the case, you\u2019ll have to repay your company&#8217;s debts yourself. Therefore, it&#8217;s important to take your financial plan seriously. Not only will it be very useful when setting up the company, it may also protect your personal assets in the event of bankruptcy.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-to-set-up-a-cooperative-company\" class=\"wp-block-heading font-degular scroll-mt-32\"><strong>How to set up a cooperative company<\/strong><\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\"><strong>Do you want to become self-employed while bringing added value to society?&nbsp;<\/strong>Then the cooperative company is an ideal solution for you.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\">Here\u2019s what you need to do to set up a cooperative company:<\/p>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n<li class=\"font-inter text-base text-black\">Make sure you have\u00a0<strong>at least three partners<\/strong>\u00a0to set up your cooperative.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">Create a\u00a0<strong>solid financial plan<\/strong>\u00a0and submit it to an accountant who can check if your figures are realistic.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">Ask for a\u00a0<strong>bank certificate<\/strong>\u00a0to prove you have sufficient assets.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">Go to the\u00a0<strong>notary<\/strong>\u00a0to establish the\u00a0<strong>statutes<\/strong>\u00a0and the\u00a0<strong>deed of incorporation<\/strong>\u00a0of your company. The notary will publish the incorporation of your SC\/CV in the Belgian Official Gazette and will give you your company number.<\/li>\n\n\n\n<li class=\"font-inter text-base text-black\">This will allow you to\u00a0<strong>open a professional bank account<\/strong>\u00a0as a legal entity. All done? Now you\u2019re ready to get to work!<\/li>\n<\/ul>\n\n\n\n<h2 id=\"need-a-hand\" class=\"wp-block-heading font-degular scroll-mt-32\"><strong>Need a hand?<\/strong><\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black\"><strong>Do you need to keep double-entry accounting for your cooperative? Then you\u2019ll have to work with an accountant. <a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/www.accountable.eu\/en-be\/\">The\u00a0Accountable app\u00a0can also be handy<\/a>. Our tax and accounting platform allows you to create and send invoices, keep your expenses and income up to date, and view your VAT balance in real time. That means you\u2019ll always know how your cooperative is doing and can focus on what really matters.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Planning to become self-employed? The first step is to choose the legal form of your business: natural person sole trader or company. Are you going down the company route? Then you have some choices here too. Each company form has its own rights, obligations and starting conditions. In this article, we look at the cooperative [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":14280,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[264,266],"tags":[247,255],"class_list":["post-15940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-become-self-employed","category-change-of-status","tag-become-self-employed","tag-limited-company"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Setting up a cooperative company in Belgium: what you need to know - Accountable<\/title>\n<meta name=\"description\" content=\"What are the advantages and disadvantages of a cooperative company? And how do you set one up? 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