Every year, hundreds of Belgian IT consultants incorporate their own company, attracted by the promise of higher net income and tax optimisation. Many are surprised by how much owning and running an SRL actually costs in euros, in time and in risk. This article gives you full visibility before you commit.
The setup costs
Notarial deed
Financial plan
Publication in Official Gazette
BCE registration and VAT activation
Business bank account
This represents 5 to 8 working days of billable revenue at €500 per day before you have sent a single invoice.
The recurring costs every year
Accounting fees
- Quarterly VAT declarations
- Monthly or quarterly ISOC provisional tax payments
- Annual corporate tax filing
- Annual statutory accounts filed with NBB
- UBO register updates and director salary processing
Realistic accounting budget: €3,000 to €5,000 per year.
Warning
Social security
Self employed contributions are approximately 20.5% of net taxable income, paid quarterly in advance.
Professional insurance
€500 to €1,500 per year for professional indemnity insurance.
The time cost in lost revenue
At €500 per day (€62.50 per hour), 4 to 8 hours per month in admin represents €250 to €500 per month in unbillable time, or €3,000 to €6,000 per year.
The hidden risks
| Risk | Umbrella Payroll | Own Company |
|---|---|---|
| Gap between missions | Protected (unemployment possible) | No income, fixed costs continue |
| Client non payment | Umbrella takes the risk | You absorb the risk directly |
| False self employment | Zero risk (employee status) | Real risk if not documented |
| Tax inspection | Managed by umbrella | Personal liability if inadequate |
| Sickness or incapacity | Sick pay through employee regime | Limited self employed sick pay |
| Insufficient provisional taxes | Handled automatically | Penalties of 6.75% if insufficient |
Where an SRL starts to make sense
Real break even point
The honest bottom line
For consultants with consistently high revenue above €10,000 per month, stable clients and a long term plan to stay independent, the SRL structure makes excellent financial sense. For everyone else, umbrella payroll offers a compelling combination of simplicity, security and competitive net income.