1. Which law is applicable to the legal capacity and right of representation of a legal entity?
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The new Code of Companies and Associations (CCA, no official English translation available) of 23 March 2019 is gradually applicable from 1 May 2019 onwards. It describes among others the way legal entities are represented by their organs.
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2. What criteria/rules are used to determine the applicable law (for example the law of incorporation or the actual seat)?
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Before the new Code of Companies and Associations entered into force, Belgium used to apply the theory of the real seat to determine the applicable company law. Since 1 May 2019, Belgium has switched to the theory of the statutory seat, for both Belgian and non-Belgian legal entities. A legal person is governed by the company law of the seat it chooses in its articles of association (Art. 110 Belgian Code of Private International Law). Thus, a company with its statutory seat in Belgium will be subject to Belgian company law, regardless of whether it conducts its activities in Belgium or abroad. The regime of the statutory seat means that applicable law can change with a modification of the seat in the articles of association, contrary to the theory of the law of incorporation.
This change has no impact on other fields of law, such as tax law, labour law or environmental law.
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This change has no impact on other fields of law, such as tax law, labour law or environmental law.
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3. Which international conventions have to be respected?
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Not applicable.
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4. Are there international conventions with regard to certain countries?
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No.
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5. Are all companies registered in a public register? What are the effects of registration? (please add a link to the register, if possible)
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See Art. 2:7 to 2:19 of the Code of Companies and Associations.
All Belgian companies have a file at the registry of the Tribunal of Enterprises of their registered office (competence of the Federal Ministry of Justice).
The most relevant data of the company (name, legal form, date of incorporation, registered address, activities, directors, tax year, capital, legal status, etc.) are published on the website of the Crossroads Bank for Enterprises (competence of the Federal Ministry of Economy), which assigns a unique identification number to each company at the time of its incorporation.
Documents filed in the file kept at the registry are published by extract or by reference in the appendices of the Belgian Official Gazette in order to be made enforceable against third parties. The Crossroads Bank for Enterprises’ website includes, for each company, a link to these publications in the appendices of the Belgian Official Gazette.
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All Belgian companies have a file at the registry of the Tribunal of Enterprises of their registered office (competence of the Federal Ministry of Justice).
The most relevant data of the company (name, legal form, date of incorporation, registered address, activities, directors, tax year, capital, legal status, etc.) are published on the website of the Crossroads Bank for Enterprises (competence of the Federal Ministry of Economy), which assigns a unique identification number to each company at the time of its incorporation.
Documents filed in the file kept at the registry are published by extract or by reference in the appendices of the Belgian Official Gazette in order to be made enforceable against third parties. The Crossroads Bank for Enterprises’ website includes, for each company, a link to these publications in the appendices of the Belgian Official Gazette.
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6. Does a foreign company have to be registered in your public company register?
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Yes, see Art. 2:23 to 2:28 of the Code of Companies and Associations. Foreign companies (both EU and non-EU companies) operating in Belgium through a branch are also required to open a file at the registry of the Tribunal of Enterprises of the address of their branch and to register with the Crossroads Bank for Enterprises.
Foreign companies that are not active in Belgium via a branch but that have to appear in an authentic instrument in Belgium are also required to register with the Crossroads Bank in order to receive a unique identification number.
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Foreign companies that are not active in Belgium via a branch but that have to appear in an authentic instrument in Belgium are also required to register with the Crossroads Bank in order to receive a unique identification number.
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7. Who has the legal right of representation of a legal entity?
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Legal entities are represented by their organs of representation or by special representatives within the limits of their mandate.
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8. Must the right of representation be registered (if yes, please add a link to the register, if possible)?
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See abovementioned articles of the Code of Companies and Associations.
Appointment/dismissal of the organs or members of the organs of representation must be filed in the company’s file at the registry of the Tribunal and published in the appendices of the Gazette in order to be made opposable to third parties. This appointment/dismissal is simultaneously registered in the Crossroads Bank but enforceability is ensured by publication in the Gazette only.
Special representatives must demonstrate their power on the basis of a power of attorney.
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Appointment/dismissal of the organs or members of the organs of representation must be filed in the company’s file at the registry of the Tribunal and published in the appendices of the Gazette in order to be made opposable to third parties. This appointment/dismissal is simultaneously registered in the Crossroads Bank but enforceability is ensured by publication in the Gazette only.
Special representatives must demonstrate their power on the basis of a power of attorney.
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9. If the right of representation must be registered, what legal effect does the registration have with respect to third parties?
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See answer to question 8: publication in the appendices of the Belgian Gazette makes appointment/dismissal enforceable against third parties (Art. 2:18 and 2:28 Code of Companies and Associations).
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10. May the rights of the legal representative be restricted? If yes, please explain how (e.g. by laws or the articles of association)?
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The company’s articles of association may stipulate that a company is represented by one or more director(s), appointed for this purpose, or by several directors acting jointly.
The power of representation of the company’s legal representatives is also restricted by the objects clause contained in its article of associations.
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The power of representation of the company’s legal representatives is also restricted by the objects clause contained in its article of associations.
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11. Does that restriction have any legal effect towards third persons?
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Representation clauses (one or more director(s) or several directors acting jointly) as mentioned under question 10 are enforceable against third parties if filed in the company file at the registry and published in the appendices of the Belgian Official Gazette (for private limited companies, see art. 5:73 § 2, subparagraph 1 Code of Companies and Associations). Articles of association may place further restrictions on this power of representation. These restrictions are not enforceable against third parties, even if they are published. The same applies to a division of tasks between directors with the power of representation (see for private limited companies Art. 5:73 § 2, subparagraph 2 Code of Companies and Associations).
The company is also bound by the acts performed by its legal representatives even if these acts exceed its objects clause, except if the company proves that the third party was aware of it or could not ignore it, given the circumstances. The mere publication of the statutes does not provide sufficient evidence of this awareness (for private limited companies Art. 5:74 Code of Companies and Associations).
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The company is also bound by the acts performed by its legal representatives even if these acts exceed its objects clause, except if the company proves that the third party was aware of it or could not ignore it, given the circumstances. The mere publication of the statutes does not provide sufficient evidence of this awareness (for private limited companies Art. 5:74 Code of Companies and Associations).
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12. How can the representative prove the right of representation (e.g. extract in paper from the registry certified by some authorities, extract from public registry)?
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Publications in the appendices of the Belgian Gazette are publicly available and can be printed out or be certified by the registry.
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13. Are there any circumstances where the transactions entered into by the legal representative of a company are considered not binding on the company (e.g. for a valid transaction should there be a decision or consent of the shareholders, supervisory body)? If yes, please explain.
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See answer to question 11.
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14. Is it possible to verify the right of representation by digital means from the register? Please indicate the source and in which language the inquiries should be conducted.
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Publications in the appendices of the Belgian Gazette are publicly available on the website (link above). The search can be made either in Dutch or in French.
Inquiries on the Crossroads Bank’s Website can be conducted in English, Dutch, French or German. As already mentioned under question 8, the Crossroads Bank’s website provides a link to the publication of the relevant legal entity in the appendices of the Belgian Gazette.
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Inquiries on the Crossroads Bank’s Website can be conducted in English, Dutch, French or German. As already mentioned under question 8, the Crossroads Bank’s website provides a link to the publication of the relevant legal entity in the appendices of the Belgian Gazette.
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15. When anti-money laundering measures are applied, how are the beneficial owners of a legal entity registered in your country identified? Would there be different possibilities for professionals from other countries to identify the beneficial owners? Please indicate the source and in which language the inquiries should be conducted.
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The law of 18 September 2017 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and limitations to the use of cash provides for the creation in Belgium of a centralised register of beneficial owners (the “Ultimate Beneficial Owner” Register or “UBO register”). This law implements the European Directive 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (“4th Anti-Money Launderig Directive”).
Legal entities have an extended deadline until 30 September 2019 to enter their beneficial owners for the first time. The data from the UBO register will be available for consultation:
- By the competent authorities referred to in Article 2, 17° of the Royal Decree of 30 July 2019 (operating procedures of the register);
- By the entities subject to the provisions of Article 5 of the Law of 18 September 2017, solely in the context of the performance of their customer due diligence obligations. Access for these entities will be charged;
- By any member of the general public for corporate UBOs. This access will be limited to a certain amount of information and will be charged;
- By any person demonstrating a legitimate interest in UBOs of a(i)sbls (not-for profit organisations), foundations, trusts, fiduciaries, and similar legal constructions. This access will be limited to a certain amount of information and will be charged;
- By any person making a written request to the Treasury Administration, for a(i)sbls, foundations, trusts, trusts and similar legal constructions that control a company, a(i)sbl or foundation. This access will be limited to a certain amount of information and will be charged.
Languages in which the inquiries may be conducted are still undefined.
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