becoming self-employed

A lot has already been written about the legal status of self-employed persons and how to become self-employed and there are plenty of useful addresses and brochures. Randstad Professionals provides a first introduction to these topics as well as a number of useful addresses with links and brochures.

1. Self-employed versus employee
2. Two specific ways to start working as a self-employed person
3. Conditions to establish a company
4. Steps you must take to become self-employed
5. The rights of self-employed persons
6. Guarantees and security
7. Third-party liability and Professional liability



1. Self-employed versus employee

You can provide services to a company in the form of a contract of employment or a contracting agreement as a self-employed person.

A self-employed person exercises a professional activity, full-time or part-time, without being bound by a contract of employment or the legal status of an employee. The legal status of an employee and a self-employed person is different in many respects. In exchange for his/her work, an employee receives a salary and a self-employed person invoices his/her services.

The employee's employer arranges pretty much everything for you: he organises your social security contributions by deducting it from your salary, organises your child benefit via a family allowances fund, takes out an industrial accident insurance for you, etc. Social legislation lays down the rights and obligations of employees and makes sure there is a guaranteed monthly salary, holiday pay, etc. Employees only need to subscribe to a health insurance which they can choose freely. Self-employed persons on the other hand need to take care of their VAT obligations, subscribe to a Business One-Stop-Shop, social insurance fund and health insurance and should take out additional insurance contracts for guaranteed income, a supplementary pension, etc.

2. Two specific ways to start working as a self-employed person:

• As a natural person: there will be no clear distinction between your personal assets and your business assets. This means you are liable with all your assets, including your personal assets, for the risks of the business.
• By establishing a company (more specifically a company with corporate capacity). A company with corporate capacity (from a legal point of view) is an independent entity, with its own rights, obligations and capital and reserves that is separate from the partners (bvba, bvoa, nv, cv, cvoa, s-bvba,…).

 

3. Conditions to establish a company

• You have to be of age (at least 18).
• Be in the possession of all your civic rights.
• Be legally competent.
• Provide proof of your entrepreneurial skills (business management, vocational certificate if necessary).

4. Steps you must take to become self-employed

• Choose your type of business enterprise (natural person or company).
• Open a current account with a financial institute of your choice
• Register with the Crossroads Bank for Enterprises via a certified Business One-Stop-Shop. They will issue a company registration number and a business activity location number. A Business One-Stop-Shop can be chosen freely from a list of 9 certified institutions. The list is enclosed in appendix 1 or is available on the website of the FPS Economy, SMEs, Self-Employed and Energy: www.economie.fgov.be
• Draw up a memorandum of association and register it with an FPS Finance registration bureau (depending on the legal form this is done by a civil-law notary in the form of a notarised deed or by the partners).
• Request a VAT number via the Business One-Stop-Shop or your local VAT audit office in the town/city where your business will be established.
• Subscribe to a social insurance fund. Self-employed persons are obliged to subscribe to a social insurance fund which they can choose freely. The list of 12 recognised health insurances is available in appendix 2 or is available on the FPS Economy, SMEs, Self-Employed and Energy: www.economie.fgov.be). Via the social insurance fund you pay quarterly social contributions.

5. The rights of self-employed persons

A self-employed person not only has duties. The social status of a self-employed person also comprises rights. As soon as you are in line with all the legal regulations required for a self-employed person, you acquire rights in the field of:

• family benefits;
• health and disablement insurance;
• maternity insurance;
• pension;
• entitlement to bankruptcy insurance.

6. Guarantees and security

It is best to supplement your social status of self-employed person to increase your guarantees and security:

• guaranteed income insurance;
• physical accidents insurance;
• supplementary pension for the self-employed;
• retirement saving;
• hospitalisation insurance;
• group insurance;
• industrial accident insurance if you have personnel;
• third-party liability insurance if you have motor vehicles;
• third-party liability insurance in case of fire or explosion if you have a space that is accessible to the public.

 

7. Third-party liability and Professional liability:

When you carry out your self-employed activity you always run certain risks and have a certain liability vis-à-vis your client. This liability is best laid down in the contracting agreement and in an insurance contract in case things go wrong. Make sure the following elements are sufficiently covered and watch out for deductibles

• Third-party liability operation;
• Insurance cover for things given in your care for repair;
• Third-party liability after delivery & professional liability;
• Legal assistance.

Randstad Professionals can put you in touch without obligation with an agent who can draw up an interesting proposal.