More and more freelancers are choosing to house their activities in a management company. And this is no coincidence. A properly constituted BV as a management company can not only bring tax advantages, but also provide more structure, protection and flexibility.

What is a management company?

A management company is a company (usually a limited company) in which you get yourself paid as a freelancer or consultant for management services to other companies - often your own operating company or clients. For freelancers, a management company allows you to optimally plan your income. This allows you to better plan, distribute and optimise income.

Tax advantage of a management company?

Pension and wealth accumulation: Through an internal pension scheme or real estate in the company, you work smartly on your future.

Lower tax burden: Instead of paying up to 50% of personal income tax as a sole trader, you pay corporate income tax in a limited company (20% on the first bracket up to €100,000, 25% above that).

Tailored remuneration: You choose whether to pay yourself wages, take dividends, or work with a combination. This allows you to optimise your income for tax purposes.

Deducting costs: A company offers more scope for deductible expenses, such as a company car, laptop, training, or pension accrual through an IPT. Freelancers can easily avail of these deductions through a management company.

What does it cost to set up a management company?

Setting up a management company requires a notarial deed, publication of articles of association and a financial plan. Depending on the company form chosen (usually a limited company), the formation expenses vary. The financial plan plays an important role because the tax authorities are increasingly looking at the reality behind the declared income and expenses. So it is important to set a realistic forecast before incorporation, remember incorporation liability

Who can you turn to for setting up your management company?

Do you want an efficient and digital start-up with your own management company? Then get in touch with Bizantium, our partner of choice for incorporation of private limited companies. They take care of notary, financial plan and all other incorporation formalities. After your management company is incorporated, Bookies, your accountant takes over.

Management company as a consultant or freelancer: why choose a limited company?

Since the reform of company law in Belgium, the BV (private limited company) has been the standard. It is flexible in formation, requires no minimum capital and offers limited liability. For freelancers, a BV as a management company gives extra peace of mind because your private assets remain separate from your professional risk.

Conclusion

For freelancers and consultants looking for tax optimisation, flexibility and protection, a management company in the form of a BV is often a logical next step. Of course, it depends on your turnover, plans and needs - so get proper guidance before taking the plunge.

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