Freelancer or company: when to switch to SRL in Belgium?

In Belgium, thousands of freelancers ask themselves the same question every year: is it time to switch to an SRL (Limited Liability Company)? The answer is not just a matter of turnover. It depends on your current tax regime, your need for asset protection, and your medium-term projects.

Staying self-employed as a natural person makes sense when you start, when the activity is still small, or when you want to stay as flexible as possible. But beyond a certain threshold, the tax and legal disadvantages of self-employment end up costing more than the incorporation and management fees of an SRL.

This article explains the 5 concrete signs that it’s time to switch, compares the real costs between the two statuses, and details the stages of the transition. The goal: enable you to decide with full knowledge, without waiting to be pushed by your accountant at the last minute.

Self-employed vs SRL: essential differences

Self-employed natural person

• No separate legal entity: the business is you
• Your professional income is taxed under personal income tax (IPP) at progressive rates of 25% to 50%
• Unlimited liability on your personal assets
• Self-employed social contributions calculated on all your income
• Minimal incorporation formalities: affiliation to a Social Insurance Fund + registration at the BCE (Crossroads Bank for Enterprises)

SRL (Limited Liability Company)

• Separate legal entity with its own company number and its own assets
• Profits are taxed under corporate tax (ISOC) at 20-25%, then dividends at 30% (withholding tax)
• Liability limited to contributions (except in case of serious management fault)
• You are an employee or director of your company, with a clarified social status
• Heavier incorporation formalities: notary, financial plan, publication at the Moniteur Belge

5 signs that it’s time to switch to SRL

1. Your turnover exceeds €100,000 per year

From this threshold, the tax optimization of an SRL becomes significant. You pay ISOC at 20% on the first €100,000 of profit (if your company meets SME conditions), instead of being taxed at IPP at 45-50% on the same bracket as self-employed.

2. You have significant professional investments to make

Equipment purchase, vehicle, premises, hiring: all these investments are more tax-advantageous in an SRL. Depreciation, professional expenses, and recoverable VAT optimize your taxation beyond what a self-employed person can achieve.

3. Your personal assets are growing and you want to protect them

In an SRL, your liability is limited to your contributions. In case of bankruptcy or dispute, your house, your savings, and your personal belongings are protected. This is not the case as self-employed natural person.

4. You work with large accounts or public clients

More and more clients, especially in the public sector, require working with a legal entity. An SRL opens doors that self-employed status can close.

5. You consider partnering or selling one day

Impossible to partner or sell your activity as self-employed natural person: your activity is inseparable from you. In an SRL, shares are transferable, the activity is valuable, and you can welcome a partner easily.

Numerical simulation: €100,000 gross income

Let’s take a concrete example. A freelance consultant who invoices €100,000 per year.

As self-employed natural person

• Turnover: €100,000
• Professional expenses: €15,000
• Net taxable income: €85,000
• IPP (approximately 45% weighted average): €38,000
• Social contributions (approximately 20% of net): €17,000
• Available balance: €30,000

In SRL with director remuneration

• Company turnover: €100,000
• Professional expenses: €15,000
• Director remuneration: €40,000
• Taxable profit: €45,000
• ISOC at 20%: €9,000
• Social contributions on remuneration: €8,000
• IPP on remuneration: €10,000
• Available balance (net salary + dividends): €58,000

Annual gap: approximately €28,000 more available with an SRL, at identical turnover. These figures are indicative and depend on numerous personal parameters. An accountant refines the simulation to your actual situation.

How to switch: the steps

Step 1: Consult your accountant

Before any decision, request a personalized simulation. Count 1 to 2 appointments to validate that the switch is relevant for your situation.

Step 2: Choose the transition mode

Two main options:

• Creation of a new SRL: you stop your self-employed activity on a date, and you resume via the SRL the next day. Simple.
• Business branch contribution: you contribute your self-employed activity as capital to the SRL. More complex but sometimes tax-advantageous for activities with important assets.

Step 3: Incorporate the SRL

• Signing statutes at the notary (count 2 weeks)
• Publication at the Moniteur Belge and registration at the BCE
• Opening a professional bank account in the company’s name
• Activation of the new VAT number (if applicable)
• Choice of a registered office (a professional domiciliation address from €79 excluding VAT / month is the most used solution by former freelancers)

Step 4: Transfer your contracts and clients

• Notify your clients of the status change
• Update your invoice templates (new company name, new VAT number, new address)
• Transfer recurring contracts under the SRL name
• Close your self-employed activity at the BCE

Step 5: Organize for daily management

• Set up professional accounting (mandatory in SRL)
• Program your director remunerations and dividend distributions
• Verify your supplementary social status (VAPZ, group insurance)

The complete process takes 1 to 2 months. Plan the launch at the start of a fiscal year to simplify closing the old activity.

FAQ

How much does it cost to create an SRL in 2026?
Between €1,500 and €2,500 depending on file complexity (notary fees, Moniteur Belge publication, first formalities). Then count €1,500 to €3,000 per year for accounting and management fees.

Can I stay self-employed and create an SRL in parallel?
Yes, but rarely optimal. Combining both statuses complicates management and dilutes tax advantages. Better to choose one or the other according to your main activity.

How long does the complete switch take?
1 to 2 months on average: SRL creation (2-3 weeks), bank account opening (1-4 weeks parallel), client and contract transfer (continuous over 4-6 weeks).

Can I domicile my SRL at my personal address?
Technically yes, but discouraged: your private address becomes public at the BCE, VAT activation can be refused if the address has no commercial character, and your lease can prohibit professional activity. A professional address from €79 excluding VAT / month solves these three problems.

Should I keep the same accountant as self-employed?
Not necessarily. SRL accounting is more technical than self-employed accounting. Verify that your current accountant masters corporate taxation and legal SRL obligations (chart of accounts, publication of accounts, general assemblies).

Conclusion

Switching to SRL is not a question of fixed date. It’s a decision that depends on 5 concrete signals: your turnover, your investments, your assets, your clientele, and your future projects. If you tick 2 to 3 boxes out of 5, the question arises seriously. If you tick 4 or 5, you lose money every month by staying self-employed natural person.

The switch is not instant, but it is framed. Between the decision and the first SRL invoice, count 1 to 2 months.

At Office Factory, we accompany former freelancers every week in their switch to SRL. Registered office in Brussels, SPF Economy registered, domiciliation certificate issued within 48h, enforceable contract. A credible professional address in Brussels, without complexity, that starts your new SRL on clean foundations.

Discover our domiciliation offer from €79 excluding VAT / month, or read our article on ASBL vs SRL if you hesitate between both legal forms.