Thursday, 15 September 2005

Discouraging entrepreneurship

Independent workers and employees have a different statute in Belgium. Their social security systems are totally separate. Independents almost have no social protection, because, unlike the employee's social security system, there is not a deficit in the independent one. Nevertheless, a full-time independent has to pay minally 478 euros per quarter. Although this is reasonable and a lot less than employees pay (and are paid for by their companies), this can be a serious burden on beginning independents. However, also full-time employees can have an independent statute to work after their normal working hours. It is actually the only legal way to make extra money in the labour circuit. Now, these people have to pay a social security contribution (of at least 60 euros per quarter, depending on the income) too, but are not entitled to get any money out of the independent's social security system.
Furthermore, if you want to start a 'bvba' (a private company with limited liability and a minimal capital of 18 550 euros, you have draw up articles of association (bylaws), which is a good thing. But they have to be validated by a notary public and that'll cost at least 800 euros. If you want to bring in other assets than capital, they have to be validated by an external auditor, which costs at least 1200 euros. So that is 2000 euros you have to pay only to get two signatures. Notaries and auditors are protected professions in Belgium, that make a lot of money in exchange for almost doing nothing. Having maximum and reasonable fees for this or having government offices doing this for a reasonable amount of money would encourage people to start entrepreneuring. Diminishing bureaucracy and having people just go through one counter in one office would help too. On the other hand, it is maybe true people have to be protected against themselves and maybe not everyone should start his own business.

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