By subtracting the number of company dissolutions from that of start-ups, Graydon has observed that net business creation hit an all-time low in Belgium in 2014, indicates Tuesday’s edition of L’Echo. Year-on-year growth struggled to reach 0.3%. Moreover, last year, the number of entities adopting the legal status of “company” (whether PLCs, private limited companies, LLPs or other forms) fell, a first for Belgium. The actual figures recorded for 2014 were 27,794 company start-ups against 29,669 insolvencies, leaving a negative balance of 1,875.
One explanation put forward for the negative result is the increase from 10% to 25% on the taxation of liquidation profits, announced in 2013, which came into force in October 2014. In Graydon’s view, around 10,000 companies in Belgium fell victim to this measure.
Christopher Vincent (Source: Belga)