Civil society organization
Set up your own civil asset management company. This legal entity will enable you to achieve a clearly defined common goal. Our RGF experts are here to guide you.
In a civil partnership, parents retain control of their assets and their heirs avoid paying inheritance tax on their parents' movable assets.
A general partnership is a contract whereby at least two partners pool their resources in order to achieve a specific common goal.
The articles of incorporation may be a notarized document or a private agreement. Please note that this document is governed by contract law. This means that the contract establishing the civil partnership under common law is an intuitu personae contract.
Although in most cases a civil partnership is formed for a fixed term, it may also be formed for an indefinite term. In order to avoid the dissolution of the partnership upon the death of one of the partners, a "maintenance clause" or "continuity clause" may be included.
The internal organization of the company is freely determined when the articles of association are drafted. It is in fact a form of "advanced joint ownership." Individuals contribute assets to a joint ownership arrangement and set the rules themselves.
In concrete terms, the partners will make a contribution (in cash and/or securities). In exchange, they will receive shares corresponding to the amount of their contribution. It should be noted that no share capital is required! The distribution of the company's profits/losses will be based on the number of shares owned by each partner, unless the articles of association provide for a different distribution.
The General Meeting is the decision-making body of the civil partnership under common law. It is responsible for the following tasks: appointing and dismissing the manager, approving the accounts, amending the articles of association, etc. The manager of the civil partnership (the pater familias) will be responsible for the management and smooth running of the partnership.
There is no obligation to publish in the Belgian Official Gazette when forming a civil company.
A civil company benefits from not having legal personality. This means that it is not subject to income tax. The income generated by the company will be allocated directly to the partners. There is therefore no "outflow" of income from the company.
The obvious advantage is that there is therefore no taxation on income that would be extracted from a common law civil partnership. The company is completely transparent.
Parents must donate their shares with a reservation of usufruct, which will allow them to continue to receive the "fruits" of their securities portfolio.
The children will therefore receive bare ownership of the shares.
The donation must be made before a notary, as a donation with reservation of usufruct must be an authentic donation.
Gift tax will be 3%-5%-7% depending on the degree of kinship. By paying this gift tax, the debt to the tax authorities is definitively settled.
Another solution to avoid this tax is to make the donation before a Dutch or Swiss notary. No gift tax will be due, but the donor must remain alive for three years after making the donation.
Parents remain managers of their portfolio because they are designated as managers in the articles of association.
Parents continue to receive income from their portfolio because they have retained the usufruct.
Contributing real estate to a civil law partnership is not recommended, as it incurs a 12.5% contribution tax (in the Walloon Region and the Brussels Region).
Furthermore, donations of real estate shares do not benefit from reduced rates (3%, 5%, and 7%) and will not be exempt from taxation if they are made through a foreign notary.
Contact us for more information.
Complete the form below to receive a simulation.
Dear customer, our offices will be closed on August 15 and 16.
In case of emergency, contact us by email below.
In the event of a claim, please find more information on our claims management page.
