Managing agents wanting to set up a service company in Belgium must be aware of the following considerations and requirements that make up the local environment.
Key considerations
Financial considerations
No requirement to maintain trust funds, licences held with LIC.
Segregation of Accounts: Service company insurance accounts and office expenses must be deposited in separate bank accounts.
Share Capital confirmed and deposited with the bank.
Insurance Premium Tax (IPT) applies on LIC insurance policies in Belgium.
Applicability and rate of premium tax are class dependent – see Crystal+ for more information.
Additional parafiscal duties may apply: - National Institute for Health and Disability Insurance (NIHDI/INAMI), see Crystal + for applicable classes and rates.
Corporate income taxes depend upon the service company, group structure and location.
Insurance intermediary services are generally exempt from VAT operations under Article 44, §3, 4° of the Belgian VAT Code where:
Segregation of Accounts: Service company insurance accounts and office expenses must be deposited in separate bank accounts.
Share Capital confirmed and deposited with the bank.
Insurance Premium Tax (IPT) applies on LIC insurance policies in Belgium.
Applicability and rate of premium tax are class dependent – see Crystal+ for more information.
Additional parafiscal duties may apply: - National Institute for Health and Disability Insurance (NIHDI/INAMI), see Crystal + for applicable classes and rates.
Corporate income taxes depend upon the service company, group structure and location.
Insurance intermediary services are generally exempt from VAT operations under Article 44, §3, 4° of the Belgian VAT Code where:
- Intermediary is directly involved in the conclusion of an insurance contract.
- The services provided are closely linked to insurance transaction.
- Loss adjustment/ claims handling on stand-alone basis
- Management services not linked to the conclusion or amendment of insurance contract.
- IPT rates are the same as applicable to insurance transactions (see Crystal +)
- Belgian-resident intermediaries are responsible for filing and paying IPT on these services.
Operational considerations
Crossroads Bank for Enterprises (CBE): is the official registry for all businesses in Belgium.
Key steps to registering a business include:
Publication in the official journal
Colocation is not mandatory and is not available in Belgium.
Requirements for statutes and share capital are defined by the legal entity structure chosen. For example:
Key steps to registering a business include:
- Choose a legal structure (e.g., BV, NV, sole proprietorship)
- Draft articles of association (if applicable) )
- Open a professional bank account)
- Deposit required minimum capital (see below) )
- Submission of registration with the CBE )
Publication in the official journal
Colocation is not mandatory and is not available in Belgium.
Requirements for statutes and share capital are defined by the legal entity structure chosen. For example:
- BV/SRL: Private Limited Company
- NV/SA: Public Limited Company
Employee considerations
The Royal Decree of 18 June 2019, implementing new rules on knowledge requirements in the insurance sector.
Detail in the FSMA Registration Guide is provided on the fit and proper assessment, professional knowledge and related documentation are required for employees depending on roles and responsibilities including:
LIC is an FSMA accredited training provider: RDs and PCPs may register for CPD training provided by LIC.
Consulting industry professionals on Belgian employment laws is recommended.
Professional qualifications and training must comply with the professional knowledge requirements set out by the FSMA.
Detail in the FSMA Registration Guide is provided on the fit and proper assessment, professional knowledge and related documentation are required for employees depending on roles and responsibilities including:
- Suitability Questionnaire
- Police Certificate
- Proof of Qualifications
- Questionnaire AML/TF Legislation
LIC is an FSMA accredited training provider: RDs and PCPs may register for CPD training provided by LIC.
Consulting industry professionals on Belgian employment laws is recommended.
Professional qualifications and training must comply with the professional knowledge requirements set out by the FSMA.
Regulatory considerations
Lloyd’s Europe submits all Solvency II and statistical reports to the NBB.
No supplementary reporting from syndicates is currently required for the territory.
N.B reporting may be subject to change following ad hoc requests from the regulator.
No supplementary reporting from syndicates is currently required for the territory.
N.B reporting may be subject to change following ad hoc requests from the regulator.
Launch Crystal+Local Requirements
Annual contribution to the FSMA’s operating costs (amount determined in function of the size of the mediation activities) is managed through CABRIO the online platform.
Payment requests are detailed in the FSMA newsletter and sent individually and directly by email to the professional email address entered in the registration file.
Benefits of setting up a service company in Belgium, include:
- Strategic positioning, benefiting from proximity to EU institutions and regulators in Brussels.
- Language and geographical diversification provides base for efficient cross border operations.
- Belgium has an established SME & Mid-Market, underpinning consistent demand for commercial insurance.
- Regional economic hubs outside of Brussels including Antwerp, Ghent, and Liège, providing access to diversified industrial segments.
Belgian and IDD rules of conduct must be respected. Guide to the IDD rules of conduct can be accessed with the link (French).
Lloyd’s Europe provides operational guidance on complaints handling. This is available in the Belgian territory manual on Crystal+.
Key Requirements for setting up a Service Company
Registration with FSMA (Financial Services and Markets Authority) is mandatory for all insurance intermediaries. FSMA maintains the national register of intermediaries in insurance, banking, and finance.
CABRIO is the FSMAs online platform available for intermediaries to manage registration and compliance documentation
For EEA business, a passporting notification form must be submitted to the FSMA (including intended operations in EEA countries, services providing and any relevant directives). The notification will be forwarded by the FSMA to host countries regulators.
Mandatory professional liability insurance (PI) is required for (re)insurance intermediaries as per Commission Delegated Regulation (EU) 2024/896:
- Proof of insurance (template available for download at bottom of page) must be submitted to the FSMA in the form of a valid PI insurance certificate.
- Before providing proof of insurance to the FSMA, the PI insurance certificate needs to be shared with the LIC Corporate & Legal team for review via email: LloydsEurope.RegulatoryAffairs@lloyds.com.
- LIC template is available as recommended format for PI insurance certificate.
- Details for PI Insurance requirements and certification can be found in Crystal + in the following section: Distribution Channels – Intermediary Regulation.
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LIC Belgian Certificate of PI Insurance for Insurance IntermediariesLloyd’s registration process
Initiation
Co-ordinate with Lloyd’s teams to understand country interest, define service company and set timelines.
Register and setup
Managing agents will submit business plans and work with country managers for regional setup according to local regulations. In tandem the service company is registered on Atlas to complete necessary business and company details.
Due diligence
Managing agent’s maturity rating under PBO Principles is used to determine whether an Attestation or Decision Paper is completed, demonstrating satisfactory due diligence has been conducted.
Service Company Underwriting Agreement
Once all registration and set up requirements are met, formal service company underwriting agreement can be signed and service company can start trading on agreed date.