With Local Knowledge, Louise Hilditch is helping others get established in Brussels

Have you ever had a brilliant business idea but didn’t know how to make it happen? Maybe you’re tired of your employer and dream of establishing your own company in Belgium. Or are you already running a business but struggling to keep afloat on the tide of paperwork? If you answered yes to any of these questions, then Louise Hilditch and Julie Kolokotsa from Local Knowledge are here to help.

Hilditch is an entrepreneur at heart and has lots of experience working in Brussels. She first came to Belgium more than 20 years ago. Initially she worked in the European Parliament, then for a major multinational food corporation, before co-founding her own public affairs consultancy with business partner Kolokotsa. She gave that up to work for an international development NGO leading their EU affairs for more than 10 years. A former chair of the British Chamber’s Business in Belgium Group, and of its sustainability and shared value task force, she is also involved with Bruxelles Pionnières, a local group that supports women starting out in business.

This would have kept anyone busy, but Hilditch and Kolokotsa spotted a gap in the market. To help small businesses and organisations get started in Belgium, they established Local Knowledge in 2008. Their goal was to create a one-stop shop where expats and Belgians who want to open a business or set up an NGO could get advice on the most appropriate legal and tax structures for their venture through a network of local partners that they themselves established. Local Knowledge themselves help with all the necessary paperwork when you’re starting up. Once you’re established, Local Knowledge can offer services such as financial guidance, secretarial support, HR assistance and marketing advice.

Saving you time
Local Knowledge’s clients are an equal mix of corporate and non-profit organisations from across the world. While they also have some Belgian clients, the bulk are non-Belgian. “Every country has its own way of doing things that seems natural to locals but less so to expats," Hilditch says. "You can waste days trying to work out the right requirements and the right order in which to get things done. We set out to save people the time we had spent messing around setting up our own first business together.

“Belgium is a great place to live and work,” she adds. “I’m a great enthusiast, but we as expats sometimes take it for granted. I really want to encourage people to set up their business here. I know there’s always talk about the complex tax system and the heavy Belgian administration, but on the whole I’m very positive about it and I’d like to transfer that enthusiasm to other people.”

Establishing an office in Brussels and running it successfully can give anyone both an adrenaline rush and a heart attack. Hilditch offers some good advice to minimise the shock. “Allow more time than you planned to get yourself up and running. Be systematic and organised.” She also warns potential entrepreneurs not to rush into a new venture. “Don’t set up your business too soon. You need to ensure you have enough revenue to make your social security contributions, and pay other one-off and ongoing costs before formalising everything.”

Hilditch and Kolokotsa have just published the second edition of their book, Local Knowledge Guide to Setting up and Running your Business in Belgium. It covers starting a business, choosing the most appropriate structure, finance, incentives linked to employment and making the most of your suppliers. Though packed with useful information, the guide is very compact at 120 pages. “We wanted to make it very practical,” says Hilditch.

Which legal entity is right for you?
Chapter by chapter, the book outlines the decisions you need to take and the legal obligations at every stage of the process. Whether you want to establish yourself as a freelancer or business or set-up a non-profit organisation, Hilditch and Kolokotsa distil the advantages and disadvantages of each form of legal entity for businesses in Belgium. This will enable you to choose between ‘solopreneur’ (solo entrepreneur) status, public limited company, private limited company (incorporated by one or more people), or branch office status. There is a useful table that compares the key requirements of each legal option. The book also provides a word of warning on the basic competences required to manage your own business in Belgium, which is often an obstacle for expats from outside the EU.

The Belgian tax system is renowned for making even the most experienced entrepreneur dizzy. Fortunately, Hilditch and Kolokotsa have included a useful introduction to the tax system, a list of what business expenses are legitimately deductible and a brief guide to the VAT system. Needless to say, finding a good accountant who can guide you both at the start and when you’re running the business is critical. The book offers a list of useful questions you can ask a potential accountant when you’re shopping around for an advisor.

To help people understand Belgian social security and employment laws, the book includes a comprehensive and conceptual framework. Hilditch also offers advice on how business owners can manage the complex task of hiring and retaining top talent while running a flourishing company.

You will also find information on social insurance funds, an explanation of how contributions are calculated and when they need to be paid, and valuable guidance on the legal requirements of employing staff. A series of handy tables will help you calculate the net package employees will expect each month and the cost to your business of providing it. You will also find a clear explanation of the legal requirements involved in recruiting staff from within and outside the EU, and an outline of the criteria you must fulfil to benefit from Belgium’s expatriate status.

Hiring staff
For those put off hiring anyone at all, the book outlines the incentives available from both the federal and regional authorities to encourage employers to hire staff. A summary of the benefits of the different worker categories is included and some examples of the support available from the authorities are showcased.

Throughout the book, Hilditch and Kolokotsa have been able to strike a careful balance between depth of coverage, practical information and ease of learning by including comparative tables and lists of pros and cons. An English-French-Dutch glossary of useful business terms and a list of essential links and useful addresses are also included.

Louise Hilditch also co-founded the Full Circle club with her friend Bridie Nathanson in 2013. Based in Brussels, Full Circle aims to bring together a high-level, eclectic mix of people who are interested in exploring new ideas and who have the power to implement change in their spheres of influence. Hilditch invites international speakers from all walks of life to present their ideas and spark debate among Full Circle’s members. The club also hosts lunch workshops and events for young professionals. Venues vary from exhibition spaces to art galleries, and members are only informed of where each event is taking place 48 hours in advance.

Local Knowledge Guide to Setting up and Running your Business in Belgium costs €22 and is available from many bookshops in Brussels including Cook & Book, Filigranes and Waterstones. 

This article was first published in The Bulletin Business Guide 2015