Abolition of professional competence in Flanders: the consequences at a glance

In accordance with the Establishment of Businesses Act, every SME, natural person or legal entity wishing to engage in a commercial activity must prove the necessary entrepreneurial skills. For most professions, a basic knowledge of business management is sufficient but for a number of others, specific professional competence is required. This is in contradiction with European legislation that states that every European should be able to start a business on an equal basis in every Member State. A number of regulated professions are therefore being abolished.

From 1 January 2018, a number of regulated professions are to be abolished (with exception of the construction sector and the regulated activity of refrigeration fitter). The abolition only applies to Flanders.1

This applies to especially professional competence with respect to the following:

  • Butcher - wholesaler
  • Dry cleaner – painter
  • Restaurateur/caterer – banquet organizer
  • Bread and pastry cook
  • Hairdresser
  • Beauty specialist
  • Masseur
  • Chiropodist
  • Optician
  • Dental technician
  • Funeral director
  • Butcher – pork butcher
  • and the regulated activities relating to bicycles and motor vehicles 

The Establishment of Businesses Act continues to apply in the Brussels Capital Region and the Walloon Region. This therefore also applies to the regulated activities that were abolished in Flanders. In the event of a lack of consensus between the Regions as to a new criterion, the address of the registered office or the domiciled address will determine whether a company is required to demonstrate professional knowledge.

Example
A company with its registered office in the Brussels Capital Region but the address of a business unit in Flanders will still need to demonstrate professional knowledge. A company that has its registered office in Flanders but later moves to the Walloon Region will have to demonstrate professional knowledge from that moment on.

Tip
For traders and test drive plates, the combination of professional work with Nacebel codes is no longer applied. Only the Nacebel codes will apply. Every company still has to provide the basic knowledge of business management and this applies to the three regions .For Flanders, the business management will normally be abolished with effect 1 September 2019.

In the situation in which the professional competence is proven by an employee of the company, the name of the employee who also bears responsibility for the technical execution of the work is linked to the company at the Crossroads Bank for Enterprises (CBE). The name of the employee remains linked to the company after the abolition of the professional competence in the CBE and perhaps that is not what the entrepreneur wishes. A file must be submitted to the business counter to this effect.  

1. 2017-07-14 - Decree of the Flemish Government to repeal Royal Decrees concerning the professional competence of butcher-wholesaler, dry cleaner-painter, restaurateur or caterer-banquet organizer, bread and pastry cook, hairdresser, beauty specialist, masseur, chiropodist, optician, dental technician, funeral director, butcher and pork butcher and with regard to the exercise of independent activities in relation to bicycles and motor vehicles. - BOG 2017-08-09

7 consequences of incomplete registration
The importance of correct registration in the crossroads bank for enterprises in 2019
Each company has its unique registration in the Crossroads Bank for Enterprises (CBE). However, businesses often forget to keep this registration up to date. This may have unpleasant consequences. The CBE is a register managed by the Federal Public Service Economy in which all basic information about companies and their establishments is kept. The CBE centralises the basic information about com
Are they 50% or 100% deductible?
Reception costs of a publicity event are only deductible in part
According to the letter of the law (art. 53, 8° of the Income Tax Code (WIB), reception costs incurred during a business related event are only 50% deductible. For some time already, there have been ongoing discussions concerning the question whether or not this limited deductibility likewise applies when the reception costs are incurred within the context of a publicity event.  And do these
Not as obvious as many people think
Restructuring? Think about your directorships
The restructuring of a company involves many aspects. An element that is often forgotten is the directorship positions held by the acquired company in a number of other companies. The question is what will happen with these directorships once the company holding them disappears as a result of a merger or division. In many cases, the intention is that these directorships will continue uninterrupted
This year it will be more likely that people will need to respond
Simplified declaration proposal? Check it thoroughly and respond in good time!
The number of simplified declaration proposals has been on the rise for several years now. This year, more than 3.2 million Belgians will receive such a proposal. If nothing needs to be changed, you do not need to respond either. However, if something does need to change (i.e. the Tax Authorities hold incorrect or incomplete data), then you must respond in good time. This year,
Also companies are required to follow the procedure
Conflicts of interest in the new Companies and Associations Code
The new Companies and Associations Code (CAC) entered into force on 1 May 2019. The CAC provides for broader and stricter regulations concerning conflicts of interest that may arise within an organisation. Broadening the scope of regulation means that the directors of cooperative companies, non-profit organisations (ASBL/VZW) and foundations&n
Important things you have to know
Some do’s and don’ts when making a bank donation
The bank donation is still a very popular way of donating money by bank transfer. This is not surprising: if it is carried out according to the rules of the game, the bank donation is a valid donation, without (too much) red tape and without incurring gift tax. However, there are a few rules that threaten to spoil the game if they are not followed correctly. Hence some tips that you should keep in
The further course of the relationship between the UK, the EU and the EEA
What impact will Brexit have on your corporate income tax?
For the time being, the United Kingdom (UK) is still part of the European Union (EU) and the European Economic Area (EEA). The UK has since been given until 31 October 2019 at the latest to implement Brexit. This means that cross-border transactions with the UK continue to fall within the scope of EU directives. However, after Brexit, the UK will no longer be able to rely on these directives. This
Less strict circular for catering sector
New circular regarding the VAT rate for restaurant and catering services
On 1 January 2010, the VAT rate for restaurant and catering services was reduced to 12%. This rate only applies to food. Drinks (including non-alcoholic beverages and coffee and tea) are still subject to the standard VAT rate of 21%. On 23 December 2009, the administration published an explanatory note in which it detailed how an overall price for a menu (including drinks) needed to
From now on, also 'high' fixed cost deductions for self-employed persons
Personal income tax return form AY 2019: several new features explained
From now on, also 'high' fixed cost deductions for self-employed and other changes  The new personal income tax return form for assessment year 2019 was published on 7 April, the starting shot for the annual tax return race. For the Flemish tax return, "only" 6 codes have been added, and for the Walloon and Brussels tax returns, "only"
Does the new definition of a company have any consequences for your organisation?
Broader requirements for registration with the CBE - clarification for unincorporated companies
In a previous article, we explained that the introduction of a definition of 'company' in the new Companies and Associations Code (CAC) also affects the registration with the CBE (Crossroads Bank for Enterprises). In this article, we will discuss in more detail the registration obligation for unincorporated companies.  Consequences of the broader definition of a company  With the new

Subscribe to our newsletter