Importance of the financial plan within the framework of the new Companies and Associations Code (02/05/2019)

In the private limited company (“e.g.”) which replaces “e.g.”, the concept of capital has been deleted. It is therefore no longer necessary to have a mandatory minimum capital of EUR 18,550 when the company is incorporated. On the other hand, the founders must provide sufficient initial capital for the activity that the company wishes to develop. In exchange for the abolition of the mandatory minimum capital, the legislator requires a more detailed financial plan.

The minimum content of the new financial plan is determined by the new Company Code itself and consists of 7 parts:

  • a detailed description of the planned activity;
  • an overview of all sources of financing at the time of incorporation (with an indication of the guarantees given);
  • an opening balance sheet drawn up in accordance with a schedule to be determined by the King and expected balance sheets after twelve and twenty-four months;
  • an expected profit and loss account after twelve and twenty-four months, drawn up in accordance with a schedule to be established by the King;
  • a budget of expected income and expenditure for a period of at least two years from the date of incorporation;
  • a description of the assumptions taken into account when estimating the projected turnover and profitability;
  • if applicable, the name of the external expert who assisted in drawing up the financial plan.

The legislator’s intention was not to make it compulsory for an economic operator to draw up the financial plan (so as not to increase formation costs). In practice, however, it is very likely that due to the increased complexity of the financial plan, it will be necessary to call on the services of an accountant, because only an economic professional will be able to draw up a financial plan in a qualitative manner.

Although a minimum capital requirement remains for nv’s, a financial plan must also be drawn up in this case in accordance with the above scheme in 7 sections

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