The availability of the concessions provided by Royal Decree 187 is not automatic. These concessions are only granted on the basis of a written request followed by a favorable decision by the Ministers of Finance, Economic Affairs, Employment and Labor, and Middle Classes.
The request for recognition should contain a detailed description of all the activities of coordination and centralization which are intended for the Belgian center. Applicants are encouraged to include even activities which are not planned for the beginning stages of operations but which might be added later on.
The written application is carefully examined by a working group consisting of representatives of the four ministries. Any difficulties encountered by such review, such as vagueness or non-compliance with the legislation, can be discussed with the applicant. If necessary, applications may be revised in order to eliminate such problems.
Once the working group is satisfied that all conditions are met for approval as a coordination center, a formal decree of recognition is prepared for signature by the King and the four Ministers. This decree of recognition constitutes in effect the operational charter for the coordination center during the period it benefits from the concessions of the legislation.
The recognition of a center is granted for a ten-year period. The center may apply for a renewal of its status for successive ten-year periods. The renewal will be granted if (i) a new application is filed in the same form as the original application, and (ii) the center and the group of companies to which the center belongs fulfill at the time the new application is filed all of the requirements then applicable.
The content of this article is intended to provide general information on the subject matter. It is not a substitute for specialist advice.
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