Although Belgium is in the top five countries in Europe for attracting foreign investment, setting up a business and employing staff in the country is far from plain sailing.

A recent survey by the World Bank shows that the costs and paid-in minimum capital for launching a business in Belgium are higher than in most OECD countries.

That is one reason why Group S in Brussels, a payroll provider, now operates a Chinese-speaking division to make life easier for Chinese enterprises that are considering setting up operations in the country.

Since its launch, the "China Desk" has helped major companies, such as the Bank of China and the Industrial and Commercial Bank of China, deal with the many legal and aspects involved in operating in Belgium.

Much of the Chinese interest is focused on Antwerp, where the port benefits from the Chinese influx. No fewer than 16 Chinese companies have launched operations in the port city in recent times, including China Ocean Shipping Company, which has taken a 20 percent stake in the Antwerp Gateway container terminal.

At present, the number employed by Chinese firms in Belgium is relatively low - about a dozen at the Bank of China and 10 at ICBC, for instance. Even so, it is widely expected that these figures will steadily rise in the coming year, with Group S detecting increasing demand for its services from Chinese clients.

"In response to the growing number of inquiries about Chinese enterprises, we set up a division for our Chinese clients. It has already proved to be a great success," says Zhang Jinbao, from Xi'an, who runs Group's China Desk.

Depending on who you talk to, advice for anyone thinking of starting a business in Belgium ranges from: "Don't bother. It isn't worth it" to "Go for it." Everyone, though, agrees on one thing: Get professional support.

"That is where we step in", adds Thibaut Hugues, who runs the Group S international division.

"We can deal with the A-Z for a Chinese firm setting up here. Everything from requiring work permits to a thorough understanding of the local taxation requirements can be complicated and cumbersome.

"It is not easy either for foreigners to follow up on ever-changing social laws in this country. An error in implementation of social legislation can be very costly. We even have a case of a respected embassy that failed to do so and faced heavy fines from the Belgian authorities."

Payroll management services for Chinese clients include dissemination of documents in Mandarin, salary simulations and specific advice on issues such as the posting of workers, work permits and expatriate status.

"The main appeal is that it's a multicultural, multilingual country where many international organizations, such as NATO and the EU, are based," says Zhang, 29, who arrived in Brussels six years ago to study human resources at university and is now a Group S international payroll administrator.

"It has excellent transport connections and a high quality workforce."

Belgium had a reputation in the business community for cumbersome and overbearing red tape but, Zhang says, "things are improving for the would-be Chinese businesses. This was evidenced by a recent World Bank survey showing that the time needed to start a business here (three days) is much shorter than in the OECD economies (13 days)".

Favorable current exchange rates are another incentive for Chinese-based enterprises to come to Belgium.

Zhang's company, which has a 1,000-strong workforce and handles more than 450,000 pay slips a month for more than 80,000 customers, works closely with three other Belgian organizations - the Belgian-Chinese Chamber of Commerce; Flanders Investment & Trade, which oversees the activities of Flemish companies in China; and AWEX, the Walloon foreign trade and investment agency, which has an office in Wuhan in central China.

Their job is to attract Chinese and other investment to Belgium. At the height of the financial crash in 2009, that was a tough ask but, says Zhang, Chinese companies are increasingly considering having a presence in the Belgian market.

One of their big challenges is taxation.

"Belgium is a high-tax country, and that can make it quite expensive to run a business here, mostly because of the high labor costs," Zhang says. "We hear from some overseas clients that this is a major concern. You might be surprised at how little potential investors from China, and elsewhere, know about the Belgian system."

But there are ways to help cut such costs.

"For example, if I pay someone a gross monthly salary of 2,000 euros, out of this they will pay 13 per cent in social security and up to 38 per cent in tax. But I, as an employer, must contribute to the social security payments so, in real terms, the salary is quite a bit higher, more like 2,700 euros.

Group S, a payroll provider in Brussels, has opened a Chinese-speaking division to make life easier for Chinese businesses. Provided to China Daily

(China Daily 11/11/2013 page14)