Did you know that 31% of companies' NACE codes are false or irrelevant ?

When registering with the Belgian National Bank (BNB), companies are asked to describe their activities, and are assigned a NACE code. This code defines the company's core business for the duration of its existence, although it is possible to change the NACE code at any time.

This code is used in many countries, including Belgium, to collect statistical data, facilitate the search for company information and determine eligibility for certain regulations or tax benefits.

However, it is not uncommon for this code to be false or erroneous. According to Inoopa's artificial intelligence analysis criteria, 523,350 NACE codes are false in Belgium… out of 1,662,194 companies. That's 31% of the companies concerned.

Saying they are false means that they do not correspond, or no longer correspond, to what the company actually does. There are several reasons for this. Either the company has described its business incorrectly, and therefore falls into the wrong NACE code category. Or its activity doesn't exist in the NACE code nomenclature (this happens for very specific companies or those based on new technologies). Or its activity has evolved along the way and it has "pivoted".

Why is this problematic ?

Firstly, it distorts the statistics drawn up by the Belgian authorities, who use them to take stock of certain sectors of activity and, in this way, monitor the Belgian economy.

Secondly, they are used for commercial prospecting. NACE codes can be used to quickly identify a company's sector of activity. When a company is registered with the appropriate NACE code, it becomes easier for potential business partners, customers, suppliers and investors to find information about that company.

But it can also be annoying for the company itself. By not being listed with the correct NACE code, the company's business could stand out from others in the sector and alert services such as VAT and RSZ/ONSS…. This could lead to stricter controls.

Moreover, certain tax advantages, for example, may be specific to certain business sectors. If you don't have the right NACE code, you run the risk of not benefiting from them. Remember: it was on the basis of the NACE code that, in the midst of the COVID crisis, hospitality companies were able to obtain support premiums…