What Is a BV in the Netherlands? | Dutch Private Limited Company Guide

FREE INITIAL CONSULTATION

BUSINESS LAW EXPERTS

24-HOUR RESPONSE TIME

100% SATISFACTION GUARANTEED

What is a BV in the Netherlands?

A BV (Besloten Vennootschap) is a Dutch private limited company with legal personality. This means the company itself—not the individual shareholder(s)—is generally liable for its debts and obligations. The BV is the most commonly used legal structure in the Netherlands, popular among both domestic and foreign entrepreneurs looking to establish a limited liability company.

How To Establish A BV Company Netherlands

We can assist you in Netherlands Company Register questions or any of the procedures you may need. Our team has supported hundreds of business entrepreneurs in starting a Netherlands BV company. You can perform the procedure from a distance and it only takes five work days.

To establish a BV in the Netherlands, the company must be incorporated through a notarial deed, which requires the signature of a notary. Afterward, the BV must be registered with the Dutch Chamber of Commerce (KvK), which grants the company its legal status. The entire process can be completed remotely, and the setup generally takes just five business days.

In the Netherlands, a BV company is an entity with limited liability. The minimum share capital required for setting up a BV is €0.01, following the relaxation of the capital requirements in 2012. Therefore its setup involves a very low investment.

One important characteristic of the BV company in the Netherlands is that its directors and shareholders do not carry personal liability with respect to the entity’s debts.

For foreign entrepreneurs, a BV offers several advantages. The Dutch BV structure is internationally recognized, making it easier for businesses to operate across borders. It provides a flexible corporate structure, allowing for a wide range of ownership and management arrangements. Additionally, the Netherlands offers favorable tax conditions, including access to various tax treaties, making it an attractive location for international businesses.

FAQ's

What is a BV in the Netherlands?

A BV (Besloten Vennootschap) is a private limited liability company in the Netherlands. It is one of the most popular business structures used by entrepreneurs who want to limit their personal liability while conducting business. A BV is a separate legal entity, which means it can own property, enter contracts, and be liable for debts separately from its shareholders.

What does BV stand for in Dutch?

BV stands for 'Besloten Vennootschap', which translates to 'Private Limited Liability Company' in English. It is a legal structure commonly used by entrepreneurs who want to set up a business in the Netherlands while protecting their personal assets from the company’s liabilities.

What is the liability of BV shareholders?

Shareholders of a BV are only liable for the amount of money they have invested in the company, meaning they have limited liability. This means that their personal assets are protected from business debts or claims, as long as they have not provided personal guarantees for business loans.

Who can set up a BV in the Netherlands?

Any individual or legal entity, both from the Netherlands and abroad, can set up a BV in the Netherlands. There is no requirement for the founders to be Dutch residents, and they can be from any country within or outside the European Union. The minimum share capital required to start a BV is €1.

Our Recent Clients

Taxes Relevant For A BV Company Netherlands

Dividends can be taken by the shareholders of the BV company Netherlands. The rate of dividend tax is determined by the country of registration of the shareholder and the existence of tax treaties between this country and Holland. The Netherlands has signed more tax treaties than any other state worldwide. You can ask us to check whether such treaties exist between the Netherlands and any other country of your choice. We know from experience that the tax rate with respect to dividends determined by such treaties is relatively low.

The profit rather than the revenue of a BV company is taxable. The tax with respect to the first EUR 395 000 of annual profit is only 15% and the tax rate increases to 25,8% for the amounts above this threshold.

Frequently Asked Questions
On Incorporating Dutch Company

Can I incorporate a Dutch BV remotely?

Yes. Foreign entrepreneurs may incorporate a Dutch private limited liability company without having to visit The Netherlands. This can very easily be done by granting a power of attorney to our staff. You can send many of the necessary documents via email, only some documents require that you send them via regular mail since they need to be legalized with an apostille by a public notary in your home country. In most cases, the incorporation process takes between 3 and 5 business days. Only when a company exceeds certain limits in terms of profits and/or number of employees does a slightly different procedure apply. Therefore, there is almost never any need for you to physically travel to the Netherlands. If you also want to apply for a visa or permanent citizenship, please contact us for more in-depth information.

Can anyone establish a Dutch company, no matter where they are located?

Yes. The Netherlands is a country that is fully open to foreign investors. Any person of any nationality may become a director/shareholder of a Dutch private limited liability company and set up a Dutch BV. Keep in mind, though, that you might need some permits in certain cases, depending on the type of company and your country of origin. If you also plan to move to the Netherlands, then you might need more permits and/or a visa. If you are currently residing in an EU country, there are no restrictions or special conditions that apply to the registration procedure whatsoever. If you, however, reside in a country outside the EU, it might be necessary that you obtain some permits.

Which is the best structure for company formation in the Netherlands?

If you want to establish a Dutch BV, there are multiple options available to you. You can establish a single BV company, which is also known as an operating company. This is the most logical choice for (small) start-ups, as the formation costs will be relatively low, and the procedure is also simplified. If you already own a company in your own country, you can establish a subsidiary that will fall under the scope of your current company. This subsidiary will nonetheless be a legal entity in the Netherlands, with all the rights and obligations of a regular BV. In addition, you can also choose to establish a holding structure in the Netherlands, in which you place one or more operating companies under the umbrella of a holding BV. This will enable you to benefit from certain tax regulations, keep your profits safe, and invest money in a tax-friendly way in your subsidiaries. Feel free to contact us for personal advice on this topic.

Are company formation fees in the Netherlands tax-deductible?

All costs you have incurred for a company from a business perspective are deductible. This also includes costs incurred with the clear intention of setting up a business, i.e., the costs that you incurred before you started the business. These costs can vary enormously, such as the price for a market survey, obtained advice and general costs and fees, such as the notary fee when setting up a Dutch BV. Once you are considered an entrepreneur, you can, under certain conditions, deduct the VAT you have paid as input tax from your sales tax return. It is also possible for you to use the special arrangements for entrepreneurs for income tax purposes with retroactive effect. So, keep all invoices and also keep the correct administration, because that is the only way you will be able to file a VAT tax return.

Can I open a Dutch bank account?

Certainly, our company will guide you through opening a Dutch bank account. In many cases, the bank account can be opened even remotely. You will need to establish the company before you open the bank account, though, to prove why you are opening a Dutch bank account. You will also need to provide a valid registration address when applying for a bank account; otherwise, chances are that the bank will decline the application. In most cases, you are obligated to open a Dutch bank account for financial and tax-related reasons.

What are the costs of opening a BV in The Netherlands?

An incorporation is possible for €1.499, depending on your specific requirements and wishes. The costs vary depending on the type of company you choose and whether you also want us to perform extra services, such as opening a bank account, or if you wish to have assistance with your VAT application and accounting services. Next to that, the size of your company and the mount of directors also play a significant role in calculating the exact costs. Furthermore, if you need permits or visas, this will also increase the amount of money you will have to pay to register your company in the Netherlands. Please contact us directly for a personalized quote tailored to your future Dutch business.

The businessman puts a stamp on the contract

Need more information on Intercompany Solutions?

Ready to discuss your needs and thoughts? Contact us and our team will be ready to assist you in your journey to the Netherlands.

What Is a BV in the Netherlands? | Dutch Private Limited Company Guide

What is a BV in the Netherlands?

How To Establish A BV Company Netherlands