Starting a company in the Netherlands is a popular choice for entrepreneurs. The country offers access to the European market and a highly developed physical and tech infrastructure as well as liberal Dutch culture. Setting up a BV (besloten vennootschap) enables you to operate your business as a legal personality. This protects your private assets from debts of the company.


A BV (besloten vennootschap) is a legal entity with its own identity that is separate from you as an individual. It is possible to set up a BV on your own, or with other people. The BV is run by directors, who make decisions on behalf of the company. You can also be both a shareholder and director, in which case you will be considered an employee of the company.

The BV pays corporate income tax on its profits. It can reserve these profits or distribute them to shareholders. A profit distribution can only occur if the equity of the BV is larger than the statutory reserves. The BV needs to register for Value Added Tax (VAT) and the Chamber of Commerce. This normally takes 2-3 weeks. Moreover, it is important to have an accountant for the BV and to prepare financial statements. In addition, the BV will need to have a bank account in the starting a company in the netherlands.

Shareholding Structure

The BV (Besloten Vennootschap) is one of the most popular legal entities in the Netherlands and is equivalent to a private limited company. It is the most suitable legal entity for entrepreneurs who want to limit their personal liability and are looking to reinvest profits. BVs are required to have a nominal share capital, which is the amount of money that founders pay into the company at its incorporation. The founding shareholders’ personal liablity is limited to this amount. The BV can then be declared bankrupt if it has not reported income or paid taxes within three years.

A deed of incorporation and articles of association must be drafted and signed before a notary. This will include information about the registered address, authorised capital, management board and shareholders. It takes up to a few weeks for the BV to be registered and receive its CIT number. Afterwards, the tax authority can be contacted to request a VAT number.

Registration with the Chamber of Commerce

The Netherlands is a great place for entrepreneurs to open their own company. It has an excellent business environment and is a top English-speaking country in the EU. However, opening a business in the Netherlands is not without its challenges. The country has many rules and regulations that must be followed, particularly for foreigners.

To avoid costly registration fees and taxes, it is best to register a Dutch BV as a closed corporation with limited liability. This type of corporate structure is also a good option for small businesses. A BV can be set up by one person or with others, and its ownership is divided into shares. A BV is run by its directors. Its profits may be reserved for future expenses or distributed to shareholders. When setting up a Dutch BV, it is important to consider local laws regarding business structures and corporate tax. Our firm will carefully review your situation and provide personalised advice on the most appropriate entity to meet your needs.

Legal Advice

The Netherlands is a very popular country for business formation and offers many incentives to international entrepreneurs. This includes the low corporate tax rate and a friendly attitude towards foreign investors. However, there are some costs that need to be taken into account when starting a company in the Netherlands. These include registration with the Dutch Chamber of Commerce and employers’ insurance contributions. The BV is the preferred legal entity for most companies in the Netherlands because it has separate legal personality and thus its own liabilities. Its directors are also not personally liable for its debts.

In addition, creditors cannot claim private assets if the BV becomes bankrupt.

Another advantage of the Set up Dutch BV is that it can easily change into an NV. This can be done by amending the articles of association and having a deed of conversion drawn up by a civil-law notary. However, this must be done before the BV has any equity, or else it will be treated as an end of one company and start of another.


The BV (besloten vennootschap) is an incorporated company with legal personality. This means creditors cannot claim your private assets if the company goes bankrupt. The BV can hire employees and must pay payroll taxes and social security contributions for them.