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Registration of an LLC (BV) in the Netherlands

In the Netherlands, a limited liability company (LLC) is called a “Besloten Vennootschap” or its shortened form “BV”.

The BV is one of the forms of business entities in the Netherlands and is popular among foreign entrepreneurs as it provides a certain level of flexibility and limited liability.

The Besloten Vennootschap (BV) in the Netherlands has several advantages that have made it a popular form of business organization.

Let’s take a closer look at them.

  • Limitation of liability: One of the main advantages of a BV is that the owner (or owners) is not personally liable for the company’s Liability is limited to the authorized capital.
  • Privacy of owners: Information about the owners of a BV is not public and is not listed in the register, ensuring a high level of
  • Transfer of shares: BV shares can be easily transferred from one owner to another, providing flexibility in property
  • Tax advantages: The Netherlands has a tax system that can be beneficial for entrepreneurs, particularly international

While the Besloten Vennootschap (BV) has many advantages, there are also some disadvantages to consider when considering this form of organization in the Netherlands:

  • Minimum share capital requirements: Although the amount of the share capital for a BV can be symbolic, there is a requirement for a minimum amount (usually €1). This can be an important factor for some
  • Publicity of financial information: Determined by the level of the authorized capital, the financial information of a BV is subject to mandatory submission to a public register, which may increase the level of
  • Specific reporting requirements: A BV must comply with specific reporting and management requirements, which may require additional resources and

In the Netherlands, any natural or legal person, regardless of citizenship or location, can be a founder of a BV; it does not matter whether the person is a resident of the Netherlands or another country.

Important: A BV can have one or more members, and there may be a limit on the minimum and maximum number of members in the company’s articles of association. Individuals and legal entities can combine their efforts as shareholders of a BV.

Shareholders are entitled to hold shares in the company, and their rights and obligations may be defined in the BV’s articles of association. In the case of a multi-member BV, rules on share transfers and majority decision-making may also be established.

The registration of a Besloten Vennootschap (BV) in the Netherlands involves several general steps, in particular:

  • Defining the company name (it must be unique);
  • Creating a constituent document;
  • Determination of directors and shareholders;
  • Preparation of all necessary documents;
  • Registration with the Chamber of Commerce (Kamer van Koophandel);
  • Obtaining a tax number from the tax service;
  • Opening a bank account;
  • Inclusion in the register of VAT payers (if your business will carry out VAT transactions).

Note: the corporate tax rate in the Netherlands is 25%.

The time required to register a BV in the Netherlands may vary depending on several factors, such as the total time spent at the chamber of commerce, preparation of the necessary documents, processing of the application for registration, and other circumstances. However, in general, the process can take several weeks.

Approximately, this process can look like this:

  • Preparation of documents (1-2 weeks): You may need time to draft the articles of incorporation, collect other necessary documents, and prepare all the necessary
  • Visit to the Chamber of Commerce (1-2 weeks): The time it takes to visit the Chamber of Commerce to submit documents and obtain registration may vary, depending on their own productivity and
  • Obtaining a tax number (1-2 weeks): The process of obtaining a tax number may take some time; it may also be affected by the working hours of the tax

In general, registering a BV can take from several weeks to months. It is important to have all the steps and documents precisely defined to avoid delays.

Therefore, it is recommended to consult with a legal and tax professional before deciding to set up a BV to ensure that the form meets the specific needs and goals of your business and to make your incorporation process more efficient and quicker.

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