In the Netherlands, a BV or Besloten Vennootschap is similar to English Ltd or the German UG company. The common traits of the Dutch BV are a minimum share capital of a certain amount of euros. The shareholder is generally liable only for the amount paid as share capital. Issuing or transferring shares requires permission from the shareholders. Generally, these shareholders are registered in the Dutch company register.
The basics of setting up a Dutch BV
To set up a Dutch BV, it does not matter if the founding members are foreign companies or even individuals. Dutch company law allows the newly set up Netherlands BV to be formed with one or more directors who may also be shareholders. The most well-known advantage of setting up a Dutch BV company instead of a Dutch NV company is the minimum share capital. Having a local Netherlands business address is also one of the main requirements to set up a Netherlands BV or Dutch limited liability company.
Main steps of registering a Dutch BV
Generally, a public notary is required to draft the articles of association. The official documents, which will be in Dutch, should contain the following information:
- The management board
- The company’s business activity
- The share capital and registration address
Once the Articles of Association and the Formation Deed are drafted, the actual procedure for registration will start. The main steps when it comes to registration are as follows:
- Verifying the availability of the company name and reserving it
- Collecting due diligence documentation to send to the incorporation age
- Getting yourself registered in the commercial registry of the Netherlands
- Registering with tax authorities
- Depositing the company capital or opening a bank account
- Commencing the business operations
How to open a bank account for a Dutch BV
For any Dutch BV, it is necessary to have a corporate bank account. The bank account can be created once the company is set up. Once the bank is incorporated, the company capital may be transferred. The bank account is essential for all day-to-day operations of the company. It is also required for the share capital deposit. To get a Dutch bank account, it is recommended to set up a Netherlands BV company. In several cases, the company bank account is even opened remotely.
For most kinds of businesses, it is greatly recommended that registration be performed. With an active VAT number, the company is not required to charge any VAT for transactions between European member states. The VAT paid in the costs of the businesses (such as rent, purchase of stock, and inventory) may all be claimed back by the company.
Dutch BV business permits
Some company activities require permits or licenses granted by the government or supervising authority. Mostly these licenses can be arranged easily. The most difficult licenses are the ones in the financial services or payment industry.
- Employment agencies require to be licensed with a branch organization
- Crypto platforms may not require licensing depending on their business activity
- Import or export companies will require an EORI registration which can be accomplished in one to two weeks
- Some types of shops are regulated, such as night stores
- Food and cosmetic businesses need licenses that comply with health codes and consumer protection
- Transport companies
The Netherlands BV is a very competitive entity. It has many advantages and can be used for several purposes. Visit this website for more information.