Private limited company
The private limited company (BV, besloten vennootschap in Dutch) is suitable for businesses that make a considerable profit. The requirements for starting up a BV are more stringent. For example, a notarial deed is required for the setting up of a company. The BV has advantages compared with sole proprietorship in the field of (limited) liability and fiscal advantages in the event of high profits.
Discipline specific
Who is involved?
A BV has shareholders and personnel. The director is employed by the BV and acts on its behalf. The shareholders are the boss. A BV need not consist of several persons: one person can be the sole shareholder and the only personnel member: the director.
Who disposes of the capital?
A BV is a company in which the capital is divided into shares. The shares are in the hands of the shareholder(s).
Who is liable?
The BV is a legal personality eith legal entity with the same juridical status, rights and obligations as a natural person. The BV itself is considered as an entrepreneur, the shareholder(s) and/or director are in principle not personally liable.
The BV in the theatre world
The BV is used by theatre makers with a high turnover. For tax purposes it is then often advantageous to operate from a BV. In that case the fact that the criteria for establishing a BV are fairly demanding and cost more than sole proprietorship is of lesser importance.