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.

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 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.