Types of companies in the Netherlands
The Netherlands is a member of the European Union, a big advantage for residents of EU states. The jurisdiction of the Netherlands fully supports foreign ownership with company formation. Economically speaking, the Netherlands is very competitive (rated in 2011 as the seventh economy in the world), having a rapid and prosperous development. An entrepreneur may choose a company type that best suits his or her needs, from various business entities.
Registration of Dutch Private Limited company (Besloten vennootschap – BV)
A limited liability company may be incorporated in the Netherlands by one or more individuals or legal entities, whether foreign or Dutch. There is no minimum capital requirement. The company’s shares are privately registered and may only be transferred through assistance from a Public Notary. The partners liability is limited to the extent of their contribution to the company’s assets.
Registration of Dutch Public Limited company (Naamloze Vennootschap – NV)
A public limited company functions the same as a private limited company, being formed by one or more individuals or legal entities, foreign or Dutch. However the minimum capital required is EUR 45.000; the shares are not registered and may be freely transferred to the public. The partner’s liability is limited to the amount of capital invested by each member.
Registration of Dutch General Partnership (Vennootschap Onder Firma – VOF)
The general partnership in the Netherlands can be formed by at least two members, Dutch or foreign residents, individuals or legal entities, on the basis of a partnership agreement. There is no minimum capital required, nor does a general partnership have legal personality. The partners are each jointly and severally liable for the obligations of the partnership to the extent of their personal assets.
Registration of Dutch Limited Partnership (Commanditaire Vennootschap – CV)
In the Netherlands the limited partnership is a special form of general partnership. There are two types of partners, active and limited, or sleeping partners. The active partners are the ones who manage the company being responsible for the profits and losses of the company, and also having full liability to the partnership’s obligations. The sleeping partners or the limited ones have limited liability to the extent of their contribution and do not interfere in the management of the company, provided that the partnership agreement does not state otherwise