Incorporating a bv

The high-tech Eindhoven region is home to a great many companies, and Schäfer Notarissen has played an important role in the incorporation of many of these.

Coordination of company incorporation
There are many different types of business enterprise. One of the most common is the private limited company, called a besloten vennootschap in Dutch and abbreviated to bv. When a bv is being formed, a civil-law notary almost always acts as a coordinator between the client and the various experts involved in the formation of the company.

A bv offers tax advantages, but the main reason for opting for this type of business enterprise is usually the limited liability of the entrepreneur involved.

Starting a limited company on your own or with others
You can start a limited company on your own or with others and will need to engage a civil-law notary for the incorporation of your company. A notarial deed is drawn up, stating how many shares each of the company’s founders gets. Each share gives its owner one vote at any meeting of shareholders.

What about profits? Any profits are distributed to the shareholders in proportion to the number of shares held: the more you own, the higher the dividend you receive. Non-voting shares and shares that do not share in the profits are also options.

Bv and tax matters
How is a bv taxed? In the Netherlands, private limited companies are subject to VAT rules. Any bv that employs staff will also need to deal with payroll taxes. If you are the bv’s director and major shareholder and receive a salary from the business, the same tax rules apply to you as to other employees. The bv is your employer and deducts payroll taxes from your salary. So, in other words, you pay income tax, just like any other employee.

Keen to find out more about starting a business? Our civil-law notaries in Nuenen and Eindhoven will be happy to provide all the information you need.