In the Netherlands, there are various forms of business entities to choose from. The most common types of business entities are:
Sole proprietorship: This is the simplest form of entrepreneurship where an individual is the sole owner of the company and personally liable for all debts and obligations of the business.
Private limited company (BV): A BV is a legal entity with shareholders. The capital of the BV is divided into shares. Shareholders are generally not personally liable for the debts of the BV.
Public limited company (NV): An NV is similar to a BV but has a more complex structure. An NV can be traded on the stock exchange and has specific rules and requirements.
Partnership (VOF): This is a partnership between two or more individuals where each partner contributes to the business with money, goods, or labor. All partners are personally liable for the debts of the partnership.
Limited partnership (CV): A CV is similar to a VOF but has two types of partners: general partners and limited partners. General partners are personally liable, while limited partners are only liable up to the amount of their investment.
Cooperative: A cooperative is a business entity where multiple individuals or companies collaborate to pursue common interests. Members of the cooperative have decision-making power and share the profits.
Additionally, there are other forms of business entities such as foundations and associations, but these are more oriented towards nonprofit activities and have specific rules and objectives.
It is important to emphasize that this is only a brief overview and that each business entity has its own legal and fiscal implications. By clicking on the links below, you will find more information about a specific business entity. If you would like more advice on which business entity suits you best, please contact us.