Setting Up a BV
BV (Besloten Vennootschap) is a Private Company with Limited Liability.
The BV has corporate body class, thus limits obligations to the proprietor(s) and registration with the Chamber of Commerce is essential. The BV is viewed as the businessperson, while the individual that is assigned as a director speaks merely for BV and is not individually accountable for their actions. Since 2012, registering BV does not require any minimum initial funding, however, but initial costs generally range between €1,500 and €2,500 (not including VAT) – clearly, establishment expenses will depend on the form and extent of the entrepreneurship. Therefore €2,500 is not the boundary.
Our goal is to convert all these complicated and tedious procedure to an easy one! The full-service we provide reduces the time you spend excruciating over forms as well as the need for research. Compliance Specialists in our department gather your data and prepare every application for your application to get approval. Your only task is to check and sign the documents prepared by Compliance Specialists. You do not have to worry about the remaining factors!
Structuring a BV
Stockholders own stocks that are dividends of a BV equity. They are in total charge; however, daily work is carried out by the directors of the company. There are cases where BV can appoint a board of trustees to supervise its governing body.
The director is mostly the sole owner of shares in small BVs. In cases like this, the director is a major shareholder (DMS), or in Dutch directeur en grootaandeelhouder (DGA).
In theory, you are not responsible for the debts of your business individually if you choose to go with BV. Nevertheless, in cases where you are a director and principal stockholder, banks usually as to co-sign for credits as a private individual. This situation makes it responsible for paying all the loan by you.
Whenever the following situations occur, you are personally responsible:
Whenever you enter to a too complicated agreement and know (or may rationally be expected) that BV will not be able to satisfy its conditions.
Failure to inform Dutch Tax and Customs Administration timely that you would not be able to pay taxes and your social welfare.
Inability to compensate taxes and social welfare due to maladministration or carelessness in the three years prior to informing about this to the Tax and Customs Administration.
Bankrupting your BV because of maladministration or carelessness in the three years preceding to this case.
Failing to file periodical reports and accounts is a case of ‘mismanagement’.
Making a payment that may potentially compromise the financial situation of the BV and being aware of it.
Your responsibility is restricted to the amount of your involvement in the BV as a stock owner.