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Which legal structure suits your company?

Published by:
Netherlands Chamber of Commerce, KVK
Business.gov.nl

As a starting entrepreneur, you must choose a legal structure. But which legal form suits you best? If you choose to be a sole proprietor, you will be personally liable for any company debts. If you choose a private limited (bv), you will have to pay corporate tax. Use the tool to find out which legal structure best suits your situation.

4 more questions to go

Question 1:Do you want to start a business alone or with others?

There are different types of collaboration: each legal structure comes with its own conditions and consequences. For instance, if you alone are liable for the entire company debt, or only for part of it; or, how easy it is to get out of the collaboration, without endangering its continued existence.

Matching legal forms

Based on your answers
  • starting is quick and easy

  • you can only register one sole proprietorship

  • you can find the current registration fee on kvk.nl/english

  • personally liable for company debts

  • possible tax relief schemes: private business ownership allowance, SME profit exemption, tax relief for new companies

Read more about Sole proprietorship (eenmanszaak)Register now
  • setup using an actuary’s services

  • cost of setup € 500-1000 actuary; € 600-1,800 annual administrative obligations

  • you can find the current registration fee on kvk.nl/english

  • not personally liable for any company debts

  • capital divided into shares

  • tax burden lower when profits increase

Read more about Private Limited Company (bv)Register now
  • starting is quick and easy

  • at least two partners

  • you can find the current registration fee on kvk.nl/english

  • all partners are personally liable for company debts

  • possible tax relief schemes: private business ownership allowance, SME profit exemption, tax relief for new companies

Read more about Commercial partnership (vof)Register now
  • starting is quick and easy

  • for specific (regulated) professions

  • you can find the current registration fee on kvk.nl/english

  • agreement advisable (not required)

  • collaborate under a shared name

  • liable with company funds first, then with personal capital for equal parts

  • possible tax relief schemes: private business ownership allowance, SME profit exemption, tax relief for new companies

Read more about Public partnership (maatschap)Register now
  • setup using an actuary’s services

  • at least two partners

  • for entrepreneurs collaborating in a project

  • easy access and exit of members

  • not personally liable for any debts

  • possible tax relief schemes: private business ownership allowance, SME profit exemption, tax relief for new companies

Read more about CooperativeRegister now
Click one of the legal structures if you want to know more or want to make an appointment to register with KVK
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Questions relating to this article?

Please contact the Netherlands Chamber of Commerce, KVK