Limited partnership (CV)

Published by:
Netherlands Chamber of Commerce, KVK
Netherlands Chamber of Commerce, KVK
Statistics Netherlands, CBS
Statistics Netherlands, CBS

If you are thinking about setting up a commercial partnership (vof), but are short on capital or need a financial backer, then a limited partnership (commanditaire vennootschap, cv) might be just the legal structure for you. In a cv, your financial backer actually becomes a partner in your business. He or she is referred to as a limited, sleeping or silent partner.

What is a cv?

A limited partnership consists of at least two persons. Within a cv, there are two types of partner – a managing partner and a limited partner.

  • Managing partners. The managing partner runs the business on a day-to-day basis.
  • Silent partners, also known as limited partners. The limited partner involves him/herself with the business's financial affairs. The silent partner does not actively interfere with the company, unlike shareholders within a BV.

You can think of a commanditaire vennootschap as a special type of 'commercial partnership' (vof). Like the vof, the cv is not a legal entity. The managing partners are personally liable for possible debts of the company.

Setting up a cv

You have to register your limited partnership in the Business Register at the Netherlands Chamber of Commerce KVK.

Managing partners have to supply their personal details, like name and address. Limited partners, however, do not. You only have to state how many limited partners are participating in the CV and the amount of equity they bring to the company.

The limited partnership contract

It is not mandatory to draft a partnership agreement when setting up a limited partnership, but putting your agreements in writing can be useful. For example, a cv contract might include arrangements about:

  • who the managing and limited partners are and the equity they each bring into the company, e.g. cash, labour, equipment, etc.;
  • how partners will divide any profit or loss;
  • Taking out a life insurance policy for the continuation of the business if 1 partner dies.
  • Agreements about the client portfolio, should partners ever split up.
  • how and when the cv can be ended, for instance in case of disability.

All managing partners may act on behalf of the CV. All partners can be held liable for the consequences of these actions, such as concluding contracts. Deviating agreements about liability are recorded in a CV contract.

You can draw up a CV contract yourself. Or you can arrange it through a lawyer or civil-law notary. The purpose of the CV and the powers of the partners are recorded by KVK in the Business Register.


You pay a one-time fee to register your cv in the Business Register at KVK. The costs for drawing up a partnership agreement differ depending on the civil-law notary or lawyer. On average, the costs are between €200 and €400. It is not mandatory to draw up a partnership agreement.

You are legally obliged to keep records. You can outsource this to a bookkeeper or accountant. The prices range from €500 to €1,000 per year.

Filing financial statements

If all managing partners in your limited partnership are foreign, you will have to file your financial statements with KVK.


As a managing partner, you have to pay income tax on your share of the profit. The Netherlands Tax Administration (Belastingdienst) views you as a business owner, which means that you are entitled to certain tax benefits, including entrepreneurs' allowance(ondernemersaftrek) and a tax-deferred retirement reserve (fiscale oudedagsvoorziening). The cv also pays VAT.

A limited partner, on the other hand, is not viewed as an entrepreneur and is only entitled to tax schemes for investments, such as discretionary depreciation (willekeurige afschrijving) and the investment allowance (investeringsaftrek).

Signing authority

Each partner is authorised to sign. This means that they may sign contracts or perform certain legal acts on behalf of the cv, such as reporting a change in the Business Register. If you want to limit the authority of partners, you can make agreements about this in the partnership contract and the Business Register.

A cv can also choose to appoint power of attorney to someone else. This person is then authorised to act on behalf of the company. It can be useful to register this person in the Business Register. This way your business partners also know who is allowed to act on behalf of the company.


If you hire personnel, you have to pay payroll taxes and social contributions for your personnel. If you are hiring an employee for the first time, you must register as an employer with the Tax Administration. You must also report this to the Netherlands Chamber of Commerce. Read the checklist Employing staff in the Netherlands for more information.

Social security and national insurance contributions

As a managing partner, you pay national insurance contributions. You are entitled to an old-age pension (AOW) when you reach retirement age. You have to supplement this pension yourself. Start as soon as possible to keep your contributions affordable.

Because you are not an employee, you are not entitled to any of the benefits available to regular employees, such as sickness, unemployment or disability benefit (ziektewet, WW and WIA respectively). It is up to you to take out disability insurance as soon as you start your business. If you are pregnant, you are entitled to maternity allowance of at least 16 weeks. You can apply at the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV).

Health insurance is mandatory and basic cover is sufficient. You pay a premium to your health insurance company and a contribution as part of your tax return.

Depending on your line of business, it can be wise to take out additional insurance.

Dissolving and liquidating a limited partnership

The cv ceases to exist if a partner leaves the partnership agreement or dies. However, it is possible to include a survivorship or takeover clause in the partnership contract, so that the remaining partners can continue running the business, for instance by seeking a new partner or continuing as a sole proprietorship.

When dissolving your cv, you have to pay any outstanding debts and return each partner's share in the partnership. This is called liquidation, or in Dutch vereffening. Any surplus is then distributed to the partners based on their share in the cv's profits. Managing partners will have to deposit additional funds into the partnership if there's not enough cash in the cv to pay any outstanding debts. The limited partner doesn't have to make any additional deposits.

Make sure you report the changes to KVK and the Tax Administration.

You can change a cv into a different legal structure, such as a general partnership (vof) or sole proprietorship. You must report your changes to the Netherlands Chamber of Commerce KVK and the Tax Administration. Check (in Dutch) to see if you have to pay discontinuation profit (stakingswinst).

You can also change the cv to a private limited company (a bv). One of the differences is that the bv is liable for finances and possible debts. There are several ways to change a cv into a cv. These steps are similar to changing a sole proprietorship into a bv.

Note: Be aware that for tax purposes, the Dutch Tax Administration views changes in legal structure as ending one business and starting another.

Statistics: limited partnerships

Number of limited partnerships.

Questions relating to this article?

Please contact the Netherlands Chamber of Commerce, KVK