Besloten vennootschap
This article is part of a series on |
Corporate law |
---|
![]() |
A besloten vennootschap (Dutch pronunciation:
A Dutch bv may be created by one or more individuals or
- the company name (which must begin or end with "bv")
- the city where the company has its registered seat
- the purpose of the company
- the paid-in capital
- the par value(s) of stock
- the conditions for share transfer
The authorized capital is the maximum capital that may subsequently be issued without altering the Articles of Association; it may be up to a maximum of five times the initial capital. Unlike its UK equivalent, a private company limited by shares, a bv company is not required to make its company accounts publicly available.[1]
Contrast with the publicly traded form of company: naamloze vennootschap, which was also used in Dutch privately held companies until the introduction of the bv in 29 June 1971.
Fiscal aspects
Corporate income tax will be levied on the profits of the bv. The general assembly of shareholders decide on what manner the profit after corporate tax will be distributed. The profits will be distributed to the shareholders as dividend. The bv is responsible for withholding the dividend tax which is due for payment to the shareholders. The usual dividend tax rate is 15%.[2]
Advantages
- Opening a Dutch BV company required minimum paid in capital €1.
- If the Dutch BV has an annual turnover of up to €20,000, it can take advantage of the small businesses scheme (KOR).
- If any non EU-resident qualifies as wealthy foreigner in the sense of Dutch immigration law, a 5 years resident permit can be obtained.
- The Dutch BV has one of the lowest tax rates in Western Europe.
- A BV may be formed and operated by non-resident persons.[3]
See also
- Types of business entity
- AB (Aktiebolag, the corresponding concept in Sweden)
- ApS (Anpartsselskab, the corresponding concept in Denmark)
- Co., Ltd./YK and GK (Yūgen gaisha and Gōdō gaisha, the corresponding concept in Japan)
- GmbH (Gesellschaft mit beschränkter Haftung, the corresponding concept in Germany, Austria and Switzerland)
- United States.)
- Ltd. (Limited, the corresponding concept in the UK, Ireland and Kenya)
- OY (Osakeyhtiö, the corresponding concept in Finland)
- Pty. Ltd. (proprietary company, the corresponding concept in Australia and South Africa)
- SARL (Société à responsabilité limitée, the corresponding concept in France, Morocco, Switzerland and Luxembourg)
- respectively)
References
- ^ Morgan, John (17 April 2014)."Private college goes Dutch but says profits are taxed in UK". Times Higher Education. Retrieved 5 May 2016.
- ^ "Dividend tax – Taxation and businesses – Government NL". 3 April 2014.
- ^ "Private limited company (bv) in the Netherlands". business.gov.nl. Retrieved 2021-09-30.