Legal forms for companies

There are many legal forms in the Netherlands. As a start-up entrepreneur, you have to choose a legal form. The legal form determines, among other things, your liability for your company’s debts and tax obligations. Below we discuss some of the legal forms that are most familiar to the larger target group.

One-man business (zzp)

• Quick and easy start-up
• Maximum of one sole proprietorship
• Current registration costs can be found on the KVK.nl website (2023 = €75) : KvK
• Being responsible for any debts with your own money/properties
• Self-employed tax relief and SME profit exemption (zelfstandigenaftrek en mkb-winstvrijstelling), beginners benefit from the starters’ deduction (startersaftrek).
• Want to read more about one-person business? Then read our article on the subject: https://thepowerofadvice.nl/en/dienst/one-person-business-eenmanszaak-zzp/

Private limited liability company (bv)

• Establishment with the intervention of a notary
• One-time costs € 500-1000 notary, yearly administration € 600-1800
• Current registration costs can be found at: KvK
• Not personally liable for any debts
• Capital divided into shares
• Lower tax burden with higher profits

General partnership (vof)

• Quick and easy start-up
• Minimum of two partners
• Current registration costs can be found at: KvK
• Solidarity liability for any debts with own money
• Entitlement to self-employed tax relief (zelfstandigenaftrek) and SME profit exemption (mkb-winstvrijstelling), start-ups benefit from a start-up deduction (startersaftrek).

Partnership

• Quick and easy to set up
• For specific professional groups (dentists/general practitioners etc.)
• Current registration fees can be found on: KvK
• Agreement not compulsory/desirable
• Cooperate under a common name
• First liable with business capital, then with own money for equal parts
• Right to self-employment deduction (zelfstandigenaftrek) and SME profit exemption (mkb-winstvrijstelling), starters benefit from starter’s deduction (startersaftrek).

Cooperative

• Set up with the intervention of a notary
• Minimum of two partners
• For entrepreneurs working together on a project
• Easy entry and exit of members
• Not personally liable for any debts
• Right to self-employment deduction (zelfstandigenaftrek) and SME profit exemption (mkb-winstvrijstelling), starters benefit from starter’s deduction (startersaftrek).

As indicated earlier, there are several legal forms in the Netherlands. Would you like more detailed information in which we discuss the different legal forms? Then read our articles on this topic in the ”Company” category:  https://thepowerofadvice.nl/en/company-kvk/