Private limited liability company (BV)

The private limited liability company is a legal person. This limits the risks of joint and several liability. When it is established, a BV must have a capital of € 18,000 in money or goods.

The capital is divided into shares which cannot be freely transferred. The shares are registered by name and you cannot simply trade them. When you establish a BV, a civil notary has to draw up the Articles of Association.

You also have to obtain a proof of good conduct from the Ministry of Justice. The Ministry checks whether the person(s) establishing the company has/have been involved with bankruptcy or fraud cases.

Taxes
You are not entitled to tax allowances for the self-employed. Corporation tax is charged on the profit; income tax is charged on the managers' salaries.

If you own more than 5% of the shares in a BV, you are considered to own a substantial interest in the company. The new income tax system taxes income from a substantial interest (such as dividend payments and profits from the sale of shares) in box 2 at a rate of 25%.

Liability
The BV is a legal person. In principle creditors can only make claims on the assets of the BV and not on the assets of the director(s) or shareholder(s). The liability of shareholders is limited to the amount invested.