Limited legal capacity: running your own business before you turn 18
- Gerdine Annaars
- How to
- 17 March 2019
- Edited 19 February 2024
- 1 min
If you are a minor, (under 18-years-old), in the Netherlands you are ‘legally incapable’ (handelingsombekwaan). You may only act legally with the permission of your parents or guardian. If you are 16- or 17-years-old, you can apply to the court for limited legal capacity. You are then considered an adult in certain situations. But what exactly do you have to do?
Registering your company with the Chamber of Commerce is easy if your parents or guardian are present. But opening a business account at the bank as a minor is not possible. Neither is signing contracts or arranging a payment system for your web store. This is when limited legal (handlichting) is useful.
What is limited legal capacity?
If you have limited legal capacity, you are legally considered an adult. You apply to the court for specific powers. The judge then declares you an adult. This means that you can do the same things for your business as a 16- or 17-year-old that would usually only be allowed after you turn 18. Such as signing contracts and opening a bank account.
Going to court
To apply for limited legal capacity, you submit a written (in Dutch) to the district court in your region. Your parents or guardian must co-sign the request. Often you must appear in court. The judge wants to see for themself if you can handle the responsibility. After the court approves your request, you will be given an official copy of your limited legal capacity. This is proof that you have legal capacity. The whole process will cost you between €1,000 and €1,500 euros. However, these costs are deductible as business expenses on your next tax return.
Limited legal capacity is an official court decision that you must make public. You can do this in a local newspaper, for example. But you can also do it online in the Staadscourant (Government Gazette) This is a Dutch government publication where rules that apply to everyone are published.