Besloten Vennootschap (BV), or Besloten Vennootschap Met Beperkte Aansprakelijkheid, is a type of business entity in the Netherlands. It is akin to a private limited or a limited liability company of other jurisdictions.
As the name suggests, the company is privately owned by shareholders and its company’s shares are neither freely transferable, nor publicly traded.
What are the advantages of having a Besloten Vennootschap (BV) company?
In principle, business owners, and shareholders of a Besloten Vennootschap company carry no personal liability to the company as the risks are limited to the business entity.
Lower tax liabilities
Companies are taxed on foreign-derived income at 15% for the first €395,000. If the amount is more than €395,000, the corporate tax rate will be levied at €59,250 plus 25.8% of the taxable amount exceeding €395,000.
Double tax treaties
The Netherlands has successfully set up a network of double tax treaties with other various countries to eliminate double taxation for businesses. Therefore, companies incorporated in the Netherlands can enjoy tax benefits such as reduced rates of withholding taxes on interests, royalties, dividends and also minimise taxation on capital gains.
Ease of company setup
A Besloten Vennootschap can easily be established with just a minimum of one director. The director can either be an individual or a corporate entity.
In addition, a corporate secretary is not necessary for a BV company setup and no local resident director is required.
Furthermore, the whole incorporation process of your Dutch company can be done remotely online.
Minimum paid-up capital required
Another advantage of having a BV company is the cost of setting up. A BV company does not have a minimum paid-up capital requirement and can be as low as €1.