Limited Liability Company Netherlands

The Dutch designation for a private limited liability company is a BV (an abbreviation of the Dutch “Besloten Vennootschap”), which is simultaneously the most widely used legal entity in the country. The Dutch BV is also quite similar to the German GmbH, while in the United States, the entity is called an American LLC. All these foreign legal entities are the same in essence, meaning that they imply a private company with limited liability for its directors.

A BV is essentially a legal entity in which the available assets are divided into shares. The fact that the BV is a legal entity means it’s completely independent, hence the limited personal liability regarding debts you might make with the company. As a director or director-shareholder, you are employed by your own BV. In addition to your salary, you can reserve profits within the BV and build up your own capital. Do note that in the event of bankruptcy, the BV is liable for any debts. For many entrepreneurs, this private protection is the major advantage of the Dutch BV.