Dutch BV is the most beneficial and highly reliable business structure in Netherlands. Set up a Dutch virtual office to handle business activities at low cost.
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Legal aspects for incorporating dutch bv
1. Legal Aspects for incorporating Dutch BV
Incorporation of Dutch BV is ideal for entrepreneurs those want to set up a continuous business in
Netherlands. It provides protection from future liabilities especially to international businesses.
Beneficial tax system, flexible business environment, strong financial sector, quality of life and
pre-business government are the major factor to attract foreign investors for structuring their
holding and financial activities in Netherlands. The new legislation simplified on October 1st,
2012, has made it more beneficial business entity.
Reformed legislation has implemented more flexibility in rules to set up and operate a BV. Before
establishing a Dutch business, you may want to know about detailed legal aspects of Dutch BV.
This article discusses some important legal aspects of Dutch BV.
Incorporation: Dutch limited liability (BV) is incorporated before a dutch civil notary who
provides translated articles to company owner. The notary verifies the personal identity of
company's beneficial owner, it managing director and shareholder(s) and many more
things according to requirement. A Dutch virtual office is also established to carry out
business activities easily.
Capitalization: According to modified legislation, minimum capital requirements for BV
has been set only to 0.01 Euro. If desired, additional capital can be contributed without
any upper limit. Capital may or may not be divided into shareholders. If divide, each
share must have per value expresses in terms of Euro. Shares without per values are not
permitted. Managing director, shareholders or residents of Netherlands need not to hold
any share.
Shareholders in BV: BV can issue different classes of shares, but only for registered shares.
Shares can be issued with or without participation in profits and voting rights. According
to the BV association articles, share purchase prices may be decided by experts upon
request of seller.
Legal reserve: No profit share is transferred to legal reserve unlike European countries.
Management: BV is managed by one or more shareholders and directors. Board of
directors and company member are appointed and dismissed by shareholders. Its is
advisable that half of directors should be residents of Netherlands, but this is not
mandatory.
Dividend Distribution: BV shareholders are authorized to make decisions about dividend
distribution. This decision may be approved or disapproved by board of managing
directors.
Due to these beneficial aspects, Dutch BV seems to be the best entity in Netherlands for conducting
business activities. According to Dutch law, BV itself, sole shareholder and other shareholders must be
registered. The notary helps the client in setting up BV and Dutch virtual office.