SlideShare a Scribd company logo
Starting as
a Private Limited
Company
by
Jürgen van de Sande
30 March 2016
Let’s introduce myself
Jürgen van de Sande AA
accountant partner
starting companies and growers SMEs
annual reports, fiscal declarations
finance, structure/organization, acquisition
human resources, dwo and accountancy departments
OUR VISION
An entrepreneur’s life is full of important events. Like starting
your company, growing or downsizing, cooperating or ending
your business. Each and every choice you make will affect the
future of your company.
De Wert is your partner of choice. We have been supporting
entrepreneurs since 1959 with accountancy, tax and HR advice,
payroll and administrative services. Therefore, no matter what
phase your company is in: rest assured with De Wert.
Introduction De Wert
The first step is the hardest …
Little ones grow
Sometimes it hurts to let go
Program
• General
 Legal forms in NL
 Private Company (B.V.) as legal person
 Establishment requirements
 Share transfer restrictions
 Governance
 Liability
 Annual report, publication and minutes
• Taxation
 Corporate Income Tax
 Wage Tax
 Income Tax
B.V.
Which legal forms do we know in NL?
stichting
V.O.F. coöperatie N.V.
and more...
eenmans-
zaak
B.V.
Common legal forms
• Sole proprietorship (eenmanszaak)
• General partnership (V.O.F.)
• Limited partnership (C.V.)
• Professional partnership (maatschap)
• Private limited liability company (B.V.)
• Public limited liability company (N.V.)
• Cooperative (Coöperatie)
• Foundation (Stichting)
Choice legal forms
• Income tax
• Corporate income tax
• Fully liable
• Limited liability
Tax regime versus Liability
Private Company as legal person
• A ‘person’ having rights and obligations
• Incorporation towards third parties
• By one or more persons (shareholders)
Establishment requirements
Requirements:
• a notarial deed of incorporation
• Dutch language
• articles of association
• minimum issued share capital € 0,01
• appointing executive board
• registering at Chamber of Commerce
Options:
 priority shares
 preferent shares
Share transfer restrictions
• Shares in a B.V. are always on name
• Share transfer restrictions in articles of association
• Deed of transfer executed before a civil-law notary
Governance
• Board of directors
• General Meeting of shareholders
• Supervisory board in addition
Board of directors:
 Responsible for managing the B.V.
 Appointed and removed by the shareholders
 Solely or only jointly authorized to represent the company
 Prior approval for certain acts
Liability
No liability for natural person (director and/or shareholder)
Directors’ liability:
• In the formation phase
• Up till registration in the Trade Register
• Severally liable by mismanagement
• Discharge from liability
Directors’ and shareholders’ liability:
• Distribution test
 Equity test
 Continue to pay its debts payable (of at least 12 months)
• Reimburse the deficit
Annual report, publication and minutes
• Title 9 Book 2 of the Netherlands Civil Code
• NL GAAP
• Annual report
 Management board’s report
 Financial statements
 Other information
• Minutes of General Meeting of shareholders
 Adoption of financial statements
• Publication report
 Deposit to Chambers of Commerce within 8 days after adoption
Taxation
• Corporate income tax
• Wage tax
• Income tax
Based on Tax Legislation 2016
Corporate income tax (CIT)
Objects
1) Subject to CIT
2) Tax base and rates
3) Dividend (tax)
4) Participation exemption
5) Innovation box
6) Fiscal unity
Corporate income tax (CIT) #1
Subject to CIT
• CIT is charged to legal entities of which the capital is partially or fully
divided into shares
• Examples of such legal entities are the Dutch N.V. and B.V.
Corporate income tax (CIT) #2
Tax base and rates
• CIT is charged on the taxable profits earned by the company in any
given year less the deductible losses.
• Deductible losses
 1 previous year
 9 subsequent years
• The following are the applicable corporate income tax rates for
2016:
Profit from Profit up to and including Rate
€ 0 € 200k 20%
> € 200k 25%
Corporate income tax (CIT) #3
Dividend (tax)
• Pay out profits to the shareholders
• Tax rate is 15%
• Advance tax payment on CIT and income tax
Corporate income tax (CIT) #4
Participation exemption
• To prevent double taxation
• Profit distribution between group companies is exempted from tax
• At least 5% of the nominal paid-in capital of a company is required
Corporate income tax (CIT) #4
Participation exemption
• Example
• Subsidiary B.V. pays out € 50k dividend to Parent B.V.: without
participation exemption this benefit would be taxable for Parent B.V.
100%
Parent B.V.
Subsidiary
B.V.
dividend € 50k
Corporate income tax (CIT) #5
Innovation box
• For innovative activities
 Patent
 Research and development project (WBSO)
• CIT rate for innovative activities
 5%
 Option to declare 25% of the total profit limited to € 25k for 3
years
• Losses on innovative activities can be deducted at the normal CIT
rate
Corporate income tax (CIT) #6
Fiscal unity
• Companies effectively established in NL
• Same tax regime
• Same financial year
≥ 95%
Parent B.V.
Subsidiary
B.V.
Wage tax
Salary director/shareholder
• Usual wage settlement (article 12a Wage Tax)
 A minimum wage of € 44k applies for employees with a
substantial interest in the employer
 Not applicable when the usual wage is less than € 5k per year
• Others have a higher wage?
 75% of that higher usual wage, but at least € 44k
 The salary of the highest-paid employee
• No profits to pay € 44k salary as a startup?
 Request for a decision “reducing usual wage”
Wage tax
Salary director/shareholder
• Social security?
 Depends on the relation of authority
 director and/or spouse ≥ 50% votes
 director and/or 3rd degree ≥ 2/3 shares
 director cannot be dismissed against his will
 Without a relation of authority the director/shareholder cannot
rely on the social security insurances
• Advance tax payment on income tax
Income tax
Boxes
Box I: Taxable income from work and home
Box II: Taxable income from substantial interest
Box III: Taxable income from savings and investments
(no further explanation)
Income tax: Box I
Taxable income from work and home
• Income from current employment
 Employment with the B.V.
 Salary director/shareholder
• Income from providing of assets towards the B.V.
 Building: rental income
 Loan: interest income
 Exemption 12%
• Tax rate is progressive to a maximum of 52%
Income tax: Box II
Taxable income from substantial interest
• Minimum of 5% of the issued capital of shares
• Regular benefits and/or sales benefits
 Dividend
 Sale of shares
• Tax rate is 25%
Starting as
a Private Limited
Company
So … why?
• Splitting liabilities and risks
• Flexibility in operations
• Facilitate attracting and distributing funding
• Sale of spare parts
• Acquire new subsidiaries
• Increase opportunities of continuity
Questions?

More Related Content

What's hot

The art of taxation for freelancers
The art of taxation for freelancersThe art of taxation for freelancers
The art of taxation for freelancers
Simon Peters
 
Exit strategies
Exit strategiesExit strategies
Exit strategies
SibraWebDev
 
FCTC London Conference - June 2016
FCTC London Conference - June 2016FCTC London Conference - June 2016
FCTC London Conference - June 2016
PKF Francis Clark
 
Reeves Finance Focus, November 2010
Reeves Finance Focus, November 2010Reeves Finance Focus, November 2010
Reeves Finance Focus, November 2010
Reeves & Co LLP
 
Plymouth Spring Tax Update - March 2018
Plymouth Spring Tax Update - March 2018Plymouth Spring Tax Update - March 2018
Plymouth Spring Tax Update - March 2018
PKF Francis Clark
 
Budget 2012
Budget 2012Budget 2012
Budget 2012
AlanBoby
 
How to choose the best entity
How to choose the best entityHow to choose the best entity
How to choose the best entity
Alan D Campbell
 
Self assessment tax return ways to make it easier
Self assessment tax return ways to make it easierSelf assessment tax return ways to make it easier
Self assessment tax return ways to make it easier
BNW Accountants and Tax Consultants
 
Topical Tax Issues For Reducing Your Irish Income Tax Liability
Topical Tax Issues For Reducing Your Irish Income Tax LiabilityTopical Tax Issues For Reducing Your Irish Income Tax Liability
Topical Tax Issues For Reducing Your Irish Income Tax Liability
Brendan Brady
 
Tax planning for sme's
Tax planning for sme'sTax planning for sme's
Tax planning for sme's
Malcolm York
 
57d70e04ee035347b0efc198403ac29d.pptx
57d70e04ee035347b0efc198403ac29d.pptx57d70e04ee035347b0efc198403ac29d.pptx
57d70e04ee035347b0efc198403ac29d.pptx
Accion
 
Bournemouth – Finance Directors’ Update - December 2015
Bournemouth – Finance Directors’ Update - December 2015Bournemouth – Finance Directors’ Update - December 2015
Bournemouth – Finance Directors’ Update - December 2015
PKF Francis Clark
 
Business Break-ups
Business Break-upsBusiness Break-ups
Business Break-ups
SibraWebDev
 
Understanding VAT for small businesses
Understanding VAT for small businessesUnderstanding VAT for small businesses
Understanding VAT for small businesses
Accounts and Legal
 
PRINCIPLES OF BUSINESS TAXATION
PRINCIPLES OF BUSINESS TAXATIONPRINCIPLES OF BUSINESS TAXATION
PRINCIPLES OF BUSINESS TAXATION
abiodunmamora
 
Bournemouh Spring Tax Update - March 2018
Bournemouh Spring Tax Update - March 2018Bournemouh Spring Tax Update - March 2018
Bournemouh Spring Tax Update - March 2018
PKF Francis Clark
 
Doing Business in Canada - What you Need to Know
Doing Business in Canada - What you Need to KnowDoing Business in Canada - What you Need to Know
Doing Business in Canada - What you Need to Know
Welch LLP
 
What Income is Taxable?
What Income is Taxable?What Income is Taxable?
What Income is Taxable?
abnormalearning54
 
Ir35 legislation & employment intermediaries
Ir35 legislation & employment intermediariesIr35 legislation & employment intermediaries
Ir35 legislation & employment intermediaries
Liquidity Group
 
Global E-Book_2015 GT NED
Global E-Book_2015 GT NEDGlobal E-Book_2015 GT NED
Global E-Book_2015 GT NED
Arthur Gude
 

What's hot (20)

The art of taxation for freelancers
The art of taxation for freelancersThe art of taxation for freelancers
The art of taxation for freelancers
 
Exit strategies
Exit strategiesExit strategies
Exit strategies
 
FCTC London Conference - June 2016
FCTC London Conference - June 2016FCTC London Conference - June 2016
FCTC London Conference - June 2016
 
Reeves Finance Focus, November 2010
Reeves Finance Focus, November 2010Reeves Finance Focus, November 2010
Reeves Finance Focus, November 2010
 
Plymouth Spring Tax Update - March 2018
Plymouth Spring Tax Update - March 2018Plymouth Spring Tax Update - March 2018
Plymouth Spring Tax Update - March 2018
 
Budget 2012
Budget 2012Budget 2012
Budget 2012
 
How to choose the best entity
How to choose the best entityHow to choose the best entity
How to choose the best entity
 
Self assessment tax return ways to make it easier
Self assessment tax return ways to make it easierSelf assessment tax return ways to make it easier
Self assessment tax return ways to make it easier
 
Topical Tax Issues For Reducing Your Irish Income Tax Liability
Topical Tax Issues For Reducing Your Irish Income Tax LiabilityTopical Tax Issues For Reducing Your Irish Income Tax Liability
Topical Tax Issues For Reducing Your Irish Income Tax Liability
 
Tax planning for sme's
Tax planning for sme'sTax planning for sme's
Tax planning for sme's
 
57d70e04ee035347b0efc198403ac29d.pptx
57d70e04ee035347b0efc198403ac29d.pptx57d70e04ee035347b0efc198403ac29d.pptx
57d70e04ee035347b0efc198403ac29d.pptx
 
Bournemouth – Finance Directors’ Update - December 2015
Bournemouth – Finance Directors’ Update - December 2015Bournemouth – Finance Directors’ Update - December 2015
Bournemouth – Finance Directors’ Update - December 2015
 
Business Break-ups
Business Break-upsBusiness Break-ups
Business Break-ups
 
Understanding VAT for small businesses
Understanding VAT for small businessesUnderstanding VAT for small businesses
Understanding VAT for small businesses
 
PRINCIPLES OF BUSINESS TAXATION
PRINCIPLES OF BUSINESS TAXATIONPRINCIPLES OF BUSINESS TAXATION
PRINCIPLES OF BUSINESS TAXATION
 
Bournemouh Spring Tax Update - March 2018
Bournemouh Spring Tax Update - March 2018Bournemouh Spring Tax Update - March 2018
Bournemouh Spring Tax Update - March 2018
 
Doing Business in Canada - What you Need to Know
Doing Business in Canada - What you Need to KnowDoing Business in Canada - What you Need to Know
Doing Business in Canada - What you Need to Know
 
What Income is Taxable?
What Income is Taxable?What Income is Taxable?
What Income is Taxable?
 
Ir35 legislation & employment intermediaries
Ir35 legislation & employment intermediariesIr35 legislation & employment intermediaries
Ir35 legislation & employment intermediaries
 
Global E-Book_2015 GT NED
Global E-Book_2015 GT NEDGlobal E-Book_2015 GT NED
Global E-Book_2015 GT NED
 

Similar to Starting as a Private Limited Company in NL

NL Tax Advantages Sole Proprietorship vs Private Limited Company
NL Tax Advantages Sole Proprietorship vs Private Limited CompanyNL Tax Advantages Sole Proprietorship vs Private Limited Company
NL Tax Advantages Sole Proprietorship vs Private Limited Company
Jürgen van de Sande
 
Arguments for forms of ownership
Arguments for forms of ownershipArguments for forms of ownership
Arguments for forms of ownership
Sandra van niekerk
 
Taxes workshop presentation
Taxes workshop presentationTaxes workshop presentation
Taxes workshop presentation
GeorgiaPinner
 
South African Tax Guide 2013
South African Tax Guide 2013South African Tax Guide 2013
South African Tax Guide 2013
Durban Chamber of Commerce and Industry
 
International growth strategies for sm es the tax aspects - rachel lockwood...
International growth strategies for sm es   the tax aspects - rachel lockwood...International growth strategies for sm es   the tax aspects - rachel lockwood...
International growth strategies for sm es the tax aspects - rachel lockwood...
Jessica Roch
 
CBW Tax - The Summer Budget 2015
CBW Tax - The Summer Budget 2015CBW Tax - The Summer Budget 2015
CBW Tax - The Summer Budget 2015
Robert Maas
 
Procom contractor night
Procom contractor nightProcom contractor night
Procom contractor night
Andrew Wall, CPA, CMA
 
Tax planning opportunities
Tax planning opportunitiesTax planning opportunities
Tax planning opportunities
Martin Jack
 
Creative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small BusinessesCreative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small Businesses
Insero & Co. CPAs, LLP
 
MCI CLT Dutch Holding Structures EN (2021.03)
MCI CLT Dutch Holding Structures EN (2021.03)MCI CLT Dutch Holding Structures EN (2021.03)
MCI CLT Dutch Holding Structures EN (2021.03)
Martin Kraeter
 
Everything your startup needs to know about accounting
Everything your startup needs to know about accountingEverything your startup needs to know about accounting
Everything your startup needs to know about accounting
The Idea Village
 
Developing an entrepreneurial culture within the whole team
Developing an entrepreneurial culture within the whole teamDeveloping an entrepreneurial culture within the whole team
Developing an entrepreneurial culture within the whole team
walescva
 
VAT issues
VAT issuesVAT issues
VAT issues
walescva
 
SCORE presentation_Fit Books Accounting
SCORE presentation_Fit Books AccountingSCORE presentation_Fit Books Accounting
SCORE presentation_Fit Books Accounting
Carmen Weyland, CPA
 
Accounting for startups jan16
Accounting for startups jan16Accounting for startups jan16
Accounting for startups jan16
hustlecowork
 
EIS & SEIS Relief Workshop - Plus Accounting, Chartered Accountants
EIS & SEIS Relief Workshop - Plus Accounting, Chartered AccountantsEIS & SEIS Relief Workshop - Plus Accounting, Chartered Accountants
EIS & SEIS Relief Workshop - Plus Accounting, Chartered Accountants
Victoria King
 
Organisationsal form.pdf
Organisationsal form.pdfOrganisationsal form.pdf
Organisationsal form.pdf
Assad Rifat
 
Guide to running a limited company
Guide to running a limited companyGuide to running a limited company
Guide to running a limited company
Lloyd Evans BSc(Hons), ACA, CTA
 
Wealth building through the tax code
Wealth building through the tax codeWealth building through the tax code
Wealth building through the tax code
Bette M. Hochberger, CPA CGMA
 
The Business Show
The Business ShowThe Business Show
The Business Show
CompaniesHouse
 

Similar to Starting as a Private Limited Company in NL (20)

NL Tax Advantages Sole Proprietorship vs Private Limited Company
NL Tax Advantages Sole Proprietorship vs Private Limited CompanyNL Tax Advantages Sole Proprietorship vs Private Limited Company
NL Tax Advantages Sole Proprietorship vs Private Limited Company
 
Arguments for forms of ownership
Arguments for forms of ownershipArguments for forms of ownership
Arguments for forms of ownership
 
Taxes workshop presentation
Taxes workshop presentationTaxes workshop presentation
Taxes workshop presentation
 
South African Tax Guide 2013
South African Tax Guide 2013South African Tax Guide 2013
South African Tax Guide 2013
 
International growth strategies for sm es the tax aspects - rachel lockwood...
International growth strategies for sm es   the tax aspects - rachel lockwood...International growth strategies for sm es   the tax aspects - rachel lockwood...
International growth strategies for sm es the tax aspects - rachel lockwood...
 
CBW Tax - The Summer Budget 2015
CBW Tax - The Summer Budget 2015CBW Tax - The Summer Budget 2015
CBW Tax - The Summer Budget 2015
 
Procom contractor night
Procom contractor nightProcom contractor night
Procom contractor night
 
Tax planning opportunities
Tax planning opportunitiesTax planning opportunities
Tax planning opportunities
 
Creative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small BusinessesCreative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small Businesses
 
MCI CLT Dutch Holding Structures EN (2021.03)
MCI CLT Dutch Holding Structures EN (2021.03)MCI CLT Dutch Holding Structures EN (2021.03)
MCI CLT Dutch Holding Structures EN (2021.03)
 
Everything your startup needs to know about accounting
Everything your startup needs to know about accountingEverything your startup needs to know about accounting
Everything your startup needs to know about accounting
 
Developing an entrepreneurial culture within the whole team
Developing an entrepreneurial culture within the whole teamDeveloping an entrepreneurial culture within the whole team
Developing an entrepreneurial culture within the whole team
 
VAT issues
VAT issuesVAT issues
VAT issues
 
SCORE presentation_Fit Books Accounting
SCORE presentation_Fit Books AccountingSCORE presentation_Fit Books Accounting
SCORE presentation_Fit Books Accounting
 
Accounting for startups jan16
Accounting for startups jan16Accounting for startups jan16
Accounting for startups jan16
 
EIS & SEIS Relief Workshop - Plus Accounting, Chartered Accountants
EIS & SEIS Relief Workshop - Plus Accounting, Chartered AccountantsEIS & SEIS Relief Workshop - Plus Accounting, Chartered Accountants
EIS & SEIS Relief Workshop - Plus Accounting, Chartered Accountants
 
Organisationsal form.pdf
Organisationsal form.pdfOrganisationsal form.pdf
Organisationsal form.pdf
 
Guide to running a limited company
Guide to running a limited companyGuide to running a limited company
Guide to running a limited company
 
Wealth building through the tax code
Wealth building through the tax codeWealth building through the tax code
Wealth building through the tax code
 
The Business Show
The Business ShowThe Business Show
The Business Show
 

More from Jürgen van de Sande

Kennissessie coronasteunmaatregelen en fiscale tips
Kennissessie coronasteunmaatregelen en fiscale tipsKennissessie coronasteunmaatregelen en fiscale tips
Kennissessie coronasteunmaatregelen en fiscale tips
Jürgen van de Sande
 
Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...
Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...
Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...
Jürgen van de Sande
 
Handout Faillissementsrisico's & beschermingsmogelijkheden
Handout Faillissementsrisico's & beschermingsmogelijkhedenHandout Faillissementsrisico's & beschermingsmogelijkheden
Handout Faillissementsrisico's & beschermingsmogelijkheden
Jürgen van de Sande
 
Faillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkhedenFaillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkheden
Jürgen van de Sande
 
Privé krijgt onvoldoende aandacht!?
Privé krijgt onvoldoende aandacht!? Privé krijgt onvoldoende aandacht!?
Privé krijgt onvoldoende aandacht!?
Jürgen van de Sande
 
Ontbijtsessie startende ondernemer Meierijstad
Ontbijtsessie startende ondernemer MeierijstadOntbijtsessie startende ondernemer Meierijstad
Ontbijtsessie startende ondernemer Meierijstad
Jürgen van de Sande
 
How To Build A Financial Plan?
How To Build A Financial Plan?How To Build A Financial Plan?
How To Build A Financial Plan?
Jürgen van de Sande
 
Faillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkhedenFaillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkheden
Jürgen van de Sande
 
From Business Idea to Financial Plan
From Business Idea to Financial PlanFrom Business Idea to Financial Plan
From Business Idea to Financial Plan
Jürgen van de Sande
 
VAT issues for startups
VAT issues for startupsVAT issues for startups
VAT issues for startups
Jürgen van de Sande
 
Beroepenavond accountant worden
Beroepenavond accountant wordenBeroepenavond accountant worden
Beroepenavond accountant worden
Jürgen van de Sande
 
Social Media Het Netwerkontbijt Eindhoven
Social Media Het Netwerkontbijt EindhovenSocial Media Het Netwerkontbijt Eindhoven
Social Media Het Netwerkontbijt Eindhoven
Jürgen van de Sande
 

More from Jürgen van de Sande (12)

Kennissessie coronasteunmaatregelen en fiscale tips
Kennissessie coronasteunmaatregelen en fiscale tipsKennissessie coronasteunmaatregelen en fiscale tips
Kennissessie coronasteunmaatregelen en fiscale tips
 
Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...
Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...
Organisaties zonder winstoogmerk (stichtingen en verenigingen) en microrechts...
 
Handout Faillissementsrisico's & beschermingsmogelijkheden
Handout Faillissementsrisico's & beschermingsmogelijkhedenHandout Faillissementsrisico's & beschermingsmogelijkheden
Handout Faillissementsrisico's & beschermingsmogelijkheden
 
Faillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkhedenFaillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkheden
 
Privé krijgt onvoldoende aandacht!?
Privé krijgt onvoldoende aandacht!? Privé krijgt onvoldoende aandacht!?
Privé krijgt onvoldoende aandacht!?
 
Ontbijtsessie startende ondernemer Meierijstad
Ontbijtsessie startende ondernemer MeierijstadOntbijtsessie startende ondernemer Meierijstad
Ontbijtsessie startende ondernemer Meierijstad
 
How To Build A Financial Plan?
How To Build A Financial Plan?How To Build A Financial Plan?
How To Build A Financial Plan?
 
Faillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkhedenFaillissementsrisico's & beschermingsmogelijkheden
Faillissementsrisico's & beschermingsmogelijkheden
 
From Business Idea to Financial Plan
From Business Idea to Financial PlanFrom Business Idea to Financial Plan
From Business Idea to Financial Plan
 
VAT issues for startups
VAT issues for startupsVAT issues for startups
VAT issues for startups
 
Beroepenavond accountant worden
Beroepenavond accountant wordenBeroepenavond accountant worden
Beroepenavond accountant worden
 
Social Media Het Netwerkontbijt Eindhoven
Social Media Het Netwerkontbijt EindhovenSocial Media Het Netwerkontbijt Eindhoven
Social Media Het Netwerkontbijt Eindhoven
 

Recently uploaded

Birmingham degree offer diploma Transcript
Birmingham degree offer diploma TranscriptBirmingham degree offer diploma Transcript
Birmingham degree offer diploma Transcript
pehqgou
 
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
Dr. Oliver Massmann
 
ArtEZ biyezheng degree offer diploma Transcript
ArtEZ biyezheng degree offer diploma TranscriptArtEZ biyezheng degree offer diploma Transcript
ArtEZ biyezheng degree offer diploma Transcript
qpeqmso
 
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie LondonDallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
ReggieLondon Lawyer
 
Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...
Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...
Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...
Bayu Triaswara
 
Bharatiya Nyaya Sanhita lawer (BNS).pptx
Bharatiya Nyaya Sanhita lawer (BNS).pptxBharatiya Nyaya Sanhita lawer (BNS).pptx
Bharatiya Nyaya Sanhita lawer (BNS).pptx
Ravi984037
 
Hindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdfHindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdf
mayurpandit108
 
Court Fee Punjab Haryana High Court Chandigarh
Court Fee Punjab Haryana High Court ChandigarhCourt Fee Punjab Haryana High Court Chandigarh
Court Fee Punjab Haryana High Court Chandigarh
Satish Mishra LegalSeva
 
Westminster degree offer diploma Transcript
Westminster degree offer diploma TranscriptWestminster degree offer diploma Transcript
Westminster degree offer diploma Transcript
pehqgou
 
BIOFIN-EU project | IP & IPR Workshop.pptx
BIOFIN-EU project | IP & IPR Workshop.pptxBIOFIN-EU project | IP & IPR Workshop.pptx
BIOFIN-EU project | IP & IPR Workshop.pptx
BIOFIN-EU
 
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
AHRP Law Firm
 
Trademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure BrandTrademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure Brand
Trademark Quick
 
UofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma TranscriptUofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma Transcript
qpeqmso
 
UNTEC biyezheng degree offer diploma Transcript
UNTEC biyezheng degree offer diploma TranscriptUNTEC biyezheng degree offer diploma Transcript
UNTEC biyezheng degree offer diploma Transcript
qpeqmso
 
RUG biyezheng degree offer diploma Transcript
RUG biyezheng degree offer diploma TranscriptRUG biyezheng degree offer diploma Transcript
RUG biyezheng degree offer diploma Transcript
qpeqmso
 
Wintec biyezheng degree offer diploma Transcript
Wintec biyezheng degree offer diploma TranscriptWintec biyezheng degree offer diploma Transcript
Wintec biyezheng degree offer diploma Transcript
qpeqmso
 
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
Knowyourright
 
Internal Audit report 80-81 Third Quarter Final.docx
Internal Audit report 80-81 Third Quarter Final.docxInternal Audit report 80-81 Third Quarter Final.docx
Internal Audit report 80-81 Third Quarter Final.docx
NIRAJANSHAHI2
 
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
Paisley Law LLC
 
Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...
Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...
Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...
SunilVethody2
 

Recently uploaded (20)

Birmingham degree offer diploma Transcript
Birmingham degree offer diploma TranscriptBirmingham degree offer diploma Transcript
Birmingham degree offer diploma Transcript
 
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
 
ArtEZ biyezheng degree offer diploma Transcript
ArtEZ biyezheng degree offer diploma TranscriptArtEZ biyezheng degree offer diploma Transcript
ArtEZ biyezheng degree offer diploma Transcript
 
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie LondonDallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
 
Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...
Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...
Bayu triaswara : Whats is Federal Court of Australia, New South Wales Registr...
 
Bharatiya Nyaya Sanhita lawer (BNS).pptx
Bharatiya Nyaya Sanhita lawer (BNS).pptxBharatiya Nyaya Sanhita lawer (BNS).pptx
Bharatiya Nyaya Sanhita lawer (BNS).pptx
 
Hindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdfHindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdf
 
Court Fee Punjab Haryana High Court Chandigarh
Court Fee Punjab Haryana High Court ChandigarhCourt Fee Punjab Haryana High Court Chandigarh
Court Fee Punjab Haryana High Court Chandigarh
 
Westminster degree offer diploma Transcript
Westminster degree offer diploma TranscriptWestminster degree offer diploma Transcript
Westminster degree offer diploma Transcript
 
BIOFIN-EU project | IP & IPR Workshop.pptx
BIOFIN-EU project | IP & IPR Workshop.pptxBIOFIN-EU project | IP & IPR Workshop.pptx
BIOFIN-EU project | IP & IPR Workshop.pptx
 
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
 
Trademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure BrandTrademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure Brand
 
UofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma TranscriptUofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma Transcript
 
UNTEC biyezheng degree offer diploma Transcript
UNTEC biyezheng degree offer diploma TranscriptUNTEC biyezheng degree offer diploma Transcript
UNTEC biyezheng degree offer diploma Transcript
 
RUG biyezheng degree offer diploma Transcript
RUG biyezheng degree offer diploma TranscriptRUG biyezheng degree offer diploma Transcript
RUG biyezheng degree offer diploma Transcript
 
Wintec biyezheng degree offer diploma Transcript
Wintec biyezheng degree offer diploma TranscriptWintec biyezheng degree offer diploma Transcript
Wintec biyezheng degree offer diploma Transcript
 
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
 
Internal Audit report 80-81 Third Quarter Final.docx
Internal Audit report 80-81 Third Quarter Final.docxInternal Audit report 80-81 Third Quarter Final.docx
Internal Audit report 80-81 Third Quarter Final.docx
 
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
 
Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...
Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...
Bindu Vethody is Committed to Protecting the Rights of Individuals and Ensuri...
 

Starting as a Private Limited Company in NL

  • 1. Starting as a Private Limited Company by Jürgen van de Sande 30 March 2016
  • 2. Let’s introduce myself Jürgen van de Sande AA accountant partner starting companies and growers SMEs annual reports, fiscal declarations finance, structure/organization, acquisition human resources, dwo and accountancy departments
  • 3. OUR VISION An entrepreneur’s life is full of important events. Like starting your company, growing or downsizing, cooperating or ending your business. Each and every choice you make will affect the future of your company. De Wert is your partner of choice. We have been supporting entrepreneurs since 1959 with accountancy, tax and HR advice, payroll and administrative services. Therefore, no matter what phase your company is in: rest assured with De Wert. Introduction De Wert
  • 4. The first step is the hardest …
  • 6. Sometimes it hurts to let go
  • 7. Program • General  Legal forms in NL  Private Company (B.V.) as legal person  Establishment requirements  Share transfer restrictions  Governance  Liability  Annual report, publication and minutes • Taxation  Corporate Income Tax  Wage Tax  Income Tax
  • 8. B.V. Which legal forms do we know in NL? stichting V.O.F. coöperatie N.V. and more... eenmans- zaak B.V.
  • 9. Common legal forms • Sole proprietorship (eenmanszaak) • General partnership (V.O.F.) • Limited partnership (C.V.) • Professional partnership (maatschap) • Private limited liability company (B.V.) • Public limited liability company (N.V.) • Cooperative (Coöperatie) • Foundation (Stichting)
  • 10. Choice legal forms • Income tax • Corporate income tax • Fully liable • Limited liability Tax regime versus Liability
  • 11. Private Company as legal person • A ‘person’ having rights and obligations • Incorporation towards third parties • By one or more persons (shareholders)
  • 12. Establishment requirements Requirements: • a notarial deed of incorporation • Dutch language • articles of association • minimum issued share capital € 0,01 • appointing executive board • registering at Chamber of Commerce Options:  priority shares  preferent shares
  • 13. Share transfer restrictions • Shares in a B.V. are always on name • Share transfer restrictions in articles of association • Deed of transfer executed before a civil-law notary
  • 14. Governance • Board of directors • General Meeting of shareholders • Supervisory board in addition Board of directors:  Responsible for managing the B.V.  Appointed and removed by the shareholders  Solely or only jointly authorized to represent the company  Prior approval for certain acts
  • 15. Liability No liability for natural person (director and/or shareholder) Directors’ liability: • In the formation phase • Up till registration in the Trade Register • Severally liable by mismanagement • Discharge from liability Directors’ and shareholders’ liability: • Distribution test  Equity test  Continue to pay its debts payable (of at least 12 months) • Reimburse the deficit
  • 16. Annual report, publication and minutes • Title 9 Book 2 of the Netherlands Civil Code • NL GAAP • Annual report  Management board’s report  Financial statements  Other information • Minutes of General Meeting of shareholders  Adoption of financial statements • Publication report  Deposit to Chambers of Commerce within 8 days after adoption
  • 17. Taxation • Corporate income tax • Wage tax • Income tax Based on Tax Legislation 2016
  • 18. Corporate income tax (CIT) Objects 1) Subject to CIT 2) Tax base and rates 3) Dividend (tax) 4) Participation exemption 5) Innovation box 6) Fiscal unity
  • 19. Corporate income tax (CIT) #1 Subject to CIT • CIT is charged to legal entities of which the capital is partially or fully divided into shares • Examples of such legal entities are the Dutch N.V. and B.V.
  • 20. Corporate income tax (CIT) #2 Tax base and rates • CIT is charged on the taxable profits earned by the company in any given year less the deductible losses. • Deductible losses  1 previous year  9 subsequent years • The following are the applicable corporate income tax rates for 2016: Profit from Profit up to and including Rate € 0 € 200k 20% > € 200k 25%
  • 21. Corporate income tax (CIT) #3 Dividend (tax) • Pay out profits to the shareholders • Tax rate is 15% • Advance tax payment on CIT and income tax
  • 22. Corporate income tax (CIT) #4 Participation exemption • To prevent double taxation • Profit distribution between group companies is exempted from tax • At least 5% of the nominal paid-in capital of a company is required
  • 23. Corporate income tax (CIT) #4 Participation exemption • Example • Subsidiary B.V. pays out € 50k dividend to Parent B.V.: without participation exemption this benefit would be taxable for Parent B.V. 100% Parent B.V. Subsidiary B.V. dividend € 50k
  • 24. Corporate income tax (CIT) #5 Innovation box • For innovative activities  Patent  Research and development project (WBSO) • CIT rate for innovative activities  5%  Option to declare 25% of the total profit limited to € 25k for 3 years • Losses on innovative activities can be deducted at the normal CIT rate
  • 25. Corporate income tax (CIT) #6 Fiscal unity • Companies effectively established in NL • Same tax regime • Same financial year ≥ 95% Parent B.V. Subsidiary B.V.
  • 26. Wage tax Salary director/shareholder • Usual wage settlement (article 12a Wage Tax)  A minimum wage of € 44k applies for employees with a substantial interest in the employer  Not applicable when the usual wage is less than € 5k per year • Others have a higher wage?  75% of that higher usual wage, but at least € 44k  The salary of the highest-paid employee • No profits to pay € 44k salary as a startup?  Request for a decision “reducing usual wage”
  • 27. Wage tax Salary director/shareholder • Social security?  Depends on the relation of authority  director and/or spouse ≥ 50% votes  director and/or 3rd degree ≥ 2/3 shares  director cannot be dismissed against his will  Without a relation of authority the director/shareholder cannot rely on the social security insurances • Advance tax payment on income tax
  • 28. Income tax Boxes Box I: Taxable income from work and home Box II: Taxable income from substantial interest Box III: Taxable income from savings and investments (no further explanation)
  • 29. Income tax: Box I Taxable income from work and home • Income from current employment  Employment with the B.V.  Salary director/shareholder • Income from providing of assets towards the B.V.  Building: rental income  Loan: interest income  Exemption 12% • Tax rate is progressive to a maximum of 52%
  • 30. Income tax: Box II Taxable income from substantial interest • Minimum of 5% of the issued capital of shares • Regular benefits and/or sales benefits  Dividend  Sale of shares • Tax rate is 25%
  • 31. Starting as a Private Limited Company So … why? • Splitting liabilities and risks • Flexibility in operations • Facilitate attracting and distributing funding • Sale of spare parts • Acquire new subsidiaries • Increase opportunities of continuity