Naamloze Vennootschap (N.V. - Limited Liability Company)

An N.V. (Naamloze Vennootschap) is a limited liability company with separate legal identity from its owners. It's suitable for businesses planning to grow, attract investors, or operate with multiple partners.

What is an N.V.?

A limited liability company (N.V.) is a business entity that exists separately from its owners (shareholders). The company can own property, enter contracts, and incur debt independently. Shareholders' liability is limited to their investment.

Key Characteristics

• Multiple Owners Possible: Can have one or more shareholders
• Limited Liability: Personal assets protected (usually)
• Separate Legal Entity: Company owns assets and debts separately
• Formal Structure: Board of directors, shareholder meetings
• Corporate Taxation: Company pays corporate taxes, then shareholders pay taxes on dividends
• More Paperwork: Extensive registration and ongoing compliance

Advantages

✓ Limited personal liability - personal assets protected ✓ Easier to raise capital from investors ✓ More credible for large contracts and partnerships ✓ Easier to add partners or investors ✓ Can build company value separate from owner ✓ Better for long-term business planning

Disadvantages

✗ More expensive and complex to establish ✗ Extensive registration and compliance requirements ✗ Board meetings and shareholder resolutions required ✗ Corporate taxes may be higher than personal rate ✗ More administrative work and record-keeping ✗ Annual financial statements and audits may be required

When to Choose N.V.

• You have business partners
• You're seeking investor capital
• Your business has significant assets or liability risk
• You plan to hire employees
• You want to establish long-term business value
• You operate in regulated industries

Setting Up an N.V.

1. Write Articles of Association
2. Appoint board of directors
3. Register with KKF
4. Register with Tax Authority
5. Open company bank account
6. Register employees if applicable
7. Set up accounting and compliance systems

Key Differences from Eenmanszaak

Next Steps

→ KKF Registration Process → Tax Registration

N.V. requires more setup but provides protection and credibility as your business grows.