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Netherlands

What Is a Dutch BV?

Netherlands 4 min read Updated Jun 2026

A Dutch BV (besloten vennootschap) is a private limited liability company, the most common legal entity structure used to operate and hire employees in the Netherlands. It offers limited liability to its shareholders and can be incorporated with as little as €0.01 in share capital, making it accessible for businesses of nearly any size.

Quick Fact

Since 2012, Dutch BVs no longer require a minimum share capital of €18,000. A nominal deposit of €0.01 is legally sufficient to incorporate.

Dutch BV at a Glance

AttributeDescription
Legal StatusSeparate legal entity with limited liability
Minimum Share Capital€0.01
Incorporation RequiresA Dutch civil-law notary and a notarial deed
RegistrationDutch Trade Register (KVK)
Can Hire Employees?Yes, directly
Best ForCompanies planning a long-term, direct-hire presence in the Netherlands

Why Does It Matter?

A BV is the standard route for companies that want to hire employees directly, sign local contracts, and build a lasting operational presence in the Netherlands. Because it is a separate legal entity, the parent company's own liability is generally limited to its investment, unlike a branch office structure.

When Is It Used?

A Dutch BV is typically used when a company:

  • Plans to hire a meaningful number of employees in the Netherlands over time.
  • Wants direct control over local operations, contracts, and payroll.
  • Needs a locally incorporated entity to access Dutch tax treaties or qualify for certain government schemes.
Example

A UK e-commerce company plans to build a 15-person fulfillment and customer service team in Rotterdam. Given its long-term commitment, the company incorporates a Dutch BV through a local notary, allowing it to hire employees directly and register as an employer with the Belastingdienst.

Common Misconceptions

“A Dutch BV requires significant starting capital.”

No. The minimum share capital is just €0.01; most practical incorporation costs come from notary and registration fees instead.

“Incorporating a BV is a fast alternative to an EOR.”

Not usually. Incorporation, including notarial and registration steps, generally takes days to weeks, making an EOR faster for urgent or small-scale hiring.

“A BV owner has no personal liability under any circumstances.”

Not entirely true. While shareholder liability is generally limited, directors can face personal liability in cases of mismanagement or before formal registration is complete.

“A single founder can't run a Dutch BV alone.”

No. A BV can be incorporated and operated with a single shareholder and a single director.

Bottom Line

A Dutch BV is the standard limited liability entity for companies establishing a direct, long-term presence in the Netherlands. It offers low capital requirements and hiring flexibility, but requires notarial incorporation and ongoing compliance obligations.

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