What Is a Dutch BV?
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.
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
| Attribute | Description |
|---|---|
| Legal Status | Separate legal entity with limited liability |
| Minimum Share Capital | €0.01 |
| Incorporation Requires | A Dutch civil-law notary and a notarial deed |
| Registration | Dutch Trade Register (KVK) |
| Can Hire Employees? | Yes, directly |
| Best For | Companies 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.
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
No. The minimum share capital is just €0.01; most practical incorporation costs come from notary and registration fees instead.
Not usually. Incorporation, including notarial and registration steps, generally takes days to weeks, making an EOR faster for urgent or small-scale hiring.
Not entirely true. While shareholder liability is generally limited, directors can face personal liability in cases of mismanagement or before formal registration is complete.
No. A BV can be incorporated and operated with a single shareholder and a single director.
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.
Building a long-term presence in the Netherlands?
We'll help you weigh a Dutch BV against an EOR based on your timeline and hiring plans.
AUG (Authorized User Group) Certified
IND Recognised Sponsor
Nasscom Certified
SNA Certified
Nasscom Certified