One-man business (eenmanszaak) or a private limited company (besloten vennootschap)?

When you start a business, you choose a legal form. That is the legal basis of your company and affects your obligations. Starting entrepreneurs are sometimes uncertain about what form they need. What suits your situation best? In this article we discuss the choice between a one-man business or a private company (e.g.). Expat Service will be happy to help you make the right choice for the Dutch legal form for your company. We also take care of the administration with our accountantcy services for you.

Differences between Dutch legal forms

The choice between a sole proprietorship or private limited company (e.g.) depends on how you organize your company, which tax facilities you choose and how you want to arrange your liability. The differences between a sole proprietorship and bv are explained below. Expat service’s advisors will be happy to help you make the right choice.

Sole proprietorship (eenmanszaak) Limited liability company (besloten vennootschap)
Establishment no requirements notary deed
Capital input no requirements € 0.01 minimum starting capital
Management Owner Director
Other stakeholders shareholders

possibly supervisory board

Liability business and private 100% only the bv (in principle)
Tax income tax and under conditions SME profit exemption and entrepreneurial deduction corporate tax and income tax on salary and dividend

Costs of setting up a company in the Netherlands

A bv can be established of your BV through our office. The notary must draw up a deed. You have to pay notary fees. Request a quote for the most current price for the BV formation. For a sole proprietorship only a visit to KVK is required. You do not have to go to a notary. For the registration of your bv or sole proprietorship at KVK you pay a one-time fee of 50 euros. With a sole proprietorship you are therefore cheaper for the establishment.

Advantages of a sole proprietorship or bv

A sole proprietorship has less fiscal pressure with lower profits and is cheaper to set up and maintain. A bv is more attractive with higher profits, because the rate advantage is higher than the extra entrepreneurial deduction possibilities of the sole proprietorship. Another advantage of the bv is the limitation of liability. In addition, arguments such as image, status, doing business abroad and the ability to easily transfer or sell the company play a role in the choice for a bv.