Most common business entity in Netherlands
The Besloten Vennootschap (BV) is the standard choice for most small- to mid-size businesses in Netherlands. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Civil-law notary required for incorporation; expect €500-1,500 in legal fees on top of state fees.
The full menu of Netherlands business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Besloten Vennootschap (BV) | Limited | 25.8% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 25.8% on Netherlands-source profits | Foreign companies entering Netherlands market |
| Public limited company | Limited | Same as Besloten Vennootschap (BV) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Netherlands? Self-employed structure if simple, Besloten Vennootschap (BV) if you want liability protection.
- Software / e-commerce / agency? Besloten Vennootschap (BV) — standard, scalable.
- Operating an existing foreign company in Netherlands? Branch (simpler) or subsidiary Besloten Vennootschap (BV) (more substance).
- Planning to raise venture capital? Confirm investors accept Netherlands entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Besloten Vennootschap (BV) with minimal substance requirements.
The Besloten Vennootschap (BV) in one paragraph
Besloten Vennootschap (BV) is Netherlands's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 25.8%. 19% on first €200k, 25.8% above. Innovation Box → 9% on qualifying IP profits.. Banking accessibility: 9/10. Privacy: 4/10 (UBO non-public). Remote formation: in-person typical. Processing time: 5 business days.
For US comparison, see Netherlands vs USA. For non-resident formation specifics, see forming a Netherlands company as a non-resident.