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All Legal Entities
In the Netherlands, you can choose from a wide variety of legal business entities. There is a significant distinction between unincorporated business structures (‘rechtsvormen zonder rechtspersoonlijkheid’) and incorporated business structures (‘rechtsvormen met rechtspersoonlijkheid’). The main difference between these two is that there is no distinction between your private and business assets in an unincorporated business. So if you create debts with your business, you can personally be held accountable. If you choose an incorporated business, you separate private and business assets and thus enjoy protection from business debts.
There Are Four Types Of Unincorporated Business Structures:
Sole trader/single-person business (Eenmanszaak or ZZP)
Limited partnership (Commanditaire vennootschap or CV)
General partnership (Vennootschap onder firma or VOF)
Commercial/professional partnership (Maatschap).
There Are Five Types Of Incorporated Business Structures:
Private limited company: ltd. and Inc. (Besloten vennootschap or BV)
Public limited company: plc. and Corp. (Naamloze vennootschap or NV)
Cooperative and mutual insurance society (Coöperatie en onderlinge waarborgmaatschappij)
Legal requirements differ between the business structures. In general, the business structure that is most often chosen by foreigners is the Private limited liability company (BV).
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