Private Company
A Besloten Vennootschap, abbreviated as BV, is a common legal form for businesses in the Netherlands. It is a legal entity with limited liability, which means that the owners (shareholders) are usually not personally liable for the company's debts. A BV can be established by one or more individuals and is intended for commercial activities.
Characteristics of a Limited Liability Company
A BV has some specific characteristics. First, the capital of the BV is divided into shares, which are held by the shareholders. The shareholders are jointly responsible for the management of the BV and have a say through the general meeting. A BV must file annual financial reports with the Chamber of Commerce and these are usually public. In addition, the BV provides structure and stability to companies and is attractive to investors because of its limited liability. However, establishing a BV requires a notarized deed and certain financial obligations.
