What does BV mean in Netherlands?

The Netherlands offers two options for registering a company with limited liability (LLC) of the shareholders: a public LLC or Naamloze Venootschap abbreviated as NV, and a private LLC, Besloten Vennootschap, abbreviated as BV.Both the NV and the BV represent separate legal entities.Read more: BV NV difference

Are there any other differences between BVs and NVs, besides that one of them is private and the other public?

The requirements for BVs are almost identical to the ones for NVs, but there are some differences between the entities. The main ones are outlined below: a) Bearer shares can be issued only by NVs. b) Only NVs are allowed to list shares on the Exchange Market. c) The minimum share capital that needs to be issued and deposited for NVs is 45 000 EUR. No minimum requirement is set for BVs. d) NVs can buy back one tenth of the issued share capital while BVs can buy back the whole capital, on the condition that a single share giving the right to vote is owned by another party.Read more: Doing business in the Netherlands Dutch BV taxation

Are the applications for BV registration subject to approval by the government?

According to the current Dutch legislation, no approval from the government is required for the official formation of a private LLC.

Are there any requirements regarding BV structure?

Dutch LLCs need to have a minimum of one Managing Director and a Shareholder. The assignment of Supervisors representing the Shareholders in the Managing Board of the company is optional.

What role does the Managing Director play?

The Director of a company with limited liability established in the Netherlands does not have to be a national or a resident of the country.Even other corporations can perform the functions of Managing Directors. The Managing Board (composed of a minimum of one Director) deals with the administration and management of the LLC, its daily routine and business operations. The Managing Board represents the LLC.In case the Board includes several members, the Articles / Memorandum of Association (AoA / MoA) must specify whether the Dutch LLC can be represented individually by each member, or joint action is required. Regardless of the distribution of obligations and tasks among the Directors, each of them can, generally, be held personally liable with regard to the company’s debts.Read more: Setting up a company in the Netherlands Netherlands company formation cost

Is A BV The Same As A LLC?

No, a BV (Besloten Vennootschap) and an LLC (Limited Liability Company) are not the same. They are different types of legal entities with distinct characteristics, and their specific attributes can vary depending on the jurisdiction in which they are formed.

BV (Besloten Vennootschap): A BV is a type of company commonly used in the Netherlands and similar to a private limited company. It is a separate legal entity with limited liability, meaning that the company's shareholders are generally not personally liable for the company's debts and obligations. A BV is typically governed by the Dutch Civil Code and must comply with specific legal requirements in the Netherlands.
LLC (Limited Liability Company): An LLC is a type of company structure that is prevalent in many common law jurisdictions, including the United States. It provides limited liability protection to its owners, known as members. The exact regulations and requirements for an LLC can vary depending on the jurisdiction, but in general, an LLC offers flexibility in terms of management structure, taxation, and ownership.

While both BVs and LLCs offer limited liability protection for their owners, the specific legal frameworks, requirements, and regulations governing these entities can differ significantly.

It's essential to consult with Offshore Company Formation familiar with the specific jurisdiction in question to understand the nuances and implications of each entity type before deciding which one is most suitable for your needs.