Deciding whether our company should be an BV or NV

I have spent a lot of time making decisions in my working life, in my career as a businessman, but I never had the slightest idea that I would one day be choosing to make my company an BV or NV. Being an Australian living in the capital of Great Britain, I had no idea that BV or NV existed. That is because they are forms of company used in Holland. They are both protected types of company, with their own rules, advantages and disadvantages. They have equivalents in the United Kingdom and in Australia, but just like everything else, the subtle differences can be crucial. So when it became advantageous to take our whole company from London and move it to the Hague to be able to move on to the next, bigger, better phase, it was clear that I had some research to do in order to choose whether we should be starting an BV or NV.

How we chose between an BV or NV

There are many factors to look at when choosing for an BV or NV. I had a lot to learn before making the decision. First of all, I had to find out what each is. It turns out that an NV is a Naamloze vennootschap. The nearest equivalent in Great Britain is a public liability company. To start an NV in the Netherlands, you must:

  • Have a minimum share capital of at least 45,000 euros;
  • Begin the company with a notary deed;
  • Have a board of directors;

Follow specific, strict accounting requirements.

Most importantly, an NV is publically traded – the shares are available to buy on the market. This is the biggest factor in choosing for BV or NV. A BV, or Besloten vennootschap, is different in this regard. The shareholders have limited liability, much like a private liability company in the UK, but the stock is not available to the general public. I had started off in my career as a man with an idea which I was able to sell, not as a businessman with a financial or economics background, and even though I came to learn a fair amount of detail about the stock market, types of company and so on, learning it well enough to make the decision in another country, in another language, seemed as though it was going to be a step to far. So I begun to look for support to help me choose whether we should continue as an BV or NV.

Enlisting help

To make the decision about BV or NV, I consulted with Intercompany Solutions, a company specialised in exactly the type of situations that I found myself in. I encountered them through an article they had written about the subject at intercompanysolutions.com which covered the basics in a clear, concise fashion. I was pleasantly surprised when I contacted them. They seemed to have experienced situations similar to mine multiple times in the past and knew exactly what I needed to know to guide my BV or NV decision. They provided the information and continued to help me with the next steps into the business world in the Netherlands. Several months later I continue to use Intercompany Solutions as my consultants for any and all questions relating to the specifics of UK-Dutch company interactions and legal pitfalls, and I am consistently very happy with the service which they provide. I am the proud leader of a successful Naamloze vennootschap and am delighted with how everything has turned out.