Private Limited Company: Who Qualifies and What You Get
Learn how a Private Limited Company provides limited liability and tax efficiency for entrepreneurs and investors in the Netherlands.
A Private Limited Company is a legal business structure that separates your personal assets from your business activities.
Who it's for
This structure is designed for entrepreneurs and investors looking to formalize their business operations.
What you get
By setting up this type of company, you gain limited liability, which means your personal assets are generally protected from business debts. It can also offer potential tax efficiency for your business activities.
What it costs you
Establishing this company involves several costs, including notary fees and the required registration with the Chamber of Commerce. Once your company is running, you must also manage and complete annual filing requirements.
The catch to know
If you are a director of the company, there is a mandatory minimum salary requirement (often referred to as DGA salaris) that you must pay yourself. Failing to meet this minimum salary requirement can lead to issues with tax compliance.
How to apply
- Consult with a notary to handle the official incorporation.
- Register your new company with the Kamer van Koophandel.
- Ensure you have a plan to meet the mandatory minimum salary for directors.
- Set up a system to manage your annual filing requirements.
For more information, visit https://www.kvk.nl