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There are several legal entity types that a company can choose from in the Netherlands. Each type has its own specific legal and tax implications, and it is important for a company to choose the right entity type for its specific business needs. The most common legal entity types in the Netherlands are:
Besloten Vennootschap (BV): This is the equivalent of a private limited liability company and is the most common form of legal entity in the Netherlands. A BV is a separate legal entity with limited liability, meaning that the shareholders' personal assets are protected in the event of the company's bankruptcy.
Naamloze Vennootschap (NV): This is the equivalent of a public limited liability company and is commonly used by larger, publicly traded companies. An NV is a separate legal entity with limited liability and is required to have a minimum capital of EUR 45,000.
Commanditaire Vennootschap (CV): This is the equivalent of a limited partnership and is used when one or more partners have limited liability for the company's debts.
Eenmanszaak: This is the equivalent of a sole proprietorship and is used by self-employed individuals who are solely responsible for the debts and obligations of their business.
Stichting: This is a foundation and is commonly used for charitable or non-profit purposes. A stichting is a separate legal entity and is exempt from corporation tax.
Vereniging: This is an association and is commonly used for non-profit or membership-based organizations. A vereniging is a separate legal entity and is exempt from corporation tax.
It is important to note that each legal entity type has its own specific requirements, including the minimum capital requirement, the number of shareholders required, and the reporting and disclosure obligations. Companies are advised to consult with a lawyer or tax advisor to determine the best legal entity type for their specific business needs and to understand the specific rules and requirements of each entity type.
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