Sole Proprietorship (eenmanszaak)
In the case of a sole proprietorship, you are the sole manager of the company. This can be the case if you engage in self-employment, such as being a notary or a general practitioner, or if you are the sole owner of the business. Even if you employ staff, your company can still remain a sole proprietorship. If you meet the criteria, you will be registered as an entrepreneur in the tax authorities’ system and, accordingly, you will be obliged to pay taxes on your business activities. Please note that if you have employees, you are also obligated to pay employer contributions.
A sole proprietorship is not considered a legal entity. If you run a sole proprietorship, you assume responsibility for the company’s obligations.
BV (Besloten Vennootschap, Private Limited Liability Company)
This is the second most common form of company chosen by new businesses in general. In this case, the business is jointly managed by one or more partners. When establishing such a company, it is important that each partner contributes something to the business, such as capital, goods, labor, etc.
The contract concluded upon the establishment of the company must include the following:
Company Administration and Bookkeeping
It is mandatory to keep accurate records of your business activities. You must retain your records for a period of 7 years, either in paper or electronic format, including all records, business documents such as cash books, invoices, purchases, bank statements, contracts, and any other documents, software, or databases related to your business. Your company’s administration must accurately reflect the amount of turnover tax you must pay and the amount you have paid to the tax authorities. Therefore, it is also important to retain the following documents for 7 years:
Your issued invoices must be numbered consecutively, and they should contain the following information:
The invoice should include the following information:
The following information should also be included on the invoice:
In some cases, as a buyer, you may also need to include your tax identification
number (btw nummer), especially when exporting goods within the EU.
Additionally, if the sale falls under special tax regulations, it should be indicated on the invoice.