The NV (naamloze vennootschap) is known in English as a public limited company or open corporation, with publicly tradeable shares.
The difference between a BV and an NV
The NV business form is more or less same as the BV, except for one major difference: the shares of an NV can be publicly traded on the stock market. With a BV it is only possible to transfer shares via a notary. For this reason the NV requires a startup capital of 45.000 euros, compared to 0,01 euros for a BV.
NV in formation: going public
It is possible for the owner/s of a BV to convert their business to a NV when they want to "go public". When starting this process the owners can set up a NVio (NV in oprichting or NV in formation), allowing them to prepare for making a public offering.
The NV in a nutshell
- Establishment: notarial deed of incorporation
- Capital required: 45.000 euros, notarial costs
- Governance: executive board
- Other bodies: shareholders (& potentially board of directors)
- Liability: board of directors in cases of negligence
- Social security: no social security benefits for directors or shareholders with a majority stake in the company
- Taxation: corporation tax on profits / income tax on board member salaries / dividend tax / BTW / payroll tax (for employees)