If you want to start your own company, there are exiting times ahead. This starts by choosing the right business form. So many possibilities, so many related matters to take into account.
Also if you’ve been an entrepreneur for years it might be a good idea to reflect on whether the present business of partnership form is still suited to your company. Your wishes or personal situation can always change.
Your company needs a legal form: we call this a legal format or business structure. Choose the legal format that best suits your situation. Keep in mind matters such as control, starting up a company alone or with one or more partners. But also tax benefits. The various legal forms differ substantially in whether or not they have a legal personality.
Legal form without legal personality
In a business without a legal personality, you are privately liable for business debts. Business creditors can recover from both your business and your personal assets. There are four business forms without legal personality:
Legal form with legal personality
A legal entity, like a human being, independently bears (financial) rights and obligations. This means that a legal entity is liable for the debts resulting from the business, not you personally. There are several business structures with legal personality:
At Marks Wachters notarissen we know exactly what the advantages and disadvantages of legal forms are and together with you we will find the most suitable form.
Association or foundation
There are many associations and foundations in this country. These vary from the local sports or hobby club to major national organizations, from family foundations to large hospitals and housing associations.
A foundation has to be established by notarial deed. There are no form requirements for establishing an association. There are however advantages to an association whose articles of association have been included in a notarial deed and which is registered in the trade register, such as, for example, limited liability of board members for the debts of the association.
Marks Wachters notarissen can advise you on this. The articles of association of an association or a foundation regulates the internal organization (authorities, decision-making process, representation, etc.). Based on your situation and wishes we can offer personal advice on the contents of the articles of association of your association or foundation.
Tax-exempt investment institution
Marks Wachters notarissen is experienced in organizing the legal structures for the tax-exempt investment institution (VBI). This structure is often used for entrepreneurs who have accrued a substantial (investment) capital in their holding company, which can make it attractive (for tax reasons) to place (part of) the capital in a VBI.