how an n v works
every country has different regulations that outline the process involved with setting up a corporation this includes rules about registration taxation and corporate structures there are certain procedures that companies must abide by in order to go public regardless of the country in which they do business as noted above an n v or naamloze vennootschap is a type of company in the netherlands it is also a common corporate structure in other dutch influenced countries such as aruba belgium suriname the dutch west indies indonesia curacao and st maarten the procedures to set up and operate an n v vary by country this type of corporation generally operates the same way an incorporated company does in the u s or a public limited company does in the united kingdom the company issues stock to individuals and entities who are able to make decisions about the company s future including appointing and changing those who sit on the board of directors bod shareholders may remain anonymous under the structure as the term naamloze vennootschap literally translates to the term nameless venture a minimum of 45 000 in startup capital is required to establish an n v in the netherlands notary services are also needed this professional must draft a notarial deed with the articles of association which highlights the purpose of the corporation and the responsibilities of those involved the company and the names of the directors are then registered at the netherlands chamber of commerce in the dutch commercial register 1here are a few other requirements an n v must follow in the country along with startup capital and notary costs companies are also responsible for accounting registration bookkeeping and annual administration costs special considerationsbusinesses can operate before they are registered under the n v category in the netherlands but its directors are personally liable until registration is complete shares of dutch naamloze vennootschap entities may also be traded on stock exchanges as long as they meet certain requirements for instance the company must shareholders must meet and vote on whether to cease operations as an n v if they decide to do so all debts must be paid off and all dividends must be distributed to shareholders once this is done the n v can officially be shuttered 1note that the information listed above applies to those in the netherlands as mentioned above the requirements to operate an n v generally vary based on the country where they operate for instance the total number of public limited companies in the netherlands as of the first quarter of 2022 1n v vs b v an n v is just one type of structure for companies in different countries another option is the b v or besloten vennootschap in the netherlands this structure is a private limited company and is generally smaller than an n v the corporation tends to be liable for its debts so no onus falls on its directors ownership is also divided into shares which gives shareholders the power to make decisions about the company although it is common for smaller entities to have a single director there is no limit to the number of directors a b v can have which means there can be multiple directors to establish a b v it must advantages and disadvantages of an n v let s take a look at some of the key benefits and drawbacks of setting up an n v keep in mind that this refers to corporate structures in the netherlands unless otherwise indicated some of the key benefits of registering and operating an n v in the netherlands include here are some of the key drawbacks of registering and operating an n v in the netherlands corporate tax rates and tax deductions applyanonymity for shareholdersno outlay of cash is requiredno personal liability for directorshigher amount of startup capital is required compared to b v high capital and share valuation thresholds to go publiccan be easily acquiredreal life example of an n v one of the largest naamloze vennootschaps in the world is exor n v the company s roots trace back to the end of the 19th century but it wasn t until 1927 that it was officially founded by giovanni agnelli as fabbrica italiana automobili torino or fiat 9it is now a holding company with a market capitalization of about 18 2 billion as of jan 20 2022 10 it makes investments in a variety of sectors including reinsurance automobiles agriculture as well as professional sports its business segments include fiat chrysler automobiles partnerre ferrari cnh industrial juventus and the economist among other enterprises 119the company remains largely controlled by the italian agnelli family today 9