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Incorporating a BV and NV Made More Simple as of 1 July 2011

As of 1 July 2011 it will no longer be necessary to apply for a ‘certificate of no objection’ when incorporating a BV or an NV. This will put an end to the innumerable forms that had to be completed for the application of a certificate and the waiting time of several working days before the certificate could be issued. The certificate will not be required anymore either for the amendment of Articles of Association and for changing another legal form into a BV or an NV.

The reason for abolishing the system of preventive supervision is that it has appeared not to be an effective means to fight abuse of legal entities, as has been established in the Report “Snel en secuur toetsen; het alternatief voor de verklaring van geen bezwaar” (Swift and Secure Testing; the Alternative for the Certificate of No Objection). The system had gaps and, moreover, it appeared that it was rather simple to be circumvented. In addition thereto, the system involves considerable costs in the form of administrative burdens and legal dues for companies.

Instead of the preventive supervision, a new system of permanent control of legal entities will be established. With regard to the current situation, the scope of the control will be extended. In addition to companies with share capital, various other legal entities, including foundations, associations and cooperations and undertakings belonging to a foreign legal entity having a head office or branch in the Netherlands will fall under the scope of the new system. The Control Over Legal Entities Act offers a basis for the new registration system.

In this system, data will be included about, inter alia, the incorporators, the shareholders, the supervisory directors, the members – to the extent that they fulfil administrative positions -, the directors and the representatives of the legal entity. The data originate from, inter alia, the trade register, the Municipal Database, the UWV, the Tax and Customs Administration, the NMa, investigation authorities and supervisory institutions. The permanent screening takes place by means of an automated process on the basis of risk profiles. If it appears from a risk analysis that there is an increased risk, this will lead to a notification of risk to one or more enforcement authorities.

For more information please contact the notarial law department of Kennedy Van der Laan, attention Mr. Jan Schouten at Jan.Schouten@kvdl.nl or + 31 (0) 20 550 68 53.

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Fenna van Dijk

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E-mail: fenna.van.dijk@kvdl.nl

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