N.V. (Naamloze Vennootschap)
Candlefocus EditorFor a company to qualify as an N.V., it must meet certain requirements. The most notable of these is a minimum startup capital threshold of €45,000. This means that an N.V. must receive this amount of money in order to be legally constituted. The shareholders of N.V.s remain anonymous since an N.V. is an independent legal entity responsible for its own finances. Shareholders are not personally liable for any of the company's debts, so there is generally less risk associated with investing in this type of company.
Although an N.V. has similar characteristics to stocks and other corporate entities, there are differences in set of rules and regulations that govern how an N.V. is set up and operated. For instance, most countries have different rules regarding the type of taxes that must be paid when setting up and operating an N.V. Additionally, the minimum capital requirements and shareholder rights can vary from country to country.
On the whole, N.V.s are beneficial for investors who want the benefits of a corporate structure with limited risk. N.V.s protect their shareholders from personal liability and allow for anonymous ownership and decision making. However, due to the restrictions associated with an N.V., entrepreneurs should review the specific regulations of their country of operation to make sure they are compliant with the law.