INCORPORATION OF PRIVATE COMPANIES WITH LIMITED LIABILITY

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IN THE <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />NETHERLANDS

a general survey on the formalities, the amount of time and the costs

1. Introduction

The usually preferred legal entity in the Netherlands is the besloten vennootschap

2.   Incorporation procedure

Notarial deed

A B.V. can be incorporated by a single person or an entity. The incorporation occurs through the execution before a Dutch civil law notary of a Notarial Deed of Incorporation. The deed contains in any event the company´s Articles of Association, details of the shares issued at incorporation, details on the incorporator(s)/ shareholder(s), the appointment of the first (board of) Managing Director(s), (as the case may be) Supervisory Directors and the determination of the first financial period of the company.

Certificate of no-objection

Payment on shares

The share capital of a B.V. must be expressed in Dutch guilders (and after the 1st of January 2002 in euro). The minimum paid-up share capital prescribed by law is Dfl 40,000. After the 1st of January 2002 the minimum share capital is 18,000 euro. The issued and paid-up share capital must be at least 20% of the authorised share capital. Therefore, the maximum authorised share capital is Dfl 200,000 if the company is capitalised with the minimum paid-up share capital of Dfl 40,000 and 90,000 euro if the capital is capitalised in euro.

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