The Company Act in Holland, represented by the Dutch Corporate Law, provides the rules and regulations regarding the organization and conducting business for all legal forms recognized in the Netherlands. The BurgerlijkWetboek (Article 2:175 from the Civil Code) represents the basis for all legislation in the field of Dutch companies, being considered the main source for company legislation.
Even though the Company Act in Holland is rather permissive, it contains the rules established for company formation in this country, including the set up procedure, the types of companies available and the regulations applied. An foreign entrepreneur wiling to develop a business in Holland must firstly get full information about the legal forms that can be opened here. In most cases it is strongly recommend to take advantage of the services provided by a specialist, as there may incur certain actions which imply specialized advice.
The Company Act in Holland also provides the business forms that can be registered and the rulings and regulations applied for each of them. For example, in accordance to the type of activity and the desired manner of running a business, an entrepreneur may choose to open a limited liability company or BV, the joint stock corporation or NV, the general partnership or the limited partnership. The Dutch partnerships are not recognized as legal entities.
All the regulation provided by the Civil Code in Holland are taken and established in accordance to the European Community Directives and the Act on the Supervision of the Securities Trade and the Listed Companies Act 1996 regulate several aspects of running a company in the Netherlands.
Moreover, the Company Law in Holland provides that an investigation procedure in order to check the company's honesty can be ordered by the Dutch Enterprise Chamber. However, this action is not mandatory in order for a company to be validated by the Dutch corporate law.
The Dutch Employment Law is also permissive, as the Company Law in Holland, providing the essential rulings when it comes to aspects such as employment requirements, parties' rights and obligation, working hours, salaries and wages, employment contract. As mentioned before, the Employment Law is not so restrictive, for example it is not mandatory for an employer to provide a written contract of employment. However, the procedure of firing or dismissal an employee is more complex, as the employee's rights are clearly and strongly provided by the Employment Law. The Labor Law in Holland is rather flexible in terms of workforce and it is characterized by plenty of particularities.
Want to know more about the Company Act in Holland? Contact our specialists in company formation from Netherlands for complete and customized advice and support.