
The
Dutch joint venture (JV) is an arrangement between two or more companies that agree to unite their resources for a common business goal. Each of the companies retains its individual identity and is liable for the profits and losses of the business venture.
In order to
create a joint venture in the Netherlands, the investors will first need to incorporate two Dutch companies. The
joint venture is not subject to specific regulations for this type of business arrangement. However, the companies that form it are subject to the
Dutch Company Law.
Forming a Dutch joint venture
There are two types of joint ventures that can be formed in the Netherlands:
- corporate: between private or public companies or Dutch co-operatives;
- contractual: between partnerships or limited partnerships.
Because corporate joint ventures are formed between business entities with legal personality (unlike the partnership), the companies are subject to the Dutch Company Law. This is an important difference between contractual and corporate joint ventures.
Partnerships and
companies in the Netherlands have different annual accounting and reporting requirements and our company formation agents can help you with detailed information about this aspect.
Joint venture requirements in the Netherlands
All companies incorporated in the Netherlands must be
registered with the Dutch Chamber of Commerce and all
joint ventures engaged in commercial activities must be formed of such registered companies. In some cases, a joint venture can fall under the scope of the Dutch Competition Act. The Dutch contract law will apply to contractual joint ventures.
Joint ventures in the Netherlands have no commercial restrictions and can be used in any business fields. No specific durations apply to this form of establishment, however, if the companies that form a corporate joint venture are only incorporated for a specific period of time, then this period will also apply to the JV.