Starting entrepreneurs continue to register for a private limited company (bv), the Chamber of Commerce (KVK) notes. People may think this circumvents bogus self-employment, but that is “absolutely not true.” Furthermore, the number of new businesses continues to decline and the number of businesses ceasing operations continues to increase.
The number of new businesses registering as a private limited company (bv) increased by 21 percent, according to figures from the Chamber of Commerce (KVK). A possible cause, according to the KVK, is that the Tax Authorities have been checking and enforcing bogus self-employment since the beginning of this year.
Bogus self-employment arises when a client hires someone as a freelancer but the situation is actually one of employment. The Tax Authorities did not enforce this in recent years, but have been doing so since the beginning of this year.
“There is an idea that a bv circumvents risks when it comes to the assessment of bogus self-employment, but that is absolutely not true,” says Sergej Schuurman, lawyer and content editor at the KVK. “The same assessment criteria apply to a sole proprietorship and a bv.”
Again, the number of new businesses decreased and the number of businesses ceasing operations increased. The growth in the number of establishments in the KVK’s trade register has been declining for two years. Growth was 1.2 percent compared to the second quarter of 2024. That is the lowest growth figure in ten years. At the end of June, there were 2,588,747 establishments registered in the KVK’s trade register.
More businesses ceased operations in all provinces than last year, but there was a particularly large increase in the number of businesses that ceased operations in Flevoland. This can be seen in the graph below.
Entrepreneurs need clarity, and this remains absent due to the fall of the cabinet, says Josette Dijkhuizen, entrepreneur and special professor at Tilburg University.
For example, it is unclear what the outcome will be of the self-employment law, which should provide more clarity on the criteria for entrepreneurship. The current outgoing ministers may no longer address these topics.
“That does not provide the clarity that many entrepreneurs need to make necessary investments, for example,” says Dijkhuizen. “Many will play it safe for the time being and go into paid employment.”