Netherlands - CV/Other jurisdictions

The Kingdom of the Netherlands is often called Holland which is not officially correct. North Holland and South Holland are provinces of the Netherlands. These are the most developed of the twelve provinces. Legend states that the name “Holland” became widespread after the visit of Peter I and his entourage to the Netherlands when for brevity only the part of the country that was actually visited, namely Holland, was mentioned.

The Netherlands is a highly developed member state of the EU, and a jurisdiction with a standard level of taxation.  The rate of corporate tax in Netherlands is 25%. However, Dutch legislation provides the opportunity of registering and using Netherlands enterprises with a zero rate of tax using a vehicle known as a Сommanditaire Venootschaap (CV).

The CV is a limited partnership having no less than two partners. One of the partners is a General Partner, while the other partners have the status of Limited Partners.

The legislation by default provides that the operating body of a CV company is the General Partner. However, there are no restrictions to appoint additional persons to the position of director or manager of a CV company. Nonetheless, the General Partner bears the basic responsibility for the commercial activity and for the financial obligations of a CV company.