Partnership Agreement (VOF) in the Netherlands
Setting up a VOF partnership in the Netherlands with a co-founder? Each partner is personally liable for the full debts of the business, not just their own share.
How does liability work in a Dutch VOF?
A Partnership Agreement for a Dutch VOF regulates capital contributions, profit distribution, decision-making, and exit arrangements between partners, who each carry unlimited joint and several liability for the partnership's debts.
A Dutch VOF (vennootschap onder firma) is a common structure for two or more entrepreneurs running a business together, but it carries a risk that catches many foreign founders off guard: unlimited joint and several liability. Each partner can be held personally liable for the full debts of the partnership, including debts caused by another partner, with their own private assets. There is no separation between business and personal assets, unlike in a limited liability structure.
At EenvoudigRecht, we draft Partnership Agreements in English that clearly regulate contributions, profit distribution, decision-making, and exit arrangements. You answer a few questions online about your partnership, and receive your agreement for a fixed price.
Veelgestelde vragen
How does liability work in a Dutch VOF partnership?
In a VOF, each partner has unlimited joint and several liability. This means any partner can be held personally liable for the full debts of the partnership, including debts caused by another partner, with their own private assets.
Is this different from a general partnership in other countries?
Yes, this is one of the most important differences to understand. Unlike a limited liability company, a VOF offers no separation between business and personal assets, and each partner's liability isn't limited to their own share of the business.
What should a good VOF partnership agreement regulate?
A well-drafted partnership agreement clearly regulates capital contributions, profit and loss distribution, decision-making authority, and what happens if a partner wants to exit or the partnership ends, which can help manage risk even though the underlying joint liability remains.
Should I consider a BV instead of a VOF?
Yes. Given the unlimited joint liability, many entrepreneurs choose a Dutch BV instead, which limits liability to the capital invested. The right choice depends on your specific risk tolerance and business situation.
How much does a Partnership Agreement cost?
We work with a fixed price you know in advance. You answer a few questions online about your partnership, and receive a Partnership Agreement in English tailored to your situation.
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