Rechtspersoon
legal person
A legal person is an entity recognised by law that may independently exercise rights and obligations, separate from the natural persons who constitute it.
A legal entity is a legal construct that Dutch law regards as an independent bearer of rights and obligations. This enables the legal entity itself to acquire property, enter into contracts, act as a party to legal proceedings and incur liability, independently of its founders or members.
The principal significance of a legal entity lies in the separation it creates between private and business assets, which in principle limits the personal liability of directors or shareholders. This promotes entrepreneurship, continuity and legal certainty in commercial dealings.
In practice, legal entities most commonly take the form of a private limited company (BV), a public limited company (NV), a foundation or an association, all of which require incorporation by notarial deed and registration in the commercial register.
“The BV, as a legal entity, may independently acquire real property without the shareholders incurring personal liability therefor.”
Related terms
Related articles
Need legal advice?
Schedule a free consultation with one of our specialists