An internet consultation has been launched by the Dutch Ministry of Economic Affairs on the initiation of legal regulation for a private company with a social purpose ("BVM"). The purpose of such a legal entity is to legally regulate the recognition of a BV, including social enterprises. This legal regulation will then be able to be applied for. The legal regulation of the BVM will make it clear to business relations in particular that for the company, the sorting of social impact takes precedence over distributing profits to shareholders. This seems to have the effect that it manages the expectations of third parties that have a business relationship with a BVM.
Once the BVM is applied for and approved, this is registered in the Dutch trade register. Because of the social purpose of this new type of BV, it will also affect the distribution of profits to shareholders.
The main principles in this scheme are:
Furthermore, the BVM still needs to be elaborated further. At the tax level, it seems to have the same tax treatment as the regular BV. However, the specific tax consequences of a BVM will have to become apparent from the bill.
We will be happy to keep you informed of further developments regarding the BVM. In the meantime, if you have any questions about the BVM and how it might fit into your group structure, we are more than happy to assist you in this matter.
 Internetconsultatie besloten vennootschap met maatschappelijk doel (bvm). (2021). Vakstudie Nieuws, 2021(16.15), 70–74.
NAZALI TAX & LEGAL