Converting a sole trader business into a limited company (bv) involves several cost items that you will want to account for in advance. In addition to the notary fees for the incorporation, there are also additional costs for advice, Companies House registration, and tax guidance. In this article, we set out the most important cost items clearly, so that you are not caught off guard.
Notary fees: the largest fixed cost
To incorporate a bv, a notarial deed is required. The notary draws up the deed of incorporation, which includes, among other things, the articles of association of the bv. This is a legal requirement; without a notary, there is no bv.
Notary fees vary depending on the firm, the complexity of the structure, and the region. As a rough guide, expect to pay between €500 and €1,500 for a standard bv incorporation. For a more complex structure — for example involving a holding company or multiple shareholders — costs can be higher.
It is worth requesting quotes from several notaries. When doing so, look not only at the price but also at exactly what is included in the quote.
Companies House registration and other administrative costs
After the deed of incorporation has been executed by the notary, the bv must be registered with the Chamber of Commerce (KvK). The KvK charges a one-off registration fee for this. This amount is modest, but comes on top of the notary fees.
Do not forget that after the conversion you must also deregister the sole trader business with the KvK. This is free of charge, but does require action on your part.
Tax and legal advisory costs
Converting a sole trader business into a bv is more than just a legal formality. The tax implications — such as the choice between a tax-neutral or taxable transfer, the valuation of assets, and the arrangements regarding a customary salary — require carefully considered advice. A tax adviser will help you choose the most tax-efficient route for your specific situation.
The costs for tax guidance vary considerably depending on the complexity of your business and the number of hours required. Expect to pay somewhere between €500 and €2,500, though this is highly dependent on your circumstances. Always request a quote so that you know exactly where you stand.
Other cost items to bear in mind
In addition to the costs mentioned above, there are a number of further cost items that commonly arise during a conversion:
- Accountant’s report or letter of intent: in the case of a tax-neutral transfer, an approved letter of intent is required; in some cases, an accountant’s report is required when transferring assets.
- Amendment of contracts: existing agreements with clients, suppliers, or landlords may need to be transferred into the name of the bv. Legal assistance with this incurs additional time and cost.
- New bank account: a bv requires a business bank account in the name of the bv. Banks charge both one-off and monthly fees for this.
- Updating your administration: your administration must be fully restructured to reflect the new legal entity, including a new set of accounts for the bv.
- Insurance policies: some business insurance policies are tied to an individual and will need to be taken out afresh in the name of the bv.
- New branding or website updates: if the trading name or company details change, your communications materials will need to be updated.
Total costs: what can you realistically expect?
Adding everything together, the total costs for converting a sole trader business into a bv typically fall between €1,500 and €5,000. For a more complex business structure, or where property, multiple activities, or international elements are involved, this figure can be higher.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekIt is important to know that the costs of the conversion are in principle tax-deductible as business expenses, both within the sole trader business (if incurred before the conversion) and within the bv. Seek advice on this from a tax adviser to ensure you do not miss out on any deductions.
Tips for keeping costs under control
- Request quotes from several notaries and compare exactly what is being offered.
- Coordinate advisory and notarial work through a single party as much as possible to avoid duplication of effort.
- Prepare thoroughly: the more information you provide yourself, the fewer hours an adviser will need.
- Always ask for a clear cost estimate before the process begins.
- Discuss the deductibility of the conversion costs explicitly with your tax adviser.
Why Belastingadviseur Eindhoven
At Belastingadviseur Eindhoven, we guide business owners in the Eindhoven and Brabant region from start to finish through the conversion of their sole trader business into a bv. We actively contribute ideas on the most cost-efficient approach, identify the most tax-advantageous route for your situation, and ensure that your administration continues to run smoothly after the conversion.
Would you like to know what a conversion would concretely cost and yield for you? Feel free to get in touch via our contact page. We are happy to think things through with you.
Frequently asked questions
What are the average notary fees when converting a sole trader business into a bv?
For a standard bv incorporation, you will typically pay a notary between €500 and €1,500. For more complex structures, such as a holding company, costs can be higher. It is advisable to request quotes from several notaries.
Are the costs of the conversion tax-deductible?
In most cases, the costs of the conversion are deductible as business expenses. Whether it is more advantageous to claim these before or after the conversion depends on your circumstances. A tax adviser can assess this for you.
What are the total costs for converting a sole trader business into a bv?
In most cases, expect a total amount of between €1,500 and €5,000, including notary fees, tax advice, and additional administrative costs. The exact costs depend heavily on the complexity of your situation.
Does the choice between a tax-neutral or taxable transfer affect the costs?
Yes, the chosen method of transfer can affect the level of guidance required and the associated advisory costs. A tax-neutral transfer is subject to specific conditions and requires a letter of intent, which can involve additional steps — and therefore costs.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
