Private company with limited liability (B.V.) or public company with limited liability (N.V.) in formation
Operations may have already begun prior to the formation of an N.V. or B.V., for example, if business activities have already started or if an existing company is transferred to a B.V. or N.V. During this phase, the organisation is referred to as a company in formation. Those acting on behalf of the legal entity during this phase are jointly and severally liable for contracts and other legal acts. Once the company has been incorporated, these legal acts are ratified by the N.V. or B.V. and the legal entity is liable. It must be made clear to parties with whom contracts are concluded that the contract is entered into on behalf of the N.V. or B.V. in formation.