A vennootschap onder firma (VOF), or general partnership, is a business that is run by two or more business partners. A defining aspect of the VOF is that every partner contributes something to the business, whether it’s labour, capital, assets, goodwill or knowledge. This model is often used by spouses or life partners who are also partners in business.
Under the VOF business structure, both partners are liable for the debts of the business with their private assets. It’s important to understand the joint liability of a VOF: if your business partner makes a mistake that results in debt, then you will also be held financially responsible.
In a VOF it’s also necessary to create "separate capital" where business capital contributed by partners is held separately from private capital, for instance in a separate bank account.
A VOF is simple to establish; you only need to register it in person with the Dutch Chamber of Commerce (KvK).
It’s not legally compulsory to sign a partnership contract when setting up a VOF, but it is strongly advised to avoid misunderstandings between partners. This can be done either independently or via a notary. The partnership contract usually sets out: