The Business Register: secure business information

In the KVK Business Register you can check who you are dealing with. You can check if that person is authorised to sign and if they are liable. You can also find address details and see whether a company is bankrupt. All legal entities and companies in the Netherlands are listed in the Business Register. From bv to vereniging, from vof to stichting.

If you skip that check, you could be in for a nasty surprise. For instance, a convincing online seller turns out not to have a company at all after you have paid. Or it turns out that your contact person is not known to the company they claimed to work for. These are forms of business identity fraud. Do not just trust anyone. Do business securely with these checks. And remember, even following this checklist will, unfortunately, never give you the assurance of 100% business security.

Checklist Busines Register

1. Is my business partner registered?

Does the company you want to do business with exist? Search the Business Register for the business name or KVK number of your prospective business partner. Is it registered and is it clear who is responsible for the signature or approval you need? In the Business Register, you will also find other current company information, such as address, business activities, number of employees, and date of establishment.

Be critical

There are fake companies active online. So, pay attention when doing business with a company for the first time. Are the company details correct? Are the registered business activities the same as the products and services the company offers?

Beware if an internet seller shows images of large warehouses but is based at a residential address, for example. This could be a scammer. Also search the internet for other customers’ experiences.

Under investigation

If KVK receives a signal that information in the Business Register is incorrect, we may start an investigation. From then on, you will see the message 'under investigation' next to the registration. During the investigation, the registration in the Business Register will not change. You should always wait for KVK to complete the investigation before doing business with this company but be aware that this can sometimes take months. KVK cannot comment on the content or duration of an investigation while it is underway.

2. Who am I doing business with?

You only have proof of an agreement when the right people have signed a contract. So, always check who you are doing business with. Is that person who they say they are? And do they have the right to do what they are doing?

The Business Register lists all owners of sole proprietorships, as well as partners and directors of companies and organisations. You can view this information via an extract. Sometimes you will also see a list of proxies on it. These are people appointed to make certain decisions on behalf of the company.

Do you enter into a contract ? Check whether the details in the contract are the same as in the Business Register. Does it contain the correct name and KVK number of your business partner and are they the right person to sign?

Is this person authorised to sign?

People who are authorised to sign are allowed to perform certain tasks on behalf of a company, such as signing contracts, making purchases, or dispatching deliveries.

A person can have full or limited authority to sign. Sometimes, for example, a person may only sign contracts up to a certain amount, or only make agreements together with another partner or director.
If the person who signed is not authorised, problems may arise over delivery or payment. In such a case, your business partner does not have to abide by the agreement, as it will not be valid.

3. How healthy are my business partner's financial affairs?

In the Business Register, you can view the annual accounts or balance sheet of some companies. This will give you an idea of how healthy your business partner's finances are.

Larger companies with legal forms such as a bv or nv are legally obliged to submit their annual accounts to the KVK. This is called filing. Financial statements provide insight into the financial development, creditworthiness, and financial position of a company. This allows you to assess whether your business partner has enough money to fulfil your agreements. You can request your business partner's filed annual accounts online.

4. Bankrupt or not?

An extract from the KVK Business Register shows whether a company is bankrupt or has filed for a suspension of payment. It also shows whether the entrepreneur is in debt restructuring.

You can no longer do business with a bankrupt company. And as an entrepreneur, you run more risks if you work with companies that have problem debts. If you are still waiting for work or payments from such a company, contact the curator. This is the person who arranges money matters when a company is in debt.

5. Who is liable?

A wrong or late delivery that means you incur extra costs. A crane accidentally damaging a building. If something goes wrong in business, it is useful to know who you can hold liable. Who should you turn to to pay for the damage?

The legal form of your business partner's company determines liability. Liability may lie with a natural person or a legal entity. You can find the legal form on the Business Register extract.

Personally liable

With legal forms such as a sole proprietorship or a vof (general partnership), personal liability applies. The owner is then 100% liable for debts with their private assets. If the owner does not have enough money in their business bank account, they to pay with their private money.

With legal forms you arrange with a notary, such as a bv (private limited company), the director is not personally liable. The legal entity, such as the company or organisation, is liable for paying debts from its assets. Except if there is mismanagement. In that case, the director sometimes does have to pay the debts from their private assets.

Bankruptcy

Who is liable if your business partner goes bankrupt? That depends on which legal form you are dealing with. If a bv goes bankrupt, the legal entity is liable. But in the case of a sole proprietorship, you must turn to the entrepreneur themself. In a bankruptcy, a curator tries to pay as many creditors as possible from the entrepreneur's or legal entity's assets.

6. What is the structure of my business partner's concern?

A business concern is a company with subsidiaries. In other words, often a holding company with several operating companies underneath.

Does your business partner's company belong to such a group? Then look for information on the group's structure, finances, and approach. This will give you a better picture of the company you are doing business with. This can make it difficult to know exactly which part of the company you are doing business with

You can order data on group relationships from KVK. You can then see in an overview what your business partner's company looks like. So, you can read whether it is a subsidiary of a larger organisation. If such a 'parent company' has had negative publicity recently, this is useful for you to know. You might then prefer to choose a different business partner. Large companies often have an annual report on their website. In it, you can find information about their finances and strategy.

Checking international business partners

Do you trade with a business that only has companies abroad? Such companies are not listed in the KVK Business Register. Check foreign registers for information that will help you do international business more safely.