Family businesses are an important part of the Dutch economy. In many cases, they have been successful for generations and have become synonymous with tradition, commitment and long-term vision. Nevertheless, there are also legal issues that are specific to family businesses. In this blog, we discuss some of the key legal aspects and challenges that family businesses face, from corporate structures to succession and conflict resolution.
What is a family business?
A family business is a company owned by one or more families, where family members play an important role in the management of the company. A characteristic feature of family businesses is the strong involvement of family members in the business and personal aspects of the business. The success of a family business often depends on the relationship between the family members, but this also raises specific legal issues.
Statistics Netherlands (CBS) defines a family business as:
Based on this definition, CBS has mapped the number of family businesses in the Netherlands as of 1 January 2024 (CBS: Family businesses in the Netherlands, 2023-2024, Oct 2025):
| Number of family businesses in the Netherlands | |||
| Number of Employees | Number of companies | Percentage of family businesses | Number of family businesses |
| 1 | 1.879.430 | 0,25% | 4.790 |
| 2-10 | 356.435 | 70,70% | 252.015 |
| 10-50 | 56.600 | 59,03% | 33.410 |
| 50-250 | 12.105 | 36,31% | 4.395 |
| 250 or more | 3.600 | 17,50% | 630 |
| Total | 2.308.165 | 12,79% | 295.235 |
CBS counts companies of self-employed persons without personnel as a separate group. Of all more than 2 million businesses in 2024, around 13 per cent were family businesses. Together, they realised a turnover of 606 billion euros and added over 158 billion euros in value to the Dutch economy.
Legal structure of family businesses
There are different legal structures in which a family business can operate. The choice of legal form affects tax obligations, liability and the ability to raise capital.
Many smaller family businesses start out as a sole proprietorship or general partnership (VOF). These legal forms are easy to set up and have relatively few administrative obligations. The downside is that the owners remain personally liable for the company's debts.
A limited liability company (BV) offers more protection for the owners, as liability is limited to the invested capital. Within a family limited company, shares can often remain in the hands of the family, ensuring control over the business.
For larger family businesses considering a broader shareholder structure, a public limited company (NV) may be an option. The disadvantage of an NV is that the family can exercise less control, especially if the company is listed on the stock exchange.
Succession
One of the biggest legal challenges for family businesses is the business transfer from one generation to another. This process can be complex, both legally and emotionally. There are several ways to arrange succession.
Many family businesses choose to pass on their assets to the next generation through a will or gift. This can affect both business and private family members' tax positions. Making a strategic choice in this process is crucial, as inheritance or gift taxes can be significant.
A family statute can also help. A family statute sets out the rules and values of the family business. It can include, for example, agreements on the role of family members within the company, the policy around share ownership and the procedure for succession. A family statute can help prevent conflicts within the family and provide clarity in the future.
Some (especially larger) family businesses choose to establish a family foundation. In a family foundation, ownership of the family business is managed. Shares in the business can be placed in the foundation, ensuring continuity of control within the family, even if the business is split up or sold to a third party.
Conflict resolution
Although family businesses are often praised for their strong commitment, the personal relationships between family members can also create legal complications. Conflicts between family members over business operations can lead to legal disputes. This can range from disagreements over business strategy to family squabbles over profit sharing.
Family businesses can avoid conflicts by making clear agreements on how any disputes will be resolved, for example in a family statute or a shareholders' agreement. Appointing advisers (legal and tax) can also help avoid conflicts within the company.
Summary
Family businesses are invaluable to the Dutch economy, but bring with them specific legal issues. From the establishment and structure of the business, to the complexities of business transfer and dispute resolution, it is important to be legally savvy. Establishing clear protocols and engaging external advisers can ensure that the family business remains financially sound.
Do you run a family business and are you facing any of these challenges? If so, please get in touch with one of the solicitors at Marxman who specialise in working on and with family businesses. We’d be happy to help you find a solution.