Applying for limited legal capacity
You are 16 or 17 years old and have your own company. Or you are going to start a business. Then you probably do not always want to ask permission from your parents or guardian. To act independently from them, you can ask the court for limited legal capacity (handlichting). You must be at least 16 years old and have permission from your parents or guardian.
Not yet 18? An underage entrepreneur needs permission for everything
The Dutch Civil Code (het Burgerlijk Wetboek) says that an entrepreneur who is younger than 18 may only perform legal actions with written permission from legal representatives. This means your parents or guardian. You are not able to act independently until you turn 18.
16 or 17 years old? Apply for limited legal capacity
With limited legal capacity, you become partly ‘legally capable’, meaning you can partially act alone. The court will give you the powers of an adult. So you can decide and arrange a number of things yourself within your company. Actions that fall under the limited legal capacity cannot be touched. This means that your parents or guardian cannot reverse these actions. For example, if you order things from a supplier or open a shop on an online platform.
The limited legal capacity only applies to actions for your business. It does not apply to private transactions. Until you turn 18, you still need permission from your parents or guardian for those.
Why apply for limited legal capacity?
Without limited legal capacity, you must request permission from your parents or guardian for every legal action. If you do, they can undo your actions up to 3 years later.
These are actions that are less common for someone your age, such as:
- buying company assets, such as a computer or machines
- taking out a subscription
- opening a business bank account
- entering into purchasing contracts, such as a payment service
- rent storage space
With limited legal capacity, you can perform these legal actions without needing permission. This also means that you are responsible and liable for any consequences. For example, if you cause damage or run up debts.
What is and isn't allowed with limited legal capacity?
In principle, with limited legal capacity, you can do anything that another entrepreneur can do. But the court, your parents or guardian, and also you can opt for so-called restrictive provisions. This means a maximum amount with which you may act independently. For example, you may not buy your own business premises.
You may not possess registered property (shop premises or land) or securities (shares or bonds). You are also not allowed to take out a mortgage. Even if you have limited legal capacity, you must be 18 or over for this.
How do you request limited legal capacity?
If you are 16 or 17 years old, you can submit a request to the court in your region. Your parents or guardians need to give permission. Your request must include:
- your name
- the name and signature of your parents or guardian
- a copy of your birth certificate
- the reason for the request
- the powers you want
Limited legal capacity is an official decision of a judge. These are always published in 2 daily newspapers and in the Government Gazette (Staatscourant). You pay the costs of these publications and the costs of the court. This differs per region and daily newspaper.
After the court approves your request, you will receive an official copy of your limited legal capacity from the court. You can show this to others as proof of your legal capacity. For example, suppliers, customers, or a bank.
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK