By law it is not mandatory to have a business account for Your company, but that does not mean that you can use Your private account for your company. We will explain exactly how this works in this article.
This is what Dutch law says
The Netherlands is rich in legislation. We know rules and laws for almost everything. As an entrepreneur, all legislation can sometimes be overwhelming, but our tight regulations ensure that the Netherlands is a prosperous and efficient country.
Is a business account required by law? There are a lot of rules that apply to business owners, but what we can't find out about in the law is business accounts.
The law does not make any statements as to whether a business account is mandatory or not, nor does it set requirements for the way in which you conduct your banking affairs.
That is one less worry, but it does not mean that you can easily avoid a business account.
Use private account for business
Everyone in the Netherlands has a private bank account. When opening the account you had to sign a document at the bank branch. Or if you opened the account online, you have agreed to the terms and conditions that apply to the account.
The conditions to which you have agreed include what happens to Your account in the event of fraud, what Your rights are and the rights of the bank and what is and is not allowed.
What is also stated in the conditions, is that Your personal account may only and only be used for private transactions. Using your private account for business is not allowed.
Grow, for example, says the next one about this in article 2.2:
2.2 The Payment Account is exclusively intended for private use.
Sprout Bancorp has included in its general provisions in Article 20:
- Destination account
You may only use the account privately for your own banking affairs. You may not use the account for a business.
We can go on like this. In short, every bank has included in its conditions that no business transactions may be conducted via Your private account.
Basically, you are not allowed to use Your private account for business purposes.
The bank may close all Your accounts
It is not punishable, but as soon as Your bank notices that you are making more transactions than average, they will sound the alarm. At this point, you will still be required to close a business bank account. Otherwise you act against the conditions and the bank may close all your private accounts.
In the end you will not get out of it.
Don't let it get that far and make sure you have the time to choose the best bank for Your business bank account. In addition, why would you want to get out of a business bank account? It has a lot of advantages compared to using a private account.
Benefits of a business account
The biggest advantage that you as an entrepreneur saves a lot of time (or money if you outsource the administration) with the accounting.
It takes extra time to separate business and private costs. And you may only include business transactions in the administration, not your private transactions. It is much easier for you or Your accountant when you have a business bank account. So you will save money on the accountant. And doing an accountant usually costs more money than the monthly rate of a business account.
In addition, the tax inspector can check everything more easily during an inspection by the tax authorities. If transactions take place through a private account, the inspector will also have to investigate Your private transactions. That costs you time, privacy and annoying control. However .. are you an entrepreneur in crypto currency? Then it is a bit more complicated.
In addition, you will have access to a business loan, a business credit card and business credit. You can also have Your account linked to Ideal or an ATM, which is convenient if you want Your customers to pay.
And the downside? A business account, of course, costs a few USD per month. But that has recently changed, since Space bank introduced their free account . If you bank elsewhere, you can also switch to Space bank free of charge .
A business account is mandatory if you are an entrepreneur, because the conditions of all banks state that it is not allowed to use your private account for business.
Sooner or later you will not be able to avoid closing a business account. Now you still have the time and choice, so compare all bank accounts and choose the bank that suits you best. If you wait too long, Your current bank can oblige you to purchase a business account from them in addition to your private account.
A business account saves you time and it also saves you money if you have an accountant. Doing business is a lot easier and you have an account from $ 5 per month. Update: recently there is also a free business account via Space bank. Click here for more information.
Curious about the cheapest and best bank accounts for small businesses? Then view our company account comparison .