Description of the purpose of a BV: how to draft it for the notary

The purpose description of a BV is the part of the articles of association that states why the company was established and which activities it is permitted to carry out. Too narrow: you must return to the notary within a year for an amendment to the articles of association. Too broad or too vague: inquiries with banks, the tax authorities, and investors. The trick is: broad enough to enable growth, specific enough to be credible.

Anouk hesitated for a long time. Should she describe her marketing agency as “providing marketing services”? Or more broadly: “providing business services and carrying out marketing activities”? Or even broader: “all of the above in the broadest sense of the word, including everything related thereto”? The answer: a combination — a concrete core task, plus sufficient room for expansion.

The short answer

A good goal description consists of three layers:

1. The core activity — specifically, what your BV does.
2. Related activities — what logically goes with it, such as advice, training, and product sales.
3. The standard closing sentence — “anything and everything in the broadest sense of the word” — provides legal room for growth.

Why is the objective description important?

Three reasons why good phrasing pays off:

• Capacity to enter into contracts. If your BV contracts something that falls outside its purpose, this can be legally contested — particularly relevant for large transactions and liability.
• Bank compliance. Banks want to know if your activities fit within your objective. A vague or overly broad objective triggers additional questions during onboarding.
• Avoid amending the articles of association. An amendment costs €400 – €750 at the notary. Careful phrasing quickly backfires.

How do you write a good goal description?

The formula:

The company has the following objective:

1. the [describe core activity];
2. the [related activities];
3. participating in, financing, collaborating with or managing other enterprises;
4. as well as everything related to the foregoing in the broadest sense or that may be conducive thereto.”

Examples from practice:

• Marketing agency: “the provision of marketing, communication and consultancy services; the development and execution of marketing campaigns; participating in, financing and collaborating with other enterprises; and everything related thereto in the broadest sense.”
• ICT enterprise: “the development, sale and maintenance of software products; the provision of ICT services and advice; participation in other enterprises; and everything related thereto in the broadest sense.”
• Holding: “participating in, financing, managing and cooperating with other undertakings, regardless of their registered office and industry; and everything related thereto in the broadest sense.”

Common mistakes

Five common pitfalls:

• Too narrow. “Selling women’s shoes in Amsterdam.” Works fine until you also want to sell men’s clothing or online.
• Too vague. “Operating a business.” Banks and notaries do not view this favorably.
• Standard text without a core task. Only “participating in other enterprises” works for a holding company, but not for an operating company.
• Articles of association and Chamber of Commerce registration separate. What is stated in the articles of association must align with your SBI code and activity description at the Chamber of Commerce.
• Forgetting international aspects. For cross-border activities: state that companies may “regardless of registered office”.

Holding company versus operating company

In a holding structure, each BV has its own purpose:

• Holding: focused on participating, financing, and managing. No operational activity.
• Operating company: focused on the actual activity (marketing, ICT, production).

This distinction is valuable in the event of a subsequent transfer of the operating company (sale, merger). For more on the structure: shareholders' agreement and the holding blogs in upcoming batches.

Amendment of the Articles of Association: what if something is wrong after all?

An amendment to the articles of association is simply possible via a notarial deed. Costs: €400 – €750 for a standard amendment. Turnaround time: one to two weeks. In half of the cases, this is wasted money that could have been avoided with a better description of the purpose.

A separate post for the amendment procedure will appear in this cluster later.

Honest recommendation

Invest half an hour in a good purpose statement before you go to the notary. Start with the core activity, add related activities, and conclude with the standard closing formula. Discuss it with your accountant or lawyer if necessary. An hour of prior thought prevents a €750 amendment to the articles of association within three years — which happens surprisingly often.

For the step-by-step plan for the entire incorporation process: Incorporating a BV in 2026.For the basics: what is a BV.

Frequently Asked Questions