Because I was able to found JKC Media B.V. even though I was only 16 years old. My goal with this article is to provide more young, ambitious entrepreneurs with information about what entrepreneurship entails and what you need to consider when starting a business while you’re still a minor.
But before you read on, you really need to figure out if entrepreneurship is right for you.
You may face risks when starting a business or experience temporary financial uncertainty, so you need to be prepared to handle these situations. In addition, be sure to seek sound advice (for example, from the Chamber of Commerce or a lawyer), because a mistake made at a young age can have consequences for your (and possibly your parents’) financial situation. This is because, if you’re under 18, your parents are largely liable for your actions—including your business activities.
Under 16? Unfortunately, self-service isn't available yet.
But don’t lose hope! You can start a sole proprietorship as a minor with your parents’ permission. For example, when I was 13, I started my first sole proprietorship in graphic design with my parents’ permission. However, you cannot yet apply for a business license or incorporate a private limited company.
Are you 16 or older? You can get a driver's license!
However, the question is whether you really need a power of attorney. If, for example, you plan to start a sole proprietorship, you might be able to get by with your parents’ consent and have one of your parents co-sign any agreements. Do you want to establish one or more private limited companies or operate your sole proprietorship completely independently? In that case, a power of attorney is useful.
How does the application process work?
The process begins by filing a petition with your local court’s small claims division. The petition must include at least the following information:
- A copy of your birth certificate (you can request this from the municipality where you were born)
- Why you should apply for a tax refund
- What rights you are requesting and why (for example: incorporating two private limited companies, opening and managing a business account, entering into contracts up to €5,000, etc.)
- That you have your parents' or guardians' permission.
There are plenty of sample letters requesting a waiver available online if you don't know how to draft a petition yourself.
What happens after I submit my petition?
Within a few weeks, you will receive a letter from the court stating that your case is being processed and that you must pay the court filing fee (€80). A few weeks later, you will receive a summons with the date and time of the hearing. Your parents are also invited to attend, and you will have the opportunity to explain your situation and plans in person to the magistrate.
If the magistrate approves your application and grants you emancipation, you are required to publish this news in one newspaper, and the magistrate’s decision will be posted on the court’s website (my decision as an example:
http://deeplink.rechtspraak.nl/uitspraak?id=ECLI:NL:RBZWB:2018:3896).
Publication in the court records is free of charge, but for publication in a daily newspaper, you should expect to pay at least €200.
You've got a car lift—now what?
Everything seems easy once you have a discharge, but the reality is different. Companies will still turn you down (despite your discharge) when it comes to doing business because of your age. It’s particularly difficult with banks (even with a discharge) to open a business account on your own. Some banks do accept you, but even those that do often take a long time to process your request.
Would you like some no-obligation advice on this topic?
I would like to offer young entrepreneurs who are struggling with the issue of legal emancipation the opportunity to provide advice as an “expert by experience” in this process. Please feel free to contact me about this
contact.
