Because I was able to set up JKC Media B.V. despite being just 16 years old. And my goal with this article is to give more young, ambitious entrepreneurs information about what handlichting, the Dutch procedure that grants a minor adult legal capacity, involves and about everything you need to keep in mind when running a business while you are still a minor.
But before you read on, you really need to consider whether running a business is right for you.
You can run risks while doing business, or have no financial security for a while, and you need to be able to handle that. Also make sure you get good advice (from the Chamber of Commerce or a lawyer, for example), because a mistake at a young age can have consequences for your own financial situation and possibly that of your parents. Under the age of 18 your parents are largely liable for your actions, so that includes your business actions.
Younger than 16? Then handlichting is unfortunately not possible yet.
But do not lose hope! You are allowed to start a sole proprietorship as a minor with your parents’ permission. At the age of 13, for example, I started my first sole proprietorship in graphic design with my parents’ permission. However, you cannot yet apply for handlichting or set up a private limited company.
16 or older? Handlichting is possible!
The question is whether you really need handlichting. If you plan to start a sole proprietorship, for instance, you may well be fine with your parents’ permission and having one of your parents co-sign agreements. Do you want to set up one or more private limited companies, or act completely independently in your sole proprietorship? Then handlichting is useful.
How does the application work?
It starts with sending a petition to your local court, subdistrict section. The petition has to contain at least the following details:
- A copy of your birth certificate (you can request this from the municipality where you were born)
- Why you are applying for handlichting
- Which rights you are requesting and why (for example: setting up 2 private limited companies, opening and managing a business account, entering into agreements up to 5,000 euros and so on)
- That you have permission from your parents or guardians.
There are plenty of template letters for handlichting to be found online if you do not know how to draw up a petition yourself.
What happens after I have sent my petition?
Within a few weeks you receive a letter from the court saying that your petition is being processed and that you have to pay court fees (80 euros). A few weeks after that you receive an invitation with a date and time for the hearing. Your parents are invited as well, and you get to explain your story and your plans in person to the subdistrict court judge. If the judge agrees to your application and grants you handlichting, you are required to publish this news in 1 daily newspaper, and the judge’s ruling is published on the rechtspraak website (my ruling as an example: http://deeplink.rechtspraak.nl/uitspraak?id=ECLI:NL:RBZWB:2018:3896). Publication on rechtspraak is free, but for publication in a daily newspaper you should count on paying at least 200 euros.
You have handlichting, now what?
Everything looks easy once you have handlichting, but the reality is different. Companies will still turn you down because of your age, despite your handlichting. With banks in particular it is difficult, even with handlichting, to open a business account on your own. Some banks accept it, and the banks that do accept it often take a long time to process your request.
Advice on this topic, with no strings attached?
I would like to offer minor entrepreneurs who are wrestling with the question of handlichting the chance to get advice from someone with first hand experience of this process. Feel free to get in touch with me about it.