Multiple activities under one sole proprietorship: how to set it up

One registration, multiple trade names and activity codes

As a natural person you can have only one sole proprietorship, but that one business may run as many activities as you like. At the Chamber of Commerce you add extra trade names and activity codes to your existing registration for free, online or by form. Each trade name may have its own look, website and clientele, while legally and fiscally one business sits behind it. Do check that a new trade name does not clash with existing names or trademarks, just like at your original registration.

VAT: one number, sometimes several rates

All activities run on the same VAT number and merge into one VAT return. But each activity can carry a different rate or even an exemption: trade work at 21%, painting older homes at 9%, guest lectures possibly exempt. So split revenue by rate in your records, so the return is right; which rates apply where is covered in which VAT rate applies. Combining exempt and taxed revenue means input VAT on shared costs is only partly deductible, in proportion to taxed revenue; see also VAT exemption versus zero rate.

Income tax: everything adds up to one profit

For income tax there is simply one business with one profit and loss account. That has pleasant sides: a loss on your new web shop offsets directly against your trade profit, and hours across all activities add up for the hours criterion of the self-employed deduction. You need not declare profit per activity, though knowing what each branch yields is wise for your own insight.

Records and invoices: keeping it apart

A few practical habits keep it clear:

• Invoice under the trade name matching the activity, but always state your registration and VAT numbers; they are the same for every name.
• Separate invoice sequences per activity are fine, as long as each sequence is consecutive.
• Book revenue and direct costs per activity on their own categories or cost centres; shared costs like your phone are booked once.
• One business account suffices, though some pick a separate account per branch for clarity; see keeping private and business apart.

When a separate legal form does make sense

Splitting becomes interesting once activities can harm each other or have a future of their own. If one branch carries serious liability risk, a bv can isolate it from the rest. Want to sell an activity separately later, or start it with a partner? A separate bv or general partnership makes sense. For the typical combination of two or three low-risk activities, one sole proprietorship remains the simplest and cheapest form; see also sole proprietorship or bv.

Frequently asked questions