Holland is a global leader in water management. Over the years the nation has perfected its means for flood protection, water treatment and supply. The Dutch are maritime engineers and build ships, including utility vessels and superyachts. Their expertise is needed all over the world. The Netherlands is the main supplier of systems for sustainable water supply and production, and reintroduction (after collection and treatment) of “waste” water. In the sector, there are several significant engineering firms operating globally. The Water Partnership and other platforms in the Netherlands encourage international collaboration. The sector is mainly focused on continuous innovation and export.

If you plan to establish a business in the Dutch water sector, please, contact our agents in incorporation. They will give you more information on the investment opportunities and the procedures to establish a company in the Netherlands.

Water is an indispensable part of the local culture

The delta’s water is both life-threatening and lifesaving. This is why the water industry is perhaps the most fundamental to the Dutch character and culture. The sector is focused towards three primary areas: delta, maritime and water technology. They are directed towards land protection, energy generation, smart water recycling technologies and efficient, safe ships. The water expertise in the Netherlands is one of the best worldwide.

Five reasons why Holland handles water challenges well

1. Water takes a significant part in the Dutch history and life

Water is inextricably bound to the prosperity and history of the nation – it is a part of its DNA. Vast parts of the country were reclaimed and 2/3 of its territory would flood regularly if there were not complex interconnected systems of surge barriers and dykes in place.

2. The water technologies in the Netherlands safeguard the environment and water

The booming economy, urbanization and climate changes are threatening delta populations all over the world. Luckily the Dutch are experts in hydraulic engineering, foundation infrastructure and technology, flood protection and flood control. They are famous with their design of levees and search barriers, land reclamation through high technology dredging and engineering of entire harbours and coastal areas. The nation is also renowned for its river maintenance and engineering. It is at the forefront of climate-adapted construction that allows the building of houses in areas at risk of flood.

3. Expertise in water treatment

The Dutch sector of drinking water is owned publicly. Drinking water is supplied by 10 semi-public companies. Municipalities are responsible for the management of the system of sewers while 25 regional governmental water boards deal with wastewater treatment at a municipal level. Many local companies specialize in industrial wastewaters treatment, while several consulting bodies are world-famous for their expertise in water treatment.

Holland has been using innovative techniques for treatment of wastewaters since the 70s. Almost all households in the country have clean drinking water entirely free of chlorine. Furthermore, much of the industrial water is recycled so efficiently, that it may be even used in beverage and food production.

Meanwhile billions all over the world do not have access to sanitary facilities and clean water. In this respect, Dutch technologies can really make a difference. High-quality integrated cycles of water collection, filtration and recycling are in place to facilitate sustainability and economic development.

4. Solutions for integrated management of waters

The Netherlands is famous for its multidisciplinary approach to integrated management of waters that balances economic, social, engineering and environmental needs (“Building together with Nature”).

Dutch companies work on projects for the development of urban agglomerations at low elevations (e.g. Bangladesh and Jakarta), as well as on coastal development (Vietnam, Romania and Dubai).

5. Investments in R&D

Academic institutions and private companies invest considerable amounts of money in development and research related to water. This has led to many innovations if fields like filtration. Many investments in R&D and innovation go to private-public partnerships. Some of the collaborators are famous institutes of the rank of MARIN, Deltares, KWR and Wetsus. The Netherlands Organisation for Applied Scientific Research and some big private companies are also renowned for their developments in the water sector. The investments have already led to innovations such as water purification under anaerobic conditions, membrane technology, Annamox technology, and small-scale high-quality membrane bioreactors.

On September 19, 2017 (Budget Day in the Netherlands) an official legislative proposal for amendment of the Dutch withholding tax on dividends was published in connection to the Tax Plan for 2018. In summary, the proposal referred to a broadened exemption from withholding tax on dividends applied unilaterally with the aim to maintain the favourable fiscal climate in Holland.

On the same day, the Senate approved all proposals included in the Tax Plan for 2018. Therefore, the broadened exemption from withholding tax on dividends is in force since January 1, 2018.

Dutch exemption from withholding tax on dividends before January 1, 2018

For a number of years, Holland has exempted the distributions of dividends to EU or EEA (European Economic Area) parent companies from withholding tax based on Council Directive 2011/96/EU on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States. According to this document any income distributed by subsidiaries to parent companies in different member states is not subject to withholding tax on dividends in case the following collective requirements are fulfilled:

• The legal form of the parent company has to be listed in Annex I of Directive 2011/96/EU;
• The parent company has to reside in a Member State of the EU under its national law and pay corporate tax on its income without possibilities of exemption;
• The company needs to hold a minimum of 10 percent of the subsidiary’s voting rights (or capital). The Directive was amended to reduce this holding requirement. It decreased from 25% for 2005 to 20% for 2006; for the next two years it was 15% and in 2009 it became 10%.
• The requirement for minimum period of holding (if any) should be fulfilled.

Extended Exemption from Dutch Withholding Tax on Dividends since January 1, 2018

From the beginning of 2018, the Dutch exemption from withholding tax related to dividends has a broader scope. It applies to the distributions of dividends in the following cases:

• The parent corporation would have qualified for the participation exemption in the Netherlands, i.e. its interest in the distributing entity/subsidiary is 5% or more;
• The parent corporation resides in the EEA, EU or a country that has signed a tax-related treaty with the Netherlands including provisions for dividends.
• The corporation has not been denied a withholding tax reduction with regard to dividends under the treaty between Holland and the country where it resides by virtue of a counter-abuse provision.
• The parent corporation does not own a part of the distributing entity’s/subsidiary’s capital with the chief purpose to avoid the Dutch withholding tax on dividends. This condition is verified through a “subjective test”. An assessment is made to check if the company owns a part of the capital of the distributing entity/subsidiary with the intention to circumvent Dutch withholding tax on dividends and if the company was interposed to achieve a better position with respect to Dutch withholding tax on dividends. If the assessment yields a positive result, it is followed by an “objective test”. Its purpose is to ascertain if the entity is artificial, i.e. it was not established for legitimate business reasons reflecting the economic reality. In general, entities are not considered artificial in case:
• the parent corporation has an operating business; or
• the corporation is a holding that has acquired a better position with regard to the Dutch withholding tax on dividends in comparison to indirect shareholders (grandparent company) having an operating business, but its relevant substance is sufficient. This means that the parent corporation (intermediate holding) meets two additional requirements for substance, on top of the existing ones stipulated in Dutch law: 1) The parent corporation has costs for employees amounting to no less than 100 000 Euros; 2) The parent corporation has office space where it performs its business activities.

The additional requirements for substance are in effect from April 1, 2018.

Who gets an advantage?

The exemption from Dutch withholding tax on dividends benefits parent corporations based outside the EU that operate active businesses and reside in jurisdictions with which Holland has signed tax treaties. The treaties must include provisions regarding dividends that provide for partial withholding tax reductions.

Intercompany Solutions B.V.

Are you developing a business outside of the EU and considering an expansion to new markets beyond your country’s borders? The broader scope of the exemption from withholding tax on dividends makes Holland a convenient jurisdiction for businesses outside the EU looking for options to expand their operations to the Netherlands and Europe.

Our team at Intercompany Solutions has the skills and knowledge to support you through each phase of your expansion process. Would it be beneficial for you to work with a competent partner to help you with your plans for expansion? Get in touch with our professionals, discuss your ideas and see what we can do for you.

The Dutch sector of horticulture sets global trends, supplies markets worldwide and leads in innovative technologies for greenhouse cultivation. Holland is the undeniable leader on the international market of plants, plant reproductive material, cut flowers and bulbs, and is rated third for its export of nutritional products of horticulture. The country is in the centre of a global network for decorative trees, bulbs, floriculture and fruit and vegetable production.

In case you are considering incorporating a business in the field of horticulture, please, contact our agents specializing in company formation. They will provide you with legal advice and information about opening a company in the Netherlands.

An important contribution to national prosperity

The problems encountered during the establishment of sustainable urban centres often have to do with basic needs, e.g. shelter and food. The supply of indispensable resources (energy, food and water) needs to be secured through creative solutions and smart thinking. For centuries the Netherlands has been developing systems to cater for the needs of its population under such circumstances and now it offers excellent possibilities for export to countries experiencing shortages in resources. Local horticulture sets global trends and is differentiated in 6 clusters (Greenports). In these centres, research institutions and businesses collaborate in the areas of research and development, production, infrastructure, export and logistics. Horticulture has significant importance for the prosperity of the Netherlands, delivering large volumes of high-quality commodities and adopting technological innovations such as automated fruit pickers, intelligent greenhouses floating on water, glasshouses consuming less electricity than they generate and feeding the grid, and innovative methods for low-energy lighting and recycling of wastes and water.

Five reasons why the Netherlands is leading in the supply of trees, plants and flowers in the world

1. Developments in the field of Green Genomics

Holland is among the leaders in Green Genomics. The aim of this scientific field is to provide safe and sustainable production, higher yields, changed taste or design, and disease resistance in plants. TTI Green Genetics and Plant Research International are leading institutes in this area.

2. A large diversity of shrubs and trees

The variety of shrubs and trees produced in the Netherlands is unmatched. The industry is underpinned by a strong national market. Holland also maintains a leading position in R&D and trade related to tissue cultures, propagation material, young plants and seeds.

3. An original approach to innovation

The Netherlands has adopted a unique R&D approach to bring innovations: the government works closely with research institutions and companies in a “golden triangle” to complete innovation-related programmes and projects. Some examples of excellent innovations are intelligent greenhouses floating on water, robots, moving platforms, energy-saving lighting and recycling of water and wastes, glasshouses consuming less electricity than they generate and contributing to the reduction of carbon dioxide emissions, etc.

4. The famous greenhouses in the Netherlands: Glass City

Modern Dutch greenhouses already generate about 10% of Holland’s electricity by using a combination of power and heat (CHP). The country is famous with its inventive solutions for greenhouse cultivation and unrivalled scale of production. Its glasshouses cover over 60 square kilometres and look like a glass city, while their environmental impact is relatively low. Efforts are directed towards technologies and concepts facilitating adaptability to the changes in climate and energy-efficiency. Read more on the Dutch energy industry.

5. Logistics hubs and production of excellent quality

Rotterdam’s port and Schiphol Airport in Amsterdam are the most important logistics hubs in the country. Holland is conveniently located in the heart of Europe with easy access to the continent’s half a billion consumers. Furthermore, the development of methods to obtain high-quality produce has enabled its horticultural sector to gain global recognition. The Netherlands has developed effective supply chains capable of delivering freshly cut flowers to New York in less than a day. Also, true to their entrepreneurial spirit, the Dutch have set up nurseries in Ethiopia, Kenya, Costa Rica, Portugal and France.

Many enterprises and companies treat intellectual property as a significant asset. The rights related to it – copyrights, trademarks, patents – often prove to be more profitable in comparison to physical assets. Therefore, it is important for corporations to develop adequate strategies with respect to their intellectual property in order to guarantee the best use and protection of their assets. The present brief overview provides information on the major rights relevant to intellectual property and their protection under the law in Holland.

Patents in the Netherlands

In the Netherlands, the Act on Patents (Rijksoctrooiwet) from 1995 protects patent rights. By definition, patents are exclusive rights to inventions in all technological fields. Inventions are patentable if they meet several requirements:

• they concern a technical process or product;
• they are novel, i.e. have not been publicly disclosed by any means before the day of submission of the application for patent registration;
• they involve inventive steps, i.e. the inventions are not too obvious;
• they have industrial applications.

Applications for Dutch patents are submitted to the national Patent Office. The applicant must request a search for novelty 13 months after the submission of the application. In another 9 months, the search results become available. These results, however, do not decide whether the invention will be patented or not, even if it lacks novelty according to the report. In a dispute, the requirement for novelty is considered in court. The patent or application is included in the patent registry of the Netherlands eighteen months after the submission of the application. The protection term is twenty years from the filing date.

The owner of the patent has exclusive rights to prohibit the use of the invention for commercial aims by third parties. Invention use means production, placing on the market, lending, selling, offering, supplying, storing and importing the patented invention.

Trademarks in the Netherlands

Trademarks are signs that distinguish companies’ services or products (goods) from others on the market. They can be either logos or brand names. Company names or trade names can be considered trademarks.

The BCIP (Benelux Convention related to Intellectual Property) states that a trademark must first be registered to ensure protection in Belgium, Luxembourg and the Netherlands. The BOIP (Benelux Intellectual Property Office) is the institution for official registration of trademarks in Benelux. The definitive registration of a trademark is completed in about 4 months. The payment of an additional fee can speed up the procedure. The Office will refuse to register a trademark if, among other reasons:

• it lacks distinctive characteristics or does not satisfy the trademark definition;
• it conflicts with morality or public order;
• it can mislead the public.

All trademark registrations in Benelux are valid for 10 years. They are renewable every 10 years if the renewal request is submitted 6 months before the trademark expiration date. Trademarks need to be actively used to maintain their rights.

Trademark owners have the exclusive rights to prohibit other parties to use or register newer signs, identical to their trademarks and use them for identical services or goods. The registration or use of similar newer signs for similar services or goods may also be banned if there is a probability of confusion. Trademark owners that are popular in the region of Benelux can also dispute the usage of similar or identical newer signs for any services or goods (regardless of their level of similarity) if this usage takes unjust advantage of the original reputation or character of their trademarks or brings unfavourable consequences for the owners.

Certain multinational organisations give the possibility to foreign entrepreneurs to use their trademarks as a franchise. This can be concluded as part of a franchise contract, which regulates the franchise requirements and financial compensation between the franchisee and the franchisor. Naturally, franchise agreements have to comply with the Dutch law. Read here for more information on franchise agreements.

Trade names in the Netherlands

In Holland, trade names are protected by the Dutch Act on Trade Names (Handelsnaamwet). Trade names are defined as the names that companies trade under. In general, a company can freely choose a trade name, as long as the chosen name is not misleading, for example as regards the entity’s ownership or legal nature.

Protection does not require trade name registration, e.g. in the Commercial Registry of the Netherlands. The rights connected to trade names arise from their use. In contrast to trademarks, trade names do not have to be original. Still, descriptive names have limited protection.

The Act on Trade Names prohibits the usage of a name, similar or identical to a name in use by another entity if such usage is likely to cause confusion, given the location and nature of the entities.

Copyrights in the Netherlands

In Holland, the Act on Copyright (Auteurswet) protects copyrights. It gives authors of artistic, literary or scientific works exclusive rights to reproduce their works and make them publicly available.

According to Dutch law, works should have original, individual characters and reflect the personal imprints of their authors. The provisions contain an exemplary list of copyright-eligible works: paintings, books, computer programs, brochures, etc. Logos and website/product design can also be protected by copyrights. Ideas, concepts and formats are not protected if they are not embodied in specific works.

Copyrights are obtained through the creation of works meeting the abovementioned conditions. No official requirements, e.g. usage of a sign like “©“ or registration, exist. The protection of copyright ends 70 y. after the author’s death. If the creation is authored by a legal person, the copyright is protected for 70 y. after the work’s first publication.

There is an option to submit an i-DEPOT at the BOIP. This can prove the existence of a creation at a particular time and might be helpful when considering whether a particular work is original. The i-DEPOT, however, does not create an independent intellectual property right.

Copyright owners can prohibit other parties to publish or reproduce their work without authorization. If a particular product and a copyrighted work leave identical overall impressions, then there is an infringement of copyright. Disputes are taken to competent courts that assess the cases by considering the work’s copyrighted features.

If you have questions concerning intellectual property and the relevant rights or intend to develop a business in the Netherlands, you can contact our Dutch agents specializing in company set-up.

Rather speak to our experts? Click here to request a free consultation

Why choose the Netherlands?

The Netherlands has many benefits, ranging from a stable economy to a strategic position to do business. As such, the country is often listed in renowned indexes in top positions. Thus, the Netherlands is considered one of the best countries in the world to do business. One such prestigious index is the Global Business Complexity Index 2023 (GBCI), published by consultancy TMF Group, which helps companies do business in other countries.

• You can download the file via this webpage if you are interested in the index.

Of the 78 countries that are listed, the Netherlands is in 4th place, compared to 22nd last year. Next to that, the Netherlands ranks 4th among the world’s Best Countries for Business in 2024, according to Forbes. There is also the Global Talent Competitiveness Index 2023, which ranks 134 countries on their ability to attract, develop and retain skilled people. The Netherlands ranks fifth on this list.

In any case, you get the message: the country is extremely popular when it comes to doing business. The attractive and competitive corporate income tax rate also adds to this popularity. For profits up to 200,000 euros, you pay 19% corporate income tax, above this sum, you pay 25.8%. This is lower than many other European countries, in fact, the Netherlands is listed in the top 5 most attractive EU countries for corporate tax.

Some interesting facts about the Netherlands:

• The Netherlands is a country in the Northwest of Europe
• The current population is close to 18 million inhabitants
• The Netherlands is a constitutional monarchy, yet the king bears no political responsibility
• The Netherlands has twelve provinces, each with their own local governments
• The Dutch judiciary is centrally regulated
• The Netherlands is part of the Kingdom of the Netherlands, together with the countries Aruba, Curaçao and Sint Maarten.

Reasons to establish a subsidiary

The main reason entrepreneurs set up subsidiaries is to allow an existing foreign company to legally operate in the Netherlands.

Foreign companies that want to do business in the Netherlands can establish a company here that falls under their existing foreign legal entity. The company then functions as an extension of the foreign parent company, but also has a certain degree of independence. They will also have to deal with both international and Dutch legislation.

All foreign companies with subsidiaries in the Netherlands must be registered with the Chamber of Commerce. The international company established abroad can control its subsidiary in Holland, but, in contrast to the situation with branches, it does not carry full liability for the Dutch subsidiary’s debts, obligations and actions. The subsidiary does not have to engage in the same operations as its parent company, and, if necessary, it can register for the performance of more activities. This and the limited liability of the parent company are the two main advantages of opening a subsidiary.

Choosing a company type for your Dutch business

When you plan on opening a Dutch company, one of the first choices you will have to make is to choose the type of company. There are roughly two types of companies in the Netherlands, namely unincorporated and incorporated companies.

• Unincorporated companies are business types such as sole proprietorships, and several types of partnerships.
• Incorporated businesses are company types such as private and public limited liability companies and the foundation.

The main difference between these two types of companies is that incorporated businesses are considered to be separate legal entities, whereas unincorporated businesses are more of an extension of the owner(s). Therefore, you only enjoy limited liability when you establish an incorporated business, since this type of company has a legal personality and can enter into contractual agreements on its own. You are therefore generally not liable for any debts you create with a Dutch BV or NV, for example.

Which type you choose greatly depends on your specific plans, but in almost all cases, foreign entrepreneurs choose the BV for various practical reasons.

What is the difference between a branch and a subsidiary in the Netherlands?

A subsidiary is also considered to be a legal entity that can operate on its own. It is therefore different from a branch office, since a branch office doesn’t have legal personality. It can be established by one or more shareholders. If there is only one shareholder, this person will subsequently become the director-shareholder. The subsidiary has legal personality but is nonetheless controlled by the parent holding company.

So how is this control achieved?

The parent company needs to own at least 50% of the shares of the subsidiary in order to be able to control the subsidiary. In some other cases, it is also possible to get control of the subsidiary via special voting rights or different rights of the other shareholders.

Since these rights or shares provide the parent company with the possibility to make important decisions about the board of directors, for example, the parent company is able to exercise control over the subsidiary.

Due to its limited liability, the parent company is commonly only liable for its capital contribution to the subsidiary. The founders of a Dutch subsidiary are able to choose between two very common types of legal entities: private or public companies with limited liability.

The Dutch BV as a legal form

A private company with limited liability (or BV) is suitable for small and medium businesses. There is no minimum capital requirement for the incorporation of a BV as a Dutch subsidiary; it can already be established with 1 euro. Its share capital has to be split into non-transferable registered shares. The shareholders carry limited liability to the extent of their contributions to the capital of the company. One or multiple directors can be appointed to manage the business.

There are different methods for the incorporation of a Dutch BV, depending on the main goal: either the privacy of the directors and shareholders, tax minimization, a holding structure for international business, or a BV owned by a special structure, e.g. a foundation.

The Dutch NV as a legal form

Entrepreneurs can also open a public limited liability company (NV) as a subsidiary. Do note that the minimum capital required to establish an NV is 45,000 euros, split into bearer and registered shares. NVs can issue certificates of shares with respect to bearer shares, in contrast to private companies with limited liability. Shares can also be transferable. The shareholders carry limited liability, covering the capital they have provided to the company.

In contrast to BVs, NVs can be traded on the stock exchange, and as such, anyone can buy shares of this type of company. Be advised that Dutch subsidiaries must have a minimum of two managers, forming a management board. A board of supervisors can also be formed to oversee the activities of the managers. Large companies like NVs follow more stringent requirements in yearly reporting, auditing and accounting.

Taxation of Dutch subsidiaries

Any subsidiary registered in Holland is considered to be a resident company and has to pay corporate income tax, which is identical to any other local company. Therefore, registration with the Dutch tax authorities is obligatory. The subsidiary should also be registered with the Administration for Social Security in order to hire employees locally.

The corporate tax in Holland is 19% for yearly profits up to 200,000 euros and 25.8% for income exceeding this threshold in 2025.

National companies pay taxes with respect to any profits generated worldwide. Holland is an EU member, so the EU Directive for parent companies and subsidiaries is applicable to Dutch subsidiaries of international companies.

The Directive and the treaties for the avoidance of double taxation between Holland and other countries guarantee significant tax relief and incentives. Other taxes that Dutch companies need to pay include the tax on property, the transfer tax and contributions to social security. The fiscal year usually matches the calendar year. All subsidiaries of international companies need to follow Dutch reporting and accounting principles. In compliance with the filing requirements can result in hefty fines and penalties.

How do I set up a subsidiary in the Netherlands?

If you want to set up a subsidiary, Intercompany Solutions can assist you throughout the entire process. This can save you a lot of time and money since the procedure is hard to carry out when you are operating from another country. Via power of attorney, you can mandate us to act on your behalf, which means that you won’t have to travel physically to the Netherlands to establish the subsidiary.

One of the first things that you will have to do is check whether the name you chose for the subsidiary is unique. This is done at the Dutch Chamber of Commerce, after which a confirmation of the name’s validity is sent by email. If the name is available, the founders can proceed with registration. We then need some extra information from you:

• The names of all shareholders
• Valid IDs of all shareholders
• A valid registration address in the Netherlands for your subsidiary

Once we have this information, we will go to a notary public to incorporate the subsidiary. In most cases, this entails incorporating a Dutch BV. Since depositing the share capital that is required is part of the incorporation, you will need to open an account at a local bank, deposit the required capital, and obtain a document to certify the deposit. Before registration at the Chamber of Commerce, the subsidiary founders must also obtain a non-objection declaration issued by the Ministry of Justice. For this purpose, you have to file an application and pay the relevant fees. The articles of association, the subsidiary establishment application, and the deed of incorporation are then finished by the notary. All documents mentioned above have to be presented to the Chamber of Commerce, accompanied by a deposit certificate and the non-objection declaration. The procedure for subsidiary registration for business purposes in Holland is uncomplicated and takes approximately 3-5 business days, provided that you are able to send us all the necessary documents in time.

Can a foreigner set up a company in the Netherlands?

Intercompany Solutions has assisted hundreds of foreign entrepreneurs from over 50 different nationalities. Our clients range from small, one-person startups to multinational corporations and everything in between. Our processes are aimed at foreign entrepreneurs, and, as such, we know the most practical ways to assist with your company registration. We can assist with the full package of company registration in the Netherlands:

• Company establishment in the Netherlands
• Opening of a local bank account
• Application for VAT or EORI number
• Applications for a variety of permits
• Application for a visa or start-up permit
• Startup assistance
• Financial services
• Administrative services
• Secretarial services
• Legal assistance
• Tax and financial services
• Media
• General business advice

We are constantly improving our quality standards to continually deliver impeccable services.

How Intercompany Solutions can help you

Intercompany Solutions has helped thousands of foreign entrepreneurs during the past years to set up a Dutch business, expand to the Netherlands via a subsidiary, and provide all sorts of extra services.

Ranging from the opening of a Dutch bank account, applying for a permit, and obtaining an EORI number to periodical tax return filings and specialized legal advice. We can assist you with everything you need to know about the establishment of company in the Netherlands and take care of these matters for you in a professional and effective way.

We offer our services at highly competitive rates, which we can also combine in interesting package deals. If you need more information on the procedures for setting up a Dutch business, do not hesitate to contact our local agents. They will provide you with more information on company formation and legal advice.

Want to speak with our experts? Click here to request a free consultation

The Dutch sector of agriculture has succeeded to maintain its position as the second largest exporter in the field of agriculture. For 2017, the total value of agricultural exports reported by the Central Bureau of Statistics (CBS) is 113.5 billion US dollars or 92 billion Euros, which is 7% more in comparison to 2016. Thus the country ranks second among the top agricultural exporters in the world, after the United States. The agricultural exports of the US for the fiscal year of 2017 were estimated at 140.5 billion dollars or 114.2 billion Euros.

According to CBS, approximately 40.5 billion Euros come from products made in Holland and another 3.5 billion Euros are attributable to commodities that were imported from elsewhere, underwent some processing and were exported. If products related to agriculture were included in the calculation, then the Dutch participation in the global economy would increase to 48 billion Euros.

Flowers and bulbs were first among the top export products. Dairy products were second, overtaking meat that was ranked in second place the previous year.

Destinations for export

The agricultural produce for export of the Netherlands is mainly destined for Germany (34 billion Euros for 2017). Holland is the most significant export market for Germany as regards agricultural products. Other significant export flows are directed towards Belgium (10.4 billion Euros), the United Kingdom (8.6 billion Euros) and France (8 billion Euros). According to CBS, the trend shows an increase in exports to France and Belgium and a decrease to the United Kingdom, perhaps due to the weaker GBP in connection to Brexit.

The net export value of products related to agriculture, e.g. pesticides, fertilizers and farm equipment, reached 9.1 billion Euros bringing the sector’s total to 101 billion Euros.

A wonder in the agri-food industry

The area of the Netherlands is only 41.500 square kilometres and its population is approximately 18 million. The country brings hope for finding solutions to the challenges of world hunger. Although small, it has a very strong position in the world’s sector of agriculture; Holland is a driving force leading globally in the field of innovative solutions and food security.

If you are wondering how to start a business in the Dutch agricultural sector, please, contact our incorporation agents in the Netherlands. They will give you more information and legal guidance regarding the procedure of company establishment.

The Netherlands is among the leading exporters of food and agricultural products worldwide due to its innovations in agri-food technology. The sector offers a reliable source of safe and healthy food produced using nature- and environment-friendly methods.

In case you are in interested in establishing a business in the agriculture and food sector of the Netherlands, please contact our agents specialised in company formation. They will provide you with legal advice and additional information on how to set up a Dutch company.

Delivering healthy food from sustainable sources

The rapid global urbanization and the migration of people from rural areas to the big cities lead to an increasing demand for healthy and sustainable food supplies in the urban zones. The security of food is paramount to social wellbeing and economic performance. The search is on for solutions regarding food safety, animal welfare, habitation and waste-disposal, as well as education, governance and social fairness. The Netherlands is located in a relatively small delta region with low elevation, where the land is a precious resource. This is one of the reasons why the local farms are among the most efficient, sustainable and intensive worldwide.

Due to the fertile soil, high produce quality, intensive farming, trading expertise and extensive knowledge in agriculture, the Netherlands exports food products on a global scale. This covers products of both plant and animal origin, i.e. poultry (meat), eggs and livestock. Other key export items are automated food processing machines such as pickers for soft fruit, meat separators and equipment for potato processing, as well as knowledge on food processing. Twelve of forty leading companies producing foods and drinks have Research and Development centres in the country.

Five reasons to choose the Netherlands for your business in the food and agriculture industry

1. The country is a world leader in innovation and export of foods and agricultural products

After the United States, Holland is second in export of agricultural products in the world. It falls in the global Top 3 of fruit and vegetable producers, along with the US and Spain, supplying 25% of all vegetables for export from the European continent. The Dutch sector of agriculture is diverse and covers a variety of plant cultivation and animal husbandry subsectors, including field and greenhouse cultivation, fruit-growing, pig and dairy farming.

The Netherlands sees things in perspective. This is evident from the world-famous innovation and research infrastructure in the country. The University of Wageningen was rated first among agricultural universities worldwide for three consecutive years in the Taiwan Ranking that includes 300+ universities dealing with scientific research. Of the leading twenty-six companies in the sector of agriculture and food, five have Research and Development facilities based in the country. Here are some examples of investments made by private companies:

• a new Research and Development centre of Danone in Utrecht concentrating the European research of the company on children nutrition and clinical nutrition;
• a new European Research and Development centre of Heinz in Nijmegen;
• a new Research and Development centre of Royal FrieslandCampina in Wageningen;

2. The Netherlands has a mild climate, fertile soils, flat terrain and favourable location in the centre of the European continent

Next to its excellent geographic characteristics, the country has extremely well-developed infrastructure, logistics, food processing branch and commerce.

3. Successful renewal of the chains of agri-food production

For many years the agriculture in the Netherlands has maintained its leading position in the international competition through active investment aimed to renew the chains of agricultural production. Growers and farmers are eligible partners in this chain. Their main goal is to supply food and plants (including ornamentals) with the best possible value for money using sustainable, innovative and socially responsible methods.

4. The Netherlands supports the Global Food Security Alliance

It has been estimated that by 2050 the world population will reach 9 billion. If the current levels of food production remain unchanged, there will be a 70% shortage. The Alliance plans to solve this problem by using a Dutch approach based on climate-smart systems in agriculture. It intends to intensify and expand small-scale projects of fishermen, small farmers and horticultural growers and to maintain a high level of food safety by focusing on beneficial private-public partnerships.

5. Environmentally friendly and sustainable agriculture

Regardless of the tight margins of profit, the agricultural business invests significant resources in protection of the environment and implements improvements regarding animal welfare. While the agricultural business is a main engine of the national economy, it carries certain risks for the environment. During the past decades, agriculture has shown a trend of increasing scale and intensity of production, leading to a growing impact of manure and fertilizers in non-urban areas. Farming needs to be more sustainable. Currently, the agricultural sector in the Netherlands is directed towards sustainability in order to provide safe and healthy food, produced with care for the environment and the landscape.

Read here to explore the Dutch horticulture industry.

Expanding your business internationally can have many beneficial effects, ranging from an extension of your current client list, a larger pool of suppliers to a more diverse and broad target audience. But also more transportation options and a substantial increase in revenue over time. Expanding beyond your own borders can bring you many exciting new opportunities that remain impossible to find within your own country. If you have any specialty goods for sale or services that might benefit international clients, we strongly suggest you contact us immediately.

We can help you establish your presence in the Netherlands, either via the establishment of a Dutch company or subsidiary or by opening a branch office from which you can operate. Our services don’t stop there, by the way. We can continually assist you during the timeframe that you will be doing business in the Netherlands with a wide variety of legal, administrative, financial and operational services.

Feel free to contact us anytime with any questions you might have, or take a look at our website for more in-depth information about the services we offer.

Can a foreigner open a company in the Netherlands?

With the ever-increasing globalization, people travelling for long periods of time and mass immigration and emigration, the world is slowly coming together like never before. We also see this trend in the business world, as an increasing number of foreign companies are establishing companies and subsidiaries in the Netherlands. This is mostly inherent to the fact that companies and corporations wish to expand their reach, but sometimes necessity also plays a role, such as companies having to establish bases abroad due to Brexit, or war situations in their own country. Whatever your motivation might be to start doing business internationally, if you are motivated and experienced enough, it can bring you an ample amount of success. Especially companies that are focused on trade, logistics and e-commerce, since this allows you to enter completely new markets that are suddenly within reach. 

If you are unsure whether you have what it takes to achieve success in another country, it is possible to take some preliminary steps to ‘test the waters’, so to speak. This can be achieved by alternative means than starting a business immediately, which can nonetheless later still result in a branch office, a subsidiary or even Dutch business incorporation. You can first opt for a representative office that has no legal status whatsoever but serves as a base for establishing contacts with prospects and finding out where the best place to settle might be. This can simply be a temporary office, you can also opt for a coworking space where you can rent a few workspaces to begin with. Next to that, you can also appoint a few sales agents and distributors, who can negotiate agreements for you and purchase or sell any goods. Keep in mind that you need a legal presence here to be able to truly do business, but it’s possible to send someone to meet up with potential business partners. You can use the information you gain from these preparatory steps to draft a solid business plan, which in turn might aid you in finding investors.

How open-minded is the Netherlands?

Next to being part of the EU, the Netherlands is actually also the main hub for the EU when it comes to transportation. The port of Rotterdam is still the largest port in Europe, which means that an enormous amount of goods is being shipped daily via Rotterdam. The country also has Schiphol Airport, which is a busy and well-connected airport. The port and the airport are very close to each other, since the Netherlands is a fairly small country. The infrastructure is also among the best in the world. Dutch roads are incredibly well maintained, using high-quality and modern materials such as anti-splash asphalt. Any imperfections and damage are generally fixed immediately. Next to the physical infrastructure, the digital infrastructure is phenomenal. The coverage is almost 100%, with high-speed internet that you can use anywhere. These factors combined create the perfect location for all businesses that rely heavily on imports and exports, trade in general, connectivity and international connections. The Netherlands may be small geographically, but it more than makes up for its size with its expertise, innovative methods of solving problems, and its huge network.

What is the difference between a branch and a subsidiary in the Netherlands?

When clients wish to expand their companies to the Netherlands, they generally choose to either establish a Dutch BV, establish a subsidiary or decide to open a branch office. There are differences between these three options, which are most palpable when looking at the legal consequences of each choice. The Dutch BV is a legal entity and also a Dutch business type, which is very commonly chosen. It is a great company type for any entrepreneur who expects to generate more than 100,000 euros in profit on a yearly basis and who also doesn’t want to be personally liable for any debts the company might get into. If you establish a Dutch BV, you will own a fully operational Dutch company that will not be linked to any company overseas. 

You can also choose to establish a Dutch BV holding structure, if you wish to open one or more operational companies that are linked to a parent company that holds assets. A subsidiary is generally a Dutch BV or NV, it has the same structure. But it falls under a parent company that is foreign, i.e., a current company you might already own. Since a subsidiary is considered to be a separate legal entity, the parent holding will enjoy limited liability for any debts the subsidiary might get into. Lastly, a branch office is not a legal entity or even a company type, it is simply an administrative extension of the parent company overseas. So if the branch creates any form of debt, the parent company will be held liable. We will discuss these three methods of business expansion in detail below, so you can make an informed decision regarding the best option for you and your business.

The Dutch branch office explained in detail

International companies planning to establish their presence on the Dutch market at a low cost can open local branches. The branch does not have a legal personality and is considered an extension of the international company. Therefore, the parent company, established abroad, is liable for all of its actions. The operations of Dutch branches are managed by representatives of the parent companies by virtue of a power of attorney.  The branch has to carry out the same operations as its parent, and its name must be identical. Its actions are governed simultaneously by the Dutch laws and the legislation of the country where the international parent company is incorporated. The branch provides permanent establishment at a lower cost in comparison to other Dutch company types, and there are no minimum capital requirements with respect to its incorporation. This is why many international companies prefer this form of expansion.

Dutch branches vs. local companies

The main defining characteristic of a branch, as compared to other business forms like subsidiaries in Holland, is its full dependence on its international parent company. Therefore, the international company carries liability for any obligations and debts of the Dutch branch. The procedure for branch registration is easier compared to other company types, e.g. a private limited liability company, but it still needs to comply with the legislative requirements for taxation and employment. According to the law, all branch employees should be covered by social insurance. Otherwise, the branch representative may become personally liable in the event of failure to pay the necessary contributions. Branches opened in the Netherlands usually have financial obligations identical to those of local companies. The numerous treaties for the avoidance of double taxation that the Netherlands has signed with other countries decrease the branches’ tax burden if they qualify for a reduction in the rate of withholding tax for royalties, interest and dividends.

Advantages of opening a Dutch branch

The main advantage of opening a Dutch branch is the relative ease of establishing the branch. The procedure for branch registration is swift, simple and takes less time than the direct incorporation of a Dutch company. This is why some international corporations prefer to establish branches. Other advantages include low incorporation costs and mild accounting requirements. The main characteristics of branches in the Netherlands are more or less the same as in other countries. For example, in Hong Kong, the procedures for branch taxation and registration are very similar. Still, it is in your best interest to use the services of a local specialist in incorporation or a lawyer to ensure that you follow the Dutch regulations and rules for company establishment, since branches also have to adhere to Dutch laws and regulations. For example, you will always need to register your Dutch branch with the Chamber of Commerce.

Registration of a Dutch branch office

As stated above, the branch has to be registered in the trade registry of the Chamber of Commerce with the relevant documents and details before it can commence its business activities. All papers need to be notarized, with a legalized translation in Dutch. The notarization takes place in the country where the parent company resides. The information necessary for incorporation can be case-specific, but in general the following documents are always needed: 

• Proof of the establishment of the international company, which amounts to an extract from the trade register in the country of residence, including a registration date and company details)
• A registration certificate with the name of the company, the registered address and names and details of the directors and the secretary (or other managers)
• Protocol of the discussion where the board decided to open the branch
• Valid Dutch address and name of the branch
• The representative’s name(s) and valid forms of ID
• Powers of the representative and branch activities

After the registration, the trade register in the Netherlands will release the registration certificate recorded under a unique number. Then the branch has to be registered for tax and social security contributions. After all these steps are taken care of, the branch can begin to operate in the Netherlands.

More information about the Dutch BV and subsidiary

If you would like to enjoy limited liability, a branch is not the right option for you. You will either have to choose to establish a Dutch BV, or a subsidiary that falls under your current foreign holding company, since these options allow you to establish and register a legal entity. If you own a BV, you can do business freely with your Dutch company anywhere in the world. The business itself can be set up exactly the way you want, and you don’t need to copy any names or activities from businesses that you already own. If you choose to establish a subsidiary, it will also be a separate entity that falls under the umbrella of your foreign parent company, yet it can enter into contractual agreements all by itself. You should consider the fact that a branch office may seem like an easy solution, but when you look at reality, approximately the same amount of obligations and work are involved when establishing either a BV or a subsidiary. Also, note that many international clients will probably prefer doing business with a company that is incorporated in a wealthy EU country, such as the Netherlands. If you have a branch office, it’s still your original company that everyone sees. The liability can also be an issue, since you are responsible in your home country for what your representatives do. This can be tricky and hard to oversee. So our advice is to always set up a separate and independent legal entity.

What we can offer you

Intercompany Solutions has assisted hundreds of foreign entrepreneurs from over 50 different nationalities. Our clients range from small, one-person startups to multinational corporations and everything in between. Our processes are aimed at foreign entrepreneurs, and, as such, we know the most practical ways to assist with your company registration. We can assist with the full package of company registration in the Netherlands:

• Company establishment in the Netherlands
• Opening of a local bank account
• Application for VAT or EORI number
• Applications for a variety of permits
• Application for a visa or start-up permit
• Startup assistance
• Financial services
• Administrative services
• Secretarial services
• Legal assistance
• Tax and financial services
• Media
• General business advice

We are constantly improving our quality standards to continually deliver impeccable services. 

Intercompany Solutions can set up your Dutch branch in no time

Whether you want to establish a branch office, a subsidiary or a Dutch BV, possibly even in the form of a holding structure, Intercompany Solutions is your trustworthy partner in company establishment and all related services. We can manage the entire company incorporation and registration procedure for you from afar via a power of attorney. If you can provide us with all the needed documents in time, we can arrange everything in just a few business days. We can also set up a Dutch bank account for you in the meantime, making it possible for you to directly deposit the necessary share capital. Once your business has a Chamber of Commerce number, you are ready to start your business activities. Please feel free to browse our website to find out what we can help you with.

If you need more details on starting a Dutch business, please contact our local agents directly regarding company formation.

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Corporate Law in the Netherlands, also called “Company Act”, is the major source of statutory regulations and rules for company incorporation and management.

The law lists the different types of companies that can be incorporated in the Netherlands and the rules pertinent to the procedure of establishment. It covers the compliance, taxation and management of corporations, and the procedures in cases of bankruptcy, merger and company acquisition. The document also stipulates the allocation of responsibility and power within companies.

Company establishment in the Netherlands

The Dutch Company Act specifies what business forms can be incorporated and what regulations and rulings are applicable to each form. Depending on the particular activities and the preferred manner of managing a business, investors can choose between a private (BV) and public company with limited liability (NV), or a limited and a general partnership. The law does not recognize partnerships as legal persons.

The Company Act also describes the process of formation and the corporate purposes of companies. The procedure for incorporation must follow the steps outlined in the law. The necessary documents, e.g. incorporation deed, must be notarized locally. The company’s managing directors are its representatives and their liability is determined by the specifics of the entity they decide to establish. For the purposes of incorporation, the entity will need a contributed capital; the subsequent share transfer is also covered by the corporate law.

All regulations in the Dutch Civil Code are consistent with the EC Directives, the law on securities trade supervision and the act on listed companies, partially governing the manner in which Dutch companies are managed. Foreign investors planning to form a Dutch company can initiate a process of due diligence.

Dutch company management

Company management, as provided in the Company Act, is a two-layered system, consisting of an executive board of managers and an advisory board of supervisors that oversees the managerial work. The model is valid for both public and private companies with limited liability. These boards are compulsory for large companies.

The company owners appoint the members of the managing board during incorporation. The responsibilities and powers of the managing board are laid out in the association articles. The liabilities and duties of the directors are legally established and may include criminal and civil liability.

Business owners hiring personnel in Holland should also observe the law on employment. It contains important rulings with respect to the employment conditions, the obligations and rights of employees and employers, the dismissal procedure, the wages and the working hours. The Dutch legislation on labour is flexible as regards workforce and has many particularities.

Do you need more information about the Dutch corporate law or would you be interested in registering a company in the Netherlands? Call our local agents in company incorporation for support and advice.

The economy of the Netherlands is increasing in strength with the most recent forecast of the Dutch Bureau analysing economic policy (CPB) predicts economic growth of 3.2% in 2018 and 2.7% in 2019.

An economic boom

The Central Economic Plan for 2018 prepared by CPB forecasts the economic situation in the Netherlands this year and next year. Estimates are made for a smooth Brexit where trade with the UK will continue on the basis of a new agreement. If, however, the situation turns out otherwise, the national economy may suffer damages. Recently there has been a small migration of UK based companies to leave with their headquarters to the European mainland.

The report of the CPB predicts economic growth of 3.2% for 2018 and 2.7% for 2019. If the estimate proves accurate, Holland will surpass the economy of the Eurozone by 0.6% for the period from 2017 to 2019.

This economic boom is a result of several factors including expanding budgetary policy, strong housing market, low interest and a good international economic climate.

Even though the Dutch economy is growing, the surplus of the government is unlikely to increase. Last year it was 1.1% GDP. The report forecasts 0.7% surplus for this year and 0.9% for 2019. The decrease is mainly due to greater governmental spending.

Unemployment in Holland is expected to decrease

CPB’s report raises the hopes that the unemployed in the country will decrease. The figures are 4.9% for 2017, 3.9% for 2018 and 3.5% for 2019. The rate for next year will hit a record low since 2001.

This decrease in the number of unemployed people means that businesses will have to work harder in searching for employees. This will likely bring an increase in the number of permanent employment contracts and higher salaries to attract and retain staff.

Dutch households will be able to purchase more

The report of the CPB foresees a 1.6% average increase in the purchasing power of households by next year. This will affect differently certain households. The ones on welfare benefits shall experience only 0.8% increase, the employed will notice a 1.8% increase and retired persons will experience an increase of 1.3%.