Mandatory VAT Registration in the Netherlands

Every Dutch company is required to subscribe at the Trade Registry of the Chamber of Commerce. This is a necessary prerequisite for VAT registration and fulfilment of other financial duties. The procedure is mandatory for all legal entities, including private limited companies, companies with limited liability, foundations and associations. Registration at the Chamber of Commerce is also mandatory for partnerships (e.g. general partnerships) and sole proprietors. The procedure for subscription at the Trade Registry involves the payment of a registration … Read more


Franchise Agreements in the Netherlands

Franchising is a contractual mechanism through which an entity (franchisor) issues a paid license for use of its business practices and systems and/or its commercial name to another entity (franchisee).

Dutch laws on franchise agreements

The Dutch legislation does not address franchise agreements specifically, so the general provisions of the law on contracts and competition applies. Franchising agreements are usually complex and are therefore concluded in writing. One should consider the following common principles when preparing a franchise agreement under … Read more


Open a General Partnership in the Netherlands (VOF)

The Venootschap Onder Firma (VOF) or General Partnership is a company established by a minimum of 2 members through an agreement registered with the Commercial Chamber (Trade Registry). This entity is commonly translated as “company with partners”.

Main features of the Dutch VOF (General Partnership)

Each of the partners must make a contribution to the common business, e.g. goods, money, labour or knowledge. In contrast to other entities in the country, the VOF is not required to have a minimum … Read more


Dutch Social Service Number (BSN / Sofi Number)

One of the first bureaucratic matters internationals need to take care of in the Netherlands is the BSN number, in Dutchburgerservicenummer”. BSN, or also known as Sofi number in the past is a social service number used in the country.

 What purpose does the Dutch BSN / Sofi number serve?

The BSN or Civic Service Number is a unique number issued to everyone living in the country. It is a form of registration intended to assist all interactions … Read more


Netherlands Tax Haven Multinationals

In a recent report from Oxfam International 5 European states were rated among the 15 most popular tax havens worldwide. They were ranked as follows: Cyprus (10th position), Luxembourg (7th position) Ireland (6th position), Switzerland (5th position), and the Netherlands (3rd position). The same publication puts the Cayman Islands and Bermuda at the top of the countdown as long-standing tax paradises.

Oxfam’s report was prepared using information on different factors for each country, including corporate … Read more


Holland VAT Rate

The Netherlands uses a value-added tax system (short: VAT). This system is very similar to the system that is used in other states of the European Union. Not all transactions are subject to VAT, but in Holland, it is very common to charge this value-added tax. The regular tax rate is 21%, and this rate is charged on (almost) all goods and services by businesses within Holland.

If products are imported from outside of the EU, this VAT rate may … Read more

Dutch Corporate Income Tax

Dutch corporate income tax deals with the tax that should be paid in the Netherlands, on the profits that are earned by companies. A number of rules apply to this, but in general, a Dutch company has to pay 25% corporate tax. This is also called ‘vennootschapsbelasting’ in Dutch. This tax applies to the worldwide profits of a company.

There are many Dutch tax rules that have to be taken into account if you are setting up a business in … Read more

Dutch Bank Account For Non-Residents

If you are living in specific country, you can often only open a bank account in that specific country. That is not the case for the Netherlands. At most banks, non-residents can also open up a Dutch bank account to handle their money. And that’s not just for personal versions, but also for business versions.

Some of the services related to Dutch bank accounts for non-residents, are collection and payment services, electronic banking, foreign currency exchange, debit and credit cards, … Read more


The Difference Between a Dutch Branch and Subsidiary

When registering a Dutch company investors have the option to set up either a branch or a subsidiary.

The particular circumstances regarding the interests of the international firm may definitely determine the final choice of legal entity. However certain aspects have to be considered when choosing between a Dutch subsidiary and a Dutch branch.

The general characteristics of Dutch subsidiaries and branches are listed below.

Dutch branches

Branches are permanent establishments forming single entities with the international companies that register … Read more


Notaries in the Netherlands

Dutch notaries are members of the KNB (The Royal Association of Latin Notaries). They provide specific services different from the ones offered by other law practitioners, including attorneys, lawyers and tax advisors. Their most important features are their independence and impartiality.

Dutch notaries have university degrees in law and some of them specialize in particular areas, e.g. real estate, company or family law. If necessary the notaries can request services of other, more specialized law practitioners, including law firms. Notaries … Read more