The Netherlands is still an attractive destination: even during Corona times
With worldwide lockdowns and infrastructural restrictions, it proved to be very tough for many companies and entrepreneurs to keep operating on a normal scale. In the UK specifically, Brexit also makes business as usual very difficult. Due to Brexit, companies in the UK can no longer profit from the free movement of services and goods that is inherent to the European Union. Instead, they now have to comply to almost 30 different VAT rules that differ per European country.
This has already led to an increase of companies looking to settle in the Netherlands in the past few years and that amount keeps rising. Even during Corona times, the Dutch offer a stable economic climate and unrestricted access to all the benefits of being a member state of the EU. If you are currently having difficulties keeping your company afloat due to Brexit restrictions, it might be an excellent idea for you to consider opening up a branch office in the Netherlands, or move your company entirely.
Companies afflicted by Brexit and Corona
During the past year a lot has changed. Next to the UK finally exiting the EU, Corona hit the world which resulted in several strict measures in various countries. Especially for UK companies this coincidence of events resulted in companies and entrepreneurs failing to meet deadlines, provide services or ship goods over the border. The EU and UK came to a trade agreement, but the freedom of movement that accompanied being a member state of the EU is sorely missed.
The amount of paperwork most businesses have to fill out just to ship goods is substantially higher, leading to shipping delays and problems at the border. The UK government has therefore advised many company owners to open subsidiary offices in EU member states, such as Ireland and the Netherlands. A lot of companies already made this decision and thus, now operate within the borders of the EU again.
Benefits of a branch office in the Netherlands
If you need a safe haven to be able to run your business activities as usual, the Netherlands is a perfect fit for companies originally based in the UK. Next to being close in proximity, the Dutch offer a wide array of possibilities and benefits for entrepreneurs. The economic climate in the Netherlands is still very stable. There are hundreds of companies already making the move according to the NFIA, mostly because Holland is strategically perfectly placed for internationally oriented businesses,
The Dutch have made a very positive name for themselves, being open and welcoming to foreign companies and investors since centuries. The Netherlands offers innovation and groundbreaking work in many fields, such as public healthcare, technology, IT infrastructure, agriculture and also in more artistic fields such as design and marketing. If you are into technology and gadgets, your company will flourish with many interesting cooperation possibilities and a wealth of acquirable knowledge and information.
If you want to open a branch office and hire personnel, you will find high-quality employees easily. The Dutch are in general bilingual, sometimes even trilingual and also very computer savvy. There are also plenty of expats residing in the Netherlands, if you prefer someone who speaks native English or has a certain professional affinity with your services or products.
How can you open a subsidiary office in the Netherlands?
Many entrepreneurs worry that the whole process of establishing a subsidiary company or a branch office in the Netherlands is a tedious and difficult task. If you plan to do it alone, it can be indeed tricky. You will need to obtain a vast array of documents and take the right steps to register your company correctly, in order to also obtain a VAT number and a bank account. You will also have to get the necessary permits, since the UK is no longer considered a part of the EU and this complicates registration a bit.
Then there is also the question of the preferable legal entity you want to choose, which depends on several factors. You will need to know the (expected) amount of profits in the foreseeable future, how many people you plan to employ and the amount of directors or partners involved. If you want to know a bit more about legal entities, you can find some in-depth information on this page.
Intercompany Solutions can register a subsidiary office for you in just a few days
If you really want the job well done, we always advice to hire a professional company to fill out the forms and do the work for you. Intercompany Solutions has many years of experience in establishing and registering foreign companies in the Netherlands, meaning we can take care of the entire process from A to Z. You can contact us for more information, or look at our website for more information about the process.