Incorporate Netherlands Foundation
A Netherlands Foundation is an entity with legal personality without ownership and may serve for a non-profit or commercial purpose. A Foundation is created without any government authorization needed and by nature receives full legal personality by its approval of a Netherlands notarial deed of the formation.
The Netherlands Foundation is also known as ”Stichting”.
The Foundation can be promoted by anyone who is of age who has legal capacity.
The Foundation is formed by the deed of formation in addition to the articles governing its activities and its first director. These articles must be written in Dutch.
Furthermore, possible bylaws are allowed to be drafted in another language and do not have to be registered in the notarial deed. A Foundation must be administered and represented by at least one board member, the chairman of the board.
Benefits of a Netherlands foundation
One of the benefits of a Netherlands Foundation is the country in which the Foundation is registered: The Netherlands is a political and economic stable country which operates on the forefront of several international orientated areas of business.
Also, The Netherlands is known throughout the world for its favourable tax laws.
If applicable profit is taxed a corporate income tax of 25%. However, profits below the sum of 200.000 euro are subject to 20%. The dividend withholding tax rate is set at 15%, however, under certain conditions, it may be reduced to a lower rate, with a minimum of 0%.
One of the other possible benefits of registering a Dutch foundation in The Netherlands are the extensive bilateral investment protection treaties (BIT).
There are a lot of reasons to choose a Netherlands Foundation over another legal entity.
1. Its flexibility in comparison to other Netherlands legal entities.
2. Benefits would be the cost of formation and day to day management which is significantly lower.
3. The more private character of the Foundation is a clear advantage over the legal entities.
Furthermore, the Dutch Foundation isn’t subject to CFC rules and if combined with the Netherlands legal entity called ”Besloten vennootschap” or BV (Netherlands Limited Liability Company) there will be no dividend withholding taxation on dividend distribution.
The Dutch Foundation
There are several forms of Netherlands Foundations, most notably the STAK Foundation.
The STAK Foundation is designed to separate the economic ownership of the shares from the legal ownership. In other words; voting rights, which come with the ownership of shares, are separated from economic rights of the shareholders.
The Netherlands Foundation may very well be the go-to route for your business, however, there are other options which we will gladly inform you about.
Appointment of Secretary, which will be responsible for the timely filing of any return or report. The secretary can also be authorised to sign certain contracts/ transactions in case privacy of the director must be protected. The service includes 12 hours of secretarial support, including preparation of director’s resolutions (for approval of annual report, decision to pay dividends, name change, change of board members, etc.) This way there will be no hidden fees at all in our services.