How to start a business in the Netherlands
We offer help throughout the process of starting a business in the Netherlands. The BV is the most widely used and convenient type of entity for foreign entrepreneurs. The national legislation does not require the possession of any particular asset for establishing a BV in the Netherlands. The only necessary prerequisite is to have an official local address. BV entities belong to shareholders and their capital consists of easily transferable shares. The Dutch BV also needs to have a minimum of one director. The director(s) and shareholder(s) do not have to reside in the country.
There are a few requirements to incorporating and running a BV company.
- The BV company requires a unique company name
- 0.01 euro minimum deposited share capital.
- Issuing a minimum of one share with voting rights.
- The Incorporation deed and articles of association and a Deed of Incorporation need to be drafted before a public notary.
- A registered address in the Netherlands.
- A Dutch BV is deemed tax resident by law in the Netherlands
- Remote formation of a business is possible
Dutch BV Advantages
- The Dutch BV has limited liability, this means that if the company would have debts, the debts would be of the company only, and not the owners’.
- Dutch LLCs are often preferred in terms of tax planning as intermediate finance and / or holding entities. The possibility for participation exemption in combination with the numerous tax treaties signed by the country allows entrepreneurs to save on taxes on distributions of profit by investments that are owned by shareholders of the LLC that do not reside in the Netherlands.
- Dutch businesses have an excellent reputation in worldwide commerce. It is highly suitable for representation purposes
- Very flexible business entity.
- A limited company in the Netherlands may have corporate shareholders and directors.
Why starting a business in the Netherlands is a good opportunity for your company
The country is famous for the colourful capital of Amsterdam and the port of Rotterdam – established in the 14th century and currently the biggest port in Europe. The Netherlands is very popular as well for its favourable entrepreneurial environment. It is an attractive destination for setting up a business or a branch for the following reasons:
- Only 20% corporate tax, which makes the Netherlands a competitive jurisdiction
- 0% VAT for business within the EU
- Founding member of the European Union (EU)
- 93% English-speaking natives, high proficiency in French and German
- Ranked 3th in the World by Forbes ‘’Best Countries for Business’’ 2018
- The Netherlands ranks 4th in the world as most competitive and innovate economy, according to the World Economic Forum
- Highly educated workforce (3th best educational level in the world)
- The Netherlands has signed more treaties for the avoidance of double taxation than any other state worldwide.
- Excellent international business climate
- The Netherlands offers a welcome climate towards foreign investors and entrepreneurs, from small companies to Fortune 500 Multinationals
- The Dutch country attracts various foreign companies thanks to its stable politics and legislation and its good international relations.
- The results of an investigation performed by G. Thorton in recent years show that Holland is among the top countries worldwide for foreign investors to establish their company.
BV Holding structure
Creating a Dutch BV Holding Structure can be a cost effective and secure way to start your business in The Netherlands.
The Holding company is a legal entity that only holds assets, such as shares of Trade companies. Because of this, the holding company does not have any liabilities or risks in its operations.
The Dutch Subsidiary company is a legal entity that engages in active business, trade or services. Because of doing business, the trading company may be held liable for claims against its operations by suppliers, creditors or otherwise. However, the holding company and its assets in this case are safe from any claims.
When combining a holding company with a subsidiary company in a structure, we speak of a ‘’Holding Structure’’.
The characteristics of a holding structure
● Two separate Dutch BV companies are formed.
● One BV company will be used as a subsidiary company to engage in business activity.
● One BV company will be used as a holding company, it will perform no business activity.
● The entrepreneur or investor owns the shares of the Holding BV.
● The Holding BV owns the shares of the Subsidiary BV.
Why Intercompany Solutions is your partner of choice
Since 2013 we have assisted hundreds of entrepreneurs from more than 30 countries in the setting up their Netherlands businesses. Our specialization with foreign entrepreneurs has equipped us with the experience to fine-tune our processes and allow for a successful start of your business.
100% satisfaction guaranteed with all our services.
- Company formation in Netherlands from start to finish
- Assisting with local regulation
- Application for VAT or EORI number
- Accounting services
- Opening bank accounts for foreigners
- Secretarial services, which is our premium support package
Read more on our procedures.