Intercompany Solutions: Starting a business in the Netherlands

Operating since 2017, our company has assisted more than 2000 clients from 50+ countries to set up their businesses in the Netherlands. Our clients range from small business owners opening their first company to multinationals establishing a subsidiary in the Netherlands. If you want to achieve more success with your current company, expand your business internationally, gain a more professional image, or simply attain more profits, then the Netherlands is a fantastic country to establish a business overseas.

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BENEFITS IN THE NETHERLANDS

INCORPORATION PROCEDURE

Why Choose To Start A Dutch Business?

The Netherlands is a country that offers many benefits to (foreign) entrepreneurs and investors. Within several industries, the Dutch have proven to take on a leadership position by continually coming up with innovative and efficient solutions. These key industries include (but are most certainly not limited to):

Information & Technology

High Tech Sector

Agriculture

Trade and logistics

Health Sector

Green and sustainable energy

Chemicals & Pharmaceuticals

Creative Sector & Arts

The Netherlands is ranked as the 4th most innovative and competitive country in the world by the World Economic Forum and also as the 4th best country in the world for business by Forbes Magazine. The fact that the Netherlands is part of the EU obviously plays a large role in these listings, since this has enabled the Dutch to build outstanding connections with most countries abroad. Due to the European Single Market, you can freely import and export goods and services throughout the entire EU. Next to that, the location of the Netherlands has proven to be a huge advantage for various logistical reasons. Both Schiphol and the port in Rotterdam are two of the most prominent logistical gateways for goods entering and exiting Europe. Starting a business in the Netherlands means you have both options within a short driving distance of your company.

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Why work with Intercompany Solutions?

Our experience with international entrepreneurs has allowed us to perfectly adjust our processes in order to ensure the successful and rapid establishment of your Dutch company. Customer satisfaction is guaranteed for all the services we offer.

Our Scope Of Expertise:

Starting a Dutch business: the complete package
Assistance with local regulations
Application for an EORI or VAT number
Accounting and other financial assistance
Application for a company bank account
Secretarial support: premium package

Associations And Memberships :

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

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Intercompany Solutions CEO Bjorn Wagemakers and client Brian Mckenzie are featured in a report for The National (CBC News) ‘Dutch Economy Braces for the Worst with Brexit" during a visit to our notary public on February 12, 2019.

We perfect our quality standards to deliver services of the highest degree.

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Intercompany Solutions is a well known brand in the Netherlands and abroad as a trusted incorporating agent in the Netherlands. We are constantly looking for opportunities to share our solutions with foreign entrepreneurs.

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The Benefits Of Starting A Business In Netherlands

The Netherlands is known worldwide for its beneficial environment for entrepreneurs. Many global investors and entrepreneurs consider starting a business in the Netherlands. In this guide, we explore the Netherlands as a jurisdiction to start a company. Here are some of the benefits of establishing a business in Holland:

A corporate tax rate of 19%, which is among the lowest in Europe
No value-added tax (VAT) for transactions between member states of the EU
Forbes rated the Netherlands as the 4th best country in the world for businesses
The Netherlands has recently attracted many businesses and multinationals from the UK regarding Brexit
The #1 country worldwide for double tax avoidance treaties
The Netherlands is among the founding members of the EU
Local companies have a great reputation in global commerce. The Netherlands has a big advantage in terms of representation
A staggering 93% of the entire Dutch population speaks English, and many are proficient in German and French as well. The Dutch are ranked number one worldwide when it comes to English proficiency, with English being a second language
Highly educated labor force (3rd in the global top regarding education level)
Outstanding international business atmosphere
Holland is 4th in the global report of the WEF and first in the European top 10 for most innovative and competitive economies
According to a recent investigation by G. Thorton, starting a business in the Netherlands is one of the best choices for foreign investors
The country welcomes foreign entrepreneurs and investors, from small enterprises to multinational companies included in the Fortune 500 list
The Netherlands attracts international companies from all sectors with its stable legislation and politics, coupled with excellent international relations

These are just some notable factors that contribute to the Netherlands being a profound hub for foreign entrepreneurs, investors and multinationals. Nonetheless, small and unique foreign companies are very welcome as well. If you have an original business idea or plan, your chances of success are quite substantial in the Netherlands.

Advantages of opening a BV in the Netherlands

There are several well-known advantages to owning a Dutch BV, which is exactly why almost all our clients choose to establish this specific type of Dutch company. The limited liability part is, of course, one of the main reasons why entrepreneurs choose this legal entity. But the BV has multiple beneficial characteristics. We will outline the most obvious advantages shortly below.

Limited Liability

As stated above, one of the main advantages of a limited liability company is that it is not the director or the board, but the BV itself, that is liable for any debts. The only case in which a director can be held liable for financial issues is when there is proof of improper management. This applies, for example, if the accounting is not in order or when the annual accounts have been submitted too late to the Chamber of Commerce (KvK). Obvious malpractice also falls under the scope of improper management. The error must always be attributable to the person in question. In all other cases, you will enjoy the protection of limited liability. So, if something happens to the company, your personal accounts will not be in any danger.

Competitive income tax rates

The Netherlands benefits from a low corporate tax rate compared to some neighboring European countries. Also, when you have a sole proprietorship, you pay income tax on the profits. The highest tax bracket in this category is currently 52%. You also pay tax on the profits of a BV, but this is only 19% or 25.8%, depending on whether your profits exceed the total annual amount of 200,000 euros. Keep in mind, though, that you will still need to pay income tax on the profits you distribute to yourself. You can also pay yourself dividends, which could be more profitable in some situations. We have covered the topic of paying yourself dividends extensively in this article.

The minimum share capital required is extremely low

In the past, it was mandatory to invest a starting capital of 18,000 euros when setting up a Dutch BV. This made it very difficult for starting entrepreneurs to enjoy the benefits of a Dutch BV, even when their business ideas were great, and they managed to attract minor investors. Fortunately, this law has been changed. Since the introduction of the so-called ‘Flex-BV’ in 2012, you can now set up a BV with a starting capital of just 1 euro. This euro is then generally spread throughout 100 shares. Thus, the high investment threshold no longer applies, making the private limited liability company much more accessible to a wider public, such as foreign entrepreneurs who wish to do business in the Netherlands.

Innovation and subsidies

The Dutch are almost addicted to innovation and progress. In every imaginable sector, you can see constant improvement in services, products, processes and activities. If something can be done better and more effectively, the Dutch are always on top of it. To stimulate innovation across sectors and markets, the Netherlands offers various entrepreneurial subsidies and investments.

No taxes on interest and royalties

The Netherlands has developed a comprehensive network of treaties for the avoidance of double taxation. Thus, companies can benefit from reduced rates of withholding taxes on interest, royalties and dividends transferred to companies established in the country and minimum taxation of capital gains arising from share sales in the source country (pacts with close to a hundred different jurisdictions).

Option to reinvest your profits tax-free via dividend payments

If you are not interested in paying out all taxable profits to yourself but want to invest in the company instead, then this can easily be done with the Dutch BV. You only pay corporate tax (19% or 25.8%) on the profits you generate and use the rest to reinvest. Do you have multiple companies and a holding company? You can then simply use the profits from one BV to fund the start-up costs of the second BV, without first paying them out as a dividend. This enables you to use your own money tax-free.

A professional impression

Last, but not least, you benefit from a professional impression when you own a private limited company. In general, you don't just set up a BV. To be able to do so, you must meet a number of requirements, and you must have the deed of incorporation executed by a notary. This notary also has the duty to investigate the BV when they believe that something is wrong. In addition, a BV must have its administration in good order, and an annual overview must be submitted to the Chamber of Commerce (KvK) in the form of annual accounts. The chance that a BV has its affairs properly in order is therefore many times greater than with a general partnership or a sole proprietorship. The average Dutch person also knows this, and this contributes to the professional character of your company. In addition, international clients will take your company much more seriously.

Company formation in the Netherlands: the procedure

In order to establish a Dutch company and register it with the Dutch Chamber of Commerce (KvK), you will obviously need to fill out the necessary paperwork. The required documents for the formation of a legal entity consist of a legalized copy of valid identification and proof of address. These documents need to be sent with an apostille, which you can obtain at a local notary’s office. Also, a power of attorney is required, which must be signed by a notary for remote formation. Please note, that it is currently not necessary to travel to the Netherlands when you want to establish a Dutch business: the entire process can be executed remotely. All involved shareholders may authorize us to take care of all mandatory filings on their behalf. Other necessary actions, such as applying for a bank account for your company, may also be performed remotely. Only in rare cases does the director need to be present, but this depends entirely on the bank you choose. If this is your preference, we can advise you on practical matters such as these because, in principle, every step can be done remotely.

The whole procedure of company formation in the Netherlands can be completed in only 3 to 5 business days, assuming all the documentation you send in meets the requirements. The largest portion of time is spent on the verification of the documents. Thus, it is very important that you make sure that you send us the correct documentation and what you send is complete.

The procedure for the formation of a Dutch BV is as follows:

Step 1

We check the identities of all directors and shareholders of the company you want to register in the Netherlands using the legalized copies of their valid identification. Also, all accompanying forms will be checked, as well as the preferred company name, which needs to be submitted in advance to check availability. If the company name is already taken, you will need to come up with a new name due to possible copyright infringement and intellectual property laws.

Step 2

After the preparation of all the necessary documentation for the formation of a Dutch business, the formation documents need to be signed by all shareholders. This can either be done remotely, in which case we prepare the formation documents and send them to your current address. After signing, you can return the original documents to us by legalizing the papers at a local notary’s office of your choice. Alternatively, you can also choose to sign the documentation at a Dutch notary, provided you visit the Netherlands for the incorporation process. This process may defer slightly to an international holding structuresince there are more parties involved.

Step 3

After all the documentation has been signed, received and processed, our firm will commence with the registration procedure. The deed of incorporation will be signed by a notary public in order to legally form the company. The notary will submit the deed of formation to the Dutch Chamber of Commerce (KvK) afterward. A few hours later, a registration number will be assigned to your Dutch company, which serves as your company identification number. You will then receive a corporate extract from the company. Once this process is finished, you can apply for a Dutch business bank account. All shareholders will need to pay the agreed-upon share capital into this bank account. This can be accomplished after the formation of the Dutch company, but also beforehand by transferring the funds to the notary public. After the formation procedure, you will also receive your tax (VAT) number tied to the Dutch tax authorities. It is highly recommended to hire an accountant or use our financial services for the VAT application. After completion, you are legally obligated to use accounting services for your quarterly VAT filings, your corporate income tax filings, and one annual statement that needs to be published at the Dutch Chamber of Commerce (KvK).

The Netherlands compared to other countries

The Netherlands is considered one of the most favorable countries for business and investments. The infamous annual Forbes list listed the Netherlands in a proud 4th spot, only preceded by the U.K., Sweden and Hong Kong. The logistical power and innovative atmosphere of the Netherlands are key factors inherent in the high ranking, as are the low tax rates compared to some other European countries. Next to that, according to Forbes, the Netherlands will offer business owners the highest quality of life in 2023 and is listed at number one regarding this. The business climate in the Netherlands is very competitive, but also inviting and vibrant. If you want to partner up with experienced entrepreneurs, you are sure to find many interesting possibilities in the Netherlands.

One main benefit of establishing a business in the country is direct access to the European Single Market. The Netherlands isn’t just a member state of the EU; it is actually held in very high regard by the other member states due to its stable political, fiscal and economic climate. The Dutch are often at the forefront of innovative concepts and ideas. As an entrepreneur, you can reap many benefits from being physically present in the country. The port of Rotterdam connects your business directly to the entire world, next to Schiphol Airport. The location of the country is excellent for any import, export or general logistics business. Furthermore, the Dutch tax rates are being further reduced. The goal is to achieve a strengthened investment climate, providing foreign investors with better opportunities. There has probably never been a better time to start a business in the Netherlands.

Intercompany Solutions in the Brexit report

Intercompany Solutions CEO Bjorn Wagemakers and client Brian McKenzie are featured in a report for The National (CBC News): ‘Dutch Economy Braces for the Worst with Brexit’, in a visit to our notary public on February 12, 2019.

We continually perfect our quality standards in order to deliver services of the highest degree.

LEARN MORE

Some Of Our Recent Clients

Frequently Asked Questions
on Business Establishment in the Netherlands

We receive many questions on a regular basis about company establishment in the Netherlands. Therefore, we have compiled the most frequently asked questions for your convenience. If you have a question that is not mentioned in this section, please feel free to contact us with your query anytime.

The establishment procedure and corresponding requirements

Is it possible to establish a Dutch company if I reside elsewhere?

Yes, a resident of any country can incorporate a company in the Netherlands. For your convenience, we also provide procedures for starting a business remotely. All you need is a valid form of identification, a preferred company name, and possibly some other official documents, such as a deed of incorporation of your current business if you want to establish a subsidiary in the Netherlands that falls under your current holding company. In almost all cases, it is unnecessary to physically travel to the country, as we can arrange every step of the establishment procedure remotely for you.

How many days does it take to start a business in the Netherlands?

On average, it will take 3–5 working days to start a Dutch business. Keep in mind that this is a rough estimate. In clear and simple cases, we can sometimes go through all the steps in 1 or 2 business days. If your application is more complicated or involves extra steps, such as the attainment of a visa or multiple companies to be established, please keep in mind that the process might take a bit longer. We will always provide you with an estimate when we send you a quote for our services.

Is it mandatory to have a Dutch company address?

Yes, your company needs a registered address in the Netherlands. You also have the option to establish a branch office of an international business that is not a legal entity under Dutch law and is therefore not subject to all the obligations that apply to Dutch businesses. It will have no legal presence and is therefore not considered a separate business. If you don’t want to rent an entire office building, you can also opt for a virtual registration address. This will allow you to legally register your company in the Netherlands for a fraction of the cost of a personal office space.

What is the minimum required share capital to establish a Dutch BV?

Private limited liability companies no longer need to declare a minimum capital, so a €1 share capital is sufficient. This is due to the introduction of the ‘Flex-BV’ in 2012, which makes a Dutch BV much more accessible to a broader audience.

What is the procedure for starting a company in the Netherlands?

The procedure includes three main steps, with an added fourth step if you wish to open a Dutch bank account:
1) Drafting and submission of the deed of incorporation
2) Registration in the Dutch Chamber of Commerce
3) Tax registration
4) Bank account application
If you wish to obtain a permit or visa or would like us to take care of extra services, there will be more steps involved.

Which documents are necessary to establish a Dutch business?

You will need a valid form of identification and the preferred name of the company. Once we have received and approved the documents you sent us, the main documents will be drafted by a notary public: the deed of incorporation, which also includes the Articles and Memorandum of Association. With these documents, we can obtain a registration number for you at the Dutch Chamber of Commerce.

Is it possible to start a business in international trade through a company in Holland?

Yes, this is definitely possible, as many entrepreneurs have already proven before you. International traders set up companies in the Netherlands quite often. Local incorporation brings numerous advantages due to the strategic position of the country, its formidable infrastructure, and its relatively small size. The Netherlands connects your business with the rest of the world instantly, making it easy and efficient for you to trade internationally.

Questions about the Dutch BV

Can you provide further information on Dutch BVs?

We have prepared a comprehensive brochure about Dutch BVs. The Dutch BV is comparable to a private limited liability company, which means that you are generally not personally liable for any debts you make with the company. The legal entity comprises a board of directors, shareholders and sometimes also a supervisory board. It is a well-respected legal entity that breathes professionalism, which will enable you to attract high-end clients and business partners. If you have further or personalized questions, please contact us.

What kind of taxes do companies pay in Holland?

For annual profits of up to €200.000, companies pay a 19% corporate income tax. Above this threshold, the tax rate is 25.8%. Next to that, you will also have to pay income tax and taxes on dividends you pay out. Please consult us to find out whether your country of residence has a tax treaty with the Netherlands, as this will enable us to provide you with personalized information regarding taxation in your specific case.

Can you list the main legal aspects of company establishment in Holland?

If you wish to establish a new company in the Netherlands, you need to consider several important aspects:
• Your company’s name must be available and comply with the laws
• You need a local office or virtual registration address
• You need to meet the requirements for registration
• You need to obtain the relevant business permits whenever they are necessary
Feel free to contact Intercompany Solutions for tailored business advice and a clear quote.

What are the available company types in Holland?

The entity preferred by most foreign investors is the private limited liability company, known as the Dutch BV. Other popular types are the foundation (stichting), the public limited liability company (NV), the cooperation, the general partnership, a collaborative entity and the sole proprietorship. If you are doubting about the best legal entity to suit your needs, you can find more information about company types on the website of the Dutch Chamber of Commerce, or contact us directly for professional advice.

Do I have to obtain any special licenses or permits for my newly established Dutch company?

The requirements depend on the nature of your business and your scope of activities. A permit for conducting business ensures that you are able to legally sell, trade, store and engage in financial activities. Only a small number of companies need special licenses or permits. Make sure that you obtain a permit, when necessary, though, as conducting business without a permit in sectors that need one is illegal.

Visas and citizenship

Is a visa necessary to enter the Netherlands? What is the procedure for obtaining such a visa?

EU residents are free to enter the Netherlands without any specific documentation. Non-EU citizens can stay in the country with a Schengen Visa (short-term) for no more than 90 days. For longer stays, you must apply for a visa at the Dutch Embassy in your country of residence. You can visit the website of the Dutch Immigration and Naturalization Service for in-depth information about visas, how to obtain one, and the necessary requirements to do so.

What is the procedure for obtaining Dutch citizenship?

A person may become a citizen of the Netherlands through business immigration, naturalization, an option procedure or marriage. Also note, that children of Dutch parents can claim citizenship. Our experts can provide you with further details regarding the procedures and help you follow them.

Legal questions

Can you list the main legal requirements that foreign entrepreneurs must meet in order to make investments in the Netherlands?

Foreign investors have the same rights to establish businesses as Dutch citizens do. In practice, it involves slightly different procedures, as a foreigner does not have a local home address or tax number.

Can you explain the requirements for employment in Holland?

The employer-employee relationship is regulated by the national Law of Employment. International employees have to obtain permits for work prior to arriving in the country (EEA and Swiss nationals are excluded from this rule). A written employment agreement needs to be drafted and signed. The agreement can be open-term or have a particular duration. This depends on the nature of the business activities.

How do I register a brand or a trademark?

The usual way to register a trademark in the Netherlands is to first incorporate a company and subsequently register the trademark locally. In some cases, it might be possible to register a trademark or brand in the Netherlands without establishing a company. Note that your brand or trademark needs to be entirely new and unique.

Download brochure: Set up a Dutch Limited Liability Company

Do you want to start your own business in Europe or The Netherlands? The Netherlands, with its international outlook, is a good place to start your own business. We will make it easy for you by providing our brochures with topics around Business Establishment, Legal issues and Business Immigration.

Download Dutch BV (FAQ)

The businessman puts a stamp on the contract

Need more information on Intercompany Solutions?

Are you planning on starting a business in Netherlands or do you wish to receive more information on taxation, investment or incorporation in the country? Please contact our local incorporation agents.