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As the Brexit date in October is closing in, more and more British entrepreneurs and companies are chosing to move their headquarters or backup subsidiaries to the Netherlands. The future is still very unclear. No one really knows how reality will look once Brexit takes effect, but the benefits of owning a company in Holland remain plentiful. So which companies are we talking about? And what exactly are the benefits of moving your company? In this article we present you with some pretty logical reasons others deemed important enough, to register a company in the Netherlands.

YouTube video

Intercompany Solutions CEO Bjorn Wagemakers and client Brian Mckenzie are featured by CBC News - Dutch Economy braces for the worst with Brexit,  in a visit to our notary public on 12 February 2019. 

Many multinationals have already preceded you

The Netherlands Foreign Investment Agency (NFIA) has released information that 98 companies have already settled in the Netherlands. An additional whopping 300+ companies are seriously considering doing the same. These are huge multinationals such as Discovery and Bloomberg, adding a nice variety of newly settled businesses in the Netherlands. It’s especially the financial sector, media and communications and IT and technology that have seen a substantial rise in newly established foreign companies.

Why all the sudden moves?

Obviously Brexit has a large amount of complicated consequences, especially for businesses operating within the European Union. For example; financial institutions are obligated to have European subsidiaries to do business with Europeans and European companies. This is not obligatory for most other companies, though British entrepreneurs will have to deal with both British as well as European clients. Having a subsidiary in the Netherlands will make your daily business activities a lot easier to handle.

The biggest reasons British companies are choosing Holland

The reasons for a company or company subsidiary in Holland are pretty clear. As already stated above; reason number one is definitely the fact that some companies might be lawfully obligated to do so. Other companies might go bankrupt if they don’t tend to their European clients’ needs in the same current timeframe. The connection with Europe stays firm that way, making it possible to continue their business as usual.

A second important reason is the ample amount of subsidies for new businesses and innovations currently offered by the EU. With Brexit these subsidies become unattainable, or at the very least harder to get. This might create stagnation in overall innovative concepts, or new startups. The third reason for a company to move or open a branch office in the Netherlands, is the fact that lengthy border procedures will be completely avoided.

Other reasons worth mentioning are specifically aimed at Holland being a very smart choice for your company. Holland has an extensive and well-operating infrastructure; physically as well as digitally. The different ports and airports are well within a maximum two hour driving distance. Also, there is a reason so many expats have happily chosen the Netherlands in the past. There is a large amount of bilingual personnel, the services Holland offers to foreigners are excellent and the Dutch business market is very stable and secure.

If you want to know more about the whole process of establishing a company in the Netherlands, or would like to hear more about all the benefits, feel free to contact our team anytime. We can answer all your questions and provide you with the necessary information to make a well thought-out decision.

The globally anticipated Brexit date (the 31st of October) is approaching rapidly and this is beginning to cause a lot of stress among many British investors and entrepreneurs. If you own an UK based company and have not really thought about the possible consequences of a hard Brexit, now might seriously be a good time to evaluate your options.

A lot of other organizations have already preceded you and opened a branch office in the Netherlands. Some multinationals even moved their entire headquarters to Amsterdam or Rotterdam. The main reason for this course of action is pretty simple: continued access to the European Single Market with all its profits. Because once you are out, you will no longer reap the benefits of being part of the EU and this might lead to rather large problems in continuing your normal business operations and activities.

YouTube video

Intercompany Solutions CEO Bjorn Wagemakers and client Brian Mckenzie are featured by CBC News - Dutch Economy braces for the worst with Brexit,  in a visit to our notary public on 12 February 2019. 

The European Single Market explained by the European Commission

“The single market refers to the EU as one territory without any internal borders or other regulatory obstacles to the free movement of goods and services. A functioning single market stimulates competition and trade, improves efficiency, raises quality, and helps cut prices. The European single market is one of the EU’s greatest achievements. It has fueled economic growth and made the everyday life of European businesses and consumers easier.”[1]

Being locked out of the European Single Market: some consequences for your business

If your UK business is currently dependent on employees and freelancers from different EU countries, you will find that you will have to deal with many arising issues. The terms of the contract between you and them will obviously change, since EU legislation will no longer be applicable in the case of a hard Brexit. This might result in both freelancers and employees looking elsewhere for a job, simply because the terms of employment will become too complicated.

Another massive issue will be traveling. As the borders will become real borders again between the UK and every EU country, this obviously means there will be a substantial rise in documents, visas, various travelling documents and several other bureaucratic consequences that will take up a lot of time. Clients will have to spend more effort in order to travel to you and vice versa.

Then there is also the fact that the import and export of goods and services will be severely influenced in a negative way, mostly because of the extra time every shipment will take. If you have an online business or web shop, sending goods to your EU clients will prove a challenge you might not even be up for. Some goods will become less available for import, which inevitably will lead to shortages and higher prices that a lot of small businesses cannot pay if they want to remain profitable.

There is a solid possibility you might lose a few clients

In other words: if you do not open a subsidiary in an EU country, you might have to consider the fact that your business might not make it by the end of next year. However dramatic this may sound, it is a very realistic vision for many small business owners and large organizations that are dependent on EU clients. It is therefore absolutely no surprise that a lot of companies have established branch offices in the Netherlands, of which some are inactive totally, basically awaiting what will happen from the 1st of November.  In the case of a hard Brexit, these subsidiaries can be put into action immediately, so the company does not have to suffer from the exclusion from the EU.

Intercompany Solutions can inform you about all the possibilities of opening a backup subsidiary in the Netherlands. If you want to know more, please always feel free to contact us for more information or a personal quote for your business. The good news is, that establishing a company or branch office in the Netherlands can be done in just a few business days. Which means that you can be ready before the date is here, just give us a call.

[1] European Commission. (2017, 5 July). The European single market - Internal Market, Industry, Entrepreneurship and SMEs - European Commission. Link: https://ec.europa.eu/growth/single-market_en

Since the referendum in 2016, Brexit has been a topic of massive controversy ever since. Will it really benefit the UK to exit the European Union? What kind of consequences will this have for both laborers as well as business owners? And what is the best strategy to stay connected to the EU, if you are an entrepreneur or business owner?

It’s specifically the last question that has kept many business owners scratch their heads, so to speak. Obviously relocation and/or the opening of extra subsidiaries in an EU country are the best way to achieve this in most cases. But relocation is not a small step you just take, it takes time, research and proper preparations. Nonetheless almost 100 companies have made this move and are the proud owners of either new headquarters in the Netherlands, or a new branch office.

YouTube video

Intercompany Solutions CEO Bjorn Wagemakers and client Brian Mckenzie are featured by CBC News - Dutch Economy braces for the worst with Brexit,  in a visit to our notary public on 12 February 2019. 

The Brexit date is almost here and people need solutions

Brexit day is only weeks or months away. More and more entrepreneurs are having uneasy and restless feelings about the big deal or no-deal question. This has already led to a significant increase in companies orientating themselves on the Netherlands for a possible new base in the European market. And this number will easily become larger, since another 325 organizations and businesses are contemplating moving here in the very near future.

The increase is mostly visible in the financial sector, media and communications, IT and biotechnology.  Companies in these sectors are mostly drawn to Holland due to the excellent employment market in combination with lenient financial opportunities and permits. It’s not just UK companies that decide to settle here: a large Japanese bank like Norinchukin and the American CBOE also made the same decision.

Not every company is ready to take action just yet

Many UK companies are still a tad hesitant, because it is still very unclear how Brexit will take shape and what the exact effects will be on the business community. It might pose some risks for your company though, if you do not consider at least one branch office in an EU country before an eventual hard Brexit goes into effect. This surely might have consequences like:

Intercompany Solutions can help you avoid such consequences

The list is much longer than this, as every single business will be subjected to certain extra disadvantages linked to a specific sector. If you want to avoid such consequences, it would be wise to consider opening a branch office in Holland. Intercompany Solutions can realize this for you in just a few business days, plus you won’t even need a physical location immediately as it is also possible to establish a subsidiary or branch office. Please feel free to contact us anytime with questions, we will try to assist you in every possible way we can.

Intercompany Solutions gets Brexit related requests on a almost daily basis currently, and has assisted many companies make the transition.

Since the infamous Brexit referendum the British have become more and more cautious concerning their businesses and startups. This ultimately lead to a substantial increase in foreign investments and the relocation of businesses to the most stable EU countries. The Netherlands are currently on top of the relocation list, which is not surprising at all considering the positive economic climate in our country. Just to illustrate the difference between the two neighboring countries: investments by Dutch entrepreneurs and investors in the UK have subsequently decreased 80% since that illustrious moment in 2016.

It’s all in the numbers

Investments by British business owners and investors in the Netherlands are 6 times more frequent than before 2016. The Dutch Central Statistical Office states that during 2016, the British invested around 14 billion euros in the Dutch economy. Two years later this number had grown almost exponentially to 80 billion euros. The UK was by far the largest foreign investor in Holland during 2018.

Like previously mentioned, the investments by Dutch business owners and investors in the UK decreased: in 2016 the Dutch invested around 50 billion in the UK, but in 2017 this number went down to 25 billion. In 2018 the Dutch did not invest more than 11 billion euros in the UK: that is one fifth of the original amount just a mere two years ago. In other words: even the possibility of a hard Brexit has absolutely staggering consequences on the international investment climate, which cannot be overlooked.[1]

YouTube video

Intercompany Solutions CEO Bjorn Wagemakers and client Brian Mckenzie are featured by CBC News - Dutch Economy braces for the worst with Brexit,  in a visit to our notary public on 12 February 2019. 

British entrepreneurs and companies are starting to become nervous about a hard Brexit

The in- and decrease of foreign investments is mainly due to a growing feeling of uncertainty amongst British business owners. It is very important for a large number of British businesses to remain present in a European country, simply because a different situation will have a very negative impact on the way the company does business. The option that a business will not be part of the European Single Market anymore is quite frightening indeed, especially with many European clients in their database.

The reason Holland attracts so many foreign investors

Holland has been known to be a very stable, innovative and beneficial climate for many types of businesses. From the pharmaceutical to IT and the eco industry and every kind of freelance business: as an entrepreneur or owner of a large corporation you can nearly always benefit from many of the resources the Netherlands has to offer.

In terms of innovation, the Netherlands have a prime position on the Global Innovation Index (GII) of 2019. This yearly compiled list by the World Intellectual Property Organization (WIPA) tells you exactly which country can be great for your business in terms of progressiveness and innovation. It ranks the innovative performance of 129 collaborating countries around the globe, by analyzing a special theme every year.

This year the theme was medical innovation and the potential to transform healthcare worldwide. The Netherlands were named the fourth most innovative country, with the US at number three, Sweden at number two and Switzerland grabbing the prime spot.[2] If you want to limit your risks, whatever the outcome on the 31st of October, you would be wise to consider all your options of relocation or opening a branch office in the Netherlands. Intercompany Solutions can assist you during the whole process. Just contact us for all the information you need.

[1] Algemeen Nederlands Persbureau (ANP). (2019, 9th September). Britten investeren bijna 6 keer meer in Nederland sinds Brexit-referendum. Link: https://www.nu.nl/brexit/5989751/britten-investeren-bijna-6-keer-meer-in-nederland-sinds-brexit-referendum.html

[2] World Intellectual Property Organization (WIPA). (2019). Global Innovation Index 2019. Link: https://www.wipo.int/global_innovation_index/en/2019/

Setting up a business means you will have to make a staggering amount of choices. This is not unusual of course, since there’s simply many options to choose from. Like the specific services you will be offering, the languages you will be working in, your business address and possible office space and the company that will make your website and PR materials. But did you also consider the country?

In what country do you want to start a business? Almost all start-ups and new entrepreneurs establish their company in their country of residence. Probably a little bit out of habit. But in a lot of cases, it might actually benefit you to browse around a bit. And consider starting a business in a different country than your own. Like the Netherlands. And you definitely won’t be the first one, as the number of foreign businesses and investments in Holland keeps growing. In this article we will tell you a bit more about the ‘why’!

Foreign companies are boosting the Dutch economy to great heights

The Netherlands has been flooded with foreign investments and entrepreneurs setting up businesses in our country for a while now. For example: the Netherlands Foreign Investment Agency (NFIA) and several regional partners involved in the ‘Invest in Holland’ network assisted in attracting around 350 different foreign investment projects worldwide in 2016 alone. All these actions total a massive amount of around 1,5 billion euros in capital investments. In turn, this created more than 10.000 new jobs.

In 2017, 1,7 billion was invested. In 2018, large multinationals such as Timerland, Giant and DAZN created almost 10.000 additional jobs in the Netherlands as well. All companies combined contributed around 2,85 billion euros to our national economy. All in all, we can safely say that foreign investments and businesses in the Netherlands have a very positive influence on our economy and thus, investing in the Netherlands is surely a safe way to grow your business quite rapidly.
Brexit caused many relocations of foreign companies’ offices

One of the biggest reasons for moving is Brexit.

Many business owners would rather be safe than sorry, and thus decided to pro-actively move some branch-offices or even their headquarters to the Netherlands. The Invest in Holland network brought more than 40 companies to the Netherlands in the year 2018. This was a direct result of Brexit and lead to the creation of almost 2.000 new jobs, next to around 291 million euros in investments. In 2019 large multinationals such as Discovery and Bloomberg have announced their wish to invest in the Netherlands due to Brexit.

Most of these companies are British in origin, but the lost also includes American and Asian organizations. These organizations are basically reconsidering many options, in order to minimize possible uncertainties and threats when Brexit finally follows through. These companies have origins in many sectors, such as the financial sector, media and advertising, life sciences & health and logistics.

So why do so many business owners choose the Netherlands?
There are obviously some good reasons for considering our rather small country for relocation. Because the companies that already made the move are not just small players; many huge well-known organizations have already established new headquarters in Holland. More than 6.300 foreign companies have established more than 8.000 different operations in the Netherlands.

Among the international companies are North American companies like Abbott Laboratories, Boeing, Bombardier, Cisco Systems, Dow, Eastman Chemical, Heinz, Medtronic, NCR Corporation and Reebok. European companies such as Bosch, Danone, Siemens and RWE are also included. A large number of Asian and Middle-Eastern companies is also represented by companies such as Astellas, BenQ, Daewoo, Fujifilm, Giant, Hitachi, Huawei, ICBC, LG Electronics, SABIC, Samsung, Saudi Aramco, Tata Consultancy Services, Teijin and Yakult.

The most prominent reasons for relocating a business to the Netherlands are listed below:
Fantastic location, educational system and business opportunities
The Netherlands is located on a prime position, with both Schiphol as well as the port of Rotterdam as main points in an already rich infrastructure. Next to that; Holland is home to an excellent ICT-infrastructure and perfect network coverage. An internationally oriented workforce with most people speaking at least two languages, and many fantastic and high quality (international and national) schools to choose from.

The standard of living is considered to be exceptionally high, with Amsterdam as capital offering you everything in terms of culture and activities. But also other beautiful cities like Rotterdam, the Hague and Utrecht. The cities are considered to be very safe and you will have many possibilities to expand your network with many shared working spaces all over town.

Stable government and fair legal system.

The Netherlands is considered to be a very stable and vibrant parliamentary democracy, recognized worldwide for its transparency, fairness and effectiveness. The political system is characterized by plurality and consensus-building, resulting in coalition governments that truly represent the voice of the people. The legal system is also considered to be fair and transparent and well equipped to deal with business, trade, taxation and patent issues.

There are specialized courts for dealing with criminal and administrative issues, as well as with tax law, planning law, environmental law and trade and commerce. There is a rich variety of world-class law firms – both home grown and large international ones – that can provide assistance with tax law, mergers and acquisitions, and European law. The Hague is the seat of the European Patent Office.

Low taxes compared to other European countries
The corporate income tax rate in the Netherlands is very low for European standards: 16.5% for profits up to 200.000 euros and 25% for profits more than this amount. In the next years, the government will reduce the minimum and maximum tax rates even further (15% lower rate and 21% higher rate in 2021).

The CIT rates will be gradually reduced. The standard rate will be reduced in steps from 25% to 22.55% in 2020 and to 20.5% in 2021. The lower rate has decreased from 20% to 19% in 2019, to 16.5% in 2020, and to 15% in 2021. Foreign investors can also profit from some beneficial tax exemptions, like a 30% tax break for hiring highly qualified employees.

Safe and developed financial system
The Netherlands also boasts a stable financial system and climate, with a large array of strong Dutch banks such as ING Group, ABN AMRO and the Rabobank. There are also many private equity investors, venture capital funds, as well as fund managers available for the picking.

Intercompany Solutions: your partner for a business in the Netherlands
You can always contact us for more information and assistance if you are considering opening a branch office in the Netherlands, or maybe a whole new business. We have a wide variety of services at your disposal to help you in any way we can.

The whole process can be concluded in just a few business days, offering you the chance to start doing business immediately. Interested in the possibilities? Contact us for more information.

It has almost been two years since the infamous Brexit referendum. A small minority of Brits then made it clear, that they no longer wish to be part of the European Union. And so Brexit was born. After many negotiations and struggles there is still no clear view about the road ahead, meaning that the UK may or may not become independent on March 29, 2019.

YouTube video

Intercompany Solutions CEO Bjorn Wagemakers and client Brian Mckenzie are featured by CBC News - Dutch Economy braces for the worst with Brexit,  in a visit to our notary public on 12 February 2019. 

In either case, there will be consequences for every single party involved. Of course if there is no deal, the situation can become frantic as there will be no agreements with the EU. The UK might find itself in a very uncomfortable position, and not just with the EU but with many other nations that have trade agreements with the EU. In the case of a deal, there are still many factors that will influence business owners and entrepreneurs who work either from the UK or from an EU-member state.

There’s a rather large grey area between deal and no deal, which will have various consequences depending on the scenario playing out. Plus; the financial losses to sustain the whole process up until now have been severe. The big question for everyone is whether the UK will stay involved with the EU at all, and if yes; in what role? The long-term relationship between the UK and Europe is very unstable and this can have massive effects on your business. It doesn’t even matter if that business already exists, or is just an idea at this moment.

From the UK to a business in the Netherlands

In this article we will inform you about the most important details of Brexit and the possible consequences of all scenarios. You will also find information about the benefits of having a business in an EU-member state, and why the Netherlands is possibly one of your best options. Huge companies like Sony, Discovery and Panasonic are already moving their headquarters from the UK to the Netherlands. We will discuss why this is a solid and smart move that might be beneficial for you too.

Start a business in The Netherlands

Why is Brexit bad for business?

The negotiations between Brussels and the UK have been going on for almost two years by now, and still there is no consensus. Major issues like the border between North-Ireland and Ireland are unresolved up to this date. This leaves a huge amount of entrepreneurs, business owners and foreign investors in the dark about the choices they should make.  In the case of a deal, which means the UK will not be a member state of the EU any longer but with the inclusion of agreements between both parties, there will be losses in terms of national income. The Financial Times assessed the situation and according to their expertise, the outcome would be as follows:

Needless to say, that a no-deal situation resulting in a hard Brexit may include financial consequences which will be far more severe. Large corporations and companies have already initiated steps towards damage-limitation. Companies like Bentley were slowly returning to profit but might fail anyway, when a hard Brexit becomes reality. Adrian Hallmark, Bentley’s CEO, explained to The Guardian: “It’s Brexit that’s the killer, if we ended up with a hard Brexit... that would hit us this year because we do have a potential to get beyond break-even to do the turnaround. It would put at fundamental risk our chance of becoming profitable.

In the eventuality that he would need to stop production in the UK-based Crewe plant, this would cost Bentley millions a day.[2] And Bentley is not the only worried company, which is exactly why many multinationals are swiftly moving their headquarters to ‘safer terrain’ like the Netherlands. Because the benefits and profits of staying within the EU are very real for most business owners.

The repercussions of Brexit: More than 250 companies are considering relocation to Holland

Hundreds of businesses are discussing options for relocation with Holland’s government, as they are worried about their trade on the European market after the British exit from the EU. Several popular companies have declared their firm decisions to relocate.

Consequences for businesses

Brexit and the uncertainty about its specifics strongly motivate companies to leave Great Britain and move to Holland. In 2018 Panasonic announced its intention to move to Amsterdam. More recently Sony also communicated its plan to relocate, citing Brexit as the reason for these developments.

The Dutch Agency for Foreign Investment claims that it has been contacted by more than 250 companies to discuss their relocation to Holland. In 2017 the number was 80, and at the beginning of 2018 it increased to 150.

More businesses are expected to express interest in moving to the country of windmills and tulips before the total figure is announced the following month. A representative of the Dutch Foreign Investment Agency stated that every company’s arrival, regardless of its size, is good news.

The United Kingdom loses and the Netherlands wins?

Britain recently lost a major player in the face of EMA (European Medicines Agency), an institution employing approximately 900 highly qualified workers. EMA has decided to establish in Amsterdam. Other countries are also benefitting from Brexit, because a number of companies in the financial sector plan to move their operations and employees overseas to cities such as Luxembourg, Frankfurt, Paris and Dublin.

It may seem that Holland is benefitting much from Brexit because of the rapidly increasing interest in the country as a destination for business establishment. Still, the companies that actually move will only alleviate the negative consequences of Brexit for Holland. The effects of Brexit are still ambiguous but the country has considered a no-deal situation regarding the rights of British residents.

The European Union in a nutshell

Every member state has accepted the four freedoms of the EU, which are basically the pillars of its existence:

It is obvious how these freedoms are beneficial for companies based in one of the member states. All companies inside ‘the bloc’ can buy and sell products and services freely within the borders of the EU. To keep the market fair for everyone, a regulatory framework exists that prevents a party from gaining unfair competitive advantages.

Member nations also have the obligation to implement EU law into their own national law and to recognize mutually shared standards. Another important role the EU plays, is that of a common customs union. The member states can trade freely within the borders of the EU, though all non-EU countries are bound to common tariffs on imports. All in all, the EU protects its member states in many ways but also limits countries’ autonomy. This is exactly why the UK decided to leave the EU.

What are the benefits of trading within the EU?

The European single market is obviously the main benefit here. Currently the EU is the largest single trader in the world, accounting for 16.5% of the total sum of imports and exports around the globe.[3] The main goal of the EU is not only the possibility for free trade amongst its members, but also the liberalization of world trade. Some tangible benefits of owning a business in an EU member country such as the Netherlands include:

This is why being a member of the EU has offered key benefits to UK businesses. The EU includes some of the wealthiest and most prosperous countries worldwide, offering every business owner access to an enormous amount of suppliers. You can basically see the EU like a big marketplace, which offers an amount of convenience similar to doing business in your own country. No customs, no import taxes and a lot less regulations to slow trade down.

Fair and open trade possibilities

The World Trade Organization ensures that obligations and trade agreements between countries worldwide are transparent and fair. All EU regulation and trade policy is made on behalf of the EU by the Commission, who work closely within the framework of the WTO in order to ensure fairness and openness. The commission also works very closely with national governments, the European Parliament and global organizations to be able to adapt quickly to necessary worldwide and local situations and changes.

Because the EU has an extensive network of worldwide trade relations, favorable agreements can be negotiated. This is something a country on its own would not be capable of. All these partnerships are aimed at creating and maintaining a stable and fair single market that provides business owners with many benefits. It also makes it safer for business owners to trade outside of the EU, being protected by numerous multilateral agreements.

The EU provides safety and stable conditions

Next to creating opportunities for business owners, the EU also strives for better working conditions in poorer countries. The EU trade policy is aimed at reducing and putting a stop to malpractices such as child labor, the use of harsh chemicals and creating environmental hazards as well as combating price volatility. Countries in distress can be actively pushed forward by actions such as temporarily lowering duties, providing governance advice and supporting smaller national businesses. By choosing to establish a company in the EU, you automatically choose safe conditions.

Is a company in the Netherlands a good Brexit alternative for your business?

In general, starting a Dutch business is almost always beneficial due to the large amount of benefits and possibilities the Netherlands has to offer. If you’re still in doubt though, you can ask yourself a few questions first. The answers will determine whether Holland is a good place to start your company:

It’s a wise to answer these questions for yourself beforehand, since you might need to answer them once you decide to start the process of establishing a Dutch business. If you already own a successful UK business but want to move it to the Netherlands, you might also have to explain how your company will be beneficial for the Dutch economy.

''The Netherlands to become the centre for financial trading infrastructure of the EU27

The AFM conducted more than 150 interviews with companies that are interested in applying for a licence. ‘We assume that between thirty to forty percent of the European trade in financial instruments will opt for the Netherlands as a location. Thus, the Netherlands will become the financial trading centre within the EU27’, according to Merel van Vroonhoven, Chair of the AFM. ‘The arrival of these parties will also attract other service providers. Moreover, it strengthens the access of Dutch pension funds and other portfolio managers to the capital market’. '' [4]

How can setting up a Dutch business benefit you?

If you have already been thinking about starting or moving your business, the Netherlands proves to be a fantastic choice for almost every single investor or start-up. A business in the Netherlands offers a wide amount of perks and benefits to foreign entrepreneurs. The Dutch have been ranked 4th on the Global Competitiveness Index of the World Economic Forum, the 3rd best country in the world for business by Forbes Magazine due to the profitable business conditions.

A few very good reasons to start a Dutch business:

The procedure for starting a Dutch business

If you want to be able to enjoy all the benefits the Netherlands has to offer, you will need to follow a certain procedure to establish your company here. This is where Intercompany Solutions comes into the picture. We can help you set up a Dutch business in just a few working days. We can also assist you to transfer your current business to the Netherlands. Our procedure consists of 3 general action steps:

Step 1

You will be asked to send in all the necessary documentation as well as proof of your identity, which we will check thoroughly. If you already have a company name in mind, we will check the availability of that name during this stage too.

Step 2

After all the checks we prepare all the documentation that will be needed to register your company. When these documents are finished, we send them over for you (and possible other shareholders) to sign. Once signed, you send everything back to us so we can start the registration process.

Step 3

With all the signed documents we go to a notary public, who will sign the deed of incorporation and submit the deed of formation to the Chamber of Commerce. You will then receive your registration number as well as your VAT number. Your company officially exists! If you wish, we can also take care of other matters such as applying for a Dutch bank account.

Contact Intercompany Solutions for more information

Intercompany Solutions has many years of experience in setting up businesses for foreigners, as well as handling a great many cases. We can help you with any question you might have related to starting a business in the Netherlands. From the permit you will need to finding the best Dutch bank for your business. Simply contact us for more information, and we will get back to you as soon as possible.

[1] Strauss, D. (2018, 9 October). Brexit explainer: what’s at stake for EU single market and customs union. Link: https://www.ft.com/content/1688d0e4-15ef-11e6-b197-a4af20d5575e.

[2] Neate, R. (2019, 23 January). Companies press Brexit panic button in further blow to Theresa May. Link: https://www.theguardian.com/technology/2019/jan/22/no-deal-brexit-panic-grips-major-uk-firms.

[3] European Union. (2018, 13 November). Trade | European Union. Link: https://europa.eu/european-union/topics/trade_en.

[4] Dutch Authority for the Financial Markets (AFM) (2018, 29 October) The Netherlands to become the centre of European financial trading post Brexit. Link: https://www.afm.nl/en/professionals/nieuws/2018/okt/trendzicht-2019

Updated 11-12-2019

In Holland, a joint venture is an agreement between at least two companies to unite resources in order to pursue a common commercial goal. Each company keeps its identity and carries liability for the losses and profits of the venture.

The investors involved in the creation of a Dutch joint venture first have to establish two companies in the Netherlands. Joint ventures are not specifically regulated for business arrangements of this type. Still, the companies forming the venture must comply with the national corporate law.

Our Dutch agents in company formation can assist you in forming a suitable joint venture meeting the current provisions for corporate control and management.

Joint Venture formation in Holland

A joint venture formed in Holland can be either corporate (between public or private companies or cooperatives) or contractual (of partnerships, limited or not). A corporate joint venture is formed between corporate entities that are legal persons (in contrast to partnerships) and therefore the companies must follow the Dutch Corporate Law. This important factor differentiates corporate from contractual joint ventures.

In Holland, companies and partnerships are subject to different requirements for annual financial reporting and accounting. Our agents in company formation can provide you with comprehensive information on this subject.

Requirements for joint venture establishment in Holland

All incorporated Dutch companies must undergo registration at the National Chamber of Commerce. Any joint venture performing commercial activities has to be formed by registered entities. In particular cases, joint ventures can be subject to the Dutch Act on Competition. On the other hand, contractual ventures must meet the requirements of the national contract law.

Holland has not enforced any commercial restrictions on joint ventures and they can be established in any area of business. This establishment type is not required to comply with specific duration. Still, if the entities forming a joint venture are meant to exist for a certain time period, then the same period will be valid for the joint venture.

If you need information on other legal entities or you want to incorporate a Dutch company, please, get in touch with our specialists in company formation.

International companies that do not reside in Holland can advertise their business interests and establish a presence in the country by opening a representative (liaison) office. According to the national law liaison offices are not classified as legal entities, since they do not function and exist independently; they are fully subordinated to and dependent on the international corporations that have established them in Holland.

Generally, international companies are interested in settling liaison offices in Holland for the purposes of marketing research: to introduce and promote products on the local market and sign contracts with resident business partners.

Activities of the local liaison office

Being fully dependent and subordinated to the international company that opened it, the Dutch liaison office cannot perform its own activities (it cannot manufacture goods or provide services). It can, however, support different operations of its parent corporation, e.g. commercial activities (advertisement, promotion and marketing). The Dutch liaison office can also collect information for the purposes of scientific research and similar activities that are auxiliary to the international company.

Dutch liaison offices often serve as intermediaries between their international parent companies and commercial partners in Holland, thus representing the parent companies (acting in their name/on their behalf).

Representative offices cannot generate profit, so international investors willing to establish their products and services on the Dutch market may opt for opening branches instead. Branches are also highly dependent on their parent companies but, in contrast to liaison offices, they can carry out actual business activities.

Dutch liaison office registration

Dutch liaison offices do not need to undergo registration at the National Commercial Chamber. They are considered as structures that simply collect and provide information/provide administrative services to their parent companies without involving any commercial activities. Therefore liaison offices are not taxed in Holland. (Read more on Dutch taxes).

Still, a Dutch liaison office can employ staff and, if so, it has to be registered with the appropriate local authorities for personal income tax. The non-resident individual acting as a Dutch liaison officer and representing the international company needs to apply for residence and work permits.

The Value Added Tax incurred by Dutch liaison offices may be refunded under particular conditions. A Dutch liaison office can receive a refund if its international parent company files regular requests with the local tax authorities.

The Dutch liaison office represents an initial step for international entrepreneurs planning to establish themselves on the market in Holland. At a later point the office may become a branch, if the entrepreneur makes a decision to broaden the range of his local operations.

If you need more information about Dutch liaison offices, please, contact our agents in company incorporation. They will answer your questions about setting up a Dutch business and can represent you in front of the respective authorities.

Foreigners residing in the Netherlands can either work for local businesses or establish their own companies. For the past few years people increasingly choose the second option, relying on the governmental support for start-ups.

One of the profitable businesses foreigners can establish in the Netherlands is shops. There are not many requirements to be fulfilled or licenses to be obtained. One significant advantage is the possibility to stock shops with quality products delivered from local manufacturers and producers. This is particularly convenient for low-cost consumer goods that are sold quickly.

Our local agents in company formation can assist you with the procedure for company registration with the aim to open a shop.

Registration of a shop in Holland

In order to open a shop, first you need to register your company at the Commercial Register. The procedure for company formation in the Netherlands requires:

As regards the licenses needed for opening a Dutch shop, the requirements vary depending on the offered products.

Licenses necessary for operating a Dutch shop

Of the permits necessary to open a shop in Holland, perhaps the most significant is called a market license. It allows both sole traders and companies to sell products on the Dutch market. This license is provided by the municipality of the area where the business operates.

In addition to the abovementioned market license, opening a Dutch shop implies certain measures for safety that must be considered by the business owners. The sold products need to be insured, and different contracts with the suppliers need to be signed. In particular cases, when selling imported products, the shop owners will have to obtain import permits.

If you need further information on registering a Dutch company, do not hesitate to get in touch with us. Our local consultants in company registration will assist you with the procedure for business incorporation. You can also check our guide on opening a Restaurant, Cafe or Hotel business in the Netherlands.

According to the legislation on the types of investment vehicles that can be registered in Holland, these structures may be established as investment companies or funds. Investors intending to go through the procedure for starting a fund can register their vehicles as closed- or open-ended forms of business.

Legal entities applicable for investment funds in the Netherlands

The Dutch legislation relating to investment funds includes various acts concerning the different regulated vehicles. To give an example, funds with a closed end are subject to Directive 2003/71/EC on the prospectus to be published when securities are offered to the public or admitted to trading, and are implemented in accordance with the EU legislation. Regardless of whether a fund has been established in a closed- or open-ended form or as a related vehicle, e.g. a start-up hedge fund, the Dutch laws prescribe the following five legal entities:

Businessmen willing to open a Dutch fund also have the option to establish a variable capital investment company (BMVK). This entity acts as a fund for investments because its investors can set up umbrella funds in its structure. Still, in contrast to investment funds, a BMVK is not obliged to offer its stocks on the national market.

Corporate and non-corporate Dutch entities

The Dutch legal entities that can be used for investments belong to two general categories: corporate and non-corporate. The first group includes the BV, NV, cooperative and MBVK. The second features mutual funds and limited partnerships.

All these structures are taxed differently, in accordance with the system for taxation that covers them. The tax system in Holland allows legal entities open for investment funding to be established either as opaque or transparent. For opaque entities, the tax administration levies corporate tax with respect to capital gains and income.

Our company in the Netherlands can provide you with further information regarding the taxation of the structures listed above. Please, get in touch with our agents to receive detailed information on the legislation governing investment funds.

The procedures for appointment and dismissal of staff are partially covered by the Civil Code of the Netherlands and partially clarified by the judicial system. It is relatively easy to employ staff, but it may prove tricky to dismiss employees.

Employment contracts under Dutch law

The Dutch law on employment does not require a contract in written form. However, it is advisable to conclude written contracts with your employees to avoid discussions about the arrangements. It is good to start your employment contract with definitions of the most significant conditions for work.

The written employment contract also allows both the employer and the employee to include particular clauses, for example regarding non-competition, trial period, company secrecy, working hours, salary, bonus regulation, holidays, pension scheme, terms of termination, etc.

The contract for employment can be prepared in a language other than Dutch or English, but in such case, there is a risk of misinterpretation. Therefore a contract in one of those two languages is preferable.

If the hired employee is living and working in Holland, then the applicable law would be the Dutch one. In special cases, however, where the individual works in two or more countries, the provisions may be different. The particular circumstances will be determined by the governing law. The parties may need to consider the legislation of different countries.

In the Netherlands, it is advisable for employers to draft their contracts according to the local Dutch laws. Otherwise, some conditions or arrangements may prove to be invalid.

Agreements for employment in the country can be concluded for a particular or indefinite time period. However, fixed-term and open-ended contracts are subject to specific legislative provisions. Furthermore, the law is continually changing and therefore the agreement for employment needs to be revised regularly.

Dismissal of staff in the Netherlands

It may prove difficult to fire an employee by reason of various legal provisions related to dismissal.

First of all, you should have reasonable arguments in support of your decision to end the employment agreement. The law in the Netherlands mentions eight possible reasons, including economic circumstances, underperformance, serious misconduct, sick leave with a duration of more than 2 years and frequent illnesses.

The employment contract can be terminated via different routes. The easiest approach is to conclude a termination agreement ending the employment with mutual consent. During this process, the two parties often enter negotiations. You can also terminate the employment agreement by asking the Agency for Insurance of Employees (or UWV) to issue a permit for dismissal. This is a possible solution only in case the employee has been on a sick leave for 2 years or more or the job has become redundant because of technical, economic or organizational reasons. The third possibility is to seek contract dissolution in court due to shortcomings such as underperformance.

The UWV and the Court would not permit termination of an employment agreement if there is a prohibition for dismissal (e.g. during sick leave or pregnancy).

In the Netherlands, the dismissal procedure is heavily regulated. We are prepared to assist you in understanding the rules and applying them in your best interest.

In case you have questions on the mentioned topics, our Dutch office will be happy to give you answers and provide you with the ins- and outs of the Dutch workforce.

The flourishing city of Utrecht is famous for being creative, healthy, talented and smart. Its residents, knowledge institutes, local authorities and companies work in collaboration to achieve social sustainability. This is the ideal location for establishing a business, thanks to its central position on the map, accessibility, favourable business atmosphere and highly qualified workforce. Furthermore, Utrecht offers various office and business locations in its historic inner part and its innovative Science Park.

One of the most competitive regions in Europe

According to the EU Regional Competitiveness Index Utrecht is the second most competitive region on the European continent after London. The region offers excellent business climate, qualified workforce and a strong economy. The region achieves regular high ranking, much better than the indices for Paris, Frankfurt and Amsterdam. Utrecht is famous for its superior digital infrastructure, institutions for higher education, job market, innovation and technology, and healthcare.

Healthy city life

Utrecht is the healthiest and fastest growing city in Holland. It has achieved outstanding results in combining economic growth and rapid urbanization with the ambition of healthy living. Health, prosperity and well-being are the main points in the development of a sustainable and healthy environment for living. The region cooperates for innovative, creative solutions, services and products to guarantee that the environment remains liveable, healthy and green.

Central location, excellent accessibility

Many consider Utrecht as a central intersection point. It offers great accessibility by any means of transport. All important Dutch highways lead to the city. Schiphol Airport is 30 minutes away. Utrecht boasts the biggest railway station in Holland that offers transport to any destination, both in the country and abroad. The business park of Lage Weide accommodates a large inland port. Furthermore, Utrecht has an outstanding digital infrastructure.

Young, qualified labour force

The smart, vibrant Utrecht has young and bright residents. The city hosts many students and every year it attracts a new flow of smart, talented, young individuals. Many of them decide to remain in Utrecht and work here after their graduation. In general, it is fairly easy to reach ambitious entrepreneurs and innovative talents in the area of Utrecht.

High living standards

Utrecht is a compact metropolis, welcoming, open and accessible. Due to its relatively small size, the city can easily be explored by bicycle or on foot. Utrecht is popular with its charming historic inner city, various cultural amenities and extensive shopping area. It offers lively festivals, gorgeous parks, inspiring museums, exciting architecture and unique events. The city offers an excellent environment for living, working and studying and takes the second place in the countdown of the most inviting cities in Holland (Dutch Councils Atlas, 2017).

International communities

The region of Utrecht hosts sixty thousand international professionals and 900+ foreign companies. Its International School has a diverse range of European Baccalaureate programmes for secondary and primary education. For international students pursuing higher education, Utrecht has an International Campus and a University College. The Centre for Expats in the city welcomes newcomers to obtain practical information on studying, working and living in Utrecht.

In case you are interested in establishing a business in Utrecht, contact our incorporation agents. They will lead you through the process of starting a company in the Netherlands.

Dedicated to support entrepreneurs with starting and growing business in the Netherlands.

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