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HOW DO YOU SET UP A BUSINESS IN THE NETHERLANDS?

You mustregister your company at the KvK register for Duch taxes

Under Dutch law, a foreign individual or company may operate in the Netherlands through an incorporated or unincorporated entity or branch. Dutch corporate law provides a flexible and liberal framework for the organization of subsidiaries or branches. There are no special restrictions for a foreign entrepreneur to do business in the Netherlands.

The business operations can be set up in the Netherlands with or without a legal personality. If a legal entity has legal personality, the entrepreneur cannot be held liable for more than the sum it contributed to the company’s capital.

Dutch law distinguishes two types of companies both of which possess legal personality: the private limited liability company (besloten vennootschap met beperkte aansprakelijkheid - BV) and the public limited liability company (naamloze vennootschap - NV). These forms of legal entities are most commonly used for doing business in the Netherlands.

Other commonly used legal entities in the Netherlands, are the cooperative (coöperatie) and the foundation (stichting). The foundation is a common form used within the non-profit and health care sector. Other common business forms are sole proprietorship (eenmanszaak), general partnership (vennootschap onder firma - VOF), (civil) partnership (maatschap) and limited partnership (commanditaire vennootschap - CV). None of the latter forms possesses legal personality and, as a consequence thereof, the owner or owners will be fully liable for the obligations of the entity.

All entrepreneurs engaged in commercial business and all legal entities have to register their business with the Trade Register (Handelsregister) at the Chamber of Commerce (Kamer van Koophandel). This section covers the abovementioned legal entities for doing business in the Netherlands from a legal perspective. After dealing with the distinction between a subsidiary and a branch, the above mentioned entities will be described in greater detail. This will be followed by a summary of the status of intellectual property rights in the Netherlands. Finally, this manual will explain the advantages and disadvantages of doing business through a subsidiary or a branch.


REGISTRATION OF A BRANCH OFFICE

A branch office is, legally, part of the head office. A branch office is formed by taking care of the mandatory registration with the Dutch trade register. A branch office needs to have a Dutch office address but does not need to have a Dutch based director.

Liability

Since the branch office is a remote part of the head office, the head office is fully liable for all obligations of the branch office.

Tax

Depending on the activities,   the branch office will be subject to corporate tax, payroll tax and sales tax. For these taxes the regular tax rules apply, there aren’t any specific rules or rates for branch offices. The corporate tax rate is 20% for the first 200K profit and 25% on the surplus.

Profit distribution

The net profit of the branch office can be transferred to the head office without any Dutch tax consequences. There is no withholding tax at source on distributed profits.

International aspects

It is important to check the treatment of profits from a branch office in the country where the head office is located. In general, the results of the branch office will be considered as foreign business profit in the annuals of the head office, on which the country where the branch is located has the right to levy, and the country where the head office is located will credit for foreign taxes paid or exempt foreign profits. It is important to determine how the home country treats the corporate tax that has been paid in The Netherlands.


OUR SERVICES

We offer a one-stop solution for setting up, acquiring and maintaining a
business in the Netherlands

Our accounting and corporate secretarial services can include:

  • maintaining the general ledger.
  • recording employee benefits/expenses and annual cross check
  • fixed assets and depreciation schedule.
  • creditor and debtor lists.
  • closing general ledger.
  • consolidation subsidiaries.
  • tax accounting.
  • interim management reports.
  • preparation annual financial statements.
  • arrangement (virtual) registered address
  • support local or international audit.
  • preparation publication accounts.
  • arranging annual shareholders meetings.
  • filing financial statements with the Chamber of Commerce.
  • automated data export to quarterly or monthly VAT returns and the annual corporate income tax returns.
  • information about the procedure to incorporate a new company, branch or representative office in the Netherlands.
  • advice registration of the company.

Wherever your business takes you

We serve our clients wherever their business takes them, all over the world. Thanks to our partnership with DD&AFA Accountancy our added value services go beyond the Dutch

ADVANTAGE
COMPANY IN HOLLAND

Strong reputation and not being blacklisted make the Netherlands one of the most comfortable countries for doing business.

We Speak English

All business documentation and reporting can be done in English. Legislation is also available in English.

Banks for Everyone

Dutch banks quickly open business accounts for Dutch companies, regardless of the citizenship of the owner.

Low Profit Tax

The Netherlands is the country with one of the lowest corporate income taxes in Europe – only 15%.

Company in 24 hours

Fast company registration and bank account opening allows you to start your business in just a few days.

No Personal Visit

Company registration can be done remotely, without coming to the Netherlands. Just sign and send us the documents.

Many Tax Benefits

No tax on incoming dividends, passing interest on loans and royalty on intellectual property. Only 7% tax on income from innovations.

Easy Residence Permit

Quick and easy procedure for obtaining a residence permit in the Netherlands for the owner of the company and employees.

Certificates and Apostille

Immediate issuance of all corporate and incorporation documents, extracts and

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Starting a business
in the Netherlands


DD&AFA Accountancy can help you with all kinds of aspects of starting a business in the Netherlands.

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