Netherlands Company Formation

Introduction to Registering a Company in the Netherlands

The Netherlands (Also known as Holland) is a founding member of the European Union, the OECD and the World Trade Organisation, emphasising its role at the heart of Europe. As the 7th largest economy in Europe, it has a stable and successful economy (GDP per capita $57,101 – 2020 estimate) and a trade and investment policy that’s one of the most liberal in the world. The Netherlands a world-leader when it comes to international business and 95% if the local population speak fluent English. That’s why thousands of international companies are involved in  Netherlands company formations to grow their business– contact us to find out how to join them, and register a company in the Netherlands today!

What are the tax benefits and advantages?

The Netherlands has a liberal tax regime including an extensive network of double-taxation treaties. There are many other aspects of Dutch tax law, but as always, you will need specialist advice. The marginal rate is 20-25%, however, the effective corporate tax rate can be much lower.

What are the main types of company in the Netherlands?

There are four major kinds of business entity, and they are as follows:

  • public limited company (NV)
  • private limited company (BV)
  • partnership
  • branch

What are the main features of an NV company?

  • the minimum share capital for an NV company is €45,000
  • at least 20% of the authorized share capital must be issued
  • suitable for companies wishing to raise capital publicly
  • no nationality requirement for shareholders
  • audited accounts must be filed with Chamber of Commerce

What are the main features of a BV company?

  • the minimum share capital for a BV company is €1 (reduced from €18,000 in 2012)
  • shareholders’ liability is restricted to capital contribution
  • the most common form of business enterprise in The Netherlands
  • no nationality requirement for shareholders
  • audited accounts must be filed with Chamber of Commerce

What are the main features of a Dutch partnership?

  • available as a general, professional or limited partnership
  • general partnerships have unlimited liability
  • in professional partnership, each partner is liable for own debts
  • limited partnerships have limited liability

What are the main features of a branch?

  • popular format for foreign companies opening up in The Netherlands
  • foreign parent responsible for all liabilities of the Dutch branch
  • branch required to register with Chamber of Commerce
  • minimum of one director; no formal accounting requirements

How easy is it to recruit staff in the Netherlands?

The unemployment rate in the Netherlands is very low as compared to other EU member states (6.4% 2016 est). This makes recruitment rather more of a challenge than elsewhere in the EU. The Dutch are famously multi-lingual and their education and workplace skills are high. Please contact us for further information on your Netherlands company formation.

What is the regulatory environment like?

Reasonably easygoing with regard to foreign investment and taxation, but certainly not when it comes to labour laws. The Dutch labour market is heavily regulated and generally favours the employee. Companies employing more than 35 workers are legally required to establish a works council which must be consulted on a wide range of issues. If you need to dismiss an employee, count on the intervention of a civil court or government body. You should take legal advice before entering into any kind of employment contract – contact us for details of our network of Dutch legal and recruitment specialists.

Are there financial incentives available?

The Dutch government and local authorities offer incentives to foreign investors based on a number of factors, most particularly the region where the new company is to be based. EU funds are also available. Key agencies here are the government-run regional development corporations which can help start up new businesses and act as risk-bearing partners.

How can I get a Dutch Corporate Bank Account?

A social security card is often required for company directors who want to open a corporate bank account in the Netherlands and we can assist you to attain both. Amsterdam is one of the world’s top financial centres and most international banks have offices there. The Netherlands has several specialist agencies that provide business funding. The National Investment Bank focuses on medium and long-term lending, equity investment and capital market activities and the Industrial Fund provides risk-bearing capital to the larger high-tech companies.

How can I get more information about Dutch Business?

Our company formation service makes it easy for you to open a company in The Netherlands, so please contact us at Euro Company Formations and we will be happy to help you incorporate a company in Holland in the quickest possible timeframe.

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