Netherlands company registration

Netherlands company registration

DOING BUSINESS IN NETHERLANDS

Since 2003, Healy Consultants has assisted our Clients with business registration in the Netherlands. Our services include i) Netherlands business registration ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

SummaryLLC (BV)PLC (NV)BranchRepresentative OfficeHolding CompanyIP Holding CompanyLarge companyDutch cooperation
Best use of company?All products and servicesListing on the stock exchangeProjects and assignmentsMarketing and advertisingHolding investmentsHolding IPAll products and servicesInternational Holding companies
Legally tax exempt if properly structured?NoNoNoYesNoNoNoNo
Corporate bank account location?ABN AMRO NetherlandsDeutsche BankRBS NetherlandsSNS BankABN AMRO NetherlandsABN AMRO NetherlandsING NetherlandsABN AMRO Netherlands
Client must travel to the Netherlands?NoNoNoNoNoNoNoNo
Can secure trade finance?YesYesYesNoYesYesYesYes
Limited liability entity?YesYesNoNoYesYesYesDepends
VAT payable on sales to local customersYes, 21%Yes, 21%Yes, 21%NoYes, 21%Yes, 21%Yes, 21%Yes, 21%
Withholding tax on payments to shareholders?Yes, 15%Yes, 15%NoNoYes, 15%Yes, 15%Yes, 15%No
Average total engagement costs?€15,440€18,440€14,440€13,690€15,440€15,440€15,440€15,440
Average total engagement period?11 weeks10 weeks10 weeks10 weeks10 weeks10 weeks10 weeks10 weeks
Accounting and tax considerationsLLC (BV)PLC (NV)BranchRepresentative OfficeHolding CompanyIP Holding CompanyLarge companyDutch cooperation
Statutory corporation tax payable?25%25%25%0%25%25%25%25%
Must file an annual tax return?YesYesYesYesYesYesYesYes
Effective corporate tax rate on net profits of €250,000?21%21%21%0%21%21%21%21%
Must file annual financial statements?YesYesYesYesYesYesYesYes
Investment income is tax exempt in the Netherlands?NoNoNoNoNoNoNoNo
Access to double taxation treaties?YesYesYesNoYesYesYesYes
This entity enjoys Government incentives?YesYesYesNoYesYesYesYes
Monthly VAT reporting to the Government?YesYesYesNoYesYesYesYes
Legally tax exempt entity?NoNoNoYesNoNoNoNo
Dividends received are legally tax exempt?NoNoNoNoNoNoNoNo
Company registrationLLC (BV)PLC (NV)BranchRepresentative OfficeHolding CompanyIP Holding CompanyLarge companyDutch cooperation
Resident director\partner\manager required?NoNoYesYesNoNoNoNo
Minimum number of shareholders\partners?11Parent companyParent Company1112
Minimum number of directors/managers?11111111
Minimum paid up share capital?€€1€€45,000NoneNone€€1€€1€1/€45,000€1
Shelf companies available?YesNoNoNoNoNoYesNo
Time to incorporate a new entity?3 weeks3 weeks3 weeks3 weeks3 weeks3 weeks3 weeks3 weeks
Can easily convert to a local PLC company?YesYesNoNoYesYesYesYes
Can have preference shareholders?YesYesNoNoYesYesYesYes
Business considerationsLLC (BV)PLC (NV)BranchRepresentative OfficeHolding CompanyIP Holding CompanyLarge companyDutch cooperation
Can invoice local customers?YesYesYesNoYesYesYesYes
Can hire local staff?YesYesYesYesYesYesYesYes
Can rent local office space?YesYesYesYesYesYesYesYes
Secures a residence visa for business owner?YesYesYesYesYesYesYesYes
Good entity for trademark registration?YesYesYesNoYesYesYesYes
Other useful informationLLC (BV)PLC (NV)BranchRepresentative OfficeHolding CompanyIP Holding CompanyLarge companyDutch cooperation
Netherlands has signed free trade agreements?Yes, see this page
This country is a member of WIPO and TRIPS?Yes
The country is a member of the ICSID?Yes
Average customs duties suffered?1%
Government foreign investment approval is required?No
Average monthly office rental? (€€ per sq. m.)€€17
Minimum statutory monthly salary?€€1,537.20
Average monthly € salary for local employees?€€2,373
€€ deposit interest rate? (1 year average)2.7%
US$ deposit interest rate? (1 year average)N/A
Overseas remittance currency controls?None
Public register of shareholders and directors?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Netherlands company registration

    1. business registration in Netherlands It is possible to register a Dutch limited liability company within 4 weeks with 1 director and 1 shareholder, who can be of any nationality. There is no minimum share capital requirement and our Clients do not need to travel to complete the engagement;
    2. Our Clients willing to expand in Europe often choose to register their company in the Netherlands because:
      • Dutch businesses enjoy little government interference on their daily operations. The Netherlands is indeed ranked as the 16th easiest country to do business amongst developed countries, according to the World Bank;
      • Opening a corporate bank account in the Netherlands is inexpensive, with the lowest maintenance costs in the EU;
      • Our Clients find paying taxes is simple in Holland because i) everything is online and ii) all annual tax requirements can be settled within 5 days per year;
      • Running an online business in Holland is ideal, as the country has an excellent broadband connectivity and is the 4th most densely cabled country in the world;
      • Corruption is almost nonexistent in Holland as it is the 8th least corrupt country in the world;
      • Our Clients’ property is well protected in Holland, as it is the 5th best country in the world according to the International Property Rights Index;
      • Firms do not require an annual audit if they have i) less than €8.80 million turnover and ii) less than 50 employees;
      • Dutch resident businesses benefit from highly skilled employees with i) a 99% literacy rate ii) a 59% English proficiency rate iii) a 94% computer literacy rate and iv) a 64% rate for high school completion.

    3. Our Clients starting a Dutch company also benefit from the following tax advantages:
      • Our Clients remitting loans repayments to non-resident companies are exempted from withholding tax;
      • Dividends and capital gains remitted to a resident parent company are tax exempt, if less than 50% of the assets are passive. Our Clients will also benefit from reduced withholding tax rates of up to 0%, if the funds are remitted to a parent company incorporated in one of the 100 countries that have signed a double tax agreement with Holland;
      • Netherlands resident companies can carry forward their business losses indefinitely, for up to €200,000 annually plus 25% of subsequent profits exceeding that amount;
      • Our Clients firms can use their own currency when doing their bookkeeping and other financial requirements.

    Disadvantages of Netherlands company registration

    1. Running a business in the Netherlands is expensive because:
      • Taxation on businesses in the Netherlands is punitive, with an effective tax rate of 52% including i) a corporate tax of 25% ii) VAT on sales at 21% and iii) employer’s social security contribution of 31% on salaries;
      • Labor is expensive in Holland as the minimum wage is €1,490 per month;
      • The annual rent in Amsterdam is high at €370 per square meter;
      • Our Clients find it tedious to get a construction permit as i) a fee of €18,608 is imposed and ii) it takes 98 days to process;
      • Foreign entrepreneurs will need to translate official company registration documents as they are mainly in Dutch;
      • A resident business will need to hire a resident company secretary. Healy Consultants will be pleased to provide this service for a free of €1,100 per year;
      • 59% of the land surface in the Netherlands is prone to flooding, consequently, the risk of flooding may incur additional business costs.

    2. Our Clients feel restricted by the labor laws in Holland because:
      • Terminating an employee’s contract in the Netherlands is difficult. Employers need to i) request permission from the Employee insurance agency (UWV) and ii) give a 9 week notice period;
      • Our Clients find it costly to dismiss an employee, as they will be required to provide him with a severance pay of at least 15 days per year worked in the company;
      • Work on Sundays is prohibited and employees are entitled to 4 weeks of paid leave per year.

    3. Investors are reluctant to open a joint-venture in Holland because:
      • Our Clients will have to disclose i) management reports and ii) financial statements, available for public viewing at the Netherlands Trade Register;
      • Investors may face problems with minority shareholders, as they may i) request to a Court to nullify a transaction if it was carried out in an oppressive manner and ii) request an inspector to investigate transactions and file subpoenas, if they hold at least 10% of share the shares in the company.

  • Best uses for a Netherlands company

    1. The Netherlands is well positioned for import and export businesses because:
      • Holland is well connected to the rest of Europe by ground because i) highways in the Netherlands have no tolls and ii) 95% of Europe can be reached by truck within 24 hours;
      • The Netherlands has world class shipping facilities, with the port of Rotterdam being the 3rd busiest port in the world;
      • Air transport is also readily available in the Netherlands with i) 28 major airports operating more than 70 international air freight companies and ii) Europe’s 4th busiest airport Amsterdam Schiphol;
      • Goods can be transported easily due to Holland’s ideal geography as i) it is located in the center of Europe ii) low gradient land allows for great ground connections iii) the abundance of rivers provide well-connected inland waterways;
      • For the reasons above, Netherlands boast the 3rd best infrastructure in the world.

    2. A Netherlands shipping company enjoys these benefits:
      • Meeting delivery deadlines is easy, as the Netherlands boasts the 4th most efficient customs in the world;
      • Our Client running a shipping company will know with certainty the amount of tax payable on their sales, thanks to a fixed tax rate on the weight of shipped goods;
      • Netherlands-based shipping companies benefit from competitive labor costs compared to their EU competitors, as a 40% wage tax reduction applies to their employees living in the Netherlands.

Company registration

  • Time to incorporate: Three weeks
  • Cost to set up: €15,440
  • Minimum capital: €1
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 25%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: BV

Contact us

For additional information on our company registration services in Netherlands, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
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