COMPANY IN THE NETHERLANDS

The Kingdom of the Netherlands is considered the benchmark for European economics and the rule of law. The freedom of entrepreneurship in this country is wisely combined with an optimal tax burden and a stable financial sector. Holland is one of the leading European states, and it is definitely worth being considered as the main candidate when choosing a place to start a business.

The strengths of the Netherlands for business include the following:

• you can open a company with a nominal authorized capital – just 0.01 euros;
• no capital gains taxes;
• no exchange controls;
• easy opportunity to obtain a residence permit.

The Cortax team helps everyone who wants to start their commercial success in the Kingdom. When contacting us, the customer gets comprehensive intermediary support in all important operations and procedures.

Which form of business is better to set up?

Two organizational and legal forms are beneficial for non-residents:

• BV (private limited liability company);
• NV (public limited liability company).

The private type is much easier to set up, as it requires the minimum authorized capital of just 0.01 Euros. As such, this legal form does not set any strict requirements.

What documents are required?

The set of documents does not differ from the standard list, which is valid throughout the European Union. You will need to present the following documents to set up a business in the Netherlands:

• certificate of incorporation;
• charter;
• passports of the founders;
• application.

The Chamber of Commerce and Industry is responsible for the registration of new enterprises and accepts the above documents. All certificates must be in Dutch, and Cortax can help with high-quality and prompt translation of their texts to successfully complete the procedure.

What are the specifics of opening a company in the Netherlands?

You have to remember about the following specifics of registering a company in the Kingdom:

• founders can be any persons without restrictions;
• there is no need to open a bank account before the registration;
• information about the founders is stored in a special public register;
• personal details of the first founder must be recorded in the charter.

Information about the beneficiaries will be stored in the register. This type of details includes name, date of birth and other passport information.

Particular attention must be paid to the name of the future organization. It must be unique – this is a general requirement in any European legal order. Besides, there is also a special rule: the name should not contain links or connections with the royal couple or government agencies. Also, the name must include the abbreviation of the chosen organizational legal form (BV or NV).

General requirements are also established for the legal address. Address information is required for every new company, and Cortax can help with finding the desired legal address.

Based on the results of registration, the applicant receives a certified charter, a certificate of incorporation, and an extract from the register. These documents confirm the successful completion of the entire procedure.

What taxes are paid in the Netherlands?

The tax burden is one of the most important criteria for choosing a place for doing business. The following types of taxes are paid by enterprises in the Kingdom of the Netherlands:

• corporate tax. It is 15% if the profit of the company is up to 245 thousand Euros, or 25% if the profit is more than the specified value. A different rate is set for firms that produce the results of intellectual activity (for example, software developers). There is a reduced tax rate for such enterprises – up to 9%;
• VAT. The base rate is 21%. Moreover, each company is a VAT payer (this rule does not apply to holdings);
• mandatory contributions. Standard size is 27.65% per employee;
• minimum wage is 1,684 Euros for 2021.
• dividend tax of 15%.

Dividend tax applies only in special cases. Companies with a shareholder being another company from another region that has a tax agreement the Netherlands are exempt from its payment. In addition, holdings and cooperatives are exempt from this tax.

As such, the Kingdom of the Netherlands can offer the optimal tax burden on business. That is why many local businessmen register their firms in Holland and distribute their services and products to the rest of the world from there. If an entrepreneur wants to enjoy all the strengths of an authoritative European jurisdiction, you can contact Cortax — we will help with the translation of documents and other important steps for registration.