Netherlands

The Netherlands has long been a favourite home for foreign investors considering Dutch company formation. It has a stable and successful economy and a trade and investment policy that is one of the most open in the world.

That’s why thousands of international companies have set up business in the Netherlands

If you’re considering how to set up a Company in the Netherlands, please contact us for expert advice and information.

A summary of Netherlands Corporate Taxes is available here.

What options are available in the Netherlands?

Frequently Asked Questions about the Netherlands

What does the formation of a Company in the Netherlands mean in practice?

The Netherlands has a liberal tax regime including generous participation exemption in which dividends received and capital gains realised are exempt from Dutch Corporate Income Tax. The country also has an extensive network of double-taxation treaties.

There are many other aspects of Dutch tax law, but specialist advice is required to successfully navigate the complexities.

What are the most common types of formation in the Netherlands?

There are four major forms of Dutch company formation as shown below:
– Public Limited Company (NV)
– Private Limited Company (BV)
– Partnerships
– Branches

What are the main features of a Dutch Public Limited Liability Company (N.V.)?

– The minimum amount of share capital is €45,000
– At least 20% of this must be issued
– Suitable for companies wishing to raise capital publicly
– There are no nationality requirement for shareholders
– Audited accounts must be filed with the Chamber of Commerce

What are the main features of a Dutch Private Limited Liability Company (B.V.)?

– Due to the Dutch civil law changing from October 1st 2012, a share capital of €18K is not necessary anymore. It can be as little as €1.
– Shareholders’ liability is restricted to their individual capital contribution
– It is the most common form of business enterprise in the Netherlands
– There are no nationality requirement for shareholders
– Audited accounts must be filed with the Chamber of Commerce

What are the main features of a Partnership in the Netherlands?

– Available as a General, Professional or Limited Partnership
– General Partnerships have unlimited liability
– In Professional Partnerships, each partner is liable for own debts
– Limited Partnerships have limited liability

What are the main features of a Branch in the Netherlands?

– This is a popular format for foreign companies opening up in the Netherlands
– Foreign parent is responsible for all the liabilities of the Dutch Branch
– Branch is required to register with the Chamber of Commerce
– There must be a minimum of one director
– No formal accounting requirements

What is the regulatory environment like in the Netherlands?

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, you can count on the intervention of a civil court or government body. It is therefore advisable to take legal advice prior to entering into any employment contract.

Are there financial incentives available in the Netherlands?

The Dutch government and local authorities offer a range of incentives to foreign investors based on a number of factors, in particular 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 easy is it to close a Dutch company?

Please contact us in order to discuss closing your company in the Netherlands.

How easy is it to recruit staff in the Netherlands?

The Dutch are famously multi-lingual and their education and workplace skills are of a high level. However, the unemployment rate in the Netherlands, although rising, is low by the standards of other EU member states and his makes recruitment rather more of a challenge than elsewhere in the EU.

If you want the pick of the crop, our recruitment specialists are ready to help.

What about banking facilities in the Netherlands?

Amsterdam is one of the world’s top financial centres and most international banks have offices there. The Netherlands also 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.

For assistance with opening a bank account in the Netherlands, please contact us.