If you have come to this website, you are probably considering setting up a company in The Netherlands. Let me list some points in favor of registering a Dutch limited company:
- Holland is one of the major European trading (the fifth-largest exporter of goods in the world) and industrial hubs. It can become your gateway to the EU and to the major European markets. Netherlands have skilled labor force and English is the second language. EUR is official but USD is accepted countrywide. Double taxation treaties have been signed with 95 countries to avoid double taxation on income and capital. See the full list at the Netherlands Government site. This makes Netherlands so popular for incorporation in Holland, for registering holding, royalty and finance companies.
- Company registration in Netherlands takes about 10 business days only and can be done remotely, without visiting Holland. Incorporation costs are relatively low. Company authorized capital can be 1 EUR. See details at the Dutch company Registry. So, having spent a sum for the business registration significantly lower than in the neighboring EU countries and within a few days of waiting period you will receive a limited company registered in a key jurisdiction with high business reputation and favorable business climate.
What is required to have your limited company registered in Holland? There are some basic requirements to meet:
- The company has to have a registered office in Netherlands, it has to be registered with tax authorities and the Chamber of Commerce, and it has to open a bank account locally, e.i. in the EU. We will assist you with all these incorporation basics.
- The company can be set up remotely and, if you are not looking for a "high street bank" account, we can also assist to open a bank account in EU (Netherlands) via a video conference, if the bank accepts your documents. If you need a prestigious bank account with one of the biggest banks in Netherlands, you will have to visit the bank office personally.
Our business registration fees are quite modest:
You can get a BV, which means Ltd., Dutch company with the registered office for 12 months for 2590 EUR. We can also assist with opening a bank account in EU (in the Netherlands) and obtaining a VAT number. We will do all the job here, in Netherlands, without your presence, for your convenience.
Some facts to help you in making a measured decision about the incorporation in Holland:
- Dutch company standard tax rate in 2022 "depends on the taxable amount. The taxable amount is the taxable profit in a year reduced by deductible losses. If the taxable amount is € 395,000 or less, the corporate income tax rate is 15%. If the taxable amount is more than € 395,000, the corporate income tax rate is € 59,250 plus 25,8% for the taxable amount exceeding € 395,000" as stated by the Government of the Netherlands. There is also a tax relief for activities covered by the innovation box to encourage innovative research. All profits earned from innovative activities are taxed at 9%. Also there is no withholding tax on interest and royalties paid to non-residents. There is no capital gains tax arising from the sale of shares in source countries. This explains why holding companies are so popular in Netherlands.
- Non-resident directors and shareholders are allowed. The company director can be the sole shareholder (owner). A company secretary is not mandatory.
- Dutch limited companies have to submit annual statements on their transactions and activities to the Dutch Chamber of Commerce (KVK). Annual accounts are financial statements on your company. Most companies will have to file digitally. It depends on the size of your company (micro, small, medium-sized, or large) which requirements apply on how to file your annual accounts and which information your financial statements must contain.
We have seasoned accountants able to provide all necessary accounting support for your Dutch limited company including VAT and tax returns.
- We have seasoned accountants able to provide all necessary accounting support for your Dutch limited company including VAT and tax returns.
If you are looking for benefits and advantages regarding international tax planning, you will find that Dutch Limited companies have a lot to offer. Please send us an e-mail if you would wish to register a limited company in Netherlands or need more details. We will be happy to advise.
Additional information related to business registration in Netherlands:
Can a foreigner register a company in the Netherlands?
Yes, a foreigner can register a company in the Netherlands. The Netherlands has a business-friendly environment and welcomes foreign investors to establish businesses in the country. In fact, the Dutch government actively encourages foreign investment and has put in place various measures to facilitate this.
To register a company in the Netherlands as a foreigner, you will need to follow the same steps as a Dutch citizen or resident. This includes registering your business with the Dutch Chamber of Commerce (Kamer van Koophandel), obtaining a Dutch tax identification number (BTW nummer), and opening a business bank account.
However, it is important to note that there may be additional requirements or procedures for non-EU residents, such as obtaining a work permit or a residence permit. You may want to consult with a lawyer or a business advisor in the Netherlands for more information on the specific requirements for your situation.
How is business income taxed in the Netherlands?
According to KPMG, corporate income tax is levied on the worldwide profits of Dutch resident companies. The standard rate of corporate income tax in the Netherlands is 25% on taxable profits up to €245,000 and 21.7% on profits exceeding this amount. Additionally, there is a 15% tax on distributed profits (dividend tax) https://home.kpmg/nl/en/home/insights/2019/11/netherlands-taxation-of-international-executives-2019.html
Is the Netherlands considered a tax haven?
The Netherlands is not generally considered a tax haven, although it has been criticized by some for having tax policies that allow multinational corporations to reduce their tax liability.
The Dutch government has a tax treaty network with many countries, which provides for the avoidance of double taxation and allows for the exchange of information between tax authorities. This makes the Netherlands an attractive location for foreign investors and businesses, and has led to the establishment of many holding companies and other types of legal entities in the country.
However, the Dutch tax system also includes a number of anti-abuse measures and rules to prevent tax evasion and aggressive tax planning. For example, the Netherlands has implemented the OECD/G20 Base Erosion and Profit Shifting (BEPS) project recommendations to counter harmful tax practices by multinational companies.
Overall, while the Netherlands may be viewed by some as having certain tax advantages for businesses, it is not typically classified as a tax haven.
What is a BV Dutch entity?
What is a Dutch bv? A bv is a legal entity, equivalent to the private limited company. You can start a bv on your own or together with partners. Your private liability as a director is limited.
How is a Dutch BV treated for US tax purposes?
"For federal classification purposes, the federal check-the-box regulation treats Netherlands BVs in approximately the same manner as LLCs. Like an LLC, a Netherlands BV is eligible to elect to be treated as a partnership (if it has more than one owner) or a disregarded entity (if it has only one owner). "
What are the advantages of setting up a BV in Netherlands?
Setting up a BV (Besloten Vennootschap) in the Netherlands has several advantages, including limited liability protection, low corporate tax rates, a favorable business climate, access to the EU market, and a stable political and economic environment. Additionally, the Netherlands has a highly educated workforce, good infrastructure, and a favorable location for international trade.