Incorporating a company in the Netherlands includes many benefits, such as:
- Low corporate tax rates
- 0% VAT for business with other EU member states
- Strategic ports and logistical gateway to the EU
- High standards and well-functioning infrastructure
- Leading banks operate from the Netherlands
- Positive business climate
- English-speaking natives & qualified international workforce
- Possibility of business immigration
- Business can be formed remotely
How to incorporate a company in Netherlands?
Incorporating a company in the Netherlands is a relatively quick and easy process. It is even possible to form a company remotely. However, it is essential to provide all the necessary paperwork in Dutch and English. For the incorporation of a company, these steps have to be followed:
- proposing three company names, one of these will be selected and reserved
- the draft and notarisation of the incorporation documents (translations must be notarised as well);
- Submitting the documentation to the Dutch Companies Register registering for taxation and VAT purposes.
- Filing applications for the necessary business licenses with the authorities in the desired industry (if applicable).
Usually, a local bank account and signatures by all of the shareholders are required. We assist with every step on the way. Forming the company and opening the account in a Dutch Bank in general do not require for you to be present physically. However, a power of attorney is needed so that we can take care of your company formation for you.
Taxation of your company in Netherlands
Taxation and tax benefits are considerable reasons for a company formation in the Netherlands. Once registered a Dutch company is taxed based on the generated profits. The corporate tax rates.
The cooperate tax rate is at 20% if the taxable amount does not go over € 200,000 per year. If the income surpasses that amount, the tax rate is at 25%. Branches and subsidiaries will be taxed on the revenue in the Netherlands. Another tax to keep in mind is the Value Added Tax, which applies all over the EU. In the Netherlands, it is reduced to 0% when the company is in business with a company from another EU member state.
We are happy to assist you with the taxation process and payroll for your company in the Netherlands.
What company type to incorporate in Netherlands
There are several ways of how to establish a company in the Netherlands and different company types you can set up.
- Dutch BV: Limited Company. Most common type for foreign investors. Can be registered with €1 as minimum share capital. A Dutch BV is deemed tax resident by law in the Netherlands. Requires a Dutch bank account and can be incorporated remotely.
- The Dutch Foundation: can be used as commercial entities, family funds, and holding entities. Can be excluded from taxation under certain conditions.
- Dutch NV company: A public liability company, which requires a minimum share capital of €45,000 and is controlled by a board of directors.
- Branches and Subsidiaries: an attractive choice for foreign companies. A subsidiary is usually a Dutch BV with a foreign holding company as an owner. Other than a branch it can act independently.
- A general partnership describes two or more partners working together under one company name and goal. Both share the same responsibilities and liability. There is no minimum share capital for this structure, and the profits are divided equally by the partners.
- Dutch Limited partnership: A comparable to an LP or LLP company. One managing partner holds unlimited liability and one silent partner limited liability.
- Professional Partnership: usually formed by two self-employed individuals with equal liabilities. Mostly applicable for resident professionals such as doctors or accountants.
How much does a company formation in Netherlands cost?
Of course, registering a company in the Netherlands includes some costs. The costs for the set-up process might vary from case to case, and they depend on what it is included. Usually, the plain incorporation fee with the Companies Register is about €50.
Get in touch to get for more information about packages, including opening a bank account, notarisation fees, and other services.
How long does the process of a company formation in Netherlands take?
Incorporating your company in the Netherlands might take as little as three days. The duration depends on the company type you are setting up and possible licenses that this might include. Additional time has to be calculated for the collection of the documents and opening of a local bank account. However, also these can be handled time-efficient with our help.
Ready to incorporate a company in Netherlands?