Netherlands Company Formation
We can incorporate your Netherlands business quickly and provide all-in services. On average, a Netherlands company formation takes up 3 days from the moment we receive your official documents. This formation can even be done remotely. It is possible to use an expedited procedure in order to incorporate a Dutch BV company within 1 day. There are several documents required for formation of the business, and all documentation is handled in both Dutch and English.
The corporate income tax in the Netherlands is 16.5% up to EUR 200.000 profit a year, the profit of EUR 200.000 and more is taxed at 25%. The lower rate is set to decrease to 15% in 2021, the higher rate will decrease to 21,7% in the same year.
The Netherlands has a 21% VAT rate on goods and services delivered in the Netherlands. Between European countries, goods and services may be offered at a 0% VAT rate. Corporations with a VAT number may claim back the VAT.
Many international companies have found the Netherlands to be an excellent country to optimize their global tax rates. This is primarily because of the interesting regulations and tax benefits for international companies.
Our Company Registration package includes the following:
- DSC for one director and DIN for up to three directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company Incorporation Certificate
For non-EU investors, starting a business in Netherlands and obtain a residency visa through business immigration is a possibility.
Why Dutch Company Formation is a good opportunity for your business
- 16.5% corporate tax, one of the lowest tax rates in Europe (15% in 2021)
- 0% VAT for business between EU member states
- Core member of the EU
- High-tech infrastructure
- The Netherlands ranks 3rd place in Forbes Global Business list.
- 5th place in Global Competitiveness
- Leading world banks (ING bank, ABN Amro, Rabobank)
- Excellent international business climate
- 93% English-speaking natives.
- Netherlands is a logistical hub as a gateway to Europe
- Qualified personnel (3rd in the world)
- Possibility of business immigration
- Remote formation of a business is possible
The Netherlands and company formation: what type of company should you choose?
The Dutch BV (limited company) is the most chosen type for company formation Netherlands by foreign investors. The Dutch limited company can be registered with a minimum share capital of 1 EUR, according to corporate law. A Dutch BV is deemed tax resident by law in the Netherlands. Required documentation for the formation will consist of a legalized and apostilled copy of valid identification and proof of address. A power of attorney is required to be signed by a notary for remote incorporation. But: it is not necessary to travel to Holland to do this. The shareholders can authorize us to take care of the necessary filings on their behalf. A personal visit is not required to incorporate a Netherlands company, the formation procedure can be completed from abroad. We can also open a bank account remotely. With certain banks, the director has to be present to open a bank account. A limited company in the Netherlands may have corporate shareholders and directors. For the registration process, the corporate shareholders must be verified and have the authority to sign the deed of incorporation or formation. Furthermore, an extract from the business register of the corporate entity must be received from the entities, which will act as shareholder or director. If registration is performed remotely, a power of attorney must be received and signed on behalf of the shareholder or director. In the case of corporate shareholders, the Dutch company will be a subsidiary. It is also possible to register a Dutch branch; a branch office has less substance than a subsidiary and may be treated differently by the Dutch tax authorities. Substance may come from appointing a resident director.
The Dutch Foundation
The Dutch Foundation is a legal entity. Dutch foundations can be used as commercial entities, family funds, and holding entities. The foundation may hold shares and real estate, it may strive for profits. Dutch foundations can be tax-exempt under certain conditions. Or can even be exempt from accounting or reporting requirements. If the Dutch foundation is concluded under notary agreement, the foundation will be limited in liability.
Dutch NV company
also known as public liability company is a legal entity most suitable for large businesses when forming a Netherlands public company . It requires a minimum share capital of EUR 45,000. The Dutch NV company is controlled by a board of directors for day-to-day decisions. The annual shareholders meeting may appoint directors or demand changes in management.
Branches and Subsidiaries,
starting a branch in the Netherlands can be interesting for foreign companies. A subsidiary will usually be a Dutch BV owned by the foreign holding company. The main difference is that the subsidiary company is fully independent, while the branch company is not.
The general partnership if where two or more resident partners work together with one company name and entrepreneurial goal. Both directors have full liability for the debts of the company. The profits are shared between the partners and there is no minimum share capital requirement. The downside of the general partnership is that the partners can both be held accountable by creditors if the firm cannot fulfill its payments.
Dutch Limited partnership.
The Netherlands also knows a different type of partnership, this is known as the Limited partnership and is comparable to an LP or LLP company. One managing partner has unlimited liability and one silent partner has limited liability, if he does not participate in the management of the company. ICS does not provide services for Dutch Limited Partnerships.
A professional partnership in the Netherlands can be formed by two self employed individuals, such as accountants, dentists or physio therapists. The partners are responsible for the liabilities. This type of entity is made for resident practicing professionals.
Company formation Netherlands: the procedure
The company formation procedure itself can be completed within 48 hours. However, the most time usually is spent in the verification of documents. Fulfilling all information requirements to our team for preparing the formation of your business. For the formation of a Dutch BV, which is the most common type in the Netherlands, the formation procedure will be as followed;
Identity information on the directors and shareholders of the BV company. A copy of passport of all the directors, shareholders and other ultimate beneficial owners. Our filled-out form regarding the formation of a business. Preferred company name, this has to be verified in advance for availability.
After we have prepared the initial documentation for the formation of the business, the shareholders will need to visit the Dutch notary public to sign the formation documents. Alternatively, it is possible for us to prepare the formation documents to be signed in your home country and send the original signed documents to our corporate address in Rotterdam.
Our firm will process the company formation in the Netherlands, and file the company in the Dutch company register. We can assist with the opening of a bank account, we have solutions for opening Dutch bank accounts remotely.
Cost of Dutch Company Formation
An important topic for your company registration is of course the costs involved with starting a company in the Netherlands. You need to consider the following fees and costs: Preparation of the notary documents and client identification documents The company registration fee to the chamber of commerce Registration at the local tax authorities Our incorporation fees for opening the company and bank account Our fees for assistance with the VAT number and optional EORI number applications The annual costs involve the accounting services from our firm. You can ask us to provide you with a detailed quote for the services you are looking for.
Taxation of Netherlands companies
Any businessman forming a company in the Netherlands should be aware of the Dutch tax system. When your business is registered with the tax office, your Netherlands company will pay tax on the profits of the company. The corporate tax rate up to €200.000 profit a year is currently 16.5%, from 2021 the rate will be 15%. The higher tax rate is 25% but is set to lower in the coming