Establishing a business in the Netherlands is an attractive option due to the country’s commitment to innovation and digitalization, freedom to access the European market, and its welcoming investment climate.
Netherlands Company Registration process is a relatively straightforward one, with applications typically taking about two weeks to complete. Many potential foreign investors take advantage of the country’s incentives and assistance programs that offer financial assistance to help with start-up costs and setting up a presence in the country.
Additionally, the Netherlands boasts a modern-day business infrastructure and highly-skilled workforce, providing businesses with the resources they need to succeed.
What is the Business Registration Process in The Netherlands?
The first step to that is the need to register your business name under the Dutch limited liability company (BV). The next requirement is the drafting and signing of Besloten Vennootschap—BV, a Dutch limited liability company’s deed of incorporation. A Dutch civil law notary must implement the draft. The longer the complexities of the deed, the longer the execution process. On average, it takes up to twenty-four hours. The signature of the deed could be signed by a written power of attorney issued to the Dutch civil law notary or in the presence of the Dutch civil notary.
The chamber of commerce will register the limited liability company and obtain a new registration number for the company. This could be done in person or online. The online process takes hours to deliver the registration number, while the former takes a few days.
The next process is registering your business at the local Dutch tax office and social security administration. Registering at the tax office takes a few hours, but the tax number takes between two and six weeks to be ready.
For your company registration in the Netherlands to be swift and accurate, you may need corporate services. There are experienced business formation companies that have a better grasp of the rules and with adequate documentation, they can help you with your company in a matter of days. Beyond assisting in your company registration, these agents can also help you with your daily operations until you can stand on your own.
Types of Company Registration in the Netherlands
- Professional Partnership: This is a type of business formed by two partners. Professionals, not business people, mostly practise it.
- Limited Liability Company (BV): In accordance with the recent amendments of company laws, If you are considering starting a business in the Netherlands with a 1 EUR minimum capital, this type of registration is for you. The requirements for this type of business have been discussed somewhere in this post.
- The General Partnership: This type of company is for two or more persons under the same business name with the same business mindsets. The profits in this kind of business are shared among themselves, and no minimum share capital is required, like in the Limited Liability Company(BV). However, if this type of company is involved in a debt they cannot pay, the members’ personal properties could be taken away by the creditors.
- Public Liability Company: This type of company is mostly registered for large investments with a share capital of up to 45,000 EUR. It has a board headed by the board managers responsible for the company’s decision-making.
- The Dutch Limited Partnership: this kind of company requires two or more partners. Out of the partners, one is a general partner who has full ability to make decisions. The other is the silent who contributes capital to the business and gets back the profits of their contributions after a given period.
- Subsidiaries or Branches of Foreign Companies: this is a situation where foreign companies decide to establish their branches in the Netherlands. It has the same features as Public liability companies, with ‘Independence’ as their main difference.
Big companies often require a certain licence if it’s going to have an economic or social impact on the environment.
Prerequisite for the Netherlands Company Registration
- Full details for the shareholders and beneficiaries
- Passport photograph of the shareholders and other beneficiaries
- Capital: depending on the kind of company you want to establish
- Registration fee: The company registration fee in the Netherlands is Approximately 50 EUR
- Share capital: the share capital could be any amount, and the business owner could decide it
- Company formation cost: company formation in the Netherlands starts at around 1500 EUR. This fee is for your business to be fully operated. Accounting service fee: this fee starts at around 100 EUR
Procedures for Netherlands Company Formation
The following are the procedures for company formation in the Netherlands:
- The intended business owner must research and prepare the company names, of which one will be selected for the company’s registration.
- Drafting of the document for the new business incorporation
- Submission of a registered document from the Dutch for processing tax numbers
- Registering for social security and employment purposes with the same tax authorities
- Registration at the required business licence with the legal authority in the industry
Taxation in the Netherlands
As a registered business in the Netherlands, your company income is subject to taxation, no matter your level of interest in the country. Upon registration, you must obey the global tax rate set in place by the tax authority.
Resident companies are still required to pay taxes on worldwide earnings. Put simply: taxation doesn’t discriminate—it applies to everyone in the Netherlands.
The Tax Year in the Netherlands
The tax year in the Netherlands is the same as the regular months of the year. Business owners who established a company in The Netherlands may use different years as long as it is stated in the company’s paperwork. The company is given opportunities to have a shorter or longer period in the year of incorporation. Documentation of tax information is made electronically. Also, companies must keep updating the documents with additional documents like profit and loss accounts, balance sheets, and other vital details. Companies that failed to update the documents or do it lately might face administrative or criminal penalties if the reason was proven fraudulent.
Aside from withholding tax and corporate income tax in the Netherlands, here is the list of taxes that are charged after establishing a company in the Netherlands:
- The real property tax
- Social security tax
- Payroll tax
- Transfer tax
Conclusion
Choosing to open a business in the Netherlands is an exciting and worthwhile endeavor. With access to world-class infrastructure, an innovative tech ecosystem, and strong government support, it is no surprise that the Dutch have developed successful businesses across a variety of sectors.
By following these steps, you can soon join the ranks of dynamic entrepreneurs adding to the thriving Netherlands economy. Make sure you maximise this opportunity to make your dream venture a reality!
FAQs
Can I avoid double tax as a foreign investor?
Yes, you can avoid double taxation if your country of origin has signed double tax treaties with the Netherlands government.
Can I receive incentives for my business from the Dutch Authorities?
Yes, you can receive incentives for your business from Dutch Authorities. Contact the Netherlands Foreign Investor Agency for more information about them.
Can I receive a startup visa for entrepreneurs?
Of course, you can. Dutch authorities offer startup visas for entrepreneurs. Contact the Netherlands Foreign Agency for more information.
Can a Non-indigene register a business in the Netherlands?
Are you looking to launch a business in the Netherlands but don’t call it home? Fear not! As long as you’re part of the European Union, European Economic Area, or Switzerland, you have the same rights as any Dutch citizen and will be granted a personal registration number after registering with your local tax office.
For those from outside these three memberships, don’t worry – you wouldn’t be left in the dark either. You’ll need to familiarise yourself with certain immigration laws to get both work and residence permits, however these requirements are particularly relaxed for citizens of Japan and America. So, make sure to comply with the regulations and you’ll be launching in no time!
