If you’re setting up a new business in the Netherlands, you need to create a legal entity in the form of a «private limited company» (in Dutch «besloten vennnootschap» or abbreviated to «BV»).
The BV offers a high level of flexibility in respect of composition of the board, amount of capital, profit sharing, issuance of shares without voting rights, etc.
In comparison to other jurisdictions, the Dutch «BV» has similar features as the English «Ltd», the German «GmbH», or the American «LLC».
Dutch company registration (setting up a private limited company in the Netherlands) requires the following steps:
1) Preliminary preparation.
You need to know the object of the company, names of the directors, type of shares, authorization of the directors, capital amount, financial year, etc.
Also you need to check the company name for validity and appropriateness.
ABiLiTieS Trust can support you in this process (see also abilitiestrust.com or call +31 6362 97799).
2) Arrange an address for registration of your company.
See also virtual office in the Netherlands.
3) Visit the Netherlands for signing of documents.
Alternatively, you can provide a certified copy passport of the incorporator and director and legalized power of attorney. In this case, a visit to the Netherlands isn’t required.
4) Incorporation of your company (civil-law notary) by a Dutch civil notary.
The deed can be signed by way of a written (private) power of attorney, or in presence of the notary.
5) Registration of your company at the KVK Commercial Register (Handelsregister).
The registration at the Chamber of Commerce can be done in person, or online. Registration at the Dutch Chamber of Commerce is mandatory.
See also: How to obtain a Dutch residence permit.
6) Opening of a banking account.
Top banks in the Netherlands: ING Bank, ABN AMRO Bank, Cooperative Rabobank, Achmea Bank, De Volksbank, Tridos Bank, NIBC Bank, Delta Lloyd Bank, KAS Bank, van Lanschot Bankiers.
7) Registration of your company at the Dutch Tax and Customs Administration.
The VAT registration can be done together with the company registration at the Chamber of Commerce. In this case, the Chamber of Commerce will deliver the registered company information to the Tax Authority. After that the Tax Authority will provide the VAT identification number.
The Tax Authority also analyses if the businessman will need to do the annual declaration for the income tax.
In order to hire employees the employer registration has to be done directly at the Tax Authority.
Now the Dutch government is in the process of implementing a UBO-register. This register will contain the details of the individuals that are the «ultimate beneficial owners» of legal entities in the Netherlands.
Why start a business in the Netherlands?
According to the World Bank Group’s Doing Business 2020 study, the Netherlands have the following results.
1) Starting a Business (rank) – 24.
Score of starting a business (0-100) – 94.3.
Procedures (number) – 4.
Time (days) – 3.5.
Cost (number) – 4.
Paid-in min. capital (% of income per capita) – 0.0.
2) Paying Taxes (rank) – 22.
Score of paying taxes (0-100) – 87.4.
Payments (number per year) – 9.
Time (hours per year) – 119.
Total tax and contribution rate (% of profit) – 41.2.
Postfiling index (0-100) – 92.0.
3) Trading across Borders (rank) – 1.
Score of trading across borders (0-100) – 100.
Time to export
Documentary compliance (hours) – 1.
Border compliance (hours) – 0.
Cost to export
Documentary compliance (USD) – 0.
Border compliance (USD) – 0.
Time to import
Documentary compliance (hours) – 1.
Border compliance (hours) – 0.
Cost to import
Documentary compliance (USD) – 0.
Border compliance (USD) – 0.
According to the IMF’s forecast, the projected nominal GDP of the Netherlands in current prices is estimated at $930.990 billion in 2020 and $1,095.998 billion in 2024.
The total projected nominal GDP of the European Union in current prices is estimated at $18,750.374 billion in 2020 and $22,045.235 billion in 2024.
Source: BusinessForecast.by