The Netherlands

The Location:

Also known as Holland, the Netherlands is located in northwestern Europe; bordering Germany to the east; Belgium to the south, and the North Sea to the northwest. It shares maritime borders with Belgium, the United Kingdom (UK), and Germany. The capital is Amsterdam; the official language is Dutch, and the currency is the Euro (EUR). It is the 7th largest economy in Europe, and is regarded as having one of the most liberal trade and investment policies in the world. The Netherlands is a member of: the European Union (EU); the Organisation for Economic Co-operation and Development (OECD); the World Trade Organisation (WTO); NATO, and the United Nations (UN), among others.

 

Key Benefits & Features of Company Formation:

  • There are four types of company formation options: Branch; Private Limited Company (BV); Public Limited Company (NV), and Partnerships.
  • Extensive network of Double Taxation Treaties (DDTs) with 100 countries and counting.
  • Favourable tax regime.
  • No restriction on nationality or residency for Director or Shareholder – of which one of each is required.
  • Ready-made companies are also available, complete with bank account and VAT number.
  • Company formation typically takes one week.
  • Records are not publically accessible.
  • Central European location makes business easy with rest of Europe in terms of proximity and time zone.

Branch

  • Preferred option for existing foreign companies wanting to expand to the Netherlands.
  • Netherlands branch must be registered with the Chamber of Commerce.
  • Requirement for Director is a minimum of one.
  • Liability lies with the foreign parent company.
  • Branch is required to register with Chamber of Commerce.
  • There are no formal accounting requirements.

BV

  • The most common form of company.
  • Requirement for minimum share capital is just €1.
  • Shareholders can be of any nationality.
  • Shareholders are only liable to the extent of their capital contributions. 
  • It is a requirement to file audited accounts with the Chamber of Commerce.

NV 

  • Preferred option for companies wishing to raise capital publicly.
  • Requirement for share capital is a minimum of €45,000, and at least 20% of the authorised share capital must be issued.
  • Shareholders can be of any nationality.
  • It is a requirement to file audited accounts with the Chamber of Commerce.

 Partnership

There are three types: General Partnership (unlimited liability); Limited Partnership (limited liability), and Professional Partnership (each partner is liable for their own debts).

 

Additional Information:

  • It is a requirement for a Private Limited Company name to also include the words ‘Besloten Vennootschap’, or ‘B.V.’.
  • Justification is required to use words such as: Royal; Trust; Trust Company; Trustee Company; Bank; Building Society, and Bank for a BV.
  • Strict labour laws apply, with a heavily regulated labour market.