Introduction & Benefits How to set up Dutch PLC Requirements and considerations Dutch company registration Incorporation Ltd assistance Talk with us now
Private Limited Company in The netherlands
The main advantage of having a company registered in the Netherlands is the non-existence of anti-discrimination laws and additionally, there are no mandatory social security contributions for small businesses with less than five employees. A competitive tax system and perfect business climate is why you should register your company in the Netherlands.
Request a consultationIntroduction & Benefits
Setting up a company is a significant step for anyone, and choosing the Netherlands is an excellent way to mark your presence in the European Union (EU). While expanding your company is exciting, it can also be stressful to build a new business in a place where you may not be familiar with local laws. Instead of figuring it out alone, Incorporation Ltd can help.
The main advantages of having a company in the Netherlands
- Relatively low corporate tax rate of 15%;
- IP protection;
- Easy to establish and run a business;
- Simple percentage of taxes on the company's profits after distribution to shareholders.
If the company is foreign based, then the best entity to be utilised in Netherlands is a branch office. However, the applicant can go for setting up a BV (private limited company) in Netherlands.
Here is everything to know about setting up an the Netherlands company as an entry point in European Union.
How to set up an the Netherlands Private Limited Company
The Dutch private private limited company (PLC, also known as BV for Dutch besloten vennootschap) is the legal entity most preferred by entrepreneurs for Dutch company setup. A private limited company in the Netherlands does not have any requirement for number of directors. Shareholders and directors can either be an individual or a corporation of any nationality. It's the most common business entity among those who incorporate in the Netherlands, however you cannot set up a BV yourself.
Registration requirements and considerations
Several considerations must take place before registering a company in the Netherlands.
Formation phase
It is possible to start trading before you have set up your private limited company, provided you are registered in the KVK's Business Register and a civil-law notary certifies to be handling the incorporation on your behalf. You may then operate as a 'private limited company under incorporation' (in Dutch: BV in oprichting or BV io).
Taxes and the private limited company
If you own at least 5% of your company's shares, then you have a 'substantial interest' (aanmerkelijk belang) and are referred to as a 'director and major shareholder' (DGA).
Financing and liability
Running a private limited company, you are in theory not personally liable for your business debts. However, banks generally ask that as a director and major shareholder you co-sign for loans as a private individual. In which case, you're then personally liable for repaying any loans.
Change of legal structure
It is possible to change a Dutch bv to an nv, for example, if you want to be able to attract more capital.
Dutch company for growth
Netherlands provides better growth opportunities as the country is ranked 4th in the world by the Competitiveness Ranking 2021 of the Institute of Management Development because it has a very competitive international climate. Netherlands ranks 2nd on economic performance, 4th in business efficiency, 12th on government efficiency and 7th on infrastructure Hence it an optimum place for registration of a company.
Steps to register the company
A brief overview on what you'll encounter while registering Dutch PLC.
- Drawing up the statutes in a notarial deed: this is called incorporation;
- Making a deposit of €0.01 starting capital – cash or in kind;
- Registration in the KVK's Business Register (Handelsregister) - personally liable until the registration is complete;
- Registration at the Dutch Tax and Customs Administration (Belastingdienst).
There can be additional requirements based on various circumstances. Contact Incorporation Ltd today and get hassle-free consultation on the way forward with your company incorporation in Dutch jurisdiction.
Dutch company registration by Incorporation Ltd
Incorporation Ltd provides a holistic approach when it comes to doing business in the Netherlands. The offer among other nuances includes:
- Consulting on what is Dutch BV;
- Required document write-up;
- Explanation of corporate bank account for the company;
- Introduction on how accountancy will be managed;
- Solving local phone issues;
- Annual commitment reminders (if long term corporation is agreed).
Once everything's agreed and setup has commenced, you'll have the company at your disposal at the instant Dutch government approves the application of registration.
Your business growth and Incorporation Ltd assistance
Once start operating your business, you can enjoy multiple benefits. A company can run independently from your parent company, protecting the parent company from any costly litigation or mistakes. An Dutch company has full rights and protections in any European Union country. Let us know when you're ready for a journey on registering Dutch company.