Overview of Business Registration in the Netherlands

The Netherlands secured an impressive fourth place on Forbes' list of the Best Countries for Business, making it a go-to destination for incorporating a business. According to the 2019 World Bank rankings based on the ease of doing business, the Netherlands stands boldly at 42nd out of 190 countries. With a population of 17.9 million, the Netherlands provides international businesses with customers with high purchasing power. Notably, the Netherlands seals its dominance in the EF English Proficiency Index, ranking first. The country boasts a well-developed infrastructure promoting global trade and draws foreign investors to register a Dutch company. Rotterdam, the largest seaport in Europe, offers excellent mobility between nations, making it convenient for entrepreneurs to have quick access to many European nations.

Why Register a Business in the Netherlands

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Low Tax rates

EU member states have one of the lowest tax rates, with income up to €200,000 taxed 19% and higher-income brackets taxed 25%. Additionally, there is no VAT charged for transactions within the EU.

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No Language Barrier

Almost 93% of the total population of the Netherlands speaks and understands English fluently. It is a big advantage as other neighbouring countries do not have this large English-speaking residents.

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Incentive and Benefits

The government offers incentives to foreign entrepreneurs and reduces intervention in foreign investment. Some eligible companies are exempt from annual audits.

Types of Business in the Netherlands

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Sole Proprietorship

A sole proprietorship is a type of business where there is only one owner. It is the simplest and easiest type of business to set up. All you need to do is register your business with the Netherlands Chamber of Commerce, which is called the Kamer van Koophandel or KVK.

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General Partnership

A general partnership is a type of business that involves two or more individuals working together. For tax purposes, each partner is generally considered a self-employed entrepreneur and must pay income tax on their share of the profits. This type of business is also known as a Vennootschaap onder Firma or VOF.

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Limited Partnership

A Limited Partnership or Commanditaire Vennootschaap (CV) is a business that involves multiple people. The partnership consists of two types of partners: active and limited. The limited partner usually acts as the financial support for the company and often forms a partnership with a sole trader who requires funding.

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Private Limited Company

Private limited companies are the most common type of businesses in the Netherlands. This type of company is similar to the German GmbH, the American LLC, or the UK's Ltd. These companies are characterized by the division of equity by shares, and the shareholders are not personally liable for the company's debts. The Dutch BV is particularly popular in the Netherlands among all types of private limited companies.

Can a Non-Resident Register a Business in the Netherlands?

  • The Netherlands is known for being one of the most hospitable European countries. Its taxation system is advantageous for those who decide to move to the country, and its business environment is both competitive and efficient. This makes it an excellent option for foreign companies looking to expand their operations. In principle, the Netherlands does not impose any quotas or restrictions on foreign ownership.
  • In certain strategic sectors, national security limitations apply. These include defence, energy, public broadcasting, finance, transportation, media, and postal services.
  • Moving to the Netherlands for business purposes as a foreign investor is possible, but the process may vary depending on whether you are a citizen of the European Union or a third-country national. An important factor to consider when starting a business in the Netherlands is that non-EU citizens can establish a company in the country with the intention of achieving success and profitability. The visa provided to international entrepreneurs allows them a one-year period to launch their businesses, during which they can familiarize themselves with the Dutch business environment and build their client base, among other things.
  • Selecting an appropriate business form is crucial when starting a business in the Netherlands as a foreigner. Our advisory team will guide you in choosing a suitable type of company that aligns with your business activity. The Netherlands is open to foreign investors and does not discriminate against companies with their home base in a foreign country. As a member of the EU, the Netherlands cannot restrict the cross-border movement of capital, and there are no regulatory limitations on foreign direct investment. Foreign companies can own 100% of the share capital of any Dutch business.
  • Moreover, a Dutch BV company has no minimum paid-up share capital requirement.

Accounting and Taxation Policy of the Netherlands

Incorporating a company requires careful consideration of accounting and tax obligations. Entrusting your BVI accounting and tax needs to Enterslice ensures you receive expert attention. Our team will ensure timely completion of financial statements and audits. The Netherlands offers one of Europe's lowest corporate tax rates at a base rate of 19% until €395,000 profit. All Dutch companies are required to file accounts with the Chamber of Commerce. Dutch private limited companies require an audit if they meet two of the following requirements: Assets greater than €4.4 million, turnover greater than €8.8 million, or the average number of employees greater than 50. Fiscal investment funds are not subject to the CIT rate if profits are made available to shareholders within eight months of year-end. The innovation box regime provides a special tax regime for profits derived from self-developed intangible assets, with an effective tax rate of 9%. With around 100 bilateral tax treaties to avoid double taxation, the Netherlands is an attractive destination for businesses. Additionally, the country has three VAT rates: 0%, 9%, and 21%.

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Process of Business Registration in the Netherlands

The steps to register a company in the Netherlands are mentioned below-

1. Resident Permit

If you want to start a business in the Netherlands and are from a third country, i.e., outside the European Union, you will need a resident or work permit to invest in the country. Enterslice can help you obtain the necessary permits from the authorities.

2. Business Structure

Choosing the right type of company is crucial before starting a business. Enterslice can help you identify the most suitable business entity type, paid-up share capital, and corporate structure based on your business structure and long-term goals. The most commonly used business model in the Netherlands is a Dutch BV, which is a Dutch version of a limited liability company.

3.Company Name

Firstly, Enterslice will search to check if your company's name is available in the Netherlands trade register, which the Chamber of Commerce KVK manages. Once we confirm the availability of your company's trade name, we will reserve it in the trade registry.

4.necessary paper Submission

Before incorporating your company, you will need to provide a list of KYC (Know Your Customer) necessary papers, including the names of the directors, identification proof, and the company's resolution. Our team of experts at Enterslice will use these necessary papers to draft and notarize the Article of Association, Memorandum, business plan, and other necessary incorporation necessary papers.

Once we have prepared all the required necessary papers, we will register your company through the Netherlands Chamber of Commerce KVK. After successful registration, we will send you the Netherlands company business registration certificate, AOA Memorandum, and other corporate necessary papers to the address of your choice.

5. Bank Account

The necessary papers required to open a corporate bank account vary depending on your business structure. At Enterslice, we can assist you in consolidating all the necessary necessary papers and opening a corporate bank account with a reputable bank of your choice. Once the account is opened, we will send the Internet banking token and access code to your address.

6. Licensing and Tax

If you are planning to start a business in the Netherlands, it is crucial to register it with the Belastingdienst, which is the Dutch tax office. Enterslice can help you in obtaining the required tax identification numbers for income tax and VAT. This will enable you to claim VAT deductions on the investments made to initiate the business.

Why Choose Enterslice?

Enterslice believes in always putting their customer' needs before ours. We believe in travelling to any length to make sure that the job is done with utmost care without compromising our core beliefs and vision. Our services are tailor-made according to each and every specific customer's need. Achieving client satisfaction has always been our number one priority, and we do not like to compromise on quality. Our package contains attributes that make the process very convenient for the customer. We make sure that we do all the hustle and tackle all the hassles so that our customers are stress-free. We have managed to successfully earn the trust of our customers by diligently working to improve our services.

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Benefits of Company Registration in the Netherlands

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Political and Economical

According to the Global Economy rankings, which the World Bank gives under the Worldwide Governance Indicators (WGI) project, The Netherlands' government was the most efficient government in the world. In addition, the Netherlands has been accorded 2nd place as the best country to do business for an entrepreneur under the Global Entrepreneurial Monitor's report 2022. The Netherlands has a long history as a trading nation and a stable economy. The country values the economic contributions of the entrepreneurs.

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Legal and Social

The Netherland's legal system is fair, transparent, and well-equipped to deal with business, trade, and patent issues. There are specialized courts to deal with criminal and administrative issues and tax, planning, environmental, trade, and commerce law. In addition to the excellent economic climate, the Netherlands has a low cost of living and extraordinary quality of life. The country has a high quality of life, ranking 5th in the World Happiness Report 2021.

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Technological and Environmental

The Netherlands leads the world in the development of innovative technologies and materials for use in communication systems, aeroplanes and vehicles, medical devices, energy generation, and the manufacturing of semiconductors. It is in the 4th position in the EU Digital Economy and Society Index 2021 and is among the global leaders. The country ranked 1st in the world in material reuse rate and waste management, and the country has the second-best food sustainability system devoted to developing and serving as a model for the rest of the world.

Let's connect with Enterslice Company Registration Experts.

If you have any questions related to the process of company registration in the Netherlands, do not hesitate to reach out. Our experts will help you.

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necessary papers Required for Company Incorporation

In order to incorporate a company in the Netherlands, it is absolutely essential to have at least one shareholder. You can form a Ltd company with a share capital of just EUR1, making it a very convenient option. However, it is important to note that a registered address and a minimum of one director are required to establish a company. The list of necessary papers required for company incorporation in the Netherlands are listed below-

  • License consent and name reservation request
  • Duplicates of the current trade license.
  • Details about the company’s business domain.
  • The form for business registration has been finalized.
  • Power of attorney is settled with the firm's director or manager.
  • Share capital particulars.
  • Memorandum of AoA of the business
  • Board resolution for engaging the director of the administrators.

Advantages of Hiring Enterslice Company Incorporation Services

There are many advantages to hiring Enterslice's company registration experts. One of the main reasons a business owner must look forward to hiring Enterslice is that our packages are custom-made and are according to the needs of the client. We ensure that the clients have access to the correct sources of knowledge required for them to enter the correct domain and fields of business. Talking about setting up a company in the Netherlands, our experts will help you understand the policies as well as the tax regime of the country in the most convenient way possible. Some of the key benefits are- Compliance, necessary paperation, and End-to-end service.

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Frequently Ask Questions

A one-time cost of 75 EUR has to be paid to incorporate a new company in the Netherlands.

Yes, a foreigner can register a company in the Netherlands; all they need to do is get appropriate permits for the same.

Tax benefits are one of the most important benefits of registering your company in the Netherlands.

The standard corporate income tax rate in the Netherlands is 25.8%, which every business needs to pay.

Yes, the Netherlands is one of the best countries in the whole world to start a business.

Some of the key benefits of starting a business in the Netherlands are-

  • Strategic Location
  • Competitive tax rates
  • Innovation policies
  • Ease of doing business, etc.

According to the statistics, the Netherlands is the best European country to start a business.

Estonia and the UK are the cheapest countries to get your business registered.

Luxembourg is the richest country in the European subcontinent

Key benefits of incorporating a BV in the Netherlands are-

  • Tax benefits
  • Good local market
  • Excellent transport network, etc.

You can open a Dutch bank account, and Enterslice can assist you with that.
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Enterslice Company Incorporation Services

Enterslice is a leading consultancy company that provides its customers legal, financial, accounting, and business management services. We also provide services for business incorporation in over 30+ countries. Our packages are tailor-made to suit the needs of our clients. With a team of 50000+ lawyers and accountants, 50+ offices, and 10000+, Enterslice is a highly regarded firm to fulfil all your business needs. If you wish to register your business offshore, feel free to contact Enterslice's expert service providers.

We partner with more than 100+ companies

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