If you plan to start a business in Europe, the Netherlands is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in the Netherlands, and is ready to share its results and help you choose the right jurisdiction. 

What are the main advantages of incorporating a company (business) in the Netherlands?

1. Promising location and access to the EU single market:

The Netherlands’ central location in Europe provides businesses with direct access to the EU single market, reaching a vast audience of consumers and partners. Companies registered in the Netherlands can trade freely with EU countries, benefiting from economic cooperation and the absence of trade barriers. This makes the Netherlands an attractive choice for businesses looking to quickly and easily enter the European market.

2. Favorable business environment:

The Netherlands is distinguished by its stable economy and sound legal framework, providing businesses with confidence and predictability. Entrepreneurs can count on support from the government, which actively promotes entrepreneurship and innovation. With a favorable business climate, companies benefit from a secure environment for development and opportunities for growth and expansion.

3. Favorable business environment:

The Netherlands is distinguished by its stable economy and sound legal framework, providing businesses with confidence and predictability. Entrepreneurs can count on support from the government, which actively promotes entrepreneurship and innovation. With a favorable business climate, companies benefit from a secure environment for development and opportunities for growth and expansion.

4. Encouragement of innovation and technology:

The government actively fosters innovation by allowing companies to adopt cutting-edge technologies and modernize. Through various programs and tax incentives, the government encourages enterprises to engage in innovative activities and creates a favorable environment for startups and tech companies. This makes the Netherlands an ideal location for businesses looking to grow and stay aligned with contemporary technological trends.

5. Highly skilled workers:  

The Netherlands boasts highly skilled workers, with many professionals fluent in multiple languages and possessing international experience. This creates favorable conditions for companies focused on global expansion and operating in a multicultural environment. With such experts, especially in innovative and technological sectors, businesses in the Netherlands have excellent prospects for rapid growth and success.

6. High quality of life:

The Netherlands offers a high standard of living, which includes an excellent healthcare system, quality education, and a safe environment. This makes the country attractive to foreign professionals, who can comfortably settle here with their families. Such a quality of life helps international companies more easily attract and retain talented employees, creating stable teams for long-term business success.

How to register a company in the Netherlands and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Verification and reservation of the company name at the Business Register (Handelsregister) of Netherlands Chamber of Commerce (KVK)
• Facilitating the notarial process for the company’s official registration
• Opening a bank account and depositing a minimum of €0,01 of the share capital
• Incorporating the company’s data into the Netherlands Chamber of Commerce
• Obtaining the Extract issued by the Netherlands Chamber of Commerce, Deed of Incorporation and Articles of Association
• VAT registration
• Obtain a business license or permits (if applicable)

Requirements for registering a company in the Netherlands on the example of a Limited Liability Company (LLC) / Besloten vennootschap (BV):

• Shareholders: the company must have at least 1 shareholder.
• Director: the company is required to have at least 1 director.
• Company secretary: no requirements.
• Minimum share capital: as starting capital, there is a requirement to pay at least €0.01 into the company. This can be done in cash, but also in kind.
• Legal address: every company must have a Dutch address.
• Liability: in a BV, the shareholders’ liability is limited to the amount they have invested in the company. The director is not personally liable for the company’s debts. The director is responsible for the repayment of loans or, in the case of proven mismanagement of the company, which led to serious consequences, for these consequences.
• Accounting: obligation to submit financial and tax reports to the Netherlands Chamber of Commerce.

What do you have to know about taxes when registering a company in the Netherlands?

Corporate income tax (CIT):

• The CIT rate of 25.8% for companies with the year profit of €200,000 and more.
• There is also CIT at the rate of 19% which applies to companies with the year profit up to €200,000.
• A reduced CIT is available to companies that make a profit from an innovative product or technology. It is called the innovation box. If your business qualifies, you pay CIT at a rate of 9%.

Personal income tax (PIT):

A person who is a PIT resident of the Netherlands is liable for income taxation at the following progressive rates:

• €0 to €38,098 – 9.32%
• €38,098 to €75,518 – 36.97%
• €75,518 upwards – 49.5%

Value-added tax (VAT):

• The standard rate is 21%.
• The reduced rates are 9% (food and drink, agricultural products and services, medicines, books, daily newspapers and magazines) and 0% (letting or selling immovable property, which is more than 2 years old; education; healthcare services; sports organizations and sports clubs; services supplied by socio-cultural institutions; financial services and insurances; childcare; care services and home care; services supplied by composers, writers and journalists; fundraising activities).

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in the Netherlands. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in the Netherlands, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in the Netherlands and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.