Foreign investors are attracted to
open different types of companies in the Netherlands due to the facilities
offered by Dutch authorities and the favorable legal framework. Some of the
most preferred types of companies to be incorporated in this country are
holding companies and BVs, also known as limited liability companies.
The main advantages for
incorporating a Dutch holding as a limited liability company are: low taxes, low
costs with the incorporation process and low maintenance costs. The holdings can
deduct certain expenses and losses and they benefit from low or zero taxes for profit repatriation.
They are not subject to foreign currency exchange regulations and they benefit
from the large network of double tax treaties signed by the Netherlands with
other countries. Some of the main benefits resulted from the double tax
treaties are: no capital gains tax and withholding tax on dividends, no issues
related to the double residency and permanent establishment matters, reduced
taxes on interest and royalties incomes. There is no legal requirement for
holding companies to hire employees. They benefit from a simple incorporation
procedure, with no minimum share capital, no audit required for contributions in
kind or acquisition of assets etc.
The legal framework for holding
companies in the Netherlands is one of the most attractive in Europe.
Foreign investors are also
interested in opening limited liability companies in the Netherlands, known as
BVs, as the incorporation procedure was simplified and the costs are reduced.
There is no need for a minimum share capital, at least
one shareholder is required and he/she can also be a manager of the company.
The BV can be formed by a lawyer or company formation agent and the investor
doesn’t have to be present in person in front of the Dutch authorities. He/she
will benefit from low taxation, a prosperous local
market and a developed transportation network.
