Wednesday, April 25, 2018

The benefits of opening a company in the Netherlands

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.