The Netherlands is a good jurisdiction for company registration. But, it is also not as popular as it should be. The country has a good location that opens European markets. The Netherlands is also a reputable jurisdiction for many banking institutions. These are only the basics of aspects we want to emphasize. Prifinance specialists may consult you more precisely about the exact suitability of this jurisdiction for your concrete business.
Types of Companies and Legislation
If you chose the Netherlands for a company formation, you may do this in one of these most common forms:
- Partnership may be (a) general – partners are independent and are in charge for their obligations in common business individually (a corporate agreement is highly desirable here); (b) limited – it has (i) one or several general partners who are in charge for the day-to-day partnership’s operation and bear full liability for its debts and (ii) limited partners who are more investors in nature whose liability is limited to the number of their contributions only
- Private limited liability company – an entity (i) where shareholders' obligations are limited to the number of their shares only and (ii) with no minimum share capital requirement.
- Public limited liability company – suitable for arranging large business and requires EUR 45 000 of the share capital
The legislation in this jurisdiction had been substantially amended in 2013. It enables to register a company in the Netherlands within 2-4 weeks only either personally or by your attorney. The legislation remains stable since that time, and this adds bonuses to this jurisdiction's profile. All information about companies is kept in the Commercial Register of the Netherlands.
Registration Procedure
Both foreign natural and legal persons may start a company in the Netherlands. The company formation procedure envisages the next stages:- Choosing your future address and business name.
- Forming a set of documents: Memorandum and Articles of Associations, сorporate agreement (optionally and advisable if you are going to found a company along with your business partners), registration forms, information about founders
- Referring to a notary for executing documents.
- Lodging the set of documents for the registration to the Commercial Register of the Netherlands
- Obtaining a Tax Identification Number.
- Opening a corporate bank account.
Why Netherlands May Turn to Be a Good Choice?
After starting a company in the Netherlands, you may enjoy these benefits:
- Developed economy and openness to major European markets
- Zero currency control
- Plenty of DTT (double-tax treaties) – secure you from paying taxes twice
- Transparent legal system
- Affordable registration value and the share capital requirements
Tax System
The tax system of the Netherlands is very flexible, with a lot of advantageous tax regimes for different operations. Here are the major highlights:
- Corporate tax rate – 25 %
- VAT rate – 21%
- Taxation of dividends – 15%
- The preferential tax regime for companies that create IP products
- Taxation of capital gains and royalties is absent
Prifinance specialists can consult you more precisely about opening a company in the Netherlands or any other jurisdiction that you may find suitable for your business. We can arrange that registration process for you and are ready to discuss it with you more precisely.