WHY DO YOU CHOOSE THE NETHERLANDS?
Discover the country
The Netherlands is one of the most open economies in the world and among the best countries for technology and innovation. It offers an outstanding infrastructure – including Europe’s largest port –, a competitive business climate and a strong treaty network. The Dutch tax system features several tax incentives to stimulate innovation and business activities. And as an internationally oriented country, the Netherlands is home to many highly educated foreign workers.
LOWEST TAX RATE
If you have started a business in the Netherlands and you are liable for income tax in the Netherlands, you may be eligible for the tax relief for new companies (startersaftrek). If you make use of this facility, you will pay less tax, because you are allowed to deduct a set amount from your annual gross profit.
The Dutch are better at speaking English than any other non-native country. According to research between 90% and 93% of the Dutch population claims to be able to hold a conversation in English.
Fact is that the Dutch get in touch with the English language early in life through television. This business-friendly country has always been a land of entrepreneurs with English language in order to compete on the global market.
GATEWAY TO ENTRANCE EUROPE
The Netherlands is located in the Western part of Europe and has maritime borders with the United Kingdom (west), Belgium (south), Germany (west) and the Scandinavian countries (north).Therefore, this country has a favorable geographical location within Europe, with its port in Rotterdam (the largest port in Europe) and its main airport nearby Amsterdam (Schiphol). As such, the Netherlands provide easy access to and guarantees fast delivery of goods across Europe and to the rest of the world.
The Dutch government, in cooperation with the StartupDelta initiative and the Dutch industry, has created a startup package with incentives for international startups: a startup visa, an 'Orange Carpet' programme, including organisations that can assist startups in setting up shop in the Netherlands, as well as a wide range of incubator and accelerator programmes.
The Dutch economic system is widely regarded as a model of consensus. Trade unions and employers’ organizations have close and regular contact and as a result thereof stability is maintained. The government interferes as little as possible in industrial relations.
Although the Netherlands is a relatively small country with a small population, it does have a large and powerful (open) economy. The Netherlands is well-known for its international trade as this is one of the main key elements in the economic system.
The government is supporting entrepreneurs, including startups, through its Ambitious Entrepreneurship Action Plan to:
Provide early-stage finance and attract foreign startups to the Netherlands through the StartupDelta initiative
Provide temporary residence permits for non-EU entrepreneurs, creating opportunities for them to start a business in the Netherlands
Develop the NLevator initiative – a platform created to help businesses grow faster
LEGAL STRUCTURES ADVICE
BV (PRIVATE LIMITED LIABILITY COMPANY)
The Dutch BV is the most frequently used legal form by foreign investors (for example: to carry out a business, for direct investments, as holding company, IP company, finance company, etc.) The Dutch BV has the advantage that the shareholders are - in general - not personally liable for legal acts of the B.V. Furthermore, the BV is easy to incorporate and it has no minimum capital requirement.
NV (NAAMLOZE VENOOTSCHAP)
Alternatively, one may decide to establish a NV (a public limited liability company), which is the obligatory legal form for stock listed companies, but which can also be used for non-listed companies. The NV requires a minimum capital of € 45,000.
The same rules apply to an NV concerning liability, tax, social security and continuity as apply to a BV. The same rules also apply to an 'NV in formation' (NV in oprichting or NV io) as apply to a BV in formation.
VOF (VENNOOTSCHAP ONDER FIRMA)
If you're looking to start a business with other self-employed individuals, one option may be to create a legal entity in the form of a 'general partnership', or in Dutch a vennootschap onder firma (VOF). All partners bring equity into the VOF in the form of cash, goods or labour, and no minimum start-up capital is required.
As a general partner, you'll be personally liable for the VOF's debts, even if another partner is responsible for causing the debts. Creditors initially make a claim on the business's assets and, if these are insufficient, on your partner's, then your and even your spouse's personal assets.
You can limit the effect on your spouse by drawing up a nuptial agreement.
Be aware that a partner who enters into a general partnership after its formation is also liable for debts that arose before he or she joined. A new partner should therefore examine the VOF's accounts fully and assess its financial position very carefully before entering into the partnership.
It is, however, possible for new partners to make agreements with existing partners about how any pre-existing VOF debts should be split. Partners leaving the VOF remain jointly and severally liable for any debts incurred up to the point of leaving.
Partners can also make agreements about how debts should be split on leaving the partnership.
If your partner has personal debts, creditors are not entitled to make a claim on his or her business assets or your personal assets.
NON PROFIT ORGANIZATION (STICHTING)
If you're looking to support a given social or not-for-profit cause, e.g. nature conservation, cultural heritage or a charity, one option may be to create a legal entity in the form of a 'foundation', or in Dutch a stichting.
A stichting has a board, but no members. It may also be a business, but its profits must be allocated to the foundation's cause or purpose. The foundation's officers can even be paid employees, although this is not often the case. Generally speaking, officers only receive remuneration for their expenses.
It is not permitted to employ an executive officer if a stichting has a 'public benefit organisation' (PBO) status, or in Dutch algemeen nut beogende instelling (ANBI) status. It may, however, employ staff.
Most people decide to set up a 'sole proprietorship', or in Dutch an eenmanszaak, when starting a business for themselves. It's quick and easy to do, and often offers more tax benefits than setting up a BV especially in the early years. The downside of establishing yourself as a sole proprietor is that you're personally liable for your business debts.
Dutch comparative company law recognises all foreign legal entities except sole proprietorships. A branch of a foreign company operating in the Netherlands [Dutch: nevenvestiging or filiaal] does not need to register as a separate legal entity, but it does have to be listed in the Dutch Commercial Register (Handelsregister).
Starting a branch office in the Netherlands is also a possibility. Ongoing business operations conducted in the Netherlands on behalf of a foreign business constitute a 'branch'. A branch may be a sales office, a production facility or even a representative office. It doesn't need to have its own independent legal form if it's part of a foreign business
OUR CORE VALUES
Discover your benefits from our incorporation services
If you are still confused about the business environment in the Netherlands, Germany, and Europe in general (legal form, certification, taxes, etc.). Don't hesitate to contact us. Our business specialists are always willing to answer your questions and give you practical solutions. We make sure you only start the process of incorporation when you are sufficiently informed.
Yan Incorporation has worked with many startup companies. We are aware that cost is the main drawback when starting a business. Understanding this aspect, our quotes are feasible and flexible. Our fee is a 1-time price with no hidden charge. We value sustainability and operate in a way that leaves our clients ready to carry their operations right away.
Besides owning professional qualifications from many reputable law universities, our specialists are very enthusiastic and adopt positive thinking when assisting you. Starting a business in a new country can be stressful but we still guarantee to give you practical solutions in the calmest way possible.
We aim to reply to you within 24 hours
Our clients approached us not only for opening company, but also the sustainable development of their business in the future. Understanding this thing, Yan Incorporation's mission is connecting you with other entrepreneurs and trade partners in the Netherlands and Europe base on our broad business relationship.
If you’re ready to succeed, we are ready to help. Call us today to set up a consultation.