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The UK company has a high international legal status and a good image and is the registered place of most offshore companies in the world.
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The Netherlands, located in Northwestern Europe and bordering Belgium and Germany, is one of the most developed countries in the world. It is a member of the European Union (EU), the North Atlantic Treaty Organization (NATO), the Organization for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO).
Currently, nearly 8,000 foreign enterprises have established over 11,000 operational entities in the Netherlands. Among them, Chinese enterprises have set up more than 570 direct investment enterprises. The Netherlands is the third-largest destination country for Chinese enterprises' direct investment in the European Union. Most Chinese enterprises choose to leverage the Netherlands to access the European market.
Establishing overseas branches or representative offices in economically developed regions of Europe has become an inevitable trend for many enterprises' development. With China's economy continuously growing and its external exchanges deepening, more domestic enterprises are opting to establish branches or offices in Europe, often considering setting up subsidiaries in the Netherlands or multinational offices headquartered there. This operational model not only reduces operating costs but also offers more profit opportunities.
I.What are the advantages of registering a company in the Netherlands?
- 1.Broad Market Access:
As one of the world’s top three financial centers, the Netherlands boasts a mature and robust market system, coupled with a favorable legal framework, creating an excellent business environment for local enterprises. Moreover, being a highly developed capitalist society, the Netherlands fosters a strong business culture emphasizing integrity, which benefits foreign investors in expanding their business and accessing more customer resources. Additionally, as a member of the European Union, the Netherlands offers many EU welfare benefits and tax relief policies, significantly enhancing its competitiveness and providing numerous businesses with a superior investment platform.
- 2.Port and Logistics Hub:
With Europe’s largest seaport in Rotterdam and the latest China-Europe Railway Terminal in Tilburg, the Netherlands boasts advanced infrastructure and mature distribution networks. It is recognized as an ideal base for pan-European logistics operations, catering to both EU and non-EU customers. Leveraging its efficient transportation network, goods from the Netherlands can reach major European markets within 4 to 48 hours. Many multinational companies have set up European distribution centers in the country to better serve the European market. With the gradual opening of the European market, an increasing number of small and medium-sized companies have also established centralized European logistics operations, contributing to the Netherlands’ success in attracting these distribution centers.
- 3.Favorable Tax Policies and No Foreign Exchange Controls:
The Netherlands attracts foreign investors with competitive tax policies. Certain features of the Dutch tax system are highly beneficial for international tax planning, such as extensive tax treaties, double taxation relief, well-established tax ruling practices, participation exemption, and exemptions from withholding tax on interest payments and royalties. The corporate income tax rate in the Netherlands is 25%, lower than the EU average, providing a competitive advantage.
- 4.Open Business Environment:
Foreign companies investing in the Netherlands face no specific restrictions and enjoy equal rights in terms of laws and regulations compared to local companies. Companies established under foreign law can operate freely in the Netherlands through branch offices. Foreign enterprises and individuals can both be shareholders of Dutch joint ventures and enter into commercial contracts with Dutch companies and individuals. Additionally, companies can hire foreign managers and specialized professionals.
- 5.Highly Skilled Workforce, Most Open International Labor Union:
Dutch people are generally well-educated, proficient in multiple languages, and possess the complex skills required by a high-tech economy. This is one of the reasons why many multinational companies choose to establish their European headquarters in the Netherlands. The labor unions in the Netherlands tend to be moderate and serve the interests of the majority. The Netherlands is one of the most livable places in the world. Here, you can not only enjoy a high quality of life and a sense of home, but also work and live harmoniously and friendly with people from all over the world.
- 6.Cutting-edge Technological Standards, Comprehensive Legal Protection:
Especially in fields such as electronics, nanotechnology, aerospace engineering, water management, life sciences, chemical engineering, and food technology. The Dutch government highly values and supports cooperation between the Netherlands and China in the field of technology.
The Netherlands is a rule-of-law country with a comprehensive legal system and commercial regulations. Registering a company in the Netherlands can provide a more stable and reliable business environment and legal protection.
II.Netherlands Company Type: Besloten Vennootschap (BV)
- A Besloten Vennootschap, abbreviated as BV, is a privately held limited liability company that cannot issue shares to the public. There is no minimum capital requirement for establishing a BV, and founders can determine the issued capital and required paid-up capital. Different classes of shares with varying voting rights and profit-sharing rights can be created, including shares without voting rights. Shares without entitlement to profit or liquidation proceeds must always have voting rights.
- The articles of association may include transfer restrictions related to share transfers. Annual financial reports must be submitted to the Dutch Chamber of Commerce (KVK). Due to its flexible nature, the BV is the most commonly used corporate form in the Netherlands. It is often the preferred choice for individuals or small groups looking to establish a limited liability entity for business operations, or for foreign companies seeking to establish a holding company in the Netherlands for tax planning purposes.
- In general, a Besloten Vennootschap (BV) is the most popular and suitable choice for most overseas investors. The establishment process for this type of company is relatively short, with simple procedures. Opening a bank account and applying for a VAT number are also swift. Shareholders/directors do not need to be present in person.
III.What is required for Netherlands Company Registration?
- Company Name
Choose a unique company name and apply for registration with the Chamber of Commerce in the Netherlands (Kamer van Koophandel). The company name in the Netherlands must include the abbreviation of the company type, such as “BV” or “NV”. The registered company name must be in English and must not be similar or identical to the names of other companies. - Scope of Business
According to Dutch legal requirements, businesses in certain industries must register with industry associations. These industries include dairy, animal feed, horticulture, wine distribution, and hospitality. For specialized industries like banking and pharmaceuticals, obtaining relevant certifications and licenses is necessary. - Registered Address
To establish a company in the Netherlands, you must have a local office address. When choosing a registered address, it is crucial to ensure that it is not already registered for numerous companies, as this may affect obtaining a tax number later on. If a suitable registered address is unavailable, HuJia International can provide assistance. - Identification Documents for Directors and Shareholders
IV.Tax System in the Netherlands
- The tax system in the Netherlands is a composite system consisting of both income tax and turnover tax. Individual income tax, corporate income tax, value-added tax (VAT), among others, hold significant positions within the tax structure. These taxes, along with other direct and indirect taxes, collectively form the tax system framework in the Netherlands.
- The taxes imposed on businesses in the Netherlands can be mainly categorized into two types: direct taxes, including corporate income tax and prepayment tax; and indirect taxes, including value-added tax, excise duties, property tax, customs duties, environmental tax, and insurance tax.
1.Corporate Income Tax: According to Dutch tax law, both public limited liability companies (NV) and private limited liability companies (BV) are required to pay corporate income tax to the government based on their operating profits. The tax rate is 20% for taxable profits up to €20,000 and 25% for profits exceeding €20,000.
2.Value-Added Tax (VAT): The standard VAT rate for goods and services in the Netherlands is 21%, while a reduced rate of 6% applies to specific goods and services.