The Netherlands is a kingdom, officially known as the Kingdom of the Netherlands. It consists of the Netherlands itself and three islands in the Caribbean Sea, which are: Aruba; Curacao and Sint Maarten.
Holland’s strategic location at Europe’s front door provides the perfect springboard into the European market. Netherland’s strong transport infrastructure boasts short travel times and easy access to practically every major city in Europe and the world. From its infrastructure and international workforce to language and lifestyle, the Netherlands is a great place for anyone with an entrepreneurial mindset.
Schiphol airport is one of the busiest in Europe, with flights to more than 320 direct destinations., while the Dutch rail networks provide quick rail connections to Belgium, Germany, and France.
There are several types of companies which can be registered in the Netherlands, one of the most advantageous ones being the limited liability company (LLC), also known as the Besloten Vennootschap (BV). A Dutch BV is a company divided up into shares. These shares are not freely transferable and are privately registered. The main benefit of a BV is that it’s an autonomous entity; this means that the LLC is liable for any debts, rather than you as an individual.
A Dutch LLC may be incorporated by one or more ‘incorporators’, being either individuals and/or legal entities.
2012 changes to BV requirements
In the past, the requirement of 18.000 euros issued shared capital to start a BV has been dropped. However, in 2012 the Dutch government revised company law to make it more flexible and efficient for investors to establish a BV. From October 1, 2012, founders are only required to put up 0,01 euros capital to establish their BV, and additional documents such as bank declarations and auditors’ certificates are no longer necessary.
Here are the main advantages of setting up a business in the Netherlands:
- Holland has one of the lowest tax rates in Europe: starting from 20%
- Companies do not need to charge any VAT for transactions between European member states.
- The Dutch offer the largest number of treaties for double tax avoidance worldwide
- Dutch companies have an amazing and well-known reputation in global (e-)commerce
- More than 90% of the Dutch speak English and often a second foreign language, like Spanish and French, too
- The Netherlands has a highly educated labor force. The country has a great rating on primary education, higher education, and training. It has received third place in the global top for education level.
- The Netherlands offers an amazing and innovative international business atmosphere
- The country offers a very stable legal and political climate as well as outstanding international relations
The Dutch participation exemption regime referred to as PEis a major attractor of companies; according to this tax exemption capital gains and dividends generated by an eligible shareholding are exempted from taxes
Generally, all local companies are liable for corporate income tax, or CIT, based on their income generated worldwide. For-profits of up to 200 000 Euro the CIT rate is 20 percent; in case the profit exceeds this threshold the CIT rate goes up to 25 percent.
Doing business in the Netherlands is an attractive prospect thanks to its strategic position in Europe and its internationally-oriented economy that offers plenty of opportunities. Holland is the place to choose!