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Setup Business outside India

Netherlands

Overview

Netherlands is well positioned for export and import of goods and services and is considered to be a great way of entering the European market. It is considered to be as the most competitive market in Europe and encourages innovative companies providing large benefits for research and development.

Benefits of setting up in Netherlands
  • Formation of entities with distinct identity such as private company, public company and limited liability partnership;
  • Negligible minimum capital requirement;
  • Simplified tax payment system;
  • Dividends and capital gains are tax exempt, if less than 50% of the assets are passive;
  • Allow 100% foreign shareholding;
  • No annual audit required to be undertaken;
  • Permission to carry forward business losses;
  • Highly skilled employees available due to high literacy rate;
  • Least corruption.

Types of entities in Netherlands

LLC(BV)
  • Netherlands provides setting up a Private Limited Company without any minimum capital requirement.
  • Annual audit is to be undertaken and submitted with Dutch Tax Authority and such company is considered a resident for tax purposes.
PLC(NV)
  • A public limited company is setup in Netherlands merely for the purpose of raising public funds and listing the shares on stock exchanges.
  • A NV requires a minimum capital of €45,000 and is registered with Dutch Chamber of Commerce.
Branch Office
  • A branch office can be setup in Netherlands by a foreign entity and is not treated as a separate legal entity;
  • Additionally, any liabilities incurred by the branch are attributed to the parent company and the branch is liable to pay corporate taxes.
Representative Office
  • A representative office can be setup by a foreign company to assess and research business opportunities in Netherlands.
  • Such office cannot make any direct sales and thus, exempted from corporate taxes;
  • Registration to be obtained with Dutch Chamber of Commerce in case of representative office.
Comparison of entities in Netherlands
LLC(BV) PLC(NV) Branch Office Representative Office
Legal Status Separate Legal Entity Separate Legal Entity No separate identity No separate identity
Limited Liability Yes Yes No No
Minimum Capital €1 €45,000 None None
Limit of shareholders/ partners Minimum 1 Minimum 1 Parent Company Parent Company
Requirement of Director/ Manager Minimum 1 but for access to DTAs, atleast 1 resident director is required Minimum 1 but for access to DTAs, atleast 1 resident director is required 1 Resident Agent 1 Resident Representative
Requirement of Company Secretary None None None None
Registered Office Address None None None None
Opening of Bank Account Mandatory Mandatory Mandatory Mandatory

Services offered by CorpAcumen Global

We at CorpAcumen Global assist you in identifying best suitable entity considering the goals of your businessand thereafter initiate the setting up process

  • Submit incorporation documents with the authorities in the preferred state
  • Provide registered office and local company secretary
  • Post incorporation, assist in opening of bank account with suitable banker
  • Obtain necessary licenses for the type of business
  • Provide services pertaining to accounting and taxation
  • Ensure continual compliances post incorporation, both event as well as annual based