Are you looking to expand your business operations and register a company in the Netherlands? If yes, then this article will give you an idea of the process for company formation in the Netherlands. The Netherlands is an amazing place for investment in the European Union.
One of the main reasons investors opt for this country is the ease of doing business there. But, it is best to have a clear idea about the registration process for a company in the Netherlands before investing. The Netherlands allows you to set up different businesses such as a public limited company, called naamloze venootschap (NV), or a private limited company, also known as besloten vennootschap (BV).
Most people choose to go for the private limited company (BV) business structure since it gives them benefits such as lower tax rates. Let’s go over the process so you can have a better idea about how to start a company in the Netherlands.
Company Formation in the Netherlands: The Step By Step Process
There are a few things that you need to keep in mind for the Netherlands company registration process. While the process is easy and doesn’t involve too many technicalities, it is better to get an expert’s advice to properly set up your business in the Netherlands.
You can take compliance services to ensure you comply with all the legal formalities that go behind setting up a business in the Netherlands. Moreover, you must also have a better idea about the taxation system. Let’s go over the step-by-step process to set up and register a company in Netherlands .
Step 1 – Pick a Business Structure (rechtsvorm)
The first thing you need to do when setting up a company in the Netherlands is to choose the right business structure. It is crucial to pick the ideal business structure that is suitable for your needs.
Also, the business structure you choose will determine the taxes and the legal formalities that you have to fulfill. If you are forming a private limited company (BV), you can collaborate with a legal notary to draw up the articles of association.
Step 2 – Choose a Name for Your Company and Write a Business Plan
Now that you have picked the business structure, the next step entails choosing a name for your company. You can also apply for a trademark to ensure your business identity is safe. Moreover, you can do some research and discuss with your team the name that would be suitable for the Dutch market.
Another thing that you need to do is write a business plan that complies with the guidelines set by the Dutch Civil Code. The business plan should entail the main objective of your business, projections of the total expenses, financial statements, and other relevant things.
Step 3 – Register with the Dutch Business Register and Dutch Tax Administration
The next step is to register your business with Dutch Business Register and Dutch Tax Administration through the Netherlands Chamber of Commerce, Kamer van Koophandel (KVK).
An important thing to note is that both public and private limited companies need to have a civil law notary that can help them with this process. The notary will also take care of the VAT (Value Added Tax) registration process that is necessary for the Netherlands company formation.
Step 4 – Choose the Right Place and Apply for the Relevant Permits and Licenses
When we talk about doing business in the Netherlands, the location is a critical factor to enjoy good returns on your investment. Moreover, it will also allow your business to quickly establish itself.
You need to ensure that the area you are choosing for your company in the Netherlands should align with the municipal zoning plan (bestemmingsplan). If that is not possible, then you need to apply for an Omgevingsvergunning, which is an all-in-one permit that allows you to carry out your operations anywhere in the country.
Step 5 – Understand the Netherlands Tax Structure
Before commencing your business operations, you need to have a proper understanding of the corporate tax rate in the Netherlands. It will give you an idea of how much tax you would have to pay on your total business revenue.
It is best to have a separate business account to make all business-related transactions. Besides the corporate tax, there are some other taxes that you need to learn about, such as:
Wage tax (loonbelasting)
Value Added Tax (omzetbelasting)
Income tax (inkomstenbelasting)
We hope you now have a clear idea about how to start a business in the Netherlands. It is an exceptional place for starting a new company or for expanding your business into an international market.
You can always take corporate services to ensure you take all relevant steps to set up a business in the Netherlands. They can also help you understand the Netherlands tax structure and the payroll laws so you can hire local talent.
Is the Netherlands an optimal place to form a company?
The Netherlands is the best country in the European Union that allows you to set up a company through a hassle-free process. You can tap into a new potential market with easy access to a highly skilled and educated workforce.
What is the time duration to open a company in the Netherlands?
The time duration to open a company in the Netherlands will vary from case to case. Nevertheless, it would only take a few weeks or even days to start your business in the country.
How much capital would I need to start a company in the Netherlands?
The total cost that you would incur to incorporate a standard private limited company in the Netherlands is around €1500. This amount doesn’t include the VAT so keep that point in your mind.
How long will it take for me to get my business visa in the Netherlands?
Normally, it would take around 15 to 20 days for you to get your visa. However, it can take longer than that since the officials might request additional documents.