Company Registration in the Netherlands With 3E Accounting
Experience a strategic European business hub by venturing into the Netherlands, a dynamic nation renowned for its thriving economy and investor-friendly policies. At 3E Accounting, we’re your dedicated partners in navigating the process of company registration in the Netherlands, We believe it’s our responsibility to ensure your journey into the Dutch business landscape is both smooth and successful.
Diverse Company Types and Ideal Business Ventures for Foreigners
The Netherlands offers a range of company structures to match diverse business needs. You should opt for a Private Limited Liability Company (BV), as its difficult for foreigners to get permits for sole proprietorship or partnership. Branch offices and subsidiaries also serve as attractive options if you’re looking for international expansion.
Taxation and Financial Framework
Benefit from the Netherlands’ strategic tax structure, featuring competitive corporate tax rates. While corporate income tax varies, a BV can take advantage of the innovation box regime, resulting in a reduced 7% tax on qualifying profits.
Corporate Tax
The corporate income tax rate is 25.8%, comprising a 19% rate on profits up to EUR 200,000 (previously EUR 395,000 until 1 January 2023), and a 25.8% rate on the exceeding amount, with no additional surtaxes or deductibles, resulting in an effective tax rate of 25.8%. A reduced rate of 9% applies under the Innovation Box regime for qualifying innovative activities
Wage Withholding Tax
The wage withholding tax, also known as the payroll tax, is deducted from employees’ salaries and varies based on their income and personal circumstances. It includes income tax and social security contributions.
Value Added Tax (BTW)
The standard VAT rate in the Netherlands is 21%. There’s also a reduced rate of 9% that applies to specific goods and services like food, books, medicines, and cultural events.
Indirect Taxes
Excise duty, taxes on legal transactions, environmental taxes, import duties, and other indirect taxes can vary widely depending on the specific goods or services being taxed.
Swift Registration Process and Bank Account Opening
Company registration in the Netherlands typically spans 1 to 2 weeks. You will not need a physical presence during registration as we will do everything for you.
Within approximately 24 hours of incorporation, your company will be officially registered with the Chamber of Commerce. This registration grants you a unique company number (known as kvk-nummer), enabling you to proceed to a bank and initiate the process of opening a dedicated business account.
Shareholders and Ownership Structure
A BV demands a minimum of one shareholder, allowing sole foreign ownership. The initial share capital requirement of €0.01 ensures an accessible entry point. But note that your application will be reviewed on a case by case basis to verify you have the investments required for your business idea.
Visa Prerequisites
Depending on the duration of stay and nationality, entrepreneurs may require either a Short Stay Visa for business trips within 180 days or a Provisional Residence Permit (MVV) for stays exceeding 90 days.
Securing a Residence Permit is necessary for extended stays, and self-employed individuals must demonstrate their economic significance to the Dutch economy. Additionally, work permits are often integrated into the residence permit for entrepreneurs, with the Chamber of Commerce (KVK) aiding in business registration.
Remember to also acquire a Citizen Service Number (BSN) for various government services. 3E Accounting will help you with all of these.
Mandatory Documents for Successful Company Registration
Prepare these documents to streamline your company registration:
- Chamber of Commerce registration extract.
- Articles of Association.
- Proof of registered office address.
- Identification documents for shareholders and directors.
- Deed of Incorporation.
- Tax Identification Numbers (TIN) for directors.
- Relevant licenses and permits.
- Passport-sized photos of key individuals.
- Navigating the Company Registration Process in the Netherlands
The Steps Involved in Company Registration in the Netherlands
Here are the steps to follow to register a company in the Netherlands:
- Secure a unique trade name and verify its availability.
- Draft and notarize Articles of Association.
- Obtain a Chamber of Commerce registration extract.
- Furnish identification documents for shareholders and directors.
- Validate the registered office address.
- Acquire necessary licenses and permits.
- Procure Tax Identification Numbers (TIN) for directors.
- Complete the Deed of Incorporation.
- Submit required documents and registration forms.
- Make the essential registration fee payment.
Why Choose 3E Accounting for Your Dutch Business Venture?
With 3E Accounting, you’re equipped with unparalleled expertise in navigating the Netherlands’ company registration process. Our seasoned professionals ensure meticulous compliance, seamless procedures, and an effortless registration journey, marking the beginning of your prosperous business voyage in the Netherlands.