Company in The Netherlands

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorporation in The Netherlands

The Netherlands has one of the strongest economies in the world, 6th most important in the EU and 16th in the world. Nonetheless, the country is still looking at foreign trade to account for more than half of its GNP. The Dutch economy is seen as an open economy, with little interference from the government.

Types of companies

There are several types of businesses for foreign investors:

•Limited liability company (BV)

•Public limited company (NV)

•Partnership

• Branch

Limited liability companies (BVs) are the most common corporate status of medium and large businesses. They are usually used by foreign companies to become established in the country.

Tax system

Although The Netherlands has a complex tax system with relatively high tax rates, it is still very attractive and the ideal place for international trade. In some cases, a complex network of double taxation agreements can completely avoid taxation.

Under EU law, the free movement of capital is the rule.

Foreign investors are offered a series of tax incentives included in the 2010 Fiscal Plan and intended to render the formation of a company easier and therefore more attractive. The government also offers financial incentives. In particular, a 5% tax on income derived from R&D and subsidies for spending on renewable energy.

Accounting

In accordance with standard practices in the EU, companies must register and submit annual accounts to regulatory authorities. Annual audits are obligatory for larger companies.

Tax rate

• Income tax: 20% up to 25,000 , 23.5% up to 60,000 , and 25.5% beyond that• Tax on capital gains: 25.5% • Tax on interest and royalties: 0% (For a stake of at least 25% in the other company) • Tax on interest: 5% • Income of foreign companies: 20% up to 40,000 , 23.5% up to 200,000  and 25.5% beyond that• Tax on capital gains: 15% • VAT: 19%

Minimum capital

18,000 € (20% paid at creation)

Shareholders

Minimum of one associate

Foreign shareholders

Yes

Foreign holding

Yes

Legal obligations

Mandatory audit of annual accounts

Deadline

6 weeks from the receipt of all documents

Headquarters

Business address, telephone transfer, fax, and mail. Possibility of having a physical office (prices vary depending on demand)

Accounting

Annual financial report, schedules, and management reporting mandatory, based on an estimated number of monthly bills and a forecast of annual turnover.

Company registration procedure

Taxes and finances

Local labor law

Other information