5 things to note before setting

up a Dutch BV company

in the Netherlands

Why do you choose the Netherlands?

Discover the country

The Netherlands is one of the most open economies in the world and one of the best countries for technology and innovation. It provides excellent infrastructure (including Europe's largest port), a competitive business environment and a strong treaty network. The Dutch tax system has various tax incentives to stimulate innovation and business activities. As an international-oriented country, the Netherlands has many highly educated foreign workers.

Minimum tax rate
 

If you start a business in the Netherlands and you are responsible for paying income tax in the Netherlands, then you may be eligible for a new company tax relief. If you use this tool, you will pay less tax because you can deduct a certain amount from the annual gross profit.

English conversation
 

Dutch people speak English more than anyone in a non-native country. According to research, 90% to 93% of the Dutch population claim to be able to conduct conversations in English.

The fact is that the Dutch have kept in touch with English through television since childhood. This business-friendly country has always been the land of English-speaking entrepreneurs in order to compete in the global market.

Gateway to Europe
 

The Netherlands is located in western Europe and has maritime borders with the United Kingdom (west), Belgium (south), Germany (west) and Scandinavian countries (north). As a result, the country is strategically located within Europe, with its major airports near Rotterdam (Europes ’s largest port) and Amsterdam (Schiphol). Therefore, the Netherlands provides convenient access and guarantees the rapid delivery of goods throughout Europe and the rest of the world.

Sustainable economic development
 

The Dutch economic system is widely regarded as a model of consensus. Trade unions and employers ’organizations maintain close and regular contacts and therefore maintain stability. Government intervention in labor relations is as little as possible.

Although the Netherlands is a relatively small country with a relatively small population, it does have a large and powerful (open) economy. The Netherlands is famous for its international trade because it is one of the main key elements in the economic system.

What is Dutch BV?
 

The Dutch version of a limited liability company is called a ‘BV’. Just like a LLC, a BV isa company whereby the shareholders are only (financially) liable for their investment in the company, and not personally liable for any debts, one of the reasons why the Dutch BV is the most preferred company type for foreigners.

Okay, so who is the owner?
 

Dutch BV is owned by shareholders who are privately owned by its shareholders. At least one shareholder is required. Shareholders can be individuals or legal entities, and can be Dutch or foreign.

If it is a shareholder, the details of the shareholder are publicly available in the Chamber of Commerce. If there are multiple shareholders, detailed information will not be provided publicly, only BV's board of directors lists.

Do I need to carry large amounts of cash as equity?

Since October 2012, the Dutch government has relaxed the requirements for BV to stimulate entrepreneurship, and the minimum share capital has been reduced from 18.000 euros to 0.01 euros.

It ’s clear, how do I start registering?

A Dutch BV can only be incorporated by a notary public. Once all shareholders have agreed on the draft deed of incorporation, the deed will be executed by the notary. Once incorporated the BV will be submitted at the trade register and tax authorities. A notary public can execute the deed based on a Power of Attorney, so no actual presence is needed.

To start the establishment of the Dutch BV, we only need information, such as the number of shareholders, detailed information about each shareholder, and the main activities of BV. According to Dutch law, the deed will be drafted in Dutch. However, because shareholders must understand what they are signing, they need to translate. If you want to view the free draft of the company's articles of association, please contact us.