In addition to registering a new company, the Netherlands may also purchase a ready-made company. Investors can choose to set up a company in the Netherlands. This process requires submission of various documents, and he usually needs the help of a company-organized agent, or he can purchase a ready-made company.
It is now much easier to join a new Dutch company, so investors no longer need to buy a shelf company. Therefore, we no longer recommend buying a shelf company, we can provide a very smooth direct new company formation process in the Netherlands. However, we still recommend buying stocks of existing Dutch companies.
Benefits and risks of buying a ready-made company
One of the most important benefits of buying a ready-made company is immediate availability for a foreign investor. Because the transfer of the company can be made in just one day, the investor saves time and can start the activity the next day.
Some of the most popular types of ready-made companies have been incorporated and sold to foreign investors as private limited liability companies (BV in the Netherlands). This is a company that requires less capital than public capital and whose shareholders do not take personal responsibility for the company's debt; instead, their responsibilities extend only to the amount of investment capital. Investors who want to buy an existing company must consider any additional costs associated with such transactions. Our experts recommend using only trusted third parties who provide company procurement services.
Risks to consider include any debt or legal issues that may be related to an existing company. Our experts who handle company registration in the Netherlands can provide more information on how to accurately verify that the shelf company you plan to purchase has all the necessary documentation. The company's due diligence process is very useful before purchasing a ready-made company, and this process can also be used for other business transactions, such as mergers and acquisitions.
Other companies or any natural person can buy a shelf company in the Netherlands. The purchase process involves the identification of a person who purchases a shelf company, such as an identity card or passport or a company’s choice to purchase a certificate of registration for a ready-made legal entity. In order to conduct a transaction, all legal documents require the buyer and seller to sign at the notary office. Once the sales process is completed, the new company owner and other shareholders can change the company name and other details in the company charter.
If the company does not exceed one year, it must obtain a “no objection” certificate from the Dutch Ministry of Justice. After issuing this certificate, the company can start its business activities.
Dutch shelf company tax system
Once all the documents have been completed and the company is legally transferred to its new owner, the investor who purchased the company can benefit from the Dutch tax system to obtain dividends and capital gains as well as the double taxation agreement signed by the country. Our European company Formation Agents from the Netherlands advise foreign investors to hire accounting experts to handle all financial aspects of the new company.
Simple procedure to appoint company directors
The process of appointing a new company director is fairly straightforward and involves signing a document confirming that the current director resigns when appointing a new director. This procedure can also be completed if the investor is unable to be present by using the power of attorney.
Immediate transition to new directors and mentioned in the company registration certificate, memorandum and articles of association and other relevant company documents.
Once the shelf company is acquired by an investor, he can also hire an employee in the Netherlands. The country has talented and qualified talent, but foreign investors can bring non-residents to work for them in the Netherlands as long as they get a work permit.
If you have any questions about purchasing a shelf company in the Netherlands or need additional information about starting a business in the Netherlands, you can contact our International Business Consultants.
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