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Doing Business In The Netherlands - Common Asked Questions

As you may already know, entrepreneurship requires a lot of decisions. In particular, when you want to set up a company in the Netherlands or other overseas business. We list the most common questions and their answers to streamline the process and get you up to speed in minutes! Any question? Just call On Demand International and we can help you.

1. What is a Dutch B.V. (Besloten Vennootschap)?

A Dutch B.V. can be compared to a Private Limited Company. Some characteristics of the Dutch B.V. are:A Dutch B.V. has a legal personality with a share capital divided into a minimum of one share. The shares (along with voting rights) must be issued to an individual or a legal personality (private limited company). It is possible to appoint a single, non-resident individual or corporate entity as the director or shareholder, making the Dutch B.V. a very flexible entity. The shares of a Dutch B.V. are usually not freely transferable due to transfer restrictions by law or restrictions set out in the articles of association. Shareholders of a Dutch B.V. are not personally liable for losses of the company in excess of the amount which must be paid into shares.

2. What is the minimum amount of required share capital to set up a Dutch B.V.?

The minimum amount of share capital is €0.01 EUR.

3. What are the benefits of B.V. in the Netherlands?

Dutch B.V. is the most commonly used legal entity in the Netherlands.
BV can be seen as a “private limited company” that allows shareholders to easily build new businesses while allowing investors, other shareholders to participate and protect their companies (from bad acquisitions). Compared with “listed companies”, the establishment of BV is quite cheap and shareholders have limited liability, which means that if the company goes bankrupt, shareholders are not responsible for their personal assets and can only lose their investment in Dutch BV.

4. Am I limited in doing business within Dutch borders if I start a business in the Netherlands?

No, Dutch companies are not limited to trade in the Netherlands. Almost every Dutch corporate entity is allowed to participate in international trade. No huge trade barriers can hinder any corporate activity that is part of EU legislation. However, weapons, drugs, alcohol, tobacco and other products require special import and export licenses.

5. Which language can the company name be used in?

Company names can be expressed in any language using the Latin alphabet. Registrars can request Dutch or English translations to ensure that the proposed name does not violate the name restrictions.

6. What are the procedures and requirements for setting up a company in the Netherlands?

There are many potential issues to consider during Netherlands Company Formation. Which legal entity is best for your needs, registration with the Chamber of Commerce (KvK) and the Dutch tax authorities, residence permits, environmental regulations, selection of companies/business numbers, and registered employees are some examples that may prove to be quite difficult. In many cases, you will need to provide multiple legal documents and explain your expected entrepreneurial activities. With the help of the On Demand International, all these potential issues will be resolved as we deal with these issues on a daily basis. The exact procedure may vary in each case and we will do our best to guide you through the process.

7. What steps must I follow as a foreign investor/entrepreneur?

To start registering your company in the Netherlands, we need the following: your company name, your full name, date of birth, address and nationality of all directors, full name and address of all shareholders, company proposed business activities.

8. What is "remote formation"?

“Remote formation” refers to the act of including a company in a country that does not have access. For example, an entrepreneur from India wants to register Dutch BV in the Netherlands but has no time to come to the Netherlands. In this case, employees of the On Demand International can sign legal documents with the help of a power of attorney.

9. What is the procedure for establishing a Dutch company?

The exact procedures for the merger may vary depending on the urgency of the company entity and the request. However, you can follow the standard procedure roughly. Check out our company's establishment schedule.

 

Do you need advice on how to do business or Netherlands company formation.

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