Starting a Business in the Netherlands from Abroad
Template:CleanupIs it even possible? Starting a Dutch BV from abroad? And is it only for large companies or also for small entrepreneurs? In this WikiHow we will explain which steps you can take to do business in The Netherlands, from anywhere in the world! The steps include:
- Finding the right partner.
- Six clear steps.
- Staying on top of developments.
- Knowledge you should have
- How to proceed after establishment.
- Taxation
Steps
- Finding the right associate Starting a company from abroad requires very specific knowledge. You need to know exactly which steps to undertake to comply with all fiscal, legal and other legislation after all. But how do you identify the right partner to help you with this? It’s very easy, just ask the following questions:
- How does the process of starting a company (usually a Dutch BV) in the Netherlands from abroad work?
- Can a non-resident also start a company in the Netherlands?
- Why does the Netherlands have a more advantageous business environment than many other European countries?
- What is better: a Dutch BV or a regular branch / affiliate office?
- Starting a company from abroad in the Netherlands can be done by basically following these 6 clear steps:If you prepare everything accordingly (or let your partner take care of it) you can start a company from abroad in less than 14 days. Starting a company in the Netherlands from abroad is a specialized field of expertise, however. Research has shown that successfully starting a company is dependent on taking the rights steps and actions at the right time.
- You pick a company name, write down your company details and send your application to a partner that’s going to help you establish everything (unless you already know everything and want to do it yourself).
- You will receive an application form with additional questions. You will need to answer these and submit it to the partner you picked in step 1 in order to establish your Dutch BV as fast as possible and with 100% accordance to the law.
- Your partner will prepare everything for the notary. A visit to the Netherlands is not always mandatory for this step.
- The notary will enroll your new company in the register at the Dutch Chamber of Commerce (Kamer van Koophandel).
- You or your partner sends an application for a Dutch VAT number (btw-nummer) to be used for the Internal Revenue Service (Belastingdienst).
- Using your Dutch VAT number and Chamber of Commerce registration you apply at a bank to receive a business account.
- Staying on top of developments. Outsourcing does not mean you should not be involved at all. Make sure you know what’s happening, who is doing what and why. You should always know whats happening at your company regardless of size. Why start a Dutch BV?
- The Netherlands still has a very good business environment
- It still has one of the lowest tax rates, even in 2021
- It is number 4 on the list of most innovative and competitive countries in the world
- 93% of the population speaks English
- Very good entry point to the Eurozone
- Knowledge you should definitely have. The minimum requirements for starting a Dutch BV are:
- 1 Euro starting capital
- 1 Shareholder
- 1 Director (not necessarily to be Dutch)
- 1 (Virtual) Office Address
- How to proceed after establishment?Good job! Your company has been formed. You submitted all relevant papers, visited the notary, received a Chamber of Commerce registration, VAT number and you have everything you need to start doing business in our country. You covered the basics but the real challenge starts here. Make sure to stay compliant with all rules and regulations within the Netherlands even after forming your company. You can achieve this by choosing a partner that not only helps you form your company, but also provides support for accounting, taxes, secretarial activities and has knowledge of required legal fields. In the meanwhile, make sure you read the following tips and warnings.
- Taxation: The Netherlands is lowering the corporate tax rate from the 2020 corporate tax rates of 16,5% and 25% respectively to 15% up to €200.000 from 2021, and 21,7% for amounts above €200.000.
Tips
- The right partner will answer the basic questions as mentioned in step 1 quickly and clearly. If it takes a long time and the answer is not clear then you should move on to another partner.
- The Netherlands on the global stage. Despite all the benefits, the Netherlands can be a strict country. There are clear fiscal and legal rules regarding companies. Make sure these are strictly followed before and after starting a company (even if your partner takes care of these things).
- Carefully think about your company name. How does it sound in Dutch and does it have any other meaning here?
- What distinguishes you from your competitors? (USPs)
- Which KPIs will you use to measure success?
- Only do business with professional and reliable partners.
- Ask for references and customer reviews.
- Ask which track records your partner can provide.
- Keep in mind that you are responsible for what happens, even if you outsource.
- The Dutch government has made a website explaining more about doing business in the Netherlands
- Government website with practical tips for foreigners
Warnings
- Starting a company properly means having access to the good and or renowned notaries, (international) tax advisers, consultants, lawyers, tax specialists, recruiters and professionals in the field of e-fulfillment, transport, warehousing, import, immigration and more is of utmost importance to have a good start. As for many other things your best bet is to outsource this to another specialized party if it is not your strong suite. The risk of damaging your reputation, having a bad start or any other legal consequences or liability is very big if you do not know exactly what you’re doing.
- Just establishing a company in the Netherlands may not be enough to receive a Dutch VAT number. A legal justified Dutch BV is required to have an EORI-number in addition to the required VAT number. If you’re not sure what this is and how this works you can contact a company which had a positive rating according to CBC News.
- Beware of hiring advice from persons which are not aware of the latest legal and fiscal rules.
- Keep track of what happens, even after you form your company. A good partner will offer provide this service automatically.
