The Netherlands offers very advantageous conditions for the establishment of investment funds. Among these, the legislation which incorporates the most important EU directives and the tax benefits are what attract professional foreign investors. When it comes to the type of entities, one can choose from several legal structures which can be legal or contractual. Among the structures with a legal personality one can choose between the limited liability company, the investment company, the partnership and the cooperative, while the contractual form available is the fund for joint account.
Our Dutch company formation agents can assist foreign investors with the establishment of investment funds.
The cooperative is highly employed for investment purposes in the Netherlands because it is very easy to set up. The cooperative can be defined as an association and investors must only draft a deed which will be notarized in order to set it up. The Dutch coop for investment will also have a legal personality.
One of the most important advantages of the cooperative is that is does not require a minimum share capital, however when used as an investment fund vehicle the investors must respect the requirements of the Dutch financial supervisory authority related to solvency. Also, the capital can be expressed in any currency.
When setting up a cooperative for investment purposes in the Netherlands the participants will enter in member accounts and will have voting rights which will be stipulated in the coop’s constitutive documents. These documents must also be filed with the financial supervisory authority for approval.
The greatest advantage of Dutch coops over investment companies is that they can limit the liability of the participants. Also, from a taxation point of view, the Dutch cooperative can benefit from withholding tax exemptions when distributing the profits to investors no matter their resident country. This is also what differentiates Dutch cooperatives from investment vehicles in other countries.
For assistance in setting up a coop for investment, please contact our company registration consultants in the Netherlands.