The Advantages of Opening an LLC in the Netherlands

The Netherlands is a very appealing investment destination and many entrepreneurs from all over the world come and open companies here. When it comes to starting a business, the type of structure chosen will make a significant difference in the future of the company. There are several types of companies which can be registered in the Netherlands, one of the most advantageous ones being the limited liability company, also known as the BV.

Below, our Dutch company formation specialists explain the advantages of starting a BV in this country. More than that, we can help you register such type of company in the shortest time possible.

Brief enumeration of the Dutch BV’s advantages

In order to understand what the advantages of the Dutch BV are, our local consultants have enumerated them below. These are:

• -          it represents one of the simplest ways of starting a business quickly and securely in the Netherlands;
• -          it benefits from a special taxation regime and can be used for various purposes;
• -          the BV also has a simplified version, which is called just like that: the simplified BV;
• -          it offers equal protection to local and foreign investors when it comes to their personal assets;
• -          those who decide for a sole proprietorship can later convert it to a limited liability company;
• -          the Dutch BV can be used as a holding company for owning and managing other companies.

Our company registration agents in the Netherlands can offer detailed information about the benefits of registering a BV.

Registering a Dutch BV is very simple

The first advantage on our list above was the fact that the registration of a limited liability company is quick, plus it represents a secure way of starting a business in the Netherlands. In order to understand what this implies, it suffices to say that:

• -          the requisites for setting up such company are a few: a local address, to prepare the incorporation documents and to have at least one shareholder and director;
• -          the company also needs to have a local bank account which is quite easy to open compared to other European countries;
• -          the registration procedure can be completed online in just a few days;
• -          there is no special requirement related to the share capital of the company.

Apart from these, the BV can be registered as a simplified limited liability company. You do not even need to come to the Netherlands if you want to open such company. We can handle the whole procedure on your behalf.

The Dutch BV – the ideal choice for foreign entrepreneurs

Another important advantage of the limited liability in the Netherlands is that it has no restrictions when it comes to being fully owned by foreigners. Moreover, their liability towards the business’ obligations will be limited to their contributions. When considering that there is no minimum share capital requirement, these contributions can be quite low.

The owners can be natural persons or other companies from abroad. However, the set of documents which need to be provided are different.

We also mentioned that the BV can be used for various purposes. Among these are the holding company which benefits from a special taxation regime in the Netherlands. The limited liability company is also a great choice for foreign companies seeking to establish subsidiaries in the Netherlands. Also, sole proprietorships can be easily converted into limited liability companies.

Another advantage of the Dutch limited liability company is that it can operate in most industries here. They can operate as IT companies or as financial businesses without any restrictions.

The limited liability company from a taxation point of view

Without a doubt, one of the main reasons for choosing the Netherlands as a country to start a business in is the taxation system. The Dutch BV will be treated as a tax resident company and will be subject to a corporate tax rate of 20% or 25% depending on the income generated by the company. These rates can be deducted under the Netherlands’ double taxation treaties which is very extensive; however, the LLC can also be used as a tax minimization vehicle. Donations, the holding company regime, the innovation box regime can help those who open LLCs in the Netherlands to reduce their tax burden.

If you plan on starting a company in the Netherlands and need help in choosing the right type of structure, our advisors recommend you choose the limited liability company. We can also help with the incorporation of such company, so do not hesitate to contact us. You can rely on us for full company registration services, but also for assistance in accounting matters related to your LLC in the Netherlands.