(Newswire.net — June 29, 2018) — Many entrepreneurs have chosen the Netherlands to set up their business due to the country’s stable economy and favorable relationships with countries all over the world, especially Germany, Belgium, France and the UK. Especially with the recent turbulent times filled with uncertainty, investors appreciate that the Netherlands offers a strong, open and internationally focused economy with more than beneficial tax regime in which a business can flourish.
The food sector is the most developped industry, however many other sectors are also highly developped as millions of foreign traders came to start a business in the Netherlands during the last decade, increasing direct investments and contributing to the economic growth of the country.
Foreign companies interested in operating on the Dutch market have several legal options. They can choose from a subsidiary company, a branch or a representative in the form of a liaison office.
The subsidiary offers a somewhat greater measure of flexibility comparing to branches as a subsidiary is a regular Dutch company with a full legal personality, with its share capital being fully or partially owned by the foreign company, unlike a branch which is much more linked with to the foreign parent company. Such regulatory framework clearly show that the country’s climate is business friendly and that the government is pro-business.
An entrepreneur can establish a subsidiary in the form of a private limited company (Dutch BV) or a public limited company (Dutch NV). Dutch BV is a better choice for smaller and medium businesses as there is no mandatory minimum share capital required. The liability of the shareholders is limited by their contribution to the company’s capital.
The liability of Dutch NV shareholders is also limited by the injected capital but unlike the Dutch BV, it can be listed on the stock exchange.
After you choose a form, a subsidiary is registered by opening a bank account on which the initial capital is deposited in exchange for an issued certificate of deposit. However, prior to registration, the chosen name needs to be checked with the Chamber of Commerce so the founders need to make sure that the name is authentic and therefore, unique.
Registration with tax authorities is mandatory since the subsidiary registered in the Netherlands is considered a resident company and therefore must pay the same corporate taxes as any other company.
Besides the competitive tax system, there is also the favorable climate and an excellent infrastructure, so no wonder that most surveys show that the Netherlands is highly ranked as a location for foreign investors. All one must do is follow through the procedures and detailed steps accordingly.
Fortunately, there are Company Formation Agents who can help investors to begin their business as soon as possible so they can sail through this attractive business environment.
A satisfied client praised these specialists for their expertise. “I have had a very good collaboration with the specialists in company registration from CompanyFormationNetherlands.com. They answered to my requests rapidly and they managed to open a company in just a few days after I had sent all the required documents for my clients,” says Cristian Darie, Partner of Darie, Manea & Associates.
You can also view a video on how to open a Dutch subsidiary made by Company Formation Netherlands.