Arguably, the most common business structure globally is a Limited Liability Company. Every country, however, has its variation, depending on its legal and business environment. In the Netherlands, LLC companies are also known as Besloten Vennootschap (BV). Anyone can set up such a company, whether you are a native or foreign. The process is, however, unique, and you ought to master it first.
Setting up a BV in the Netherlands is a bit difficult compared to other countries such as the US and others. However, we’ve got you covered because we describe how it functions in this post. Read on to learn what it takes to create a BV and grow it in the Netherlands.
Here Are the Steps You Need To Take To Set Up a Company In the Netherlands
Registering a company in the Netherlands involves various steps. You need to master all these if you want to enjoy hassle-free business registration in the Netherlands. Here are the steps and what each entails:
1. Citizenship Requirements or Visa Situation
It is not necessary to be a citizen of the Netherlands or another EU country to establish a business there. However, for your new business to be registered with the company registry, there must be a director. So, you will need to obtain a work permit to pay this director in the Netherlands.
Thankfully, the Netherlands automatically issues work permits to EU nationals moving there. If you are a non-citizen or resident, you should look into visa possibilities. You can choose from the available options such as:
- The DAFT visa
- The HSM visa
- The EU Blue Card
It is also feasible to start a company in the Netherlands with a foreign legal entity as a director. You may, however, need to seek legal advice if you choose this method.
Selecting Your Preferred Company Form
Unlike other countries, the Netherlands provides a range of easy choices for registering businesses or companies. The most common among the various forms of business is Dutch Limited Liability Companies, or simply BV. So, your first step is understanding how such companies function in the Netherlands.
The most fundamental element when setting up an LLC or running a business in the Netherlands is for you to make a holding structure decision. A holding structure is essentially two BVs, one representing your ownership and the other that stands for the operating company that manages the firm. As the founder, you stand to gain significantly from the additional personal holding in ways including the following:
- Applicable law
- Personal wealth
2. Get a Physical Address for Your Company or Business
Your LLC company must have a Netherlands address. That means your business must have a physical office address; a virtual address is not used for registration. Yes, you may read in virtual address contracts that your business can register there, but it does not guarantee it can incorporate there. Only one of the founders or directors may register the firm at their home address.
If you opt to register a company in the Netherlands using your home address, you need to provide some further proof. They include an ownership title, a rental agreement, or a BSN registration at that address must be used to confirm this. So, ensure the landlord is on board with the company registration if the residential address is a rental address. As a precaution, the opposite is not always true.
3. Acquire All the Necessary Incorporation Documents
You already know that incorporating a business in the Netherlands entails identification and verification steps. These documents are a requirement, and you must provide them before you can proceed to subsequent procedures. You need to provide the following to form an LLC company in the Netherlands:
- An energy bill,
- A document with your TIN (Tax Identification Number)
- A copy of your passport if you are a non-Dutch citizen
Note that additional paperwork is a requirement if you incorporate it with an existing Dutch or an international business. But that is not all you need regarding documents. You also need other documents, including the following, when registering your business in the Netherlands:
- Valid copies of passports or European IDs for all natural persons or founding shareholders
- Copies of passports or European IDs for all company directors
- Evidence that your BV has the approval to use a physical address
- A chart or diagram of your organizational structure for location and records purposes
- Any others as specified during registration
4. Getting a Corporate Bank Account Plus Your VAT Number
Like many other countries, your LLC company or BV business in the Netherlands should have a distinct, business-related bank account. A Dutch bank account is not necessary for your Dutch firm. Other foreign banks, such as the renowned Revolut, Wise.com, or N26, among others, are also other options you can consider.
You need an account, so you can start transactions. The first and most critical one is to pay up the nominal share capital of your company after you have a bank account. It is the sum you decided upon, and you need to put it in your company’s bank account. So, deposit the amount with an appropriate designation for your records.
Your VAT number will be available once the BV has registered at the Company Registry and has notified the Dutch Tax Authorities of this. In most cases, they do it automatically, or they might ask further inquiries as necessary. While this is a tremendous step, it is advisable to have your accountant on board at this point. He will assist you with these and any other inquiries regarding your company in the Netherlands.
5. Select An Expert To Advise You In Business Formation
Getting an advisor is one way to make your process simple and without hassle when forming a company. It is critical to do so since some activities can be tiresome. For instance, you cannot just wake up one day and go to the Chamber of Commerce. You should follow a few steps to establish a BV or LLC business in the Netherlands.
First, you should visit a Dutch notary. Secondly, you need to contact an incorporation expert to incorporate entirely online. They will help you set up the BV and register it at the Company Registry (KVK). Once this step is over, you do not need to make a separate trip to the Chamber of Commerce. So, it is good to have someone to offer you such assistance.
Frequently Asked Questions
Why Should I Set Up My Company In The Netherlands?
The Netherlands has a competitive fiscal climate, tax incentives, and a highly attractive quality of life. The country is also strategically located in Europe. It has the best professional structure suitable for any type or size of business.
6. Are There Company Formation Costs To Incur When Registering a Business in the Netherlands?
Yes, you need to pay company formation fees, Dutch notary fees, accounting fees and other applicable charges. Consider all these when preparing and make sure you pay your fees to avoid any issues.
7. How Do I Enter the Dutch Market?
Come up with an entry strategy, establish an office and seek the advice of both legal and business experts. Once you get started, strive to build a good reputation in the European market.
In conclusion, the Netherlands promotes a favorable environment for the formation and incorporation of companies. If you run a company elsewhere and would like to open a new one in the country, you have a chance. You can also start a new one and grow it to the levels you wish if you have the capital.
This article has explained how you can set up an LLC company in the Netherlands. If you have been looking for this information, you now know what to do from the start. As you have noted, the process is a simple one. If you can fulfill all the requirements, you are good to start and run your company. All the best!