Company in the Netherlands

Company in the Netherlands

The Netherlands - a country that is comparable in size to more or less two Polish voivodeships and has a population of 17 million. The European part of the Netherlands is a densely populated area, and about a quarter of this territory is below sea level, in a depressed area. The Netherlands is home to the Permanent Court of Arbitration, the International Court of Justice, the International Criminal Tribunal and the International Criminal Tribunal for the former Yugoslavia.

The Netherlands is increasingly being chosen by entrepreneurs as a place to open company in the Netherlands or buy ready made company in the Netherlands. The reason for this is that despite its small territory, the Netherlands has one of the strongest economies in the world.The posibility of opening company in the Netherlands results from the principles of the European Union (the principle of free movement of capital and the principle of freedom of business activity), of which the Netherlands is a member on 1 January 1958. The Netherlands, like every state belonging to the European Union, signed a double taxation agreement with Poland.

In the Netherlands, there is no set income threshold when you should or should not register a company. However, there are criteria that are set by KvK (Commercial Register) and Belastingdienst (Tax Office). If you sell products or services, receive more than symbolic remuneration for this and participate in the business cycle, you may think about registering a company in the Netherlands.

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Company formation in the Netherlands

A company in the Netherlands (BV) may be established by one or more shareholders who act as natural or legal persons. When establishing a company in the Netherlands, the nationality of the shareholders is irrelevant. It is interesting that a company in the Netherlands can be registered with an initial capital of up to 1 EUR.

Among the tax benefits that come from owning a business in the Netherlands we can include, among others, the possibility to include invoices and cost accounts officially into costs and thus reduce the value of the income tax paid, the possibility to take advantage of tax reliefs for entrepreneurs, in addition, in the case of recorded losses, the tax can be deducted from other income (e.g. part-time work), or if this is not possible, from income from previous years.

The real attractiveness of company registration in the Netherlands and the tax solutions applicable there has its source in the stability of the Dutch legal system, greater security of the optimization schemes applied, as well as greater certainty for taxpayers as to their future benefits. Therefore, the Dutch jurisdiction should be considered first and foremost by people who are committed to building a sustainable, secure, multi-generational business.

The multi-generational traditions of capitalist pragmatism, liberalism in international trade, an open approach to foreign capital, and one of the highest candlelight levels of labour efficiency, education and foreign language skills mean that foreign investors in the Netherlands can count on a high level of professional service in all aspects of their business.

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Opening business in the Netherlands

It is no coincidence that the Netherlands is extremely popular as a jurisdiction for international financial corporations. This is due to an extensive network of double tax treaties to optimise taxes on dividends, interest and royalties flowing through the Netherlands to tax havens. Additional tax benefits include the so-called participation exemption, which grants CIT exemptions to Dutch subsidiaries of foreign corporations, no withholding tax and a reduced rate of tax to 5 % for R&D companies investing in innovation.

Consequently, as many as 91 of the 100 largest corporations have their financing companies in the Netherlands. According to the New York Times, more American dollars are sent through the Netherlands than any other country in the world. The largest Fortune 500 companies in the USA invested a total of USD 127 billion by December 31, 2010, of which USD 93 billion was transferred through the Netherlands. This makes the Netherlands much more popular among American corporations than Bermuda (94 billion USD) or Cayman Islands (51 billion USD). Most of these flows then ended up in Switzerland or Luxembourg.

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