Doing business in The Netherlands - Legal structure of the business

Last updated: 09-07-2011

When it is decided to start up activities in The Netherlands one should consider an appropriate legal structure for the business.

Dutch law provides a variety of legal forms that may be used. Which is the best for your particular venture will depend on the specific demands of your business.

Dutch company law does in essence not make a difference between Dutch nationals and foreigners.

Companies created under foreign law are in general (certain government linked lines of business excepted) free to operate in The Netherlands, can be party to a contract, can participate in partnerships, can conclude a joint venture, or establish a legal entity, etc.

For a brief description of the most frequently used legal forms in The Netherlands and there legal characteristics we refer to the schedule on the page Doing business in The Netherlands - Frequent used forms of business in The Netherlands.

For some guidance with your decision to choose for either a corporation or a branch we refer to the page Corporation or branch.

The Dutch B.V. (private limited liability company) is the most frequently used legal entity by foreign investors (for example to carry out a business, for direct investments, as holding company, IP company, finance company, etc.). Alternatively, one may decide to establish a N.V. (a public limited liability company), which is the obligatory legal form for stock listed companies, but which can also be used for non-listed companies.

For more information about the incorporation procedure for a BV we refer to the page How to incorporate a BV.

Over last couple of years the legal form of Cooperative has become a very popular legal form for holding companies, as profit distributions by a Co-operative are in essence not subject to Dutch dividend withholding tax. 

For more information about the incorporation procedure of a Co-operative we refer to the page How to incorporate a Co-operative.

Also, the so-called European company, better known as "Societas Europaea" or "SE" (a new Pan-European company form which can be incorporated within the EU) and the European Co-operative Company (SCE) were introduced. As the features of the SCE are comparable to the SE, in Dutch law the SCE is made equal to the SE. However, certain regulations that specifically apply to Dutch co-operations can also apply to SCE's. 

If it is not desired to set up a legal entity, you may decide to set up a Dutch branch of your foreign company. For more information about the procedure to establish a branch we refer to the page How to establish a branch/representative office.

One can consider the form of a partnership when a joint venture is to be established with a Dutch party or a foreign party with The Netherlands as its base.

In case you plan to acquire a Dutch company, you may either choose to participate directly or to set up one or more Dutch (intermediate) holding company(ies).

For more information about the Dutch holding company we refer to the page The Dutch holding company.

What can we do for you ?

We have extensive experience with setting up and maintaining Dutch companies. We provide amongst others the following services:

Advice on setting up a new Dutch company/ incorporate a new BV
Optimising an existing company structure
Select suitable service providers, like trust companies, lawyers, accoutants, etc.
Advice on immigration or emigration issues
Obtaining advance tax ruling for financing activities  
Representation in tax audits
Obtaining residence statements
Dealing with tax compliance matters

 

If you are interested in our services, please feel free to contact us via e-mail or to call us at our offices in Rotterdam (+31 (10) 2010466) or Amsterdam (+31 (20) 5709440).