There are several types of companies you can choose from in the Netherlands, should you decide to start a business here. Discover them below and rely on our local specialists for incorporation support once you have found the entity that suits your interests.
| Quick Facts | |
|---|---|
| Applicable legislation | Dutch Company Law |
Availability of sole proprietorships (YES/NO) | Yes, sole proprietorships are available for registration in the Netherlands. |
Availability of partnerships (YES/NO) | Yes, general and limited partnerships can be set up in this country. |
| Availability of limited liability companies (YES/NO) | Yes, they are divided into private and public limited liability companies. |
| Options for foreign companies | – branch offices, – representative (liaison) offices, – subsidiaries |
| Minimum share capital requirements | – public company – EUR 45,000, – private company – EUR 0.01 in cash or kind |
| Particularities of sole traders | Sole traders are simple business forms that can be registered by natural persons. |
| Requirements to create partnerships | Both types of partnerships require minimum two members who enter a partnership deed. |
| Limited liability companies registration requirements | Dutch companies must be incorporated with the Commercial Register. |
| Taxation of sole traders | Income tax entering the Box 1 – Taxable income from employment and home-ownership category |
| Taxation of partnerships | Each partner must pay the income tax as a self-employed person, if they are natural persons. |
| Corporate tax paid by limited liability companies | 19% on income up to EUR 200,000, the standard 25.8% on the excess amount |
| Business registration timeframe | Approx. one month |
| Special requirements for foreign investors (if any) | No, there are no special requirements imposed to foreign investors. |
| Company incorporation services (YES/NO) | Yes, you can rely on us for assistance in setting up a business in the Netherlands. |
Table of Contents
What are the types of Dutch companies I can choose from as a natural person?
You can register:
- a sole proprietorship;
- a partnership, which can be general, limited, or professional;
- a private limited liability company, the so-called BV;
- a public limited liability company, or NV;
- a cooperative;
- a foundation;
- an association.
NOTE: Out of these types of Dutch business forms, only the BV and NV have a legal personality.
What are my options if I want to expand the activities of my foreign company in the Netherlands?
The following:
- the subsidiary;
- the branch office;
- the liaison/ representative office.
The main characteristics of Dutch company types can also be found in the scheme below:
What are the features of a Dutch sole proprietorship?
The sole trader is the simplest business form and the easiest way of starting a business in the Netherlands. The main characteristics of the sole proprietorship are that it can only be established by one person who will have a full responsibility for the business, including its debts and obligations.
What are the main features of partnerships in the Netherlands?
The partners in a general partnership are jointly and severally accountable for the company’s debts and obligations.
In limited partnerships, there is a silent and a general partner. The general partner will be held accountable for the company’s debts with all his assets, while the silent partner will be liable only up to the amount invested.
Dutch professional partnerships are usually created as organizations established by professionals with the purpose of offering specific services and not for carrying out a commercial activity.
What should I know about the private limited liability in the Netherlands?
According to the new Company Act, a Dutch BV does not require a minimum share capital anymore. The Dutch BV must have at least one shareholder whose responsibility is limited to the amount invested in the company.
What are the features of public companies in the Netherlands?
The Dutch public company (NV) is the legal form employed by those wanting to establish a company in order to be listed on the Stock Exchange. The minimum share capital for opening a public company in the Netherlands is 45,000 euros.
How can I set up a Dutch foundation?
Dutch foundations can be established very easily, requiring a deed of formation drafted and notarized by a public notary. The Dutch foundation is one of the best tax minimization vehicles.
What should I know about associations and cooperatives in the Netherlands?
Associations are usually established as non-profit organizations and are not required to register with the Dutch Trade Register. Cooperatives are associations that can pay dividendsto their members.
What are the characteristics of branches and subsidiaries in the Netherlands?
The subsidiary and the branch office are business forms that can be registered by foreign companies expanding their operations in the Netherlands. The main differences between these types of companies are related to the relationship with the parent company and the activities they can undertake in the Netherlands.
You can also watch this video for more information on the types of companies in the Netherlands:
What is the most popular type of Dutch company among foreigners?
The private limited liability company.
NOTE: Should you decide on the BV, you can benefit from our registration offer that starts at EUR 2,495 (VAT not included).
What should I consider when choosing a company type in the Netherlands?
Our local specialists recommend that you base your choice on the following:
- types of activities: the BV is suitable for most types of operations;
- business size: from this point of view, you can choose between any of the company types presented earlier;
- capital you dispose of: you only need a specific amount of money if you want to register a public company;
- liability: if you opt for a sole proprietorship or partnership, you will be liable for the obligations of the business with your personal assets, which is not the case with the BV, for example.
Based on these criteria, we can also offer market entry support in the Netherlands.
What is the minimum capital I need to start a company in the Netherlands?
If you choose the private limited liability company, there is no minimum share capital imposed, so you can decide the amount you need to inject into the business.
If you opt for the public limited liability company, on the other hand, you must dispose of EUR 45,000 at least.
Can you help me set up a business in other countries?
In case you are interested in setting up a business in the Philippines, our partners can present the available types of companies in the Philippines and assist you through the entire company formation procedure.
If you are interested in the types of companies available in other countries, for example in Ireland, we can put you in touch with our Irish partners.
Also, if you are interested in starting a new business in another country, such as Slovakia, our partners can provide you with assistance. We can also put you in touch with our Asian partners, in case you are interested in forming a company in Vietnam, register a company in Lebanon or establishing a company in India.
If you want to open a company and need assistance with the registration procedure, please contact our company formation representatives in the Netherlands.