If you want to open a holding company in the Netherlands, you can rely on our local specialists for support. Discover below how we can help you set up such a structure in the fastest way possible remotely.
| Quick Facts | |
|---|---|
| Applicable legislation | Dutch Companies Act |
Structure of a Dutch holding | the holding company + one or more subsidiaries |
Availability of participation exemption regime (YES/NO) | Yes, the Netherlands has a participation exemption regime. |
| Documents required for registration | – statutory registration papers, – information about the shareholder and director, – proof of local address, – bank statement |
| Local director required (YES/NO) | No |
| Management status (natural person/corporate director) | The holding can have a natural person or another company as a director |
| Uses of a holding company | – to control the activities of its subsidiary, – to hold assets in its subsidiaries |
| Best legal entity to create a holding | The private limited liability company (BV) is the best company type as a Holding. |
| Special protection procedures available for the shareholders (YES/NO) | Yes, through the creation of the holding as a STAK structure |
| Special authorization requirement (YES/NO) | No |
| Access to specialized local workforce (YES/NO) | Yes, the Netherlands offers access to a varied specialized workforce. |
| Possibility to operate in other countries (YES/NO) | Yes, a Dutch holding can operate in other countries in and outside the EU. |
| Possibility to create a fiscal unity through a holding (YES/NO) | Yes, this way the holding can reduce its tax costs. |
| Requirement to travel to open a holding company (YES/NO) | No |
| Holding company registration support (YES/NO) | Yes, you can rely on our local agents if you want to start a holding company in the Netherlands. |
Table of Contents
What is a Dutch holding company from a structural point of view?
The holding company is the parent or head company in a group of enterprises. It is also known as a management company.
What forms can a holding company take in the Netherlands?
Holding companies in the Netherlands are regulated by the Dutch Company Act and can be registered as:
- limited liability companies,
- partnerships,
- foundations,
- cooperatives.
What is the most suitable entity to open a holding company in the Netherlands?
Our specialists recommend the private limited liability company (BV) as it is the simplest and fastest to incorporate. Choose our services, and you can benefit from BV registration solutions starting at EUR 2,495 (VAT excluded).
You can read about the Dutch holding company in the infographic below:
How do I set up a holding company in the Netherlands?
There are two phases to consider:
- you must first establish the holding company;
- you then must set up at least one subsidiary.
NOTE: In the Netherlands, it is possible to open a holding company as a sole trader. You must convert the sole proprietorship into a BV company with a main object of activity for a holding. You can rely on our specialists if you decide to follow this pathway.
Is there any special requirement to follow when setting up a holding company in the Netherlands?
While the company registration procedure is the same as for any other type of entity, the holding company must meet the local substance requirements. They imply:
- secure a local address for the company (we offer virtual office services starting at EUR 75 per month);
- appoint at least one resident manager (usually, a Dutch company does not require a Dutch-residing director);
- open a Dutch bank account for the company;
- hire local staff (even if it is not mandatory, it is beneficial to have Dutch employees);
- register it for taxation and VAT locally.
NOTE: We also offer accounting services with prices that start at about EUR 90 per month.
How long does it take to open a holding company in the Netherlands?
Approximately 2 weeks with us.
You can also watch the video below for more information on Dutch holding companies and starting a business in the Netherlands:
Can a Dutch holding company undertake any activities?
Compared to other European countries, the holding company in the Netherlands can complete various activities through subsidiary companies. However, the holding itself can:
- own shares in other domestic or foreign companies;
- manage and control its subsidiaries and collect dividends, interests and royalties and distribute them to the shareholders.
Most of the time, the Dutch holding company will act as a partnership in which the shareholders will share the same entity in terms of taxes while undertaking different activities.
What are the advantages of Dutch holding companies?
A holding company incorporated as a Dutch limited liability company is currently the most popular holding regime in the country. There are several reasons for the Dutch holding company’s popularity:
- low taxation,
- low cost of incorporation,
- low yearly maintenance.
Dutch holding companies will also benefit from Holland’s extended network of double taxation treaties.
How are Dutch holding companies taxed?
When not subject to the EU Parent-Subsidiary Directive and not obtaining advance tax ruling benefits, the Dutch holding company will be subject to regular taxation, which implies:
- the corporate tax which is levied at rates of 20% or 25% depending on the annual turnover;
- the capital registration tax which is levied at a rate of 0.55%;
- the withholding tax on dividends which is applied a standard rate of 25% in the Netherlands;
- the value added tax which has a standard rate of 21%.
For information about the benefits of holding companies, you may rely on our company formation agents in the Netherlands. You may also contact us if you need help with the registration procedure or information about how to start a company in the Netherlands.