If you wonder whether you need or not a local director in the Netherlands when starting a business, the answer is no. However, below you can find out why it is recommended to appoint one and how we can assist in this endeavour.
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Why is a local director recommended in the Netherlands?
A Dutch director is useful for:
- tax substance: companies with local management can benefit from certain tax benefits;
- bank account opening: bank accounts are faster to open when the management of a company is exercised from within the country;
- registering a company in the Netherlands is easier when the director is a resident, as the due diligence checks are not that extensive.
Must the local director be a natural person?
Not necessarily, corporate directors are also accepted in the Netherlands.
Who can act as a local director in a Dutch company?
There are several options you can choose from:
- you can act as a shareholder and director when setting up a private limited liability company in the Netherlands if you are a foreigner and have a Dutch residence permit;
- you can appoint a local agent, such as one of our specialists;
- you can appoint another person whom you trust or even a family member who is an ordinary resident here.
How do I appoint a third party as a local director in a Dutch company?
You need to supply their ID to the Chamber of Commerce, alongside an affidavit through which the person accepts the position within the company.
Can I also appoint a local director if I expand my foreign business in the Netherlands?
Yes, you can do that for your branch or subsidiary.
Are nominee directors available in the Netherlands? Can they be appointed as local directors?
Yes, nominee directors are available in the Netherlands; however, the term “nominee director” refers to a service where the provider has a limited role – that of having its name recorded with the Chamber of Commerce.
What is the difference between a local and a nominee director in the Netherlands?
A local director can carry out various operations, take decisions, and sign contracts on behalf of the company. The nominee director, on the other hand, cannot represent the company, as he/she/it is used to meet the director requirement imposed by Dutch legislation.
Can I have more than one director in my Dutch company?
Yes, even if the law only requires one director, you can appoint more than one.
What are the main advantages of hiring a local director in the Netherlands?
- you can give the local director power of attorney to represent you before the local authorities for various actions, such as VAT registration and filing annual tax returns;
- the director can meet with potential clients or business partners, which increases the credibility of your business substantially;
- the director can also handle various changes that you make in the company.
For more information and support in appointing a local director in the Netherlands, please contact us.