Company Registration Netherlands – Four Major Business Designations

Company registration Netherlands has been a corporate designation desired by foreign investors for hundreds of years. The stability of the economy is a guarantee of “no surprises” steady business and banking practices, and the business, investment and trade agreements there are some of the least restrictive and most attractive in the world.

The tax system employed by the Dutch is much more liberal than almost all other countries as well. Your company will be provided excellent exemptions for dividends and capital gains, these gains being absolutely free of any corporate tax. There are also many double-taxation agreements that you can receive if your company overlaps two or more qualifications, and knowing precisely how to handle company registration Netherlands now can guarantee your success for years to come.

So obviously, company registration Netherlands can be a real boon to a company looking to escape the claustrophobic and choking hold of their home country’s tax and regulatory climate. Not all businesses have the same abilities by law, however, so you must ensure your European Company formation specialist registers your firm in the correct business model to maximize your profits and minimize your headaches. Let’s take a look at the four major types of Dutch company formation, and their differences.

Naamloze Vennootschap (NV) is the Dutch name for a company with limited liability publicly. This public limited company must have at least a 45,000 euro share capital, and a minimum of 20% of authorized share capital has to be issued initially. The company’s shares may be traded at open market, and there are no nationality requirements for stock ownership. Audited accounts of business must be on record and regularly filed with the local Chamber of Commerce however, so an intimate knowledge of local tax codes and business law is imperative.

A Besloten Vennootschap (BV) on the other hand is a privately owned limited liability company registration Netherlands designation that allows for no stock to be issued on the open market. Audited account files must still be held at the Chamber of Commerce, and since the minimum share capital is a very low 18,000 euros, this is the most popular form of business filing in the Netherlands.

Business Partnerships are the third type of company corporation available, and can be either limited, general or professional in designation. General partnerships are subject to limitless liability, professional partnerships split liabilities per debt status and limited partnerships obviously limit the level of fiduciary and tax responsibility.

Branches are the last type of company registration Netherlands and the foreign parent company is held totally liable for all branch actions. The branch must register locally with the Chamber of Commerce, but no formal accounting requirements make this a very attractive business entity.

This is by no means an exhaustive description of the business ins and outs in the Netherlands. There are tax differences, filing deadlines and local nuances that can change suddenly. Make sure the company formation specialist firm you deal with is absolute in its knowledge of company registration Netherlands, and the future of your company will be a bright and profitable one.