The Netherlands

There are plenty of countries in Europe that attract entrepreneurs with various tax incentives. They pose favorable tax system or low tax burden on businesses, and these are important considerations while setting up a business and budgeting. In the Netherlands the regulations on companies have been constantly upgraded in the recent years.

Forms of companies in the Netherlands: The most common forms of companies in this country are the Limited Liability Companies and Share Company. These legal forms should pay three main taxes namely:

  1. Corporate tax
  2. Property tax
  3. Turnover tax

It is also worth to consider the size of the expected profit when planning the business as in the Netherlands the corporate tax rate changes based on the year-end profit. The Dutch equity capital of a company founding is set in Euros, it starts at 18 000 Euro. The amount may be used to administer the business, so it can be taken out from the bank.

Who can set up a company in the Netherlands?

The answer to this question is that both domestic and foreign individuals, as well as companies may set up a business. But one should know that if a foreign company wants to set up a business it is much harder to do so because it should hand in a lot of documents and one should compile these documents in a binding way.

To set up a business in the Netherlands one will need:

  • One should open a bank account in the Netherlands
  • One should sign up at the Chamber of Commerce
  • One should apply for an EU tax number in the Netherlands
  • One should countersign the company agreement (in the official language of the state) by a public notary
  • Some documents should be filed by the Court of Registration and at other offices, just as in the Hungarian law

Last but not least it is important to note, that the Netherlands is one of those countries that has the most international tax conventions, which provides additional opportunities for business owners.