In the age of globalisation, European countries are considered as the best place for performing business. The Netherlands is considered as the hub for global business, as its core member of the European Union with hi-tech infrastructure with lower tax rate regime. Incorporating a business in the Netherlands is a good opportunity for your business growth.
Types of legal business structure available in Netherland:
It’s a Single ownership business, though there may be employees. The owner will personally liable for business obligation. A sole proprietor is also referred to as ZZP (zelfstandig Zonder personeel)
A business which is run by two or more person and all business-related clauses are defined under the agreement called as partnership.agreement will determine the contribution, liability and entitlement. All partner are jointly or personally liable for business risk and losses.
A business runs by two or more person. There are two types of indulged in it one is considered as Active and another one is considered as limited. Limited partner considers to be a financial backer for the company and active partner are considering to deal with daily day to day activity and decisions,. Limited partners are not required to register with trade registrar, were as active partner needs to get register.
Active partners are liable to third parties and business risk and losses. It is highly recommended to enter into a partnership agreement when becoming a partner.
It’s a company form of business where the liabilities are limited of owners. Member (shareholder) are liable for their own capital contribution. For starting such business at least 18000 Euro (not necessarily in cash) is needed. Shareholder holding 5% or more of share are considered as a person having substantial interest in the company and is liable for taxes on capital gain and dividend payment.
Directors of companies registered outside of the Netherlands are legally liable for the actions of the company until all legal requirements are completed.
A public limited company is owned by shareholders and shares may be traded on the public stock market though shares are not held in any private person’s name. For incorporating or registering this form of business at least 45000 Euro should be held underpaid capital.
Among all available form of business, Private Limited Liability company is quite a popular form of business as the liability is limited in this form and it has separate legal status.
Benefits of Incorporating a Company in the Netherlands:
➲ Lower Tax rate (corporate taxes is of 16.5%)
➲ EU member state gets benefits of 0% VAT
➲ Hi-tech Infrastructure
➲ 5th place in Global Competitive
➲ EU core member
➲ Is the hub of leading world bank (ING, ABN Amro)
➲ Good business environment
➲ Have a great logistic chain
Company formation process :
Documents required for incorporation:
➲ Passport of Directors
➲ Passport of shareholders
➲ Register address proof of Netherlands
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