Incorporate a Dutch BV? Always wanted to set up a business in the Netherlands? This country is not only known for as the country of cheese and tulips, but also for its strong work ethic and admirable efficiency. Therefore, it is not surprising that the Netherlands is home to 1,8 million companies as of mid-2019 has been attractive to foreign business since the early days of globalisation. Many others already have successfully incorporated a Dutch BV, so what are you waiting for?
What exactly is a Dutch BV?
A BV – in Dutch: Besloten Vennootschap – is the Dutch form of a Limited Liability Company (LLC) or Limited (Ltd.). the foremost advantage of setting up a BV is that it entails an anonymous entity. This means that the liability lies with the BV, not with you as the owner. You are operating as an employee of the company, acting on its behalf. Before you decide to incorporate your Dutch BV, let’s first see some reasons why. Below is a list of why doing business in the Netherlands is such a great basis for a prosperous future for your company:
- Highly reliable legal system
- Strong diversity in population (thus many markets to target)
- Home to the port of Rotterdam, one of the world’s greatest and most important ports
- 9 out of 10 Dutch people speak English
- Politically stable
- Excellent infrastructure
- One of the lowest corporate income taxes in Europe
- A lot of trust in the Dutch market by foreign businesses
How to incorporate a Dutch BV?
Once you have decided to incorporate a Dutch BV, there are a few things to do. First of all, there are many companies that offer their services to help you in taking the first steps. Because there are many options, you do need to do some thorough research on deciding with which company to cooperate. After that, generally you will need to answer several questions about your plans by filling out an online form. Based on this form, you will receive a draft deed for your plans to incorporate a Dutch BV. This brings you to the second step. Following the draft deed, you will need to make an appointment with a notary. Together with this notary, you will walk through the draft deed of you incorporation letter by letter and he or she will happily answer any questions you may have. The third step is making a deposit. This is merely a formality and requires you to pay a minimum of €0.01 in either cash or kind. The fourth step to incorporate a Dutch BV is to register you and your BV in the KVK (Kamer van Koophandel), the Dutch Commercial Register. There are some costs involved in this, namely, registering at the Dutch Commercial Register will cost you €50. Finally, you register at the Dutch Tax and Customs Administration. Both step four and step five are handled by a civil-law notary. Naturally, this notary asks for a fee as well. The height of this fee varies per notary. When completing these steps, you have successfully incorporated a Dutch BV! Congratulations, you are ready to do business and hopefully make some money.