If you want to do business in the Netherlands you have to choose the company form from a range of legal forms. The ultimate choice must depend on a number of factors, including the intended or actual company structure, the position of the shareholder / shareholders, the country of the shareholder’s residence or registered seat and the activities in the Netherlands. Don’t forget to take the tax treaty into consideration. In our link, types of legal forms, we already mentioned and described them. Shortly, the most prevalent legal forms in the Netherlands are the BV (Besloten Vennootschap, a private limited liability company) and the NV (Naamloze Vennootschap, a public limited liability company). Both legal entities may be established by a single shareholder. In certain situations, you may alternatively choose to establish a Cooperation. A Cooperation must have at least two members.
Setting up a subsidiary (company) has the following advandeges:
After founding the company, it should be registered in the Chamber of Commerce’s Trade Register. The notary public generally completes the registration process. The company is registered with the Tax Department via the Chamber of Commerce. The Tax Department registers the company for the various taxes and sends the relevant tax numbers to the company.
Are you in a hurry for whatever reason it might be with doing business? Perhaps a deal you don’t want to miss? You may already act on behalf of your to be established BV, including signing contracts, before the BV is fully established. This is possible if you register the BV in the trade register with the addition ‘i.o.’ (in oprichting - being established) and you are to act in the name of the BV i.o. Take in to consideration that that the actions of the BV i.o. are confirmed upon completion of the incorporation process, as the persons representing the BV i.o. are severally liable for all actions up to the moment of confirmation.