A person conducting business in a legal form without legal personality will be liable for the debt of that company with their private capital. This will be the case in Sole proprietorship and in Partnership under common firm. This is usually not the case for a legal form with legal personality. This will be the case in a Private limited liability company. The B.V. is the Netherlands most common legal form to run the business.
But wait! What kind of entity would you choose? If your recent company wishes to establish a presence in the Netherlands from where your daily business will be conducted, then it is very important to determine which form the new company which will be set up here in Holland will have.
One must notice that a branch would be not considered a distinct legal entity from the foreign company. A subsidiary is regarded much more as an independent domestic, Dutch company. From a practical point of view, a branch is more of an extension of your recent, parent company. There are pro’s and con’s to that. It can't act by itself and has no board of directors. Its creation involves less formalities, though whereas a subsidiary, on the contrary, will be owned by the parent company and is also operated by the latter. It can and must act by itself. It will have its own board of directors and regulations set up by the notary. Don’t also forget that a subsidiary is required to hold shareholders’ meetings (periodically) and comply with other corporate formalities as obligated by Dutch Tax law.
Both choices have their own advantages. We could assist you with making the right one! You’ll also have to decide what kind of entity you want.
Beyond just incorporation, where we help you in applying for licenses and operating permits (if applicable), you can also order many services tailored to your business needs. From payroll services, bookkeeping and accounting services to our in depth credit management and tax representative services, you can meet your startup and compliance needs quickly and easily!
