Company formation
"Considering doing business in the Netherlands? Kick-off your journey the right way. Set up your BV with confidence. All the essential information for a smooth establishment awaits you here."
Setting up a Private Limited Company (BV) in the Netherlands
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Establishing a company in the Netherlands offers numerous advantages for foreign businesses, ranging from a stable economy and strategic geographic location to a favorable tax climate. But how do you go about setting up a private limited company (BV) in the Netherlands? In this blog, we explain how foreign companies can establish a BV, its advantages, and the tax obligations and costs you need to consider.
What is a Private Limited Company (BV)?
A BV is one of the most chosen legal forms in the Netherlands, especially for medium and large enterprises. It's an independent legal entity with shareholders and directors. One of the primary advantages of a BV is limited liability. This means that, except in cases of mismanagement, the shareholders of the BV are only liable up to the amount they've invested in the company.
Steps to establish a BV
There are several steps you need to undertake to set up a BV in the Netherlands. These steps are generally similar to those in many other countries.
1. The first step is drafting the articles of association, which contain all the essential information about the BV, such as its name, purpose, and details of the shareholders and directors. These articles must be drawn up by a notary in a notarial deed.
2. Next, the BV must be registered with the Chamber of Commerce (KvK). This is done by submitting an N-form, accompanied by the notarial deed.
3. Finally, the BV must be registered in the Ultimate Beneficial Owner (UBO) register. This is a register containing information about the ultimate beneficiaries of the BV.
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Tax obligations
Once your BV is established, you have various tax obligations. You're required to pay corporate tax on the BV's profits. Additionally, you need to file VAT returns. It's essential to submit these returns correctly and on time to avoid penalties.
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Setting up a BV in the Netherlands can be an attractive option for foreign companies looking to enter the European market. With a clear understanding of the establishment process and its associated costs and obligations, you're well on your way to successful business operations in the Netherlands.
We recommend always seeking professional advice before setting up a BV. An accountant or legal advisor can guide you through the process and ensure you meet all legal requirements. We're always here to assist you in navigating the complexities of the Dutch business environment.