Start Your Dutch Holding Company With Ease
If you are a multinational company looking to move your holding activities to the Netherlands, it is important to get professional help from an incorporation law firm.
Apart from the general information about how to establish a Dutch holding company, you will also need help regarding tax and other legal matters. Having a plan to know the best nation for your European headquarter needs expertise with proper strategy. A corporate headquarter has two roles. Its administrative responsibilities include monitoring and controlling the actions of group subsidiaries and the entrepreneurial role includes additional sources of value creation.
Here are a few reasons to establish a Dutch holding company:
The Netherlands has a favourable entrepreneurial environment for multinational head offices. Almost all companies can benefit from the Dutch entrepreneurial environment and therefore investing in the Netherlands for expansion is a great idea. Companies like Nike, Netflix, IKEA, Tesla have chosen to set up their European headquarters in the Netherlands.
1. Access to the latest technology and talent
For a well-settled multinational company, you need high-quality technology and human resources. The Netherlands offers you both. The top-notch Dutch digital infrastructure makes the Netherlands an appealing place for foreign investors.
2. Entry to Europe and other International markets
The Netherlands is the perfect entrance to Europe and international markets. Almost 95% of the most profitable markets are within 24 hours reach from Amsterdam. It has high-speed rail connections to the major locations of Europe.
3. Efficiency gains and reduction in cost
A major goal to establish a European holding company is to update your present European activities such as production, distribution, sales and lower operating expenses. Choose a place that has better access to skilled workers. The Netherlands has a very competitive cost in comparison to the other nations. And scores high with regards to the efficacy of its border and customs processes. It offers affordable shipping, top quality logistics and IT infrastructure and top-notch professionalism.
4. Better business environment
By having a European headquarter, you don’t just get a good business climate, but also enjoy amazing tax benefits. As the Netherlands is a globally orientated economy, it has been the goal of the Dutch government to wipe out all the hindrances of international business. The Dutch regulations are professional, transparent and trustworthy.
How to establish a Dutch Holding Company?
In order to set up a Dutch holding company, you should first know which business form is needed. It can either be a Dutch Private Limited Company or a Public Company. Holding isn’t recommended for a specific type of business form. It is used to describe how a business form is applied. There is no different method for the incorporation of a Dutch BV, even if it is used to hold shares.
In the Netherlands, it is common for Dutch operational businesses to set up a Dutch holding company. However, one BV is not a BV so, you need to set up two BVs to properly set up a Dutch business in a BV. The main reason behind it is that the operational activities of a company lead to a lot of prospective liabilities. And, seeing it from a business point of view, it wouldn’t make sense to keep your profit in the same BV. Hence, you should get professional help to establish a holding BV company that allows businessmen to pay dividends to the holding BV and safeguard any claims in the operational company. The operating company is exempted from tax on the payment of dividends and the Holding BV is exempted from tax on the incoming dividend.