Register a Company in the Netherlands from India: Cost, Requirements & Advantages

The Netherlands, a nation synonymous with windmills, tulips, and progressive policies, has emerged as a fertile ground for international business ventures. Indian entrepreneurs, with their innovative spirit and global outlook, are increasingly setting their sights on this European hub. But how exactly do you register a company in the Netherlands from India? 

This comprehensive guide will provide you with the information and techniques you need to handle the procedure to register a company in the Netherlands from India with ease.

Best Industries for Indian Startups in the Netherlands

1. Information Technology (IT)

The Netherlands is a great place for Indian IT firms because of its strong IT infrastructure and vibrant IT scene. Indian business owners can take advantage of the strong demand in Europe for software development, cybersecurity, and artificial intelligence solutions by utilizing their experience in these areas.

2. Marine

The maritime industry is a cornerstone of the Dutch economy. The Netherlands is a great place for Indian businesses with a focus on logistics, shipbuilding, and marine engineering. One of the biggest ports in the world, the Port of Rotterdam, facilitates global trade by acting as a gateway to Europe.

3. Exhibition & Booth Construction

There is a demand for exhibition and booth construction services because the Netherlands organizes a number of international trade shows and exhibitions. Indian businesses can take advantage of this market by providing creative and affordable solutions for event planning and trade show displays.

4. Digital Marketing

As businesses increasingly shift to digital platforms, the need for digital marketing services is on the rise. By assisting local firms in improving their online presence, Indian entrepreneurs possessing experience in SEO, social media marketing, and online advertising can prosper in the Dutch market.

5. E-commerce

The Netherlands has a rapidly expanding e-commerce industry. In order to meet the increasing demand for online shopping, Indian companies can create e-commerce platforms or offer support services like shipping, warehousing, and digital payment methods.

6. Agritrading

The Netherlands is a global leader in agricultural technology and innovation. The modern agricultural methods and research facilities in India might be advantageous for enterprises engaged in food processing, agricultural machinery, and agri-trading.

7. Waste Trading

With a strong focus on sustainability and a circular economy, the Netherlands offers opportunities for waste management and recycling. Indian startups can introduce innovative waste trading solutions, contributing to the country’s environmental goals.

8. Import-Export

The Netherlands is a prime hub for import-export companies due to its advantageous geographic position. Indian business owners can take advantage of the fast customs processes and free trade agreements by using the well-established logistics network to streamline the trade of goods between India and Europe.

How to Start a Company in the Netherlands from India?

There are multiple processes involved in establishing a business in the Netherlands from India, each of which needs to be carefully planned and carried out.

Here’s a step-by-step guide:

1. Choose a Business Structure

The first step is selecting the right legal form for your company. Here are some of the most used forms of company in the Netherlands:

• Sole Proprietorship (Eenmanszaak)
• Private Limited Company (Besloten Vennootschap or BV)
• Public Limited Company (Naamloze Vennootschap or NV)

For most Indian entrepreneurs, a Private Limited Company (BV) is the preferred choice due to its limited liability and flexibility.

2. Register Your Business Name

Pick a name that is distinctive for your business and make sure it adheres to Dutch naming laws. The official website of the Dutch Chamber of Commerce, also known as the Kamer van Koophandel, or KvK, allows you to verify whether the name is available.

3. Prepare Documentation

Gather the necessary documents, which typically include:

• Passport copies of the directors and shareholders
• Evidence of address
• Business plan
• Articles of association

4. Register with the Dutch Chamber of Commerce (KvK)

Your company must be registered with the KvK. You have the option to finish this online or in person. You will be assigned a VAT and KvK number upon registration.

5. Open a Dutch Bank Account

While not mandatory for all business structures, having a Dutch bank account is highly recommended. It makes financial transactions easier and boosts the trust that local customers and suppliers have in your company.

Legal Requirements to Start a Company in the Netherlands for Indian Entrepreneurs 

• Legal Entity Formation: Choosing the correct legal entity (e.g., BV) is crucial. Every structure has unique duties, regulations, and tax ramifications.
• Valid Passport and Indian Address Proof: These records are required for identification purposes.
• Business Plan: A concise business strategy outlining the viability of your endeavour is crucial.
• Minimum Capital: The minimum share capital requirement for a BV is just €1, making it an attractive option for startups.
• Annual Reporting: Annual financial accounts from Dutch businesses must be submitted to the KvK. To ensure compliance and transparency, timely and accurate record-keeping is crucial.

Do I Need a Dutch Bank Account to Register a Company in the Netherlands?

While it is not mandatory for all legal structures to have a Dutch bank account, it is highly advisable. A Dutch bank account improves your trust with regional customers and suppliers, streamlines financial operations, and makes managing business spending easier. Furthermore, in order to obtain various permissions and licenses as well as for tax purposes, it is frequently necessary to have a local bank account.

Tax Implications for Indian Businesses in the Netherlands

Understanding the tax landscape is crucial for Indian entrepreneurs:

1. Corporate Income Tax

Corporate income tax is applicable to Dutch corporations. The rates are progressive, with a lower rate for the first €200,000 of taxable profit and a higher rate for profits above this threshold.

2. Value Added Tax (VAT)

Companies are required to register for VAT and abide by Dutch VAT laws. The usual rate of VAT is 21%; some products and services, though, are subject to reduced rates.

3. Dividend Withholding Tax

Dividends distributed by Dutch companies to non-resident shareholders are subject to withholding tax. However, the India-Netherlands Double Taxation Treaty may reduce this rate.

4. Personal Income Tax

If you relocate to the Netherlands, your personal income will be subject to Dutch income tax. The rates are progressive and depend on your income level.

5. Tax Incentives

The Netherlands offers various tax incentives for startups, such as the Innovation Box regime, which provides a lower corporate tax rate for profits derived from innovative activities.

Cost of Establishing a Business in the Netherlands for Indians

Setting up a business in the Netherlands involves several costs:

1. Registration Fees: Registering your company with the KvK involves a one-time fee, usually around €50.
2. Notary Fees: For a BV, you need a notarial deed. Depending on how complicated the documents are, notary costs can vary from €500 to €1,500.
3. Bank Account Opening: Opening a Dutch bank account may require an initial deposit and maintenance fees, depending on the bank and type of account.
4. Legal and Advisory Costs: Hiring legal and financial advisors to assist with incorporation, compliance, and tax planning is recommended. Fees vary based on the services provided.
5. Office Space: Office space prices are influenced by size and location. Shared office spaces, virtual offices or coworking spaces are cost-effective options for startups.
6. Operational Costs: These consist of daily costs like marketing, utilities, and salary. For operations to be sustainable, budgeting for these expenses is crucial.

Networking and Support for Indian Businesses in the Netherlands

Building a network and seeking support can significantly enhance your chances of success:

1. Business Networks and Chambers of Commerce: Joining organizations like the Netherlands-India Chamber of Commerce & Trade (NICCT) can provide valuable networking opportunities and business insights.
2. Incubators and Accelerators: Participating in incubator and accelerator programs can provide mentorship, funding, and resources to help your startup grow.
3. Government Support: In addition to loans and tax breaks, the Dutch government provides a range of starting help programs.
4. Industry Associations: Joining industry-specific associations can help you stay updated with the latest trends, regulations, and opportunities in your sector.

Pros & Cons of Establishing a Company in the Netherlands for Indians

Advantages:

• Strategic Location: The Netherlands provides simple access to a sizable market and acts as a gateway to Europe.
• Business-Friendly Environment: The Netherlands is a good place for businesses to grow because of its good infrastructure, talented labour, and tax policies that are in place.
• Technological Innovation: The nation is a leader in innovation, offering chances for firms focused on technology.
• Quality of Life: High living standards and a multicultural environment make the Netherlands an attractive place to live and work.

Disadvantages:

• High Costs: Living and conducting business in some places can be expensive, especially in larger cities like Rotterdam and Amsterdam.
• Regulatory Complexity: It might be difficult for novices to navigate the legal and regulatory landscape.
• Language Barrier: While English is widely spoken, not being fluent in Dutch can sometimes pose challenges in business interactions.

Conclusion

Establishing a business in the Netherlands from India can be a calculated move toward growing into Europe. You can make an informed choice if you are aware of the procedure, the applicable laws, and the possible advantages and disadvantages. Collaborating with a respectable organization such as OnDemand International can expedite the registration procedure and offer invaluable counsel during your entrepreneurial expedition in the Netherlands.

OnDemand International is a one-stop solution for Indian businesses seeking to establish themselves in the Netherlands. 

We offer a comprehensive suite of services to simplify your registration process, including:

• Company registration assistance
• VAT registration
• Bank account opening assistance
• Virtual Office Setup

Get in touch with us right now to talk about your company’s objectives and find out how OnDemand International can assist you in navigating the fascinating Dutch entrepreneurial scene.