Open Your Subsidiary Company in the Netherlands in 2024-25

Opening a Subsidiary Company in the Netherlands in 2024-25

Are you a visionary entrepreneur or investor who is looking for a great opportunity to expand your business into the European market? If so, you’ve arrived at the ideal location. The Netherlands, known for its strategic location in the heart of Europe, is a prime destination for those seeking to tap into the European market. Let’s dive into the key reasons why registering a subsidiary company in the Netherlands is an exceptional choice for business expansion.

In this comprehensive guide, we’ll explore how to register a subsidiary company in the Netherlands, a strategic move that can open doors to the thriving European market. 

Why Open a Subsidiary in the Netherlands?

There are compelling reasons to open a subsidiary in the Netherlands includes:

Strategic Location

One of the most alluring aspects of the Netherlands is its physical position. It serves as a gateway to the European Union (EU) and is the location of Rotterdam, the biggest port in Europe. This location near important European markets provides your company with unrivaled access to over 500 million consumers, giving it the perfect launching pad for your enterprise.

Strong Economy

The Dutch economy is robust, resilient, and a powerhouse. It is one of the best performing regions in Europe on a regular basis, with a varied economy that includes technology, agriculture, logistics, and other sectors. A wide range of opportunities may be presented by this economic variety to different kinds of enterprises.

Business-Friendly Environment 

The Netherlands is well known for its pro-business policies, making it easy for international companies to establish a presence. The Dutch government provides numerous incentives and support programs, simplifying the process of setting up a subsidiary company.

Talented Workforce

The labor force in the Netherlands is highly skilled and educated. Since many people speak English, integrating and communicating with your staff will be easy and productive. Additionally, the Netherlands has a very high standard of living, which draws talent from all over the world.

Access to the EU Market

Being an EU member, the Netherlands provides companies a gateway to a vast and lucrative single market. By establishing a subsidiary in the Netherlands, you can access the EU’s trade agreements, regulations, and distribution networks.

How to Open a Subsidiary Company in the Netherlands?

The following steps to open a subsidiary company in the Netherlands are as follows:

Company Structure

Making a decision regarding your subsidiary’s organizational structure is the first stage. Common options include a private limited liability company (BV) or a public limited liability company (NV). The BV is the most favored option because of its adaptability and limited liability.

Business Plan

Create a thorough business plan that details the goals, budget, and operational tactics of your organization. This plan will be vital when seeking funding, making it a cornerstone of your subsidiary’s success.

Select a name for your company

Choose a name for your subsidiary that is both distinctive and suitable. Verify that it isn’t in use already and complies with Dutch naming regulations.

Notarial Deed

A notarial deed is needed for the incorporation of a Dutch subsidiary. You’ll need to engage a civil-law notary to draw up the deed, which will include the company’s articles of association and other essential details.

Chamber of Commerce Registration

Register your subsidiary with the Dutch Chamber of Commerce (Kamer van Koophandel, or KvK). This registration is a prerequisite for conducting business activities in the Netherlands.

Obtain a Registered Office

You need to have a Netherlands-based registered office or address. This is where official documents will be sent, and it should be a physical location, not a P.O. box.

Legal Requirements

Ensure that your subsidiary complies with all legal requirements, including tax registration and social security registration for employees.

Bank Account

To streamline financial activities and oversee the finances of your firm, open a business bank account in the Netherlands.

Work Permits and Visas

If you plan to employ non-EU citizens, you’ll need to arrange work permits and visas in compliance with Dutch immigration laws.

Corporate Tax Registration

Register your subsidiary for corporate income tax. The Netherlands offers a competitive corporate tax regime, including benefits such as tax treaties to avoid double taxation.

Benefits of Setting Up a Subsidiary in the Netherlands

Some of the benefits of setting up a subsidiary in the Netherlands includes:

• Limited Liability Protection: Limited liability means that a Dutch subsidiary’s shareholders’ personal assets are protected to a certain extent by the capital contribution of the subsidiary. This is an essential safeguard that minimises financial exposure and provides a safe space for investment and expansion.
• Separate Legal Entity: A Dutch subsidiary is a distinct legal entity from its parent firm. This autonomy guarantees that, unless agreed otherwise, the parent company is not held accountable for the subsidiary’s commitments or debts, providing an additional layer of legal protection.
• Tax Efficiency: The Netherlands offers favorable tax regulations, including the ability to amortize intangible assets for tax purposes. This can result in significant tax savings and enhanced financial efficiency for the subsidiary.
• Local Market Preference: Dutch nationals often prefer to engage with local subsidiaries, fostering trust and credibility within the market. Establishing a subsidiary demonstrates a commitment to the Dutch market and can facilitate stronger business relationships.

OnDemand International: Your Partner in Success

Starting a subsidiary company in the Netherlands may seem like a complex process, but you don’t have to go through it alone. OnDemand International is available to assist you at every stage. We specialize in assisting international businesses to set up their subsidiaries in the Netherlands, providing a wide range of services that are customized to meet your unique requirements.

Our team of experts will help you with:

• Legal and Administrative Support: We ensure that all the legal formalities are correctly executed, from drafting notarial deeds to registering with the Chamber of Commerce.
• Business Consulting: Our consultants will assist you in developing a robust business plan, making it easier to secure funding and navigate the Dutch market.
• Tax and Financial Services: We offer expert advice on taxation, assisting you in optimizing your financial plans and reducing your tax burden.
• Work Permits and Visa Assistance: Navigating Dutch immigration laws can be challenging, but we’ll simplify the process, ensuring that your team has the necessary permits and visas.
• Ongoing Compliance: We keep you informed about ongoing compliance requirements, ensuring that your subsidiary remains in good standing with Dutch authorities.

Conclusion

Registering a subsidiary company in the Netherlands is a strategic step that may catapult your firm to the center of the European market. With its great position, strong economy, business-friendly climate, and access to the EU market, the Netherlands provides exceptional potential for entrepreneurs and investors.

To make this procedure even more accessible and seamless, consider partnering with OnDemand International. Our team of experts is dedicated to helping you navigate the complexities of establishing a subsidiary in the Netherlands, allowing you to focus on what truly matters – the growth and success of your business. Don’t miss out on the chance to expand your horizons in Europe; make the Netherlands your gateway to success.