Starting a business in the Netherlands means engaging in the local economic activities and generating money in a stable and appreciated economy in EU, where the taxation system, the infrastructure, the legal framework and the highly qualified workforce are at the base of a positive business environment which encourages the foreign investments.
Business persons have varied opportunities for establishing companies in the Netherlands, one of the most popular entities being the limited liability company also known as the Dutch BV (Besloten Vennootschap).
Setting an LLC in the Netherlands
From the beginning, the foreign investors should know that there is no need for a minimum share capital for establishing a limited liability company in the Netherlands, as stipulated by the Company Law which was recently revised. As soon as the Articles of Association have been prepared, your LLC may enter the next stage of incorporation, and that is reserving the company name, register for social contributions and taxes, and obtain a registration number for your business. The best part about the Dutch BV is the taxation regime which is optimized for foreign investors and their businesses relocated in the Netherlands. Additionally, the business market in the country offers varied opportunities and it is highlighted as a respected and a stable environment with full potential in different sectors of interest.
The corporate tax in the Netherlands
Companies established in the Netherlands are seen as resident legal entities and therefore, they must register for tax purposes. With numerous tax reliefs and many important measures offered by the authorities in the investment sector in the Netherlands, companies enjoy a favorable and appreciated tax regime. The corporate tax, for example, is set at 20% for profits up to EUR 200,000 and 25% for revenues exceeding this sum. It is good to know that there are no withholding taxes on interests and royalties, and the country signed many double tax agreements with states worldwide for tax relief purposes.
The shareholder’s rights in a company in the Netherlands
In most cases, a company can be registered by at least one or two shareholders who are subject to varied rights and obligations. In the first place, one should know that the preference shares offer to the holder the legal right of possessing extra rights for revenues and liquidation incomes.
Generally speaking, the stockholders of a company in the Netherlands have the right to vote, have complete access to information and data related to the business, and are also subject to dividend payments. The same shareholders can decide the future of the company, whether a liquidation is necessary or not.
The 30% ruling in the Netherlands
Another tax relief for foreigners in the Netherlands is related to the 30% ruling. This is available for employees in a Dutch business who can benefit from a free allowance for extraterritorial expenses. In other words, an employee can receive the salary with fewer taxes imposed on 30% of it. The 30 ruling helps companies avoid the taxation when refunding the extraterritorial costs of staff.
Workforce in the Netherlands
Besides the advantages related to the taxation of companies in the Netherlands, investors can discover the particularities of the local workforce for their companies. The overall wealth in the Netherlands is also constructed on the skilled workforce which is recognized as one of the most flexible ones internationally. The foreigners who relocated in the Netherlands have the possibility of attending numerous courses and programs offered by the government. In a search for a job in the Netherlands, a good resume with skills acquired in this country will weigh much.
Workers in the Netherlands usually speak two languages and also three, and represent an important advantage in the business market. Skilled workers in the Netherlands have the possibility ofand it is known the fact that the authorities encourage the small entrepreneurs. Talented people from abroad can properly develop their skills in the companies established in the Netherlands with the help of the Highly Skilled Migrant Visa Program that eases the way of hiring staff. Under the provisions of the Employment Law, workers have numerous rights and responsibilities, all mentioned in the work contract.