The Netherlands, is also simply called “Holland”, but is officially known as the “Kingdom of the Netherlands”. It is situated in Western Europe and owns three island territories in the Caribbean. The European part of the Netherlands borders Belgium to the south, the North Sea to the northwest and Germany to the east. It also shares maritime borders with Germany, Belgium, and the United Kingdom.
Amsterdam is the country’s capitol. The two other largest cities are The Hague and Rotterdam which has the largest port in Europe.
Netherlands corporations are regulated by The Dutch Corporate Law which is also called “the Company Act”. In addition, the Civil Code added rules required by the Act on the Supervision of the Securities Trade, the European Community Directives, and the Listed Companies Act.
Benefits
Netherlands corporations have several benefits including:
• Two Shareholders: A minimum of two shareholders are required for incorporation.
• Privacy using Nominees: Nominee Shareholders and Directors can be used to protect the privacy of actual ones.
• No Minimum Authorized Capital: Since 2012, Netherlands corporations no longer have to declare a minimum authorized capital value.
• Shipping Hub: The Netherlands has one of the best ports in the world, making it a supreme transportation hub.
• Double Taxation Treaties: The Netherlands has double taxation treaty agreements with many countries including the United States to prevent foreigners from paying double taxes for the same income.
• Superior Workforce: There is an excellent selection of employment and labor in the Netherlands. The workforce is tech-savvy due to the booming technology industry in this country. Also, most potential employees in the Netherlands are both competitive with salary requirements and speak English.
Corporate Name
Netherlands corporations must chose a unique corporate name that is not similar to any other previously registered corporate names. Once the name is verified to be unique, it can then be reserved by the applicant, who will receive a certificate for that name.
Office Address and Local Agent
Netherlands corporations must have a registered agent and registered local address for process service requests and official notices.
Shareholders
Netherlands corporations must have at least two shareholders.
Directors and Officers
Netherlands corporations must have at least one director.
Authorized Capital
There is no minimum authorized capital requirement for a Dutch corporation.
Taxes
It is expected that company and limited company owners incorporating in the Netherlands register with the Dutch tax authorities and the social insurance office as well, if employees will be hired by the corporation. The tax registration for the Chamber of Commerce should be completed automatically after registering with the Dutch tax authorities.
The Netherlands has many double taxation treaties in existence with other countries, including one between the Netherlands and the United States. These treaties prevent foreigners from paying double taxes for the same income.
Annual Fees
The annual renewal fee is around €1,500 to € 2,500.
Public Records
Corporations are registered in the Trade Register of the Chamber of Commerce.
The Trade Register is then maintained by the Chamber of Commerce, which holds information about all business entities in the Netherlands that are incorporated there. Some of the information generally kept on file is statutory name, date of incorporation, name and authority of directors, and registered address.
Furthermore, all names and addresses of 100% shareholders are kept in the Trade Register as well. All of the company information found on the Trade Register is accessible to the public.
However, there is the opportunity for some privacy. The use of nominee directors and shareholders can help shareholders and directors maintain some degree of privacy.
Accounting and Audit Requirements
Netherlands corporations must keep and maintain a register for tax purposes, and filing tax returns. Annual financial statements are also required to be submitted. These financial statements need to be approved by the shareholders at the annual general meeting.
Annual General Meeting
An annual general meeting is required for Netherlands corporations.
Time Required for Incorporation
The estimated time required for incorporation can be completed in two days. However, it is usually recommended that investors expect the incorporation process to take one to two weeks.
Shelf Corporations
Shelf corporations are available in the Netherlands for faster incorporation.
Conclusion
Netherlands corporations have several benefits including: only two shareholders are required to incorporate, privacy is provided by choosing to use nominee shareholders and directors; there is no required minimum authorized capital value, and the Netherlands has numerous double tax treaties (including the U.S.) to protect foreigners from having to pay double taxes on the same income.
