Did you decide on establishing a Dutch company? Then there is much work to do, but do not worry, because here you will find important information on what you need to know to start up your own business in the Netherlands! to do this all on your own is a lot of work, so that is why it could be helpful to have someone help you guide you through the process. Intercompany Solutions is the right company to help you! The scope of their expertise ranges from secretarial support to establishing a Dutch company. Many people have started up a company successfully with the help of Intercompany Solutions ever since they started in 2013.
Establishing a Dutch Company: BV or sole proprietorship?
The most important thing you need to know is whether to register a BV(limited liability company) or a sole proprietorship. To be able to decide on which option you will choose, the differences between the two need to be clear.
- With a BV company, there will be lower taxes
- No taxes for interest, dividends, and royalties
- No personal accountability for business debts
- BV has fiscal rules considering shareholders, salaries and managing directors
- Private limited companies cannot be opened or operated by a non-resident.
- Private accountability for business debts
- No extra investors are needed
- For a small business, there are some nice tax breaks
Most foreign entrepreneurs choose to start up a BV company for establishing a Dutch company. Even though private limited companies cannot be operated or opened by non-residents, non-residents can own such a company or be a director of it. For the sole proprietorship, it is also not unimportant to mention that such companies’ profits are subject to tax. Although, an entrepreneur establishing a Dutch company which is a sole proprietorship can generate a taxable profit, of 22 000 EUR and be exempt from income tax for the first three years after the company’s establishment. After this period, this amount is lowered to 18 000 EUR. For a Dutch BV, every Euro earns is subject to tax. So, if you want to start a small company, it could be more profitable to start a sole proprietorship.
Although everyone has the permission of establishing a Dutch company, the procedure for residency will differ depending on where you come from. If you are from an EU country, Swiss or if you are an EEA citizen, do not worry, you will not have to apply for any residence permit. If you are not a citizen of any of these, however, then you will need to apply for a residence permit. Depending on your wishes and situation, this permit can be either a start-up permit or a self-employed permit. For the first, you will need a stable business plan and a facilitator, as well as proof of your business being innovative and that it has enough financial resources. For the latter, you will need to prove that your business will benefit the Dutch market in some way. This can be done by a solid business plan and good financial prospects of third parties, which need to be verified by an account or a financial advisor.
So if you have decided on establishing a Dutch company, you can choose to start a BV or a sole proprietorship, but then there is also the matter of residency. With all of these things, Intercompany Solutions can also help you. Don’t take the risk, but consider establishing a Dutch company successfully with Intercompany Solutions!