Setting up a Company in the Netherlands

Reasons to do business in the Netherlands

The lure of political and trade stability in the wake of Brexit aside, many countries have close ties with the Netherlands. We will come on to other reasons why you might consider setting up a company in the Netherlands; however access to wider markets should not be overlooked. The long standing relationship between the Netherlands and other nations such as those in Asia is a compelling reason to do business in-country. Dutch-Chinese trade relations are unwavering, and in 2020, the Netherlands was China’s second-largest trading partner in Europe after Germany. Japan, too, has strong connections with the country.

Other reasons to set up a company in the Netherlands include the country’s very stable political economy, highly educated workforce, extensive double tax treaties and pragmatic culture.

Collectively, all of the above add to the country’s allure, especially for large and multinational companies. Netflix, Asics, Pepsico and IKEA all chose the Netherlands as their European headquarters location.

Additionally, the country’s diverse, internationally orientated multilingual talent pool, open and collaborative business environment and access to the wider European market are greatly appealing to international companies.

Setting up a company in the Netherlands

Setting up a company in the Netherlands is relatively straightforward and the process can be further expedited with the right partner in place to facilitate incorporating the necessary entity and provide ongoing support. It is important to seek out an advisor who can help with accounting, regulatory, reporting and tax compliance as well as considering escrow and capital markets services, depending on your needs.

For multinationals or companies which are part of a wider group structure, it is especially important to seek local advice on the right set up for the group’s needs.

Companies are often incorporated as a Branch or Subsidiary in the Netherlands; however, for some, a Coöperatie, Societas Europaea (SE), Societas Cooperativa Europaea (SCE), Partnership or Formal Foreign Company may be the most appropriate choice for setting up a company in the Netherlands.

Having the right team on the ground to understand what you are trying to achieve, how that fits into your wider strategy and how to meet local requirements in the Netherlands is vital. Working with an experienced partner can help you to avoid pitfalls and maximise your local presence.

If you are considering setting up a company in the Netherlands or for more information on any aspect of doing business in the Netherlands, contact Erik-Jan Schoop.