Dutch Administrative & Accounting Requirements
When you start a company in The Netherlands, it’s important to have an understanding of the Dutch administrative requirements. The Netherlands has relatively little red tape, compared to countries as Belgium, Germany or France. However, in this article, you can find information about the strict Dutch corporate regime regarding the financial statements, audit and publication of the financial statements.
The requirement to prepare financial statements
Every company in the Netherlands is obligated to maintain its accounting record that is sufficiently adequate to determine the financial position of the company at any given time. This obligation is incorporated in Dutch law and is usually also incorporated in the statutes of the company. The financial statements must be kept for a period of seven years.
The abovementioned is applicable for all companies in the Netherlands. In general, a branch is not required to prepare and file their own financial statements. Read more about how to prepare your Dutch Financial Statements here.
Dutch accounting rules
In the Netherlands, the accounting rules are incorporated in Dutch law, as above mentioned. The Dutch Generally Accepted Accounting principles are based on EU directives for the biggest part.
These accounting principles apply to all corporations and other entities. Only for stock registered companies, financial institutions and insurance companies different rules may apply.
Within five months after the end of the financial year, the financial statements must be prepared and approved by the managing directors. Two months after this the shareholders must adopt the financial statements. Eight days after the adoption by the shareholders, the financial statements must be published. Publication in the Netherlands means filing a copy with the Dutch Chamber of Commerce.
It is possible to extend the preparation period with five months. This can be done by a shareholders agreement. The deadline for the publication of the financial statements will then be twelve months after the ending of the financial year. You find more details on the publication requirements in The Netherlands here.
INCO can help your company to meet all (tax) compliance requirements. If you have any doubt on how you should deal with a certain situation, please contact us.
In case you decide to use the bookkeeping services of a third party, INCO as your local agent still requires to be updated on completed filing requirements. We can also deal with third party accountants on your behalf.
INCO has a strategic alliance with accounting firms and auditors, in case accounting or auditors statements are required, or to deal with Companies which require certain specific expertise.
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