What Kind of Firms Can You Open in The Netherlands?
When exploring the options of opening a new business in the Netherlands, it is of high importance that you select the right legal entity for your business. Since each country has it's own business structures and regulations it is advised to thoughtfully review the benefits and disadvantages of each kind of firm within that country. Legal entities often differ in the way they are structured: the amount of share capital, number of partners involved, independence and tax regulations.
We have listed the 6 types of firms in the Netherlands
1. The Dutch BV (limited liability company)
The Dutch BV is a type of company that can be registered if you have a minimum share capital of 0.01 EUR, according to the recently amended Company Law. There are a series of requirements related to the Board of Directors and local company headquarters, both being required for what the local regulations describe as “substance”, and our company INCO Global Solutions is able to provide all required services to foreign businessmen.
2. The General Partnership
This kind of business is for companies with two or more partners united under the same name and having the same economic objectives, with unlimited liability on the firm’s debts. They share the profits and they don’t have to present a minimum share capital, such as for the Dutch BV. The personal assets of each general member of the partnership can be taken by the creditors if there are debts that can’t be covered by the company funds.
3. Dutch Limited Partnership
To register another form of partnership, the Dutch Limited Partnership is necessary at least two partners - one general who has unlimited liabilities and takes the management decisions - and silent one who must deliver capital to the firm and has his liability limited to his contribution.
4. Professional Partnership
Professional Partnership is formed by two partners, at least, who are responsible for their claims. This kind of business is preferred for practising a profession and not for business.
5. Public Liability Company
This type of business is proper for large investments and it needs a share capital of 45,000 EUR. The general meeting of shareholders is in charge of management decisions. The board of managers will be responsible for daily decisions.
Branches or subsidiaries of foreign companies. The main difference between these two business forms is the degree of independence of the local branch or subsidiary related to the parent company.
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