Appointing a Dutch nominee director

Updated: May 28, 2021

An Essential Service For The Non-Resident Entrepreneur

When setting up a company in a new country, entrepreneurs face basic but fundamental challenges because of their inexperience and unfamiliarity with local Company and Tax law. At best these challenges can slow the business down, at worst they result in failures that have a serious negative impact on the success of the business.

At INCO we ensure that the businesses we help establish are ready to operate and grow smoothly. As part of our commitment to providing added value to clients, we offer a bespoke support to facilitate our clients to regulated trust offices to obtain Directorship Services that supports them in doing business in the Netherlands. The definition ‘nominee director’ can be misleading. Dutch trust offices typically do not facilitate the traditional ‘nominee services’ in which a director would simply be appointed to blindly follow the instructions on behalf of a beneficial owner(or even provide a general Power or Attorney).

This is not how Directorship services work nowadays. Instead, INCO facilitates in professional and independent directorship services, which are in compliance with Dutch regulatory requirements for trust Offices and tax purposes.

Dutch Trust service provides non-resident entrepreneurs an experienced local representative to ensure that they meet all mandatory compliance responsibilities, have an authorized representative to negotiate and sign necessary service agreements on their behalf, and have someone to assist with a range of administrative duties.

Using an official and licensed Dutch Directorship service, you’ll be free to concentrate on managing your core business priorities while the Dutch director manages the day-to-day tasks.

Why should you appoint a Dutch nominee director?

1. Meet Company Compliance Requirements

Certain legal structures require a formal ‘Secretary’ for the purposes of incorporation. By appointing one of our Dutch directors, businesses can satisfy these requirements without needing a local nominee director, and therefore keep full control of the business.

2. Dealing Directly With Government Authorities

Your Dutch Director can be authorized to deal directly with different government authorities. They can contact tax authorities to apply for a VAT number or social security number; deal with immigration authorities for visa applications and more.

Where required, (local) representatives (not per se a Director) can also be granted authority to deal with the local Chamber of Commerce on behalf of your business. This makes it incredibly simple to arrange for transfer of shares, changes in directors and other organizational changes. So if traveling to the region isn’t convenient for you and where speed is of the essence meaning sending notarized documents by courier isn’t an option, a Local Representative will be your best bet.

3 . Provide An Authentic Local Image

As they’ll be visible in the extract of the Chamber of Commerce which is available for public review, having a Dutch Director gives your business a real presence in the country. In instances where your customers or potential partners want to ensure that your business has legitimate local substance, they will be able to establish this from the extract.

Not to mention that being represented by a local who speaks the language and knows the intricacies of the business culture, your business can ensure that customers and partners legitimately view your business as a local one.

4. Growing Your Business

As your business grows, you’ll need to start thinking about expanding your team and possibly investing in real estate.

When looking for a new office, your Dutch Director can take charge of finding and negotiating leases. In some instances it can be beneficial to have your representative actually sign the lease on your behalf as some landlords will be hesitant to lease to non-residents.

With their local knowledge and business experience, they’ll also be perfectly placed to take charge of creating and publicizing job posts for your business. That way you can get a head start on hiring the right talent when you’re ready.