Setting up a company in the Netherlands

Setting up a business in the Netherlands from €2000 + VAT (all inclusive!)

Starting a business in the Netherlands is an excellent option, especially for those focusing on developing a business in or outside the western part of the European Union. The country's geographical location is like a gateway to the EU market, with most major countries within 24 hours.

Why start a business in the Netherlands?

The Netherlands is therefore not only a tourist destination rich in history and culture, but also an ecologically responsible country and a business-friendly country. Its convenient geographical location, easy tax regime and a strong economy attract investors and serve as a springboard for
European market and beyond. For those looking to start a business in the Netherlands, there is more to come more than welcome to discuss the opportunities available with us. We ensure a quick set-up and offer experienced accountants to handle the bookkeeping of your business there.

In the business world, the Netherlands is known for its stable economy and steady growth.

Its industry is mainly focused on food, chemicals, oil refining and electrical machinery, but is open to all business ideas. In addition, Forbes magazine named the Netherlands as one of the “Best Places to Do Business”.

How is a company set up in the Netherlands?

Setting up a BV (Besloten vennootschap – the Estonian equivalent of OÜ) usually takes about 1 month.

A prospective entrepreneur wishing to set up a company in the Netherlands must provide a copy of the passport of each shareholder or director and proof of address.

It will also provide funds for share capital (which starts from €0.01). It’s also important to mention that incorporation can be done remotely without having to travel to the Netherlands. All the relevant documents are simply sent by courier or post to our colleagues.

BV is an independent (limited liability) company. This means that the company can borrow and the shareholders do not risk their own assets (only their investment). As in every country, the Netherlands has its own accounting rules, so it is important to find an accountant or firm - which we can recommend.

Setting up a company in the Netherlands involves several types of taxes:


It is important to add that if the profit does not exceed the threshold of €200,000, the corporate income tax rate is 20%, above this threshold it is 25% and 15% income tax is withheld on dividends paid to local companies.


In addition, each company must file an annual tax return within 5 months of the end of the tax year.


The Dutch VAT system has three rates: 0%, 9% and 21%.


For example, a lower VAT rate of 9% will apply to many goods and services, such as food, medicines and pharmaceuticals, paints and home plastering.


For other goods and services, the VAT rate can reach 21%.

It is important to note that this legal entity must submit an annual financial report to the Chamber of Commerce (Kamer van Koophandel). Both the company and its directors must pay income tax (this applies to dividends as well as salaries). However, it is most profitable to transfer new profits in the form of dividends.  In addition, each company must file an annual tax return within 5 months of the end of the tax year.

LCPC aims to provide you and your business with high quality assistance. Setting up a company is one of the first steps in building your business and we will help you through it together!

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