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Netherlands

Netherlands

Company Formation in Netherlands

Netherlands

Formation Time
3–6 business days
Min. Capital
€0.01 (Flex-BV)
Corporate Tax
19% first €200K / 25.8% standard
Foreign Ownership
100%

Overview

The Netherlands is Europe's premier holding, treasury, and trading jurisdiction, renowned for its sophisticated commercial legal infrastructure and extensive global treaty network of over 100 bilateral tax agreements. The Dutch BV (Besloten Vennootschap) is the international corporate benchmark for holding structures, thanks to the world-famous Dutch Participation Exemption (deelnemingsvrijstelling), which grants a 100% tax exemption on dividends and capital gains derived from qualifying subsidiaries. Combining a flexible €0.01 minimum capital requirement, the innovative 9% Innovation Box tax incentive, and unparalleled digital and logistics infrastructure centered around Amsterdam and Rotterdam, the Netherlands provides unmatched international credibility.

100% participation exemption
Over 100 tax treaties
€0.01 minimum capital
9% Innovation Box
100% remote notarial setup

Why Choose Netherlands

1

100% Participation Exemption — zero tax on qualifying dividends and capital gains from subsidiaries

2

Over 100 bilateral double taxation avoidance treaties worldwide — one of the largest networks globally

3

Innovation Box offering an effective 9% corporate tax rate on profits from patented or R&D-developed IP

4

€0.01 statutory minimum paid-up capital requirement under Dutch Flex-BV law

5

Tier-1 global financial, logistics, and digital infrastructure (Amsterdam Internet Exchange, Port of Rotterdam)

6

19% corporate tax rate on the first €200,000 of annual taxable profit

7

Bilingual commercial courts (Netherlands Commercial Court - NCC) conducting proceedings in English

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
BV (Besloten Vennootschap - Private Limited Company)100%1 managing director€0.0119% on first €200,000 of profits; 25.8% on excessHolding companies, SaaS, international trading, logistics, regional European HQs
Coöperatie (Cooperative)100%Executive boardNoneSubject to CIT; distributions exempt from dividend withholding tax if non-abusiveInternational joint ventures, private equity holding structures, fund vehicles
Branch of Foreign Company100%1 representativeNone19% / 25.8% on Dutch-attributable branch profitsMultinationals establishing sales or logistics operations in the Netherlands

Step-by-Step Formation Process

1

Name Availability & Trade Register Check

1 day

Verify corporate name and business activities with Chamber of Commerce (KVK).

2

Drafting Articles of Association & PoA

2–3 days

Dutch civil-law notary drafts bilingual Deed of Incorporation and Powers of Attorney.

3

Notarial Deed Execution

1 day

Notary executes Deed of Incorporation via Power of Attorney.

4

KVK Trade Register Filing

1–2 days

Register company with KVK and receive official 8-digit KVK registration number.

5

Tax Registration & Corporate Banking

2–4 weeks

Register with Belastingdienst for VAT/CIT and open multi-currency corporate bank account.

Costs & Fees

Government / License FeeEUR 80+
Our Service FeeUSD 3,000 – 4,800
Annual RenewalUSD 2,200+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

The Netherlands possesses one of Europe's most stable banking systems. While traditional institutions (ING, ABN AMRO, Rabobank) conduct deep anti-money laundering reviews, leading European digital business banks like Bunq (Dutch-licensed) and Revolut Business provide fast digital onboarding.

Account Opening Time
1–2 weeks (Bunq / Digital); 3–6 weeks (ING / ABN AMRO)
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

Bunq BusinessING BankABN AMRORabobankRevolut BusinessWise Business

Tax Overview

Corporate Tax
19% on taxable profits up to €200,000; 25.8% on profits exceeding €200,000; 9% on qualifying IP under Innovation Box
Personal Income Tax
36.93% on income up to €75,518; 49.5% on excess (Box 1)
VAT / Sales Tax
21% standard VAT rate (reduced rate of 9% for food and medicines)
Capital Gains Tax
0% under the Dutch Participation Exemption for qualifying corporate shareholdings
Withholding Tax
15% statutory dividend withholding tax (0% under EU Parent-Subsidiary Directive and qualifying double tax treaties)
Double Tax Treaties
100 countries

The Dutch Participation Exemption fully exempts dividends and capital gains from corporate tax if the Dutch BV holds at least 5% of nominal paid-up capital of an active operating subsidiary.

Visa & Residency

Dutch Startup Visa

1 year, leading to self-employed residence permit

For innovative entrepreneurs mentored by a recognized Dutch startup facilitator

Highly Skilled Migrant Permit (Kennismigrant)

Up to 5 years, permanent residence eligible

Fast-track work authorization for sponsored skilled specialists

Family visa: AvailableProcessing: 4–8 weeks

Frequently Asked Questions

How does the Dutch Participation Exemption work?
The Dutch Participation Exemption (deelnemingsvrijstelling) is the cornerstone of Dutch holding company taxation. It provides a complete 100% corporate income tax exemption on all dividends received from, and all capital gains realized upon the sale of shares in, qualifying subsidiaries. To qualify, the Dutch parent BV must hold at least 5% of the subsidiary's nominal share capital, and the subsidiary must not be held merely as a passive portfolio investment.
What is the minimum capital required to incorporate a Dutch BV?
Since the introduction of the Flex-BV legislation, there is no large mandatory capital requirement. The minimum statutory paid-up capital is just €0.01 (one euro cent). Founders can freely decide their registered share capital.
Does incorporating a Dutch BV require traveling to the Netherlands?
No. The incorporation can be executed 100% remotely. Our Dutch civil-law notary prepares a Power of Attorney (PoA) that you sign and have apostilled in your home country, allowing the notary to execute the deed of incorporation on your behalf.
How does the Dutch Innovation Box reduce corporate tax?
The Innovation Box provides an effective corporate tax rate of just 9% (instead of standard 25.8%) on profits derived from qualifying self-developed intangible assets, such as patented technology or software developed under a Dutch R&D declaration (WBSO certificate).
What are the Dutch economic substance requirements for holding companies?
To prevent scrutiny under EU anti-tax avoidance directives (ATAD) and secure treaty benefits, Dutch holding companies should satisfy substance standards: at least 50% of managing directors resident in the Netherlands, key board decisions made in the Netherlands, bank accounts maintained in the Netherlands, and bookkeeping managed locally. Incorp provides resident directorship and corporate substance services.
What are the current corporate tax rates in the Netherlands?
The Netherlands applies a two-bracket corporate income tax rate: 19% on the first €200,000 of taxable annual profit, and 25.8% on any taxable profit exceeding €200,000.