Business owners often find themselves with no other choice but to move their companies overseas. Redomiciling in the Netherlands is a good option as the process is simple and straightforward, the political and economic environment is stable, and the country offers a lot of opportunities for businesses.
If you’re considering redomiciling your business in the Netherlands, here’s what you need to know about the process.
What Is Redomiciliation?
Redomiciliation is the legal process of moving a company’s domicile (legal headquarters) from one country to another. This can be done for a variety of reasons. Some of them include:
- seeking a more favourable tax regime,
- accessing new markets, or
- escaping political instability.
Additionally, redomiciling can be a way for companies to simplify their structure by consolidating operations in one jurisdiction.
Why Redomicile to the Netherlands?
There are many reasons why businesses choose to redomicile to the Netherlands. Some of the most common reasons for shifting company in Netherlands include the following:
Favourable Tax Regime
The Netherlands has a very favourable tax regime for businesses, especially when it comes to corporate income tax. For instance, the corporate income tax rate in the Netherlands is just 15 – 25.8%. This is lower than the rates in many other countries. Additionally, the Netherlands has tax treaties with other countries. This can help reduce or eliminate double taxation.
Stable Political and Economic Environment
The Netherlands is a stable country with a strong economy. Additionally, the Dutch government is very supportive of businesses. It is constantly working to create a business-friendly environment. This makes it an attractive destination for businesses looking to escape instability in their home countries.
The Netherlands has excellent infrastructure. This includes a well-developed transportation network, a world-class education system, and top-notch healthcare. Additionally, the country is home to many international organisations, making it easy for businesses to establish themselves here.
The Netherlands is centrally located in Europe and has a good transportation infrastructure, making it easy to access markets in other European countries. Moreover, the Netherlands is just a short flight from many major cities, making it a convenient location for businesses that need to travel frequently.
The Netherlands has a highly skilled workforce and is home to many world-class universities, making it an attractive destination for businesses in the knowledge economy.
How to Redomicile to the Netherlands?
A large number of businesses choose to redomicile to the Netherlands every year, and the process is relatively simple. Here is a look at the steps involved in redomiciling in the Netherlands:
The first step to set up a company in Netherlands is to check whether your company is eligible for it. In order to be eligible, your company must comply with the laws of the country in which it is incorporated and registered. Furthermore, the business’s origin country should have similar regulations to those in the Netherlands. Finally, the law of the company’s original country or jurisdiction must permit such continuation.
If your company is eligible to redomicile to the Netherlands, the next step is to submit a registration request. This can be done online or by mail, as per your choice. The registration request must be made to the Netherlands Chamber of Commerce Commercial Register (Handelsregister).
Along with the registration request, you will have to submit several documents supporting the request. For instance, you will be required to provide documents proving that your company has ceased its business activities in its original country and has been re-established in the Netherlands. This has to be done within six months.
Similarly, there are other documents, based on your business type, that you will need to submit to redomicile your company to the Netherlands. You will be awarded a provisional certificate of continuation by the Dutch Commercial Register if everything is in order.
Pay the Fees
There are several fees that need to be paid when redomiciling a company in the Netherlands. The first is the registration fee. Additionally, there may be other fees depending on the type of business and its size.
While several fees are associated with redomiciling a company to the Netherlands, the process is relatively simple and straightforward. You won’t face any major hurdles in the process.
Get An Office Space
You will need to have an official registered address in the Netherlands in order to redomicile your company here. You can either buy or lease office space for this purpose. Once you have an office space, you will need to register it with the Chamber of Commerce.
Get the Necessary License And Permits
Depending on the type of business you are running, you may need to get a license or permit from the Dutch authorities. For instance, businesses that sell food or alcohol will need to get a license from the municipality. Similarly, businesses that deal with hazardous materials will need to obtain a permit from the Dutch Ministry of Infrastructure and the Environment.
Register For Taxes
All businesses in the Netherlands are required to register for taxes. This can be done through various online portals. You will need to have a Dutch bank account and a valid passport or ID card to register for taxes. Some of the taxes that you will be required to pay include corporate tax, income tax and so on.
Familiarise Yourself with Tax Benefits
The Netherlands offers a number of tax benefits and incentives to businesses. For instance, businesses can get a deduction on research and development (R&D) expenses. Similarly, businesses can get a tax exemption on profits earned from the sale of shares.
It is important to familiarise yourself with these tax benefits and incentives before redomiciling your company to the Netherlands. This will help you save a considerable amount of money in taxes.
All businesses in the Netherlands are required to have liability insurance. This is to protect the business from any damages or losses that it may suffer. Additionally, businesses are also required to have health insurance for their employees.
Finally, you may need to hire employees in order to run your business in the Netherlands. Fortunately, the Dutch labour market is open to foreign workers. This means that you won’t have any trouble finding qualified employees for your business.
We hope this guide has helped provide you with a complete overview of the process of redomiciling a company to the Netherlands. While the process may seem daunting at first, it is actually relatively simple and straightforward. As long as you have all the necessary documents in order, you shouldn’t face any major hurdles in the process.
Do I need to have a Dutch bank account to redomicile my company to the Netherlands?
A: Yes, you will need to have a Dutch bank account in order to redomicile your company to the Netherlands. This is because you will need to register for taxes in the Netherlands.
What are the fees associated with redomiciling a company to the Netherlands?
A: The fees associated with redomiciling a company to the Netherlands include the registration fee and the license/permit fees. Additionally, there may be other fees depending on the type of business and its size.
Do I need to hire employees in order to redomicile my company to the Netherlands?
A: No, you do not need to hire employees in order to redomicile your company to the Netherlands. However, you may need to hire employees in order to run your business in the Netherlands.
How long does it take to redomicile a company to the Netherlands?
A: The process of redomiciling a company to the Netherlands can take anywhere from a few weeks to several months.
Are there any tax benefits for businesses that redomicile to the Netherlands?
A: Yes, businesses that are redomicile to the Netherlands can benefit from a number of tax benefits and incentives.