Looking to expand your international operations? Setting up a subsidiary company in the Netherlands can offer tax efficiency, EU market access, and a stable legal environment. This guide breaks down everything you need to know to structure, registration, tax compliance, and operational strategy.
1. What is a Subsidiary Company in the Netherlands?
A subsidiary is a Dutch private limited company (Besloten Vennootschap or BV) controlled by a foreign parent company. It operates as a separate legal entity, meaning limited liability and independent accounting. This structure is more robust than a representative office or branch.
2. Benefits of opening a subsidiary in the Netherlands
- EU Market Access: Sell and operate across Europe under a Dutch legal identity
- Tax Incentives: Benefit from competitive Dutch corporate tax rates and the Dutch ruling practice
- Legal protection: Liability is limited to the Dutch entity’s capital
- International reputation: The Netherlands has one of the most business-friendly climates in Europe
Note you need to live or stay here in order to obtain a valid VAT-number!
3. Step-by-Step Process to Set Up a Subsidiary
Step 1: Choose a company name & prepare documentation
You’ll need:
- Parent company extract (from foreign Chamber of Commerce)
- Parent board resolution authorizing the Dutch formation
- Legal representative’s passport copy
Step 2: Notarial Incorporation of the BV
A Dutch notary drafts and signs the deed of incorporation, including Articles of Association.
Step 3: Share capital deposit
The BV requires a minimum of €0.01 share capital, but most companies choose €1.20 or more for credibility.
Step 4: Register at the KvK (Chamber of Commerce)
You receive a KVK number and the company becomes legally active. You can now open a Dutch business bank account.
Step 5: Register for taxes with the Belastingdienst (dutch taks authorities)
This includes:
1.Corporate Income Tax (VPB)
2.Annual deposits at the dutch Chamber of Commerce
3.VAT (BTW)
4.Payroll taxes (if hiring staff)
Tip from FinWoo: We help foreign businesses through the full registration process, including translations and correspondence with the notary and tax authorities.
Note you need to live or stay here in order to obtain a valid VAT-number!
4. Accounting & Tax compliance for subsidiaries
Even if no revenue is generated, your Dutch subsidiary must:
- File annual accounts
- Submit corporate tax returns
- Keep a compliant bookkeeping system (e.g. Exact Online)
We handle all tax filings, reconciliations, and reports, fully cloud-based with access from abroad without any headache.
Conclusion:
A subsidiary company in the Netherlands offers international businesses a solid, scalable base in Europe. But keeping track of compliance is the key from registration to taxes to annual reporting.
Want to open a Dutch subsidiary? Book a free consultation with FinWoo’s team and get expert guidance in English.
