Why Netherlands

Advantages of the Netherlands

The Netherlands is a jurisdiction open to international business. Dutch corporate law is extremely flexible, entities are easy to incorporate and register. There are several structuring options for holding, licensing, financing and operational companies, well-established and reliable forms of legal entities. The Netherlands has one of the largest network of bilateral tax treaties and bilateral investment treaties, eliminating double taxation and ensuring that investments structured through the Netherlands are protected from appropriation. With the largest port in Europe and one of the busiest airports, the Netherlands is a convenient logistics hub for shipments into and out of EU.   
Besloten Vennootschap / Private Limited Liability Company

The limited company (“BV”) is the most popular legal entity form in the Netherlands. A BV has one or more shareholders and one or more directors. Its capital is divided into shares and the liability of the shareholders is generally limited to their investment into the shares of the BV. There is no minimum capital and no specific requirements for the shareholders. BVs are used as holding, financing, licensing or operational companies, but any BV can also combine several functions.
Stichting / Foundation

Dutch foundations are often used as a continental alternative to the Anglo-Saxon trusts. Foundations are usually tax transparent. They are used for family wealth management, in employee participation plans, or as special purpose vehicles. One possible type of foundation is the so-called “STAK”, an administrative foundation (Stichting Administratiekantoor). The object of a STAK is to acquire and administer assets under the title of administration. In exchange for the contributed assets, the STAK issues certificates (depository receipts) to the contributors of the assets. While it is most common that shares in a company are contributed to a STAK, in principle any asset can be contributed to a STAK in exchange for certificates. By using a STAK, the legal ownership and the economic ownership of an asset are separated.
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Commanditaire Vennootschap / Limited Partnership

The Dutch limited partnership (“CV”) is a contractual arrangement between one or more general partners (having unlimited liability) and one or more limited partners (with limited liability). Dutch law does not provide for any requirements as regards the contents of the CV-agreement, pursuant to the principle of contractual freedom. Also, there are no requirements with regard to the nationality and legal identity of the partners. Both resident and non-resident individuals and legal entities can be partners in a CV. In international structures, it is common that the CV only has one general partner. This general partner is typically a designated legal entity (often a foundation), provided and managed by a Dutch corporate service provider (such as DTM). A CV can be the ideal form to serve as a portfolio investment holding company, or as a trading entity.
Other

Other Dutch legal entities include the Naamloze Vennootschap (“NV” – Public Limited Liability Company) and the Coöperatie (Cooperative). DTM will be glad to provide more information regarding the various ways to structure your business in the Netherlands.