Netherlands BV (Private Limited Company) Setup
Establish your gateway to Europe in the Netherlands. Benefit from the flexible BV structure, the famous participation exemption, an extensive tax treaty network, and world-class logistics.
The Dutch BV Structure
The Besloten Vennootschap (BV) is the Dutch equivalent of a private limited liability company. It is highly favored by international holding companies, e-commerce businesses, and multinational subsidiaries. Netherlands law allows for a minimum share capital of only €0.01, and a single shareholder can hold 100% of the shares.
The incorporation is executed via a Dutch notary, who drafts the deed of incorporation and registers the BV with the Chamber of Commerce (Kamer van Koophandel - KVK). BVs are taxed on profits, with competitive tiered rates, and have access to the EU's single market.
Holding Company Advantages
The Netherlands is a premier holding company jurisdiction due to the **Participation Exemption (deelnemingsvrijstelling)**. Under this rule, all dividends and capital gains received by a Dutch BV from its qualified domestic or international subsidiaries are completely exempt from corporate tax.
Combined with zero withholding taxes on outgoing interest and royalties, and an extensive network of bilateral double tax treaties, the Dutch BV is the preferred vehicle for corporate structuring and international asset consolidation.
Dutch Corporate Taxation
Dutch corporations face a competitive tiered corporate income tax (CIT) structure:
- Tier 1 Tax Rate: 19% on taxable profits up to €200,000.
- Tier 2 Tax Rate: 25.8% on taxable profits exceeding €200,000.
- VAT (Omzetbelasting): Standard rate is 21%, managed by the Belastingdienst.
- EORI Registration: Essential for clearing imports through the Port of Rotterdam.