The Netherlands

The Netherlands, also known as Holland are located in the north-west Europe on the North Sea coast. The Kingdom of the Netherlands was founded in 1815. The Netherlands is a member of the European Community.

Capital

Amsterdam

Official language

Dutch. English and German are widely spoken.

Currency

Euro

Government

The Netherlands is a constitutional monarchy with a parliamentary system of government.

Economy

The Netherlands has a modern highly developed economy, is one of the richest nations in the world. Unemployment in the Netherlands is among the lowest in the European Union. Dutch economy is focused on international trade and industry. Headquarters and production facilities of many multinational and European companies are located in the Netherlands.

Legal system

Roman-Germanic.

Corporate law

  • Commercial Code of the Netherlands (Burgerlijk Wetboek)
  • Labour Directive of the European Union (De Euro-OR Richtlijn)
  • The Competition Act (De Euro-OR Richtlijn)

Types of companies

  • The most popular kind of company is Private Company with Limited Liability (Besloten Vennootschap, BV)
  • Public company with limited liability (Naamloze Vennootschap, NV)
  • Partnerships with unlimited liability (Vennootschap Onder Firma, VOF)
  • Limited Partnership (Commanditaire Vennootschap, CV)
  • Holding Company, BV / COOP
  • Financing Company, BV
  • Real Estate Holding Company, BV
  • Dutch Foundation / STAK
  • Trading Company, CV 

Private limited liability company (BV)

  • The minimum registered capital is 90 000 euros, 20% of which (18 000 euro) shall be issued and fully paid.
  • BV companies are allowed to issue only registered shares.
  • Shareholders of a company can be both legal and natural persons, residents of any country in the world. Company shall have minimum one shareholder.
  • Company names that are misleading regarding the expansion of business scope and involvement in famous commercial brands are not allowed. The name shall include the initials "BV".
  • Directors can be resident anywhere in the world. Minimum one director is required. The company secretary is not required.
  • Information about beneficiaries is not disclosed to public authorities if the company has more than one shareholder.

Taxation of companies

Company taxation is based on annual reports. Corporate tax rates from 2011 are:

  • 20% of taxable income up to 40,000 euro;
  • 23% of taxable income from 40,000 euro to 200,000 euro;
  • 25,5% on taxable income above 200,000 euro. Dividends are taxed at 15%.

There is no tax on interest payments and royalties or tax on capital.

Agreements on avoidance of double taxation

About 100 agreements, including Russia, USA, UK, Germany, Sweden, Japan, the CIS states.