Establishing Business Presence in Amsterdam
If you have your heart set on establishing a business of your own in Amsterdam, you’ll be pleased to know that there are many pathways available to you. There is a variety of entrepreneurship options these days, such as setting up a small store, becoming a freelancer, creating a company independently or via partnerships and joint ventures.
Before starting, it’s important to be well informed and have thorough knowledge about your ventures. While being your own boss may sound attractive, desirable, and have numerous perks, it’s important to be aware of the myriad of risks, duties, and responsibilities that come along with it.
There are many differences when it comes to being an entrepreneur or an employee, and it’s vital to be informed about them. When you are employed by a company, they assume the responsibility of dealing with taxation authorities when it comes to payments regarding wage taxes and social benefits.
While your income as an employee may be less than what it can be as an entrepreneur, you get to enjoy the security and protection your employer provides. Being an entrepreneur means that any responsibilities and duties regarding wage taxes and social premiums are now your headaches.
What is the Process for Registering a Virtual Office in Amsterdam?
Establishing a business or company in The Netherlands usually comes with a very straightforward and quick process. It’s possible to fully set up a company in a matter of just a few weeks. For starters, it’s important to know that establishing a business in Amsterdam will require you to first create an office or business address for your company.
ABiLiTieS Trust, as company formation professional, can break down the whole process, and provide you with helpful information. Any business being established in The Netherlands must be registered with the Dutch trade register, which requires the payment of a fee.
The company can then be registered by the notary within a day of establishment. In order to ensure that the newly established company can proof it can use the address as its busines address, a rental agreement is concluded.
How Are VAT Numbers Issued in The Netherlands?
Dutch taxation authorities provide a VAT number to companies that offer products and services. VAT numbers are usually not issued for holding companies. This unique number allows VAT to be calculated, charged, and paid. Dutch VAT numbers also double as an EORI number which is automatically activated at the first instance of usage.
The VAT must be reflected in all of your invoices, and these documents must be retained for at least 7 years. A request to terminate the VAT number can also be initiated if a company pauses or suspends Vatable operations.
If you want to wrap up a company, the shareholders will simply unsubscribe from the Chamber of Commerce’s trade register, which leads to the VAT number’s termination.
How Can You Navigate Company Creation in The Netherlands?
The Following Factors Should Be Considered Before Diving into This Section:
· The company must have a proper name.
· It must have some kind of legal form.
· It should have an extended first financial year
· Regional currency and the required capital amount.
While there isn’t a set of highly specific rules and regulations about company names, it is generally advisable to pick one that doesn’t become a source of confusion, especially if there are other businesses with similar names. These days, sole proprietorship and limited liability establishments are popular choices among entrepreneurs and are generally recommended for entities with significant turnover chances.
Extended first financial years can significantly reduce complex paperwork. In The Netherlands, companies and entrepreneurs enjoy full freedom and flexibility when it comes to the capital amount and the dominant currency.
Anticipation and Planning for Dutch Company Registration
Non-citizens interested in exploring business establishment options in The Netherlands are advised to consult with a well-reputed company formation professional who has ample knowledge of the procedure.
Often, a power of attorney and passport copies certified by the notary is enough to carry out the execution procedure. Extra paperwork can further be avoided by visiting The Netherlands and providing in-person identification. Identification can even take place online. Bilingual incorporation documents can easily be acquired from Dutch notaries, simplifying the process further.
Shifting Your Business to The Netherlands from Abroad
All legal entities and establishments that originate from other European member states are fully regarded and recognized by The Netherlands.
Registering with the Chamber of Commerce allows you to transfer your company’s presence from another European country to The Netherlands. Also, the legal forms can be changed to a Dutch limited liability company (called a BV). This is known as a cross border conversion and is generally fruitful for you if there are any non-transferable legal and taxation benefits.
How Can You Establish a Branch in The Netherlands?
Registering with the Chamber of Commerce is the most important step in branch establishment and is also more affordable as compared to setting up a new company. Any losses being incurred at the new branch can also be easily be deducted directly from the parent entity.
The new branch can serve many purposes, such as those of a sales office, production unit, and even representation, market research, and surveying. However, in that case, the new establishment is simply regarded as an extension or portion of the foreign parent company and not an independent legal entity.
The reluctance of Dutch banks in creating bank accounts for business partners and clients can be considered a major downside of establishing a branch in The Netherlands.
If you are interested in getting more relevant information about the establishment of Dutch companies, please feel free to contacgt ABiLiTieS Trust.