Company formation is the process of incorporation of a business. It is also referred to as company registration. A Dutch limited liability company is considered an entity that is separate from the people who own or operate the company. A Dutch trust office can establish a Dutch company in two days Trust companies cooperate with notaries in setting up legal entities such as limited liability companies, joint stock companies and foundations.One such domiciliary and management services company in Netherland is ABiLiTieS Trust | Corporate Services. It is an independent trust office wholly owned by its management.
Corporate compliance and trust company
This company provides domiciliary and management services in the Netherlands to international companies and specializes in corporate compliance services. It holds a trust license from the Dutch Central Bank. All the three directors in this company have extensive legal, financial, and tax experience. The company formation services Netherlands are engaged daily by non-residents. Trust companies in the Netherlands have designed a simple and remote on boarding process. It helps you to have immediate access to our complete range of corporate solutions.
Double taxation and effective management
Companies which have non Dutch resident director can face the issue of double taxation. In the case of company formation in Amsterdam, most directors have other nationalities that Dutch. The company runs the risk of being taxed both in the Netherlands and the location of residence of the director. With the support of a Dutch resident nominee director the Dutch tax substance can be assured. This avoids the risk of double taxation and will enable to company to qualify for treaty benefits.. Please note that with operational companies, the risk of double taxation will be less likely. Still it is required to have some level of substance. Otherwise there is also the risk that the VAT number will be terminated by the Dutch tax authorized.
Relevant factors for Dutch tax substance
In the Netherlands any limited liability company is registered for corporate income tax purposes at registration with the trade register. Even in case of having losses or solely non-taxable income and corporate income tax return shall be filed on an annual basis. Holding and financing companies shall confirm there Dutch tax substance in the corporate income tax return to be able to benefit from any tax treaty benefits. There are a few factors that are relevant to the determination of the Dutch tax substance. Some of them are listed here below:
- Location of the registered office
- 50% of the board members is Dutch resident
- Sufficient knowledge with Dutch resident directors
- Place of execution of the bookkeeping and accounting
- Place of control over main bank account
Public notary and other procedures
For Dutch company formation it is mandatory that a local civil notary executes the deed of incorporation. Registration is also take care of by the notary, although this is not required. Civil notarial services fees are most often included in the fixed fee of the company formation agent. In principle, every shareholder’s presence is necessary at the time of company formation. In practice the director and shareholders are most often represented by means of proxies. There is no minimum capital requirement for a Dutch private limited liability company (for a joint stock company there is). A complete procedure for formation followed by most Dutch formation specialists includes:
- Fee proposal and fee confirmation
- Advice on formation
- Request for necessary documentation and info
- Power of attorney and signing off documents
- Execution of the deed of incorporation
- Registration with the chamber of commerce
- Registration for tax purposes
After completing the necessary steps of company formation either in Amsterdam or any other city in the Netherlands, the business operations can commence.
Conclusion
The conclusion of the above content describes that there are many steps for the formation or incorporation of a company. These involve the efforts of directors, shareholders, , notaries and trust companies. Capital management, as well as other financial tasks, rest with the board of the company. Many of the holding companies in the Netherlands hire a nominee director to manage their company to be enabled to benefit from the many Dutch tax treaties.
