Forming a Company in the Netherlands: Complete Guide

Published on September 29, 2025 and written by Cyril Jarnias

The Netherlands stands out as a premier destination for entrepreneurs looking to establish a company in Europe. With a favorable business environment, advantageous tax system, and privileged access to the European market, the country offers numerous benefits for business development. Discover in this comprehensive article all the aspects you need to know to set up your company in the Netherlands in 2025.

The Netherlands: A Promised Land for Entrepreneurs

Why choose the Netherlands for your company? The country offers numerous advantages that make it a sought-after destination for international entrepreneurs:

– A stable business environment favorable to companies – An attractive tax system with competitive corporate tax rates – Privileged access to the European market thanks to its central location – Modern and efficient infrastructure (ports, airports, transportation networks) – A skilled and multilingual workforce – A pleasant living environment and high quality of life

The Netherlands consistently ranks among the world’s most competitive countries for doing business. The country offers a stable and predictable environment with business-friendly regulations and low corruption levels. The quality of infrastructure and central geographic location in Europe also make it an ideal logistics and commercial hub.

Most Suitable Legal Structures for Your Company

Several legal forms are available for setting up a company in the Netherlands. The most common for foreign entrepreneurs are:

BV (Besloten Vennootschap): Equivalent to a French SARL, this is the most commonly used form. It offers limited liability for shareholders and great flexibility.

NV (Naamloze Vennootschap): Equivalent to a French SA, it’s suitable for large companies and allows raising capital on the stock market.

Branch: An extension of a foreign company, it has no separate legal personality.

Sole Proprietorship: For entrepreneurs wishing to operate under their own name.

The BV is generally recommended for foreign entrepreneurs as it offers the best compromise between simplicity, flexibility, and personal asset protection. It requires a minimum share capital of only €1 and can be established with a single shareholder.

Attractive Tax System for Companies

The Netherlands is renowned for its advantageous tax system, making it a popular destination for international entrepreneurs and investors. Here are the main elements to know:

Corporate Tax: The standard rate is 19% on profits up to €200,000, and 25.8% above that. This is one of the lowest rates in Europe.

Participation Exemption: Dividends and capital gains from subsidiary sales are tax-exempt under certain conditions.

Tax Ruling: Possibility to obtain a preliminary agreement with the tax authorities to secure tax treatment.

Innovation Credit: Tax reduction for R&D and innovation activities.

Tax Treaty Network: Over 90 signed treaties to avoid double taxation.

The Dutch tax system is particularly advantageous for holdings and international activities. It allows for tax optimization for groups while remaining compliant with international standards.

Setting Up Your Company in the Netherlands: Key Steps

Establishing a company in the Netherlands follows a well-defined process. Here are the main steps to follow:

1. Choose the appropriate legal form (typically a BV) 2. Check company name availability with the Chamber of Commerce 3. Draft company articles of association with a notary’s assistance 4. Open a bank account and deposit share capital 5. Sign the deed of incorporation before a notary 6. Register the company with the Chamber of Commerce (KvK) and obtain the KvK number 7. Register with the tax authorities to obtain the VAT number 8. Subscribe to mandatory insurance

The entire process can be completed in 3 to 5 business days if all documents are in order. It’s recommended to engage a local expert to assist with the procedures.

The Netherlands vs. Other Offshore Jurisdictions: Strengths and Specificities

How does the Netherlands compare to other popular destinations for setting up offshore companies? Here’s a comparison on key points:

Taxation: 19-25.8% corporate tax rate in the Netherlands, compared to 0-10% in Dubai or 0% in the Cayman Islands. The Netherlands offers a good compromise between tax attractiveness and reputation.

Reputation: Excellent for the Netherlands, an EU and OECD member. More mixed for some tax havens.

Market Access: Privileged access to the European market for the Netherlands. More limited for traditional offshore jurisdictions.

Stability: Very stable environment in the Netherlands. May be more uncertain in some exotic jurisdictions.

Costs: Higher setup and maintenance costs in the Netherlands than in some tax havens, but with better quality services.

The Netherlands stands out as a respectable onshore jurisdiction, offering both tax advantages and excellent international reputation. It’s a wise choice for entrepreneurs looking to optimize their taxation while maintaining an impeccable image.

Social Obligations: What You Need to Know

Companies in the Netherlands are subject to certain social obligations toward their employees. Here are the main elements to know:

Minimum Wage: €1,934 gross per month for full-time employment (as of January 1, 2025)

Legal Working Hours: 40 hours per week

Paid Leave: Minimum 20 working days per year

Social Contributions: Approximately 18% employer contribution

Health Insurance: Mandatory, partially covered by employer

Pension: Capital-based pension system with employer participation

Dutch labor law is known for its flexibility, offering a good balance between employee protection and employer flexibility. Fixed-term contracts are widely used.

Opening a Business Bank Account: Step-by-Step Guide

Opening a bank account is a crucial step for your company in the Netherlands. Here’s the procedure to follow:

1. Choose a bank suited to your needs (ING, ABN AMRO, Rabobank are the most common) 2. Prepare required documents: articles of association, KvK extract, directors’ identification, business plan 3. Schedule an appointment with the bank (in person or via video conference) 4. Complete the account opening form and provide documents 5. Undergo interview with account manager 6. Wait for file validation (typically 1-2 weeks) 7. Sign contract and receive banking credentials

Dutch banks are increasingly vigilant regarding anti-money laundering measures. It’s important to prepare your file well and be transparent about the company’s activities.

Most Promising Business Sectors

The Netherlands offers numerous opportunities across various business sectors. Here are the most promising fields in 2025:

Technology and Innovation: AI, blockchain, fintech, cybersecurity

Renewable Energy: Offshore wind, green hydrogen, energy storage

Logistics and Transportation: E-commerce, sustainable logistics, smart mobility

Food Industry: Precision agriculture, alternative proteins, foodtech

Life Sciences: Biotechnology, medtech, e-health

Circular Economy: Recycling, reuse, eco-design

The Netherlands is particularly advanced in innovation and sustainable development. The country has dynamic ecosystems and excellence clusters in these sectors.

Recruiting in the Netherlands: Keys to Success

To develop your business in the Netherlands, you’ll need to recruit local staff. Here are some tips for successful recruitment:

Target the Right Profiles: The Dutch workforce is highly skilled and often multilingual. Prioritize graduates from the country’s renowned universities.

Use the Right Channels: Job sites like Indeed.nl or Monsterboard.nl, LinkedIn, specialized recruitment agencies.

Offer Attractive Packages: Competitive salaries, bonuses, benefits in kind (company bicycle, supplementary health insurance).

Emphasize Flexibility: Part-time work and telecommuting are very common in the Netherlands.

Integrate Local Culture: Dutch people appreciate flat hierarchy and direct communication.

The Dutch job market is dynamic but competitive, especially for qualified profiles. It’s important to stand out as an employer to attract the best talent.