Is it difficult to open a company in The Netherlands?
To open a company in the Netherlands may require extra effort, especially when you are not a native and when you do not know the language. Do you want to open a company in the Netherlands? If the answer is yes, you definitely have to read this blog then. We will tell you some things about taxes and about the reasons why you should open a company in The Netherlands. There are many reasons to mention if you ask us!
What about taxes and the private limited company?
Yes, everybody has to deal with taxes, unfortunately. But what about taxes and the private limited company? You have to know the basics of taxes if you want to open a company in The Netherlands. If you own at least five percent of the shares of a company, you have a substantial interest. That is also called (in Dutch) aanmerkelijk belang. If you are a DGA, you will have to pay income tax, which is called inkomstenbelasting in Dutch. Perhaps, you will have to pay dividend tax too, which is called dividendbelasting in Dutch. In the Netherlands, we have the Tax and Customs Administration. That is de Belastingdienst in Dutch. They will not allow you to pay yourself a zero salary (or excessively low), so your salary has to be in line with the market levels, that is a rule that has to be followed. It is set by the Ministry of Finance and it has a minimum of 45000. This is also called the customary salary scheme for directors as well as for major shareholders. What about selling your company? You might want to know that as well, because if you open a company in the Netherlands, you might want to sell that company as well in the future. If you want to sell your company, you can either sell your shares or you can divest business from the BV by selling off is equipment and inventory (and more). Of course, again you will have to pay income tax on the proceeds of the sales of the shares.
What about liability when you open a company in the Netherlands?
If you open a company in the Netherlands, you will be liable sometimes and sometimes you will not be liable. Running a private limited company, you are in theory not personally liable for your business debts. Banks do ask as a director as well as being a shareholder that you consign for loans as an individual (privately). Then you are personally liable for repaying loans. In the following situations, you can also be held personally liable:
- If you entered into overly agreements and you knew that the company would be unable to fulfill al these commitments
- If you did not inform the Dutch Tax and Customs Administration in time
- If you made payments you knew could potentially make the BV’s financial position worse.
So, we hope to have informed you in the right way. if you do have any questions after reading this blog, you know where to find us!