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Opening a branch office in the Netherlands

MFFA Tax Advice can also assist you with opening a branch office in the Netherlands and we can also assist you with corporate income tax compliance / advice, VAT return in the Netherlands and accountant services.

MFFA Belastingadvies | Tax Advice

Opening a branch office in the Netherlands

Opening a branch office in the Netherlands: foreign companies (US Inc, UK Ltd, Gmbh, other) who want to take care of the incorporation of a Dutch company in the Netherlands can do this by registering a Dutch branch office / permanent establishment or a by forming a Dutch subsidiary (Dutch BV).

Dutch chamber of commerce

If you want to establish a branch in the Netherlands the only thing which must be done is to register the existing foreign legal entity at the Dutch chamber of commerce.

 Legal entities

In the Netherlands we have two types of legal entities called “BV” (private limited liability company) and “NV” (public limited liability company). Besides these, other common used companies are “eenmanszaak” (sole proprietorship), “VOF” (general partnership), “CV” (limited partnership) and the attractive Dutch “Coop” (Cooperative). If you would like to form a Dutch subsidiary BV, please contact us.

Opening a branch office in the netherlands
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Start a branch office?

If you want to start a branch office in the Netherlands, we can assist you with the following:

  • Determine and analyze if it is wise to set up a Dutch branch, if so;
  • Register the Dutch branch at the Chamber of Commerce where we complete all the forms;
  • Determine what kind of tax numbers must be applied at the Dutch tax authorities (VAT, CIT, Wage tax)
  • Apply for the tax numbers
  • Maintain the yearly accounting services
  • Correspondence Dutch tax authorities by using our network.
  • Application tax ruling (if requested)

Opening a branch office – frequently asked questions:

Please find below frequently asked questions about the opening of a Dutch branch:

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What are the (dis) advantages of setting up a branch in the Netherlands?

Setting up a branch / permanent establishment in the Netherlands has the following (dis) advantages:

Advantages:

  • No Dutch legal formalities is required so no Dutch notary is needed, since no legal entity (Dutch BV) is set up. The only requirement is to register the Dutch branch at the Chamber of Commerce and apply for the tax numbers at the Dutch tax authorities
  • Possible extra tax deductions in the home country with a Dutch branch
  • From a practical point of view it easier since nothing needs to be changed (website, email address, name)
  • When you stop doing business in the Netherlands no liquidation / elimination process is needed (closing is easy)
  • No substance is needed. As a result, important management decisions should not be made in the Netherlands.
  • The business administration of the branch can be maintained in the home country

Disadvantages:

  • The foreign company who established the Dutch branch is fully responsible for all the obligations and liabilities of the branch / permanent establishment;
  • To the outside world it looks better to have a legal entity instead of operating under the foreign name on the Dutch market;
  • From an accounting perspective there (might) be more overview;
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Setting up a permanent establishment, how does it work?

Setting up permanent establishment/a branch in the Netherlands has the following (dis) advantages:

Advantages:

  • No Dutch legal formalities is required so no Dutch notary is needed, since no legal entity (Dutch BV) is set up. The only requirement is to register the Dutch branch at the Chamber of Commerce and apply for the tax numbers at the Dutch tax authorities
  • Possible extra tax deductions in the home country with a Dutch branch
  • From a practical point of view, it easier since nothing needs to be changed (website, email address, name)
  • When you stop doing business in the Netherlands no liquidation / elimination process is needed (closing is easy)
  • No substance is needed. As a result, important management decisions should not be made in the Netherlands.
  • The business administration of the branch can be maintained in the home country

Disadvantages:

  • The foreign company who established the Dutch branch is fully responsible for all the obligations and liabilities of the branch / permanent establishment;
  • To the outside world it looks better to have a legal entity instead of operating under the foreign name on the Dutch market;
  • From an accounting perspective there (might) be more overview;

 

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Is a Dutch business address required (substance)?

From a Dutch tax perspective minimal substance is required if you set up a Dutch BV. If you set up a Dutch branch also certain substance requirements must be met. Most important one is to have a Dutch business address, since the company must be registered in the Netherlands. It is possible to use our company address for registration.

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What kind of info is needed to register the branch in the Netherlands?

If you want to register the foreign company as a branch in the Netherlands, the following information is required for the registration:

  • An extract of the registration of the foreign company in the home country;
  • Copy of the articles of association of the foreign company
  • Copy passport of the director / manager in the Netherlands

Everything can be done from a distance which means you do not need to come to the Netherlands. As a result, we will need certified and legalized papers.

After the registration at the Chamber of Commerce, the Dutch tax authorities must be approached to issue the tax numbers (if necessary).

More information about setting up a branch in the Netherlands?

MFFA Tax Advice can also assist you with incorporation of a Dutch company and we can also assist you with corporate income tax compliance / advice, VAT return in the Netherlands and Accountant services.You can contact us through our contact form or call +31 (0)85 00 30140.

 

Contact

Do you have any questions or would you like to know more about our prices?

info@mffa.nl

Call us: +31 (0)85 0030140
From abroad: +31 (0)20 2615615

Offices:

Amsterdam: Keizersgracht 62, 1015 CS
Amstelveen: Laan van Kronenburg 14, 1183 AS
Bovensmilde (Assen): Witterweg 2, 9421 PG
The Hague: Schenkkade 50, 2595 AR
Eindhoven: Hurksestraat 64, 5652 AL

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Specialist in: Expats | International Companies , MFFA Belastingadvies | Tax Advice
Jeroen Mijlof graduated in economics and tax law at the University of Groningen. He has + 15 years’ experience in National and International Tax Law for both individuals and companies. Before MFFA he worked at the Dutch tax authorities, KPMG Meijburg and RSM International Tax Services .