Setting up a company in the Netherlands: a guide for founders heading to Europe

For founders planning to enter the European market, the Netherlands is almost always near the top of the list. There are a few concrete reasons for that, and in this issue we want to walk through both those reasons and how the incorporation process works, step by step.

What makes the Netherlands attractive?

The first reason is location. The Netherlands borders Germany and Belgium and sits close to France, three of Europe’s largest economies. The Port of Rotterdam and Amsterdam Schiphol Airport are among the continent’s busiest transport hubs, so reaching any part of Europe by road, air or sea is straightforward.

The second reason is the business environment. The country is open to foreign investors, the legal framework is transparent, and bureaucracy moves quickly. Add tax incentives and business support schemes, and the Netherlands becomes a practical base for large investments and individual ventures alike.

Where does incorporation begin?

The process starts with the company’s registered address in the Netherlands. This address matters because official correspondence, banking and tax registrations all depend on it. A virtual office is allowed, although some sectors require a physical one.

Next comes the choice of legal form. The most common structure is the BV, the Dutch private limited company. The NV, the sole proprietorship and the branch office are also available. The form you choose determines the tax you pay and the legal liability you take on, so it should be weighed against your business model.

Two facts tend to surprise people here. First, there is no minimum capital requirement for a limited company; a BV can be set up with as little as 1 euro. Second, you do not have to travel to the Netherlands. Notary procedures can be carried out remotely through a power of attorney and an apostille.

Name, business activity and director

The company’s trade name is checked against the database of the KvK, the Dutch Chamber of Commerce. It is worth thinking about trademark and domain registration at the same stage. A name can be legally available and still cause problems later if the trademark or the domain belongs to someone else.

Every company must have at least one director. The director does not need to be a Dutch citizen, but as the legal representative they are responsible for all of the company’s activities.

There is one detail about directors worth knowing. If you want to open an account at a physical bank in the Netherlands, a resident director may be required. Without a resident director, VAT registration may not be granted either. For this reason, using a director service for at least the first three months after incorporation helps keep operations running smoothly.

Which documents are required?

Five groups of documents and information are needed at the preparation stage:

• Passports or ID documents and proof of address for shareholders and directors
• Notarised articles of association
• The registered address in the Netherlands, the trade name and the activity code
• Bank statements, capital contribution documents, KvK registration, and applications for the BTW (VAT number) and RSIN (legal entity identification number)
• Additional licences and permits for regulated sectors such as food, healthcare, finance or import-export

How does taxation work?

The main tax for companies is corporate income tax. As of 2026, the first €200,000 of annual profit is taxed at 19%, and profit above that at 25.8%.

All companies are also subject to VAT, known in the Netherlands as BTW. The standard rate is 21%. A reduced rate of 9% applies to certain goods and services, and exports are taxed at 0%.

Two advantages stand out for companies operating internationally. The double taxation treaties the Netherlands has signed with a large number of countries reduce the tax burden on cross-border trade. The Innovation Box and R&D incentives allow qualifying innovative companies to obtain significant reductions in corporate income tax. Together, these give the country a competitive tax environment for traditional businesses and technology start-ups alike.

After incorporation: accounting

Once the company is set up, the area that demands ongoing attention is accounting. Companies are required to prepare annual financial statements and submit them to the KvK and the tax authorities. These statements cover income and expenses as well as VAT and corporate income tax returns. Regular, professional bookkeeping is not only a legal obligation but also the foundation for healthy growth.

In short

Thanks to the low capital requirement and the option of remote incorporation, setting up a company in the Netherlands is an accessible step. Whether the process runs smoothly depends on planning the address, legal form, name, director structure and accounting set-up properly from the start.

Which countries are part of your plans for Europe? Let’s talk in the comments.

The Edge is Edda Creative’s weekly read on marketing, strategy and business development. Follow Edda Creative on LinkedIn to get it every week.