What are the advantages of setting up a limited company?

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Benefits of choosing for a limited company:

  • The liability can be kept within the Dutch limited company. This way the foreign mother company or the individual will be safe in case something happens. Liability is often the reason to set up a limited company.
  • Benefit of a Dutch limited company is also that towards clients in the Netherlands you show that your company is officially registered in the Netherlands. You can use a foreign company to do business in the Netherlands, which is no problem, but this may lead to distrust from the clients.
  • Tax benefits can be used and for an individual shareholder it will be easier to determine income.
  • It is easier to transfer part of the shares to another company or individual in case of a joint venture or sale of the whole company.
  • If a holding company is set up it can receive amounts from daughter companies tax free.