In the Netherlands, the BV as a subsidiary is the most used legal entity by foreign investors to carry out a business, to invest in real estate, as an (intermediate) holding/finance company, for intellectual property et cetera. We refer to our Dutch legal forms section for more on this topic. As an alternative for a legal entity, a foreign corporation (or any other foreign legal entity that carries out a business) may decide to set up a Dutch branch or a representative office.
Typical activities performed through a subsidiary are holding, finance and licensing operations, among other things since subsidiaries are able to benefit from non-double taxation treaties. Operating activities like manufacturing and the rendering of services can be carried out by branches and subsidiaries.
The following are some important attention points when deciding on performing your Dutch business through a branch vs subsidiary:
Incorporation and registration
Corporate income tax
Dividend withholding tax
Value added tax
Please contact us if you would like to discuss whether a branch or a subsidiary in the Netherlands suits your business needs best.