Company Formation in the Netherlands (BV)

The BV (Besloten Vennootschap) is the most common form used in the Netherlands to establish a limited liability company (functionally equivalent to a SARL). It is suitable for entrepreneurs, e-commerce businesses, consultants, investors, startups, and group structures (subsidiaries / holding companies), as it combines international credibility, statutory flexibility, and a solid legal framework.

Minimum Capital: There is no longer a “high” minimum capital requirement: a BV can be formed with a symbolic starting capital, for example, €0.01 (cash or in-kind contribution).

Key point often overlooked: a BV cannot be formed “alone”: the formation process involves a Dutch notary (notarial deed + articles of association). In practice, registration with the KvK (Kamer van Koophandel) register is usually carried out by the notary.

The creation of a BV generally proceeds in 4 blocks:

Notarial deed + articles of association (incorporation)

Capital deposit (even symbolic: e.g., €0.01, cash or in-kind contribution)

Registration with the Commercial Register (KvK / Handelsregister)

Tax registration (Belastingdienst / tax administration)

Timelines: These vary depending on the notary’s availability, the complexity of the case, and compliance checks (KYC/AML for banks, substance, etc.). Official sources describe the steps but do not guarantee a fixed timeline; in practice, it often takes a few days to a few weeks depending on the specific situation.

Corporate Income Tax (CIT / vennootschapsbelasting)
In the Netherlands, corporate tax operates in brackets:

19% on the first bracket of profits (up to €200,000)

25.8% beyond that
These rates are confirmed in 2025/2026 tax sources and are not announced as modified in recent documents on the 2026 tax plan.

VAT (BTW)
The official VAT rates in the Netherlands are: 21% (standard), 9% (reduced), and 0% (zero rate) for certain operations.
⚠️ Note: The Dutch government has indicated changes from 2026 for certain categories (e.g., short-term accommodation) which may shift from the reduced rate to the standard rate.

Holding and “participation exemption” (Dutch parent-subsidiary regime)
The Netherlands is known for its participation exemption regime, which aims to avoid double taxation within a group: under certain conditions, dividends received and capital gains on participations can be exempt at the parent company level. A condition clearly mentioned by official sources is a minimum holding of 5%.

Remote Formation: Formation can be organized remotely via a notary (notarial deed) and KvK registration, with document collection and identity verification. The official steps remain identical (notary + KvK + Belastingdienst).

VAT / VAT number (BTW-id): Obtaining a VAT number depends on the case and situation (domestic vs. more complex case). Compliance providers often indicate timelines of 1 to 2 weeks for simple domestic cases, and longer for foreign/complex cases (2–4 weeks or more). This is not a guarantee; it is an observed practice.

Bank / IBAN: A “banking introduction” can facilitate contact, but account opening always depends on KYC/AML checks and the economic coherence of the case (activity, flows, beneficial owners, supporting documents). No serious actor can promise an automatic outcome.

Economic Substance (very important in practice): Even if the concept varies by context, banks and tax authorities generally expect concrete elements: professional address, documented effective management, consistent contracts/invoices, real resources (internal or outsourced). This is particularly sensitive when VAT, PSPs, marketplaces, or international flows are involved.