Why having a Dutch office address is beneficial for your worldwide business.
Establishing a registered office in the Netherlands can be extremely advantageous for your company. What is the significance of the use of Dutch registered address services? Several factors, like privacy and cost savings, are beneficial to your organisation. Below, we’ll go through five ways that overseas business owners might profit from having their company registered at a legal location in the Netherlands.
1. Tax breaks in the Netherlands
The Netherlands has lower corporate income tax rates than its surrounding EU members and has a number of favourable tax treaties with other countries. Dutch tax substance is necessary in order to ensure that Dutch tax legislation applies to your company. Tax substance may be defined as the presence of a tax substance in a country. For purposes of determining tax content, the legal form is not necessary.
The fact that a business uses registered services in the Netherlands does not automatically entitle it to the benefits of Dutch tax treaties or qualify it to be treated as a Dutch tax resident. The standards of the Organization for Economic Cooperation and Development (OECD) are used by the vast majority of nations for determining tax content. The site of preparation and implementation of management decisions, as well as the registered address, are the key priorities.
Internationally, there is a shift toward imposing increasingly severe conditions on the location of a company’s headquarters, such as ensuring that the location is well suited for conducting commercial operations and that a long-term leasing agreement has been reached.
2. Easier import into and export out of the EU
Prior to the Brexit, numerous firms used the United Kingdom as a conduit for importing their goods into the European Union from all over the world. This included the items that were being shipped to customers outside of the United Kingdom. Since January 2021, these UK-based enterprises have been required to import the items a second time in order to be allowed to provide services to any EU-based consumers. This can be a time-consuming task and rings especially true if you offer a variety of different goods.
A VAT number issued to a foreign corporation does not permit the export of products outside of the European Union. In the event that commodities from Asia are first imported into the EU and then transferred to the United Kingdom, this is a must.
As a result, an increasing number of enterprises established in the United Kingdom are deciding to establish a second location in the Netherlands. The Netherlands is a country that provides excellent conditions for the importation of products. You don’t need much else except a Dutch warehouse and a registered address to get started. Using these two services, your company will receive a Dutch VAT number, which will allow it to more easily join the European Union market.
Importing into the EU through the Netherlands is even more appealing since, under the ‘article 23 status,’ the Dutch VAT can be postponed from the time the goods pass through customs until the time the goods are registered with the tax authorities.
3. Proximity to clients
Having a physical office or branch office in close proximity to your clients, as well as to business partners and investors, is still very significant in this day and age of the internet. Due to the fact that distance is critical for various vital parts of doing business, such as the time it takes to deliver items to your customers, having a regular in-person meeting with your clients, and providing high-level assistance, distance is significant for many aspects of doing business.
The Western European area is a particularly profitable market to do business in. 170 million prospective customers can be reached within 500 kilometres of the Netherlands, and 244 million potential consumers can be reached within 1000 kilometres of the Netherlands.
Furthermore, the logistics infrastructure in the Netherlands is well developed, and the workforce is bilingual. A shorter distance also promotes more credibility, which is a crucial component in economic transactions. Having a physical presence in the region will make clients less hesitant to purchase goods or services from you. There will be increased trust among business associates, financial institutions, and investors as a result.
4. ‘Made in Holland’ brand
The ‘Made in Holland’ brand is well-known across the international community. The Dutch have earned a reputation as dependable trading partners that deliver high-quality goods and services while also paying their debts on time and in full. Because of its entrepreneurial spirit and inventive thinking, the Netherlands is home to a dynamic community of creative and innovative enterprises and organisations.
As one of the most diversified concentrations of creative and scientific talent in the world, the Netherlands attracts bright individuals from all corners of the globe. Having a legal company or branch office registered in the Netherlands is an appealing approach to lend the sale of your goods an additional boost by virtue of the country’s international recognition.
5. Professional image
For cost-saving reasons, many new entrepreneurs, particularly sole proprietors, choose to conduct their operations from their residences. A house address shown on your website does not convey the same level of professionalism as an office address in a commercial hub. And where are you going to have meetings with clients, business partners, investors, and potential customers?
Even better, you can save money by using a shared office address in a good location in Amsterdam, as opposed to renting a separate office space in the city. Aside from that, registered addresses services are available with short-term lease agreements. Shared office operators provide the service of extending a registered address with the usage of a conference room at a low cost.
Shared offices also have the advantage of bringing you in touch with several other business owners, allowing you to collaborate and exchange ideas with them. Once your company begins to expand, legal address services can be supplemented with extra working spaces or independent office space, as needed.
