When you are starting a business, and there is already a brilliant idea in front of you, ready to be turned into magic, it is important to seize the moment and seriously think over the structure of your future business.
What are your future goals?
Where do you intend to grow?
Which markets do you intend to approach?
If you want to go international, it is wise to think of a jurisdiction that might help you win additional points, including favorable tax and corporate solutions.Why the Netherlands?
The Netherlands is often used as a harbor for foreign investments, a guardian to financial assets and an instrument to minimize the global tax burden. Check out just a number of facts about the Netherlands that you might find interesting and self-explanatory:
What attracts foreigners in establishing holding companies in the Netherlands?
- one of the top 10 global investors in the world;
- attractive tax regime to stimulate innovations;
- unique VAT advantages for import from outside Europe;
- a politically stable country with an “AAA” status;
- an international hub of transport system with Europe’s largest port in Rotterdam;
- an advanced economy with a high income per head and fair income distribution;
- an attractive scheme of obtaining permission to legally work and live in the Netherlands for certain expats;
- an economy focused on manufacturing sector dependent on imported materials;
- major import and export industries including oil, natural gas, chemicals, iron, steel, electronics, telecommunication devices, pharmaceuticals, fruit and vegetables and related products;
- legal recognition and protection of patents, trademarks, copyrights, industrial designs and models;
- no restrictions on foreign direct investments;
- no exchange control and few restrictions on foreign investments;
- one of the top 10 economies in the world with global players such as Shell, Unilever, Philips and Heineken;
- unique in terms of asset protection level provided to Dutch entities;
- attractive due to well-established tax climate for holding and financial structures;
- tax exemption for income from subsidiaries (participation exemption);
- a country with largest tax treaty network (over 100 tax treaties);
- a country with large bilateral investment treaty network;
- separation of legal and beneficial ownership in Dutch entities;
- the possibility of avoidance of double taxation.
1. Reputation of the jurisdiction.
The Netherlands is a politically and economically stable, highly reputable country, opening gates to EU-wide and worldwide opportunities for your business.
2. Tax benefits.
100% income from participations (dividend income and capital gains) can be exempt from Dutch corporate income tax, in case the necessary pre-requisite conditions are met. Apart from that, there is a strong advance ruling practice in place, which guarantees certainty, governed by case law and best practice.
3. Asset protection.
The Dutch level of asset protection is unique compared to other jurisdictions with attractive holding regimes. The Netherlands maintains one of the most generous networks of Bilateral Investment Protection Treaties (BIT) in the world. Dutch BITs grant investors guarantees, which typically include fair and equitable treatment
, protection from expropriation, free transfer of funds and full protection and security.
To benefit from tax treaties and other above-mentioned advantages a company should be a tax resident of the Netherlands. The place of effective management is one of the most important factors: this is the place where key management and commercial decisions, that are necessary for the entity’s business as a whole, are in substance
Here we come to an important issue to be considered when you decide to organize an international business structure – how to go local?
Tax authorities worldwide are showing the tendency to be very sensitive to this topic, by determining the place of residence of a company tax wise. Here is where our company CIS Management B.V. can assist you.A short background on our company.
CIS Management B.V. is a Dutch licensed provider of management, domiciliation, accounting, tax, legal and corporate services in the Netherlands. CIS Management is under the direct supervision of the Dutch National Bank. This warrants that trust services provided by CIS Management meet the highest level of quality standards.
Our company is in business since 2011 and, holding its own niche, is one of the leading providers of management, accounting, legal, secretarial and tax support services rendered to both large international companies and smaller private clients. Clients of our company are active in various fields and regions.
We are in a position to assist in all stages of building up a business process – starting from advising on structuring in general, setting up the process and full corporate support that may be required.
The cornerstone of our specialty is the individual approach we take to every client, thus, offering a suitable combination of services and fees, let it be a large corporation or a startup in its early stage, yet to become large and successful.
CIS Management can offer:
CIS Management is there to assist companies to comply with substance requirements.
- The broad scope of services required by a Dutch entity at a reasonable price;
- The high quality of services rendered by experienced specialists;
- Client orientation adjusting to the needs of the clients;
- Hebrew/English/Russian/Dutch speaking personnel;
- A wide net of partners worldwide.
When a foreign company or an individual decides to operate in the Netherlands through a Dutch legal entity, they often find an external management team as their best solution. We suggest a more practical solution without the need to employ staff members and rent out an office, offering the necessary services to enable a foreign company meet the following minimally required substance criteria under Dutch tax law:
- At least 50% of the Board of Directors (BOD) members should be Dutch residents (reside and be employed in the Netherlands on a permanent basis). CIS Management is licensed to provide management services. Personal and/or corporate director are both available;
- All key strategic/material decisions of the BOD should be taken in the Netherlands, such as entering into contracts and passing corporate resolutions. CIS Management, acting as a director, shall execute all such contracts and legal documents on behalf of the Client;
- The (main) bank account should be controlled within the Netherlands. CIS Management may open a bank account for the Client and deal with all bank related matters on behalf of the Client, including processing and monitoring of payments;
- Bookkeeping is to be done in the Netherlands. CIS Management team comprises highly qualified accountants who can maintain the books under Dutch GAAP and IFRS and file Annual Accounts with the Dutch Chamber of Commerce;
- Registered address of the Client should be in the Netherlands. CIS Management is licensed to provide domiciliation services;
- The Client has sufficient equity considering its activities and the risks to be absorbed by the company. CIS Management has the in-house expertise to advise the Client accordingly to comply with this requirement.
Maria Govorukhina, holding a Master’s degree in International Commercial and Corporate Law, is the Commercial director and one of the co-founders of CIS Management B.V., a boutique corporate services company from Amsterdam operating in its own unique niche, servicing both large corporate clients and young start-ups from all over the world.Bearing an exclusive experience of working with multinationals and an international team of professionals, CIS Management B.V. is open for new projects and is there to guide you through the privileges of working via the Netherlands.
We invite you to get in contact with us so that we can further advise you on favorable opportunities the Netherlands may carry for your business. You can contact us by telephone, email or just visit our office. If you have any questions about our company, please check our website.
CIS Management B.V.
Tower A, WTC
T. +31 20 333 1691