Dutch holding company, or a BV, is a business with the plan to hold stocks of different corporations. However, the goal of a Dutch BV is to end up controlling or absorbing these corporations by acquiring enough of their shares. This allows the Dutch BV to have influence or sometimes even full control over these corporations. This structure also opens a lot of possibilities as the laissez-faire practices are very lenient and usually makes things less stressful for entrepreneurs. This is especially true when the corporation is located in the Netherlands as utilizing the Dutch holding structure provides some more unique advantages than other locations BV corporations.
Benefits of a Dutch BV
There are a lot of benefits to starting a holding company, however as stated before some have more unique advantages such as having a Dutch BV that uses the Dutch holding structure.The Dutch holding structure allows for you to have two BV’s, one work BV where the business happens and one holding BV that stores the earnings. This structure is safer for your earnings and allows for the future option of selling your company tax free. Other benefits include lower taxations due to the international tax treaties, and minimal overhead costs such as employment salaries cost. This is due to the fact that BV’s rely on the foundations of other corporations and can be easily established due to the simple requirements and process. Lastly, a Dutch BV can be formed and operated by non-residents.
Dutch BV or NV companies
There are a few key differences between a Dutch BV company and a NV company. One difference is in the share restrictions as NV companies have no share restrictions. A BV company can only transfer their shares through a Notary Deed. An NV company can also be listed on the public stock exchange while BV companies are limited to private shareholders. However a BV company only needs a director and a shareholder, which can also be the same person while an NV has more restrictions and requires a board of directors. NV’s also require higher minimum requirements of share capital compared to the one euro for a BV company.
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