Top 5 reasons for establishing a company in Holland
If you are planning to set up a business in Europe, you first need to pick a convenient location. There are 44 countries on the continent, 28 of which are EU members. They vary in size, official language and economic development. Why choose Holland? The top five reasons are presented below.
Read more on company formation in the Netherlands.
Almost everyone speaks English
It does not matter exactly where in the Netherlands you are, the local population will speak at least basic English. Your questions in beginner’s Dutch will probably be answered in English. This high rate of English proficiency brings many advantages, including:
- Contracts are often prepared in English. You do not need to translate the contracts you have already drafted to Dutch, as they will remain legally binding;
You won’t have significant communication problems while employing local staff or using Dutch services;
There is no need to modify your product packaging or manuals;
Your company’s marketing slogans can stay in English, even though you may want to translate some of your other advertisement materials.
Short travel distances
Major cities like Amsterdam, Rotterdam, The Hague and Utrecht are only an hour’s drive away from each other. The megalopolis of Randstad hosts 7 of the 15 million inhabitants of the Netherlands. The most distant towns or regions are less than a three hours’ drive away. Therefore, by establishing your business at one location, you can easily operate in the whole country.
High spending power
According to the statistics the Dutch GDP per capita is one of the highest in the world. In contrast to other countries high in the list, the income distribution is relatively uniform. Therefore most residents have considerable amounts of money to spend.
Great opportunities on the internet
The Netherlands has one of the highest broadband penetration rates in the world, as the whole country is covered by telephone and coaxial networks. The Dutch have no restraints towards shopping online and the procedure for arranging payments for goods and services on the internet is easy and cheap. The customers are not prejudiced and have no inclination to buy predominantly Dutch products. If your deal is good, you will always attract clients.
It is easy to set up a business
According to the latest competitiveness ranking published by IMD, Holland is the most competitive country in Europe and the fourth most competitive country worldwide. Intercompany Solutions can help you to register your business within several days. Small companies have few legal obligations and you do not have to appoint a Dutch director or an accountant. The corporate tax rate is 20%. You also have to pay withholding tax (15%) but you can settle this with dividend taxes paid by your company elsewhere.
In case you need more information regarding business incorporation in the Netherlands, please, contact our experts. If you plan to establish a company in the country, you may also be interested in our article on ideas for incorporating a small business.