Main Characteristics of a Company in Holland
General Background – Holland is considered to be a popular destination for Israeli investors. Aside from the most well-known city Amsterdam, Holland has a range of other fields for investors including tourism, agriculture, media and trade. Holland covers an area of 41,453 km and has a population of 17 million residents. Holland’s GDP was estimated in 2012 to be over $709,500 million, 23rd in the world. In the Human Development Index Holland is ranked number 4 in the world. The local currency is the euro.
Tax – Before incorporating a company in Holland, it is important to familiarize oneself with the prevailing tax regime in the country. Holland is signed on over 70 different tax treaties and therefore incorporating a company in Holland may assist Israelis who do not want to pay double tax. The tax rate for companies in Holland is 25.5%. There is a tax rate of 15% on distributing dividends and there is no stamp duties on allotment of shares. Companies that are incorporated in Holland for the sake of maintenance service are exempt from dividend distribution tax as well as companies that did not receive a “participation exemption.” Despite this, a Dutch company that distributes dividends to an Israeli company does have to pay a 15% tax rate. One can limit the withholding tax rate in Holland to 5% if the Israeli company holds at least a quarter of its capital in a Dutch company.
Confidentiality – The details of the shareholders and the directors is open to the public with the local Holland company registrar.
Name of the Company – There are no particular limitations on choosing a name for the company as long as the name is not offensive in any way or similar to an already existing name. Names that are connected to finance need a special permit. The name can be in Dutch or English.
Shareholders – There must be at least one shareholder, private or corporate. The shareholder does not have to be local.
Directors – There must be at least one director. In order for the company to be counterbalanced with regards to international tax and take advantage of the tax treaties on which Holland is signed, the director should be local.
Financial Statements – A company is obligated to submit annual financial statements.
Incorporating a Company in Holland:
Incorporating a company in Holland offers a variety of options for Israeli investors. One may register a company in Holland for the sake of sharing dividends or to take advantage of the tax treaties. Holland is a pluralistic state that has reciprocal relations with foreign investors worldwide with no clear definition regarding residency. The general rule is that whoever spends more than 183 days in the country, becomes a resident. With regards to tax, a foreign resident owes tax for income that stems from the country itself while an individual foreigner may choose whether to pay the taxes to Holland as either a local resident or a foreigner for his income.
Information Regarding company formation in Holland
Registering a company in Holland requires professionalism and knowledge of the country as well as of Europe in general, including the language, the regime and the local politics and economy. Establishing a company in Holland has many advantages in that the country is of vital importance to Europe and is a major factor in any change that occurs on the continent. Therefore having a company in Holland is no doubt a positive maneuver.