Over the years a lot of our foreign clients have gradually developed their business in the EU and at a certain point in time have upgraded from the use of a simple vat fiscal representative to running a local Dutch company to support their business (mostly marketing and trading in the EU ) and/or supply chain needs.
For foreign businesses there is a huge difference between just having a Dutch VAT registration or operating through a Dutch entity and having to comply with all tax, compliance and regulatory affairs.
One of the mayor issues is that a Dutch entity should be established in the Netherlands to make use of all sorts of favorable arrangements, such as import VAT postponement (so-called art. 23 license) the application of tax treaties, and direct representation for customs purposes. Also, it is much easier for such entity to obtain VAT ID’s in other member states than an offshore entity.
To make sure a business is established in the Netherlands the foreign business should make sure that number of essential functions is actually executed in the Netherlands. One of the elements is having a Dutch director to ensures that the effective management and control is done in the Netherlands. Such director makes sure that the entity meets all its obligations (publishing financial statements, tax compliance), signs agreements, provides power of attorneys to those that represent the business, monitors the business, the bookkeeping and the two-tier bank account (co-sign). In other words, acts as a responsible but also liable jack of all trades. Actually, he is the spider in the web that makes the business possible.
Since long LENOS c.s. works together with Marden Trust, a business that provides all necessary professional services to make sure a Dutch entity is incorporated properly and always in good standing.
Marden has all necessary licenses to provide its services and must meet the highest standards set by the Dutch government regarding antiterrorist .. and money laundering. A robusts “know your client” investigation must be passed, but this level of investigation also necessary when a business wishes to have a Dutch bank account.
When you envisage to incorporate a Dutch entity, please feel free to contact Rob de Koning directly.
