You have been offered to become partner in a company that is currently abroad. The intention is that you are going to develop the Dutch area of this company. What options do you have?
Non resident employer
Before anything is present in the Netherlands, you can chose to have the foreign company become a non resident employer in the Netherlands. Why can this be important for you? If you currently have the 30% ruling and you would like to keep the 30% ruling, you cannot be without a job for more than three months. A startup can take longer.
The non resident employer can apply for your 30% ruling and you can continue this ruling. Or if you arrive from abroad, you can only have the 30% ruling if you meet the requirements. One of the requirements is that you need to have been attracted from abroad by a Dutch employer. The non resident employer is you r Dutch employer. If you first develop the company and then start the registration, the 30% ruling will be denied to you, based on local recruitment.
Branch registration
The foreign company is required to register itself with the Dutch Chambers of Commerce the moment a permanent establishment has been set up in the Netherlands, or a fixed contact person lives in the Netherlands.
The next step from the non resident employer registration is the branch registration when you open office in the Netherlands, so you no longer work from home. And or when you make public you are the person to contact in the Netherlands.
The first step of the company can be renting an office, which makes the company have a presence in the Netherlands for which is due corporate tax, value added tax and wage tax.
A representative office is an office purely for representation purposes. However, when the office exceeds the status of representative office, the Dutch branch does make turnover, then a part of the world wide result of the company is subject to Dutch corporate income tax. This is based on the At Arms Length principle.
The next step could be a commercial requirement.
Registering a Dutch BV company
The moment the branch office has proven to be successful, the company could decide to start a Dutch BV company. This is from a commercial stand point an stronger vehicle to be used over a foreign limited liability company.
The share holder of this BV company can still be the foreign liability company.
Orange Tax Services
We can assist in all of the above. That implies the registration of the non resident employer, the branch office or assist with the incorporation of the BV company. We can apply for the 30% ruling, set up the payroll, file VAT and corporate income tax returns and process the bookkeeping. Feel free to contact us for a meeting.
