The Dutch BV company setup, what is required. What needs to be done from an accounting point of view?
Dutch BV company setup – incorporation
The Dutch BV company setup is done incorporated by a Dutch notary. The notary draws the article of association in the deed of incorporation.
In such a deed is for instance determined the amount of share capital, in line with your desire. The possibility is to issue for EUR 0,01 share capital, we think that is silly. On the balance the EUR 0,01 will always be rounded off to zero. That could raise questions by investors, creditors or about the liability of the director.
We recommend a serious amount. An amount that can pay for the initial set up costs. Maybe for the deposit of the office rent etc.
What happens after incorporation?
Once the notary incorporated the BV, the notary will inform the Chamber of Commerce. The Chamber of Commerce will register the company and update the Dutch tax office. The Dutch tax office will issue a Dutch corporate income tax number to the company.
The Dutch tax office
The Dutch tax office automatically issue a Dutch corporate income tax number and a Dutch Value Added Tax number. However, if the management of the BV is not in the Netherlands, the BV company being an VAT entrepreneur is not automatically assumed. Hence a VAT number needs to be applied for.
Also not automatically issued, but rather important is the wage tax number. The first employee is the director. We think the wage tax number could be automatically issued as well. Instantly the Dutch minimum salary requirements for the director apply.
What do we see happening after these procedures?
We experience that it is more or less standard that the fresh international entrepreneur lacks to file the first Value Added Tax return. Whether a BV is set up or a one man company, the first VAT return is nearly always forgotten.
The assumption by the entrepreneur is that the company has not made turnover yet, therefore no VAT can be paid to the Dutch tax office. That is not how it works. You are to file the VAT return in the set deadline, whether you have done business or not. If you did make costs, like setup costs, but not make turnover yet, the VAT return will result in a refund. This refund is actually paid out, not compensated or credited. The VAT return is suddenly exciting!
The Dutch tax office is eager to remind the starting entrepreneur with a EUR 5.000 VAT assessment, which often has the aimed result. The entrepreneurs looks for accounting assistance.
Dutch BV company setup – accounting assistance
The Dutch BV company is required to run a bookkeeping that is open for audit in a fortnight period upon request of the tax office. Accounting companies are well equipped to provide this service. The BV company needs to file a quarterly VAT return, a monthly wage tax return and an annual corporate income tax return.
The policy of the Dutch tax office is very simple. If you are too late, you get a penalty. The more often you are too late, the higher the penalty. Tax paid too late results in a penalty being a percentage of the amount that was to be paid. This can hurt a lot.
Tax is exciting
We think tax is exciting. We are excited to assist you with setting up a BV company and running the books. Our accounting department offers the expertise, to be reached at finance@orangetax.nl
The monthly payroll, the payroll setup, 30% ruling application and minimum required income questions are handled by the payroll team, payroll@orangetax.nl
The fine tuning of the setup of the BV, the international issue questions, the tax questions nobody was able to inform you about while you run international operations. That is the territory of our specialist: hans@orangetax.nl
If you are looking or the simple overall quote of our services, request one at info@orangetax.nl We are happy to issue our quote. We will not chase you, remind you or have you sign up for anything. We operate like we like to be treated ourselves as well.
