Difference between a Dutch BV company and Dutch branch

Difference between a Dutch BV company and Dutch branch

It is not same thing to start a business or a branch in the other country. So, if any person want to invest his money in Netherland and confused about set up of either a dutchbv or a dutch branch there, then he must get the difference between them and have the knowledge of benefits and drawbacks of both of them.

What is the difference between the Dutch bv and Dutch branch?

The primary difference between the Dutch bv and Dutch branch is that the BV company need to go for notary too operate the business while in case of Dutch branch of the foreign country in the home country is liable for everything that the branch is doing.

Advantages of starting a dutch branch:

  • If you setup a dutch branch then the foreign country may be eligible for extra tax deduction in their home country.
  • No legal formality is required and the branch has no separate legal entity. Easy to operate the business as nothing is needs to be changed like name, address, website etc.
  • The main business administration of the branch could be maintained in the home country.

Disadvantages of set up a dutch branch:

  • The foreign country is fully liable for all the obligation and liabilities of the branch and the branch does not have any legal personality.
  • It is better to do business in the Netherland instead of operating under a foreign entity.

Several professional accountant Netherlands provide the accounting services in Netherland to support their customer’s business as whole or partially. They understand that what accounting services should be setup and which way of processing fits the best for the company. The qualified and certified tax accountants will prepare the year end accounts and corporate income tax return of the company and help in complete audits.

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