Netherlands Branch Establishment

The key reason is that you are not setting up a new entity, and the establishment of a branch, of an organisation, is seen as an extension of the parent company whilst still maintaining an element of independence. Although the parent company would still have shared legal responsibility for its branch in the Netherlands. Most importantly, the time and cost of setting up a new operation are removed. The added benefit of Branch establishment is that it forms part of the assets of the parent company and the accounts of the branch are usually merged. On another note, if the branch ceases to trade for any reason, it would simply de-register from the local authorities signaling the end to its Dutch business activities. The tax benefits to setting up a branch are also a key consideration with different rules in place compared to setting up a subsidiary company. Obviously, we would recommend that you seek advice and support before establishing a branch in The Netherlands to make sure that you are fully aware of the different rules and regulations in place.