What is a branch office?
A branch is an extension of your existing foreign company rather than a separate legal entity. The parent company remains liable for the branch’s obligations.
What is a BV subsidiary?
A BV is a separate Dutch legal entity, owned by the foreign parent. It limits the parent’s liability and is treated as a local company.
Key differences
| Point | Branch | BV (subsidiary) |
|---|---|---|
| Separate legal entity | No | Yes |
| Liability | Parent company | Limited to the BV |
| Local credibility | Moderate | High |
| Setup effort | Lower | Higher |
Which is right for you?
A branch suits a light, temporary presence. A BV suits a serious, long-term EU operation where limited liability and local standing matter. Most companies planning to stay choose a BV.
Two steps further
Alongside this belong An EU Subsidiary for Your UK Company, Company Formation in the Netherlands for Foreign and Running Dutch Payroll as a Foreign Company.