What procurement looks for
Large clients look at three things before they sign. First, the client’s legal team wants to sign with an EU contracting entity. Second, it wants the data protection chain on paper. This means processing agreements and transfer safeguards for the work done in the Philippines. See the data protection basics (GDPR) for foreign owners and data residency in the EU. Third, it wants assurances on continuity that an EU company can give. The Dutch BV signs all three and invoices across the EU under one VAT number. It applies the reverse-charge rules. See the reverse-charge rules for EU supplies.
The contract chain
The Dutch BV is the prime contractor for European clients. The Philippine parent company provides the services to the BV under a written services agreement between the two companies. The prices in this agreement are at market level (arm’s length), and the data processing terms match the client contracts. The agreement also contains the quality and continuity clauses that clients want to apply to the parent company as well. Once this is in place, you answer every due diligence question with the same set of contracts. With the old direct contracts, clients asked these questions again and again.
You can set up the company by power of attorney, from any country. This usually happens within one week once all documents are complete. See setting up a BV in the Netherlands from abroad.
Setting up the entity
The entity can be formed remotely within weeks, following the remote process. The banking file needs to be presented properly, as covered in the account opening guide. The EU side presence usually grows as the client book grows: a country lead first, then roles close to delivery. These are hired through the normal channels, such as Dutch payroll and the kennismigrant permit for transfers. The same approach applies more broadly, as shown in the India example of the same model.