Apparel: from vendor to partner
Brands are reducing the number of their suppliers and keep the partners who lower their risk. They want documented supply chains, stock in the EU and local handling of claims. The BV (besloten vennootschap, the Dutch private limited company) is the address for this partnership. It supplies repeat orders from Dutch stock and invoices across the EU at 0% VAT with documented proof. It also presents the due diligence file directly.
Tea: from auction to own brand
At the Colombo auction, you sell large volumes. In European shops, customers pay more for tea with an origin story and reliable quality. The BV packs the tea in the EU, or has it packed, within the GSP+ origin rules. It acts as the food business operator, handles labelling and sells to shops and directly to consumers (D2C). Ceylon becomes the brand, and your group keeps the margin.
One setup for both product lines
One entity can handle both product lines, with Article 23 at import, one VAT registration and one administration. The two lines share the fixed costs, so you earn back the cost of the entity sooner. For quality checks on arrival, see the import compliance article.
Is your group setting up a Dutch entity? See setting up a Dutch subsidiary for what you need, how long it takes and what the parent company must sign.
The entity
For the setup from Sri Lanka, see the guide for Sri Lankan companies.