Company formation in Europe for non-EU firms: your Dutch subsidiary

What is a European subsidiary?

It is a separate company in Europe that your existing company owns. Your existing company is the parent. The subsidiary can sign its own contracts, hire staff and keep stock. In the Netherlands, this is your Dutch limited company (a BV).

In some cases you can sell in the European Union (EU) from your current company. Start with what you need to do here. A customer may ask for a local supplier. You may need staff, a warehouse or a company that takes responsibility for imports. Choose the structure based on these needs.

Advising a client? See Dutch company support for accountants and lawyers abroad. Relocating your own business or home? Start with relocating a business to the Netherlands.

Set up a subsidiary in Europe, a branch or sell from abroad?

The debts of a subsidiary are normally separate from those of the parent. If the parent gives guarantees or makes other commitments, it can still be liable. Read branch or subsidiary in the Netherlands.

Selling goods? Compare the three ways to sell in the EU: ship direct, use a partner for the EU roles, or set up your own Dutch company with stock in the Netherlands.

The best country to register a company in Europe depends on your plans

The best country to register a company in Europe is the one that matches your customers, your goods and your team. Start with where your customers are, where your stock will be and who does the work. Then compare the full yearly cost: setup, tax, warehouse, staff and filings.

Sources: Port of Rotterdam Authority (port figures 2025, February 2026), Netherlands Foreign Investment Agency (largest port in Europe, 2026), PostNL (delivery times, 2025), EF English Proficiency Index (2025), World Bank Logistics Performance Index (2023), Eurostat (labour costs, 2025).

We set up your Dutch company and arrange its bookkeeping and filings. When another country suits your plans better, compare it with advice from that country. See stock in the Netherlands for warehouse, fulfillment and customs, and the best EU country for founders from outside the EU for a wider comparison.

Cheapest company formation in Europe: compare the full cost

The cheapest company formation in Europe can still cost more over the years. The setup fee is one part. Bookkeeping, tax returns, the bank account, VAT registrations and your warehouse come back every year.

In the Netherlands, the legal minimum share capital is €0.01 (Business.gov.nl). With us, your Dutch subsidiary costs from €2,950 excl. VAT, all-inclusive: from the notary deed and the registrations to your tax and VAT numbers and a first year set up for low tax. A holding with an operating company costs from €4,950 excl. VAT.

See every step in Netherlands company formation for non-residents.

The LLC equivalent in Europe: the Dutch BV

Founders from the United States often look for the LLC equivalent in Europe. In the Netherlands, the closest equivalent of a limited liability company (LLC) is the private limited company (BV). It has limited liability, and one shareholder is enough.

The tax works differently. An LLC usually passes its profit to its owners. A BV pays Dutch corporate tax on its own profit: 19% up to €200,000 and 25.8% above (2026). US owners also need advice on US tax and reporting for a foreign company. Read LLC in Europe and support for US founders.

What our team checks before setting up your Dutch subsidiary

1. Your business plan. What will the company sell? Where are the customers, staff and stock? Who signs contracts and makes decisions?
2. The owners. Our team looks at the parent company and the people who own or control it, directly or through other companies.
3. The documents. These may include a company register extract, company rules, an ownership chart and a decision to form the subsidiary. The exact list depends on the country and ownership structure.
4. The Dutch setup. We agree the work in writing. The notary checks the documents and prepares the deed of incorporation. With this legal document, the company is formed.
5. Banking and registrations. We prepare these alongside the setup. Each bank and authority makes its own decision.

Documents may need an official certificate for use abroad, called an apostille, or another legalisation process. At the moment, the notary requires certified documents and the originals by courier. Wait for the confirmed checklist before arranging stamps or translations.

Start with the document check or the guide for the United States, the United Kingdom, Germany, India or Singapore.

Company registration, bank account and start date

The notary registers the company with the Dutch Chamber of Commerce, called KVK. This usually takes less than a week after the notary accepts the complete file. This is an indication. The timing depends on the documents and the notary schedule.

After registration, you may still need to wait for the bank account, the tax numbers and product permissions. A bank checks the owners, business activity and source of funds. A complete file is useful for this review. The bank still decides whether to open an account. Plan your first contracts around these separate steps.

Tax on profit, dividends and imports

The Dutch company pays tax on its taxable profit. For 2026, the rate is 19% on the first €200,000 and 25.8% above that. In the 2027 Tax Plan, the government proposes to keep these rates.

A payment of profit to a shareholder is called a dividend. An exemption from Dutch dividend withholding tax may apply to a foreign parent. Ownership, the relevant tax rules and anti-abuse conditions must be checked. A 5% shareholding alone is insufficient to secure the exemption. Your home country may also tax the income.

Group companies must use normal market prices when they do business with each other. Keep a record of what each company does and how you set those prices.

The tax on goods and services is called value added tax (VAT). With a Dutch permit called Article 23, you report import VAT in your VAT return and skip the payment at customs. You still owe the tax. Any deduction depends on the normal VAT rules. Other countries also have ways to postpone import VAT.

Sources: KVK on branches and subsidiaries, the Dutch Tax Administration on dividends to foreign shareholders and Business.gov.nl on bank accounts.

What happens after the company is formed?

The company needs bookkeeping, tax returns, annual accounts and current company records. If it employs staff, it also needs payroll. We agree the work and fee in writing before starting. The amount depends on the activity and volume.

Does your group want the monthly figures, the Dutch returns and every deadline in one yearly contract? See finance and compliance for your Dutch subsidiary.

Selling goods? Your Dutch subsidiary can be the importer, the responsible person for product safety and the applicant for the Article 23 licence. Need a warehouse, fulfillment, a customs broker or an EU representative? Our team finds the right partner with you. You see every price first and have one contact person on our team. See stock in the Netherlands.

We can work with your accountant or lawyer abroad. Read how we help run your Dutch company or Netherlands company formation from €2,950.