The route: remote ownership, residence as a separate choice
The company side is fully open from India: the BV comes into existence through a notarial deed executed remotely, the KVK registration (€85,15) files in the same flow, and directing the company from Bengaluru, Mumbai or Delhi works day to day. Physical residence in the Netherlands runs through its own route — the startup visa or the self-employment scheme — and specialists you recruit can qualify for the 30% ruling. The six steps of the route stand on the pillar page; the design with a family member in the Netherlands as director — a structure Indian families use for the EU leg — stands in the Dutch BV from India.
The treaty position
| What the BV withholds when paying to India | Rate |
|---|---|
| Dividend — private and corporate shareholders (treaty as applied) | 10% |
| Interest — loans from the Indian shareholder to the BV | 0% |
| Royalties — licence fees to India | 0% |
Rates verified July 2026. The 10% dividend rate follows the 1988 treaty as applied after the Supreme Court of India’s Nestlé ruling of 19 October 2023: the most-favoured-nation route to 5% requires a separate notification under Section 90(1), so 10% is the rate to plan with. Interest and royalties leave the Netherlands free of withholding — the Dutch conditional source tax reaches designated low-tax jurisdictions only, and India stands outside that list.
Incorporation and your documents
Three documents carry the route from India: a passport copy with an apostille from the Ministry of External Affairs (India is a Hague Convention member), a notarised power of attorney in English, and the video call with the Dutch notary. An Indian private limited as shareholder adds its certificate of incorporation and board resolution, apostilled the same way. The complete checklist by nationality stands in documents for a Dutch BV from abroad, and setting up the BV from abroad walks the notarial flow step by step.
The Indian side: ODI and the board
Resident founders investing from India file under the RBI’s Overseas Direct Investment framework — Form FC through the AD bank at incorporation and the annual performance report thereafter — a clear, established route for outbound holdings. The place-of-effective-management rules reward a deliberately placed board: minute where decisions are taken and give the Dutch entity real substance for the role it plays. An Indian chartered accountant coordinates both, while a written consultation anchors the Dutch side of the design.
The taxes you will meet
Corporate tax at 19% up to €200.000 (25,8% above), VAT per quarter with one EU registration, the customary salary of €58.000 for a director-shareholder on Dutch payroll and the 10% treaty rate at distribution — every rate on the figures page, every deadline in running a Dutch BV, and the account itself in the banking guide for foreign owners.
Terms on this page
- BV (besloten vennootschap)
- The Dutch private limited company: a legal entity with registered shares and limited liability, so the shareholder’s private assets stay separate from business debts. Incorporation runs through a notarial deed; capital starts from €0.01.
- Apostille
- The certificate under the Hague Apostille Convention that makes an official document from one member state legally valid in another, replacing the heavier embassy legalisation chain. In the US, the Secretary of State issues it.
- Power of attorney
- The written authorisation that lets someone sign the notarial deed on the founder’s behalf. For remote incorporation the signature is legalised; from abroad an apostille is usually added.
- UBO
- The ultimate beneficial owner: the natural person who ultimately owns or controls a company, generally from a twenty-five percent interest. Registration runs through the KVK’s UBO register.
- Dividend withholding tax
- The fifteen percent withholding a BV deducts on a dividend distribution and remits to the tax authority. Privately, the DGA credits the full withholding against the box 2 assessment; treaties can lower the rate for foreign shareholders.
This page describes the general route for 2026; what it means for your situation follows from a personal conversation.
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