Dutch branch vs. Dutch subsidiary

With the right legal structure in place, your business benefits from tax efficiency, limited liability and long-term flexibility. We help international companies make the right start for smooth, future-proof growth. Secure the right setup for your Dutch operations. Schedule a free consultation and we will discuss your options right away.

Legal forms in the Netherlands 

In the Dutch business landscape, a branch is not a legal entity on its own. It is simply an extension of your foreign company. A branch office in the Netherlands shares the same legal form as its foreign parent company. It does not require separate Dutch financial statements, but you are required to submit the parent company’s financials to the business registry of the Dutch Chamber of Commerce (KvK). A Dutch subsidiary, usually a BV, is an independent legal entity with its own responsibilities and liabilities. Choosing the right form depends on your ambitions: are you testing the waters, or planning to build a long-term base in Europe? 

Get in touch via the contact form to discuss your business setup needs and explore how we can assist with the process.

5 steps to start a business in the Netherlands

To help you get started, we have outlined five essential steps for setting up a company in the Netherlands. Submit your contact details via the form below to receive the full guide directly by email.

Dutch branch vs. Dutch subsidiary 

A branch operates under the full legal and financial responsibility of its parent company. It is easier and quicker to set up, but it offers less local credibility. A subsidiary, most often a BV, is a stand-alone Dutch company. While its setup requires a notarial deed and local registration, it offers limited liability, access to Dutch tax treaties, and a more credible market presence. In general, a subsidiary is the preferred route for companies seeking long-term security and independence in the Dutch market. 

Why choose a BV?   

The Dutch BV is by far the most common structure for foreign companies with serious intentions in the Netherlands. It offers limited liability, a strong local reputation, and (in some cases) access to tax treaties that help reduce international tax burdens. It is also easier to open a local bank account for and work with Dutch authorities when your business is set up as a BV. For international companies, the BV provides operational clarity, legal separation, and easier access to the Dutch and European markets. 

Choosing between a Dutch branch and subsidiary    

360° guidance by Dutch experts

From the initial company registration to VAT, permits, social security, tax compliance, and transfer pricing documentation, we guide you every step of the way. Where applicable, we also support with audits and ensure all requirements are fully met. Our Dutch experts provide full 360° support to ensure your business is set up correctly and operates smoothly from day one.

Request a call: Choosing the right setup

We offer a free initial consultation to better understand your situation. During this meeting, we will discuss the specifics of setting up your business in the Netherlands and provide guidance on the best approach for your needs. You can easily request an appoint via the contact form below.