When establishing a company in the Netherlands, investors may choose between setting up a subsidiary or a branch.
Different circumstances and the company’s interests may ultimately determine the choice between the two legal entities, but certain aspects need to be taken into consideration when making a choice between a branch and a subsidiary in the Netherlands.
You can observe below the main characteristics of branches and subsidiaries in the Netherlands.
A branch is a permanent establishment that forms one entity with the foreign company.
This particularity offers both advantages and disadvantages.
You can find below a short video on how to set up a branch in the Netherlands:
The main advantage of a Dutch subsidiary is the shareholder’s limited liability but other aspects need to be taken into consideration. Some of the advantages and disadvantages are listed below:
Foreign investors should consider this list of primary advantages and disadvantages when deciding between a subsidiary and a branch in the Netherlands. If you need more information or need help to decide what type of company is best to establish in the Netherlands, please contact our Dutch lawyers.
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