When a foreign corporation decides to incorporate in the Netherlands it may consider to engage a  trust company who can provide local domiciliation (registered address) and management services (director) in the Netherlands.

Below we will explain the pro's and con's of engaging a trist company in the Netherlands within the context of the fiscal environment of today, and the best practise solution for foreign investors to set up and to maintain a corporation in the Netherlands.

For more information, please feel free to contact us via e-mail or to call us at +31 (20) 5709440 at our Amsterdam Office or at+31 (10) 2010466 at our Rotterdam Office.

 What is a trust company ?

In the Netherlands there is a well-developed industry for providing such services, which in the market place are usually referred to as "trust companies".

A trust company can provide the minimum substance, which a foreign based shareholder/ investor  needs in the Netherlands for maintaining a Dutch corporation. This may include (limited) management services (the appointment as director), providing registered address for the company, bookkeeping, legal services, etc.

Over the last decades the Dutch trust industry has produced highly skilled and professional organizations, which meet international business standards. Unfortunately there was also a negative spin off in the sense that Dutch trust companies are believed to have been involved in highly aggressive tax schemes and money laundering practices. Under public pressure the Dutch government has introduced a permit system for Dutch trust companies in 2014, and since then subjected the trust companies to increasingly more stringent conditions of periodical reporting and supervision by the Dutch Central Bank.

Does the "trust solution" still work ?

For long, the engagement of a trust company was considered an appropriate solution if a foreign corporation wanted a presence in the Netherlands without a significant investment in office location, personnel, local management, etc. Nowadays this solution does no longer work in many cases. In particular if the Dutch cooperation wants to qualify for the benefits of the Dutch tax treaties, or the EU Directives for effectuating reduced foreign withholding taxes on dividends, interest or royalties (or even a full exmeption thereof), the Dutch corporation will then need a real presence in the Netherlands in order to meet the criteria for avoiding the application of Dutch (exchange of information) and foreign anti-abuse rules (no exemption withholding tax).     

Maintaining a Dutch corporation without the engagement of a trust company

With the increase pressure on the Dutch trust sector, foreign investors increasingly decide to set up an maintain their Dutch companies themselves, without the involvement of a Dutch trust company. Technically this is possible, and we see it actually happen on a daily basis. Many of our clients decide to follow this route, whereby they provide the management themselves and we offer the support they require to maintain their Dutch BV.

Our firm does not provide trust services, but we do provide all services which are required to keep an foreing owned (operational) BV in goodstanding, including administration, corporate secretarial services, payroll, and tax services.

What we can do for you:

We can assist with incorporating in the Netherlands and offer a full onboarding package. After the BV is incorporated we offer an all-in compliance service package for foreign owned Dutch corporations, including: 

• tax and legal advice
• administration
• corporate secretarial
• payroll and employer's assistance
• VAT services and compliance
• corporate income tax compliance

For more information, please feel free to contact us via e-mail or to call us at +31 (20) 5709440 at our Amsterdam Office or at+31 (10) 2010466 at our Rotterdam Office.

Asl if you wish to receive more information about the engagement of a trust company, please feel free to contact us. We have an extensive network within the trust industry and we are gladly prepared to introduce you to an appropriate and trustworthy party who can supply the services, which you require.