One key decision international entrepreneurs need to make, when entering the Dutch market (like becoming a Market place Seller) is whether to establish a branch or a subsidiary.
Are you a Chinese or Hong Kong trader, that wants to sell goods in Europe, or The Netherlands specifically? Houseofcompanies.io provides you the option to apply for a local company number, or register a branch, fully in line with Market Place Seller Accounts guidelines.
This guide provides a detailed comparison between the two, focusing on the process of how to register a branch in the Netherlands for your Hong Kong Private Limited.
Understanding Branches and Subsidiaries
A branch is a foreign extension of the parent company, sharing the same legal identity. Conversely, a subsidiary is a separate legal entity with its own rights and obligations, owned wholly or partially by the parent company.
Pros and Cons of Branches and Subsidiaries
Branches are typically easier and cheaper to set up, offer more control to the parent company, and do not have separate tax obligations. However, they may expose the parent company to more liability.
Subsidiaries, on the other hand, offer limited liability protection and can have a local identity, but may be more expensive and complex to establish and manage.
Registering a Branch in the Netherlands: A Popular Choice for Chinese Ecommerce Traders
The Netherlands, known for its strong economy and strategic location, is a top choice for businesses looking to expand in Europe. Particularly, the Hong Kong LTD has become very popular among Chinese ecommerce traders aiming to register a branch, a trend seen for decades.
Why Choose the Netherlands?
The Netherlands offers a favourable business environment, with strong infrastructure, a talented workforce, and a transparent regulatory system. Plus, it's accepted by major ecommerce platforms like Bol.com and Amazon for opening a Sellers Account.
How to Register a Branch at the Chamber of Commerce in the Netherlands for Your Hong Kong LTD
Here's a step-by-step guide to help you start a business in the Netherlands:
Decide on the branch's name and trade
Prepare the necessary documents, including a legalized KYC set, statutory documents, and a recent Company Extract or a Legal Opinion
Register your branch at the Dutch Chamber of Commerce
Apply for the necessary tax numbers if your branch will undertake operational activities generating revenue
Set up a Dutch bank account
Simplifying the Process with HouseofCompanies.io
HouseofCompanies.io, headquartered in Alicante, Spain, with branches in Breda, Dusseldorf, Dublin, Geneva, and India, has simplified this process for global entrepreneurs. It offers an 'Entity Management' solution as a Software as a Service. This platform is the only one that simplifies the process of registering and managing a branch at a fixed membership fee. It also guarantees a bank account opening, making it the most flexible and cheapest available in Europe.
Dennis Vermeulen, CEO at House of Companies, states: "We believe in empowering entrepreneurs to run their companies as they please. Our Entity Management solution is location and agent independent, breaking free from company formation agents and lawyers."
Conclusion: Branch vs. Subsidiary in the Netherlands
The choice between establishing a branch or a subsidiary depends on various factors, including your business needs, risk tolerance, budget, and long-term goals. Consider these aspects carefully before making a decision.
Remember, whether you're setting up a branch in the Netherlands or elsewhere, you're not alone in your journey. Platforms like HouseofCompanies.io are here to support you, offering not just services but also a community, educational resources, and a simplified business journey.
Happy international entrepreneurship!
