During the challenging period for the global economy and foreign investment due to the Covid-19 pandemic, the Netherlands has shown its confident growth. With the strong stability of the political and macro-economic environment, the Netherlands has a highly developed financial sector that is constantly improving.
The Netherlands has been a leader in finance for a long, this is back in the country history since the Dutch East India Company (VOC) introduced tradable stocks in 1602. The world’s first IPO was issued for the public back then. The large capital was needed to fund their overseas ventures and generated enough profit for participations or shareholders. Corporate governance was already structured and formed back then, to control and operate the corporation of VOC. This gives the Netherlands a solid and matured corporate through the years.
The perfect blend of heritage culture, technology, skills and strategic location in Europe, makes that the Netherlands has many to offer to foreign investors.
The following are the main assets of the Netherlands that attract investors:
The flexibility of the Dutch legislation.
The character of the Dutch investment policy is a strong international orientation and a liberal policy towards foreign investment. There are no regulatory restrictions on foreign direct investment into the Netherlands. The flexibility in the Dutch legislation attracts foreign investments, among other things are the way the companies prepare the accounts. The Dutch companies accounts can be prepared in different languages other than Dutch. This can be found in Book 2, Title 9, Article 2:394 of the Dutch Civil Code.
Article 2:394 Publication of financial statements in the commercial register.
- 1. The legal person is obliged to publish the annual accounts within eight days after adoption. The Publication is made by depositing a full copy of the annual accounts, drawn up in the Dutch language or, if such accounts have not been drawn up, in French, German or English, at the office of the commercial register kept by the Chamber of Commerce. The date of adoption and approval is noted on the copy.
Further, the Netherlands has tax treaties with many countries which is attractive to foreign investors worldwide. A progressive tax rate system ensures that companies are taxed according to their profits. The Dutch corporate income tax rate is at 15% for profit up to EUR 245K and at 25% for profit above EUR 245K. These rates are effective from 1 January 2021.
The entrance of the main European markets.
Rotterdam seaport in the Netherlands is the busiest and the largest seaport in Europe and the largest seaport outside Asia. Having this seaport makes the Netherlands a centre or a Hub of Europe. This is a value-added to the strategic geographical location of the Netherlands entering the main European markets.
Adding to all those above, the Netherlands become the major target for foreign investors who would like to establish businesses in Europe. Despite the decrease in the inflows value (according to UNCTAD’s 2020 World Investment Report), the Netherlands is one of the largest recipients of Foreign Direct Investment (FDI) in the world and has recently overtaken the UK as the first destination for FDI in Europe.
References:
www.theglobalist.com /The World First Corporation.
Dutch Civil Code, Book 2 Title 9.
www.worldsfirststockexchange.com
www.nordeatrade.com/en/explore-new-market/netherlands/investment
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