Doing Business in Netherlands

Published 25 August 2026

In short

Indian businesses register a private limited company (BV) with the Dutch Chamber of Commerce (KVK), set share capital from 1 euro, engage a notary for incorporation, obtain tax and VAT numbers from Belastingdienst, open a bank account, and comply with EU product regulations. The Netherlands is India's largest European export destination and serves as a distribution hub for EU markets.

Key facts

Capital: Amsterdam (seat of government: The Hague)
Currency: Euro (EUR)
Trade with India: US$ 27.8 billion in merchandise trade in FY 2024-25, being 2.40 percent of India's total merchandise trade (MEA India-Netherlands Bilateral Brief, May 2026). India exported US$ 22.7 billion, equal to INR 192,118 crore, making the Netherlands India's third largest export destination globally and the largest in Europe.
Indian community: Approximately 300,000 people of Indian origin, the largest Indian origin population in mainland Europe, including around 200,000 members of the Surinamese Hindustani community, per the MEA India-Netherlands Bilateral Brief of May 2026. More than 3,500 Indian students are currently studying there.

The market

The Netherlands is a country of about 18 million people that punches far above its weight in trade because Rotterdam is Europe’s largest port and Schiphol is a major air cargo hub. It is India’s eleventh largest trading partner in the world, India’s third largest export destination for goods globally and the largest in Europe. Merchandise trade was US$ 27.8 billion in FY 2024-25, accounting for 2.40 percent of India’s total merchandise trade, and India exported US$ 22.7 billion of goods, per the MEA bilateral brief of May 2026. That is a very large surplus for India and it is unusual.

Why Indian businesses go there

Logistics is the honest answer. Rotterdam and Schiphol let an Indian exporter land goods once, clear EU customs once and distribute to twenty seven markets. The Netherlands is the standard European distribution base for Indian petroleum products, chemicals, textiles, marine products, rice and engineering goods. Beyond logistics, English is spoken at business level almost universally, a BV can be incorporated with one euro of share capital, and the Netherlands is the fourth largest investor in India with cumulative investment of around US$ 55 billion since 2000, while Indian companies have invested about US$ 28 billion into the Netherlands, making it India’s fourth largest destination for overseas direct investment. There are over 300 Indian companies present, including TCS, HCL, Wipro, Infosys, Tech Mahindra and Tata Steel.

The diaspora and business community

The Netherlands is home to approximately 300,000 people of Indian origin, the largest Indian origin population in mainland Europe, including around 200,000 members of the Surinamese Hindustani community who are fully integrated into Dutch society, per the MEA bilateral brief of May 2026. More than 3,500 Indian students study there. The Surinamese Hindustani community is culturally Indian but socially Dutch, so it functions more as a bridge into Dutch institutions than as an import trade network. The newer professional diaspora around Amsterdam, Eindhoven and Rotterdam is where technology and engineering hiring happens.

Sector strengths

Petroleum products, engineering goods, organic and inorganic chemicals, telecom instruments and electronic goods, pharmaceuticals, readymade garments, leather, fruit and vegetables, plastics, marine products, spices, rice, gems and jewellery and handicrafts. Agriculture and horticulture technology, water management and semiconductors are the Dutch strengths flowing the other way.

The honest difficulties

The first is a misreading of the numbers. A large share of India’s US$ 22.7 billion of exports is transit that moves onward to other EU countries, so the actual Dutch consumer market is much smaller than the export figure suggests. Plan for the Netherlands as a distribution base, not as a demand centre. Second, EU regulation applies in full. CE marking, REACH for chemicals, EU food and marine product controls, packaging waste rules and, increasingly, the Carbon Border Adjustment Mechanism reporting on iron, steel, aluminium, cement and fertilisers all bite at the Dutch border. Third, labour is expensive and heavily protected, with collective labour agreements setting minimum terms in many sectors and dismissal requiring either mutual consent or approval. Fourth, the corporate tax rate of 25.8 percent above 200,000 euros is not low by regional standards, and the Netherlands has tightened substance requirements and anti-abuse rules considerably, so a holding company without real activity no longer works. Fifth, business bank account opening for a foreign owned BV has become slow and several Dutch banks decline non-resident owned start-ups outright. Sixth, unlike US nationals, Indian founders cannot use the Dutch American Friendship Treaty route, so the self-employed residence permit is assessed on a points system that is not easy to pass for a trading business.

How to apply

Choose the structure. A besloten vennootschap (BV) is the standard private limited company; alternatives are a branch of the Indian company or a representative office for market scouting only.
Check name availability with the Kamer van Koophandel (KVK), the Dutch Chamber of Commerce, which maintains the Handelsregister.
Engage a Dutch civil law notary to draft and execute the deed of incorporation. This is compulsory for a BV, and foreign founders can act by apostilled power of attorney.
Set the share capital, which can be as low as one euro cent for a BV, and identify the shareholders and directors. There is no Dutch residency requirement for directors, though banks and the tax office look at where the company is actually managed.
Register the company in the Handelsregister with the KVK. The notary usually files this, and the KVK issues the registration number.
File the ultimate beneficial owner details in the Dutch UBO register.
Obtain the RSIN and VAT identification number from the Belastingdienst, the Dutch tax administration, and register for corporate income tax.
Open a Dutch business bank account. This is often the slowest step for a foreign owned BV, so start early and prepare the group structure, source of funds and a clear business plan.
Apply for an EORI number from Dutch customs if you import or export goods, and appoint a customs agent or set up your own declaration capability at Rotterdam or Schiphol.
Consider applying for an Article 23 import VAT deferment licence from the Belastingdienst, which lets you account for import VAT on your return instead of paying it at the border. This is a major cash flow advantage for a distribution base.
Register as an employer with the Belastingdienst for payroll taxes before your first hire, and check whether a sector collective labour agreement (CAO) applies to your activity.
Arrange compulsory employer obligations including sick pay cover, pension where the sector CAO requires it, and appropriate liability insurance.
Complete EU product compliance before shipping. This usually means CE marking with a technical file, REACH registration or appointing an EU Only Representative for chemical substances, and EU sanitary approval and an approved establishment number for food and marine products.
If you intend to relocate staff, apply to become an IND recognised sponsor, which is required to use the highly skilled migrant route, and put transfer pricing documentation in place with the Indian parent.

What the trade actually looks like

→ India sells

Petroleum productsNamed first in the MEA list of Indian exports to the Netherlands; Rotterdam is Europe's main refined product trading hub.
Engineering goods and telecom instrumentsIncludes electronic goods and machinery distributed onward across the EU.
Organic and inorganic chemicalsSubject to REACH registration or an EU Only Representative before they can be placed on the market.
Drugs and pharmaceuticalsRequires EU GMP compliance and marketing authorisation, but the Netherlands is a common EU entry point for Indian formulations.
Readymade garments and textilesListed by MEA among the main export items; expected to gain from EU duty removal once the India EU FTA enters into force.
Marine products, rice, spices, fruits and vegetablesThe Netherlands is the largest EU importer and re-exporter of Indian food and agri products, subject to strict EU sanitary controls.

← India buys

Machinery and equipmentIncluding high value semiconductor and precision manufacturing equipment.
Chemicals and chemical productsSpeciality chemicals and intermediates for Indian industry.
Electronic and electrical equipmentSupplied by companies such as Philips and Signify, which have long standing Indian operations.
Agricultural and horticultural technology and planting materialDutch greenhouse technology, seeds and flower bulbs feed Indian protected cultivation.
Iron and steel and metal productsTwo way flows are significant, with Tata Steel operating on both sides.
Dairy and food processing equipmentThe Netherlands is a leading supplier of food processing and cold chain technology to India.

Treaties and agreements with India

Double Taxation Avoidance Convention Signed 30 July 1988, in force 21 January 1989

Prevents double taxation and sets ceilings on withholding tax for dividends, interest and royalties, and defines the permanent establishment threshold. It has historically made the Netherlands a common holding jurisdiction for Indian outbound investment, though both India's general anti-avoidance rules and Dutch substance requirements now demand genuine activity to get the benefits.

India EU Free Trade Agreement Negotiations concluded 27 January 2026, not yet in force as of August 2026

When it enters into force, over 99 percent of Indian exports will get preferential entry into the EU, and about US$ 33 billion of labour intensive exports including textiles, leather and marine products move to zero duty on implementation. Since the Netherlands is India's largest European export destination, it stands to gain the most in absolute terms. Until then, EU most favoured nation duty applies.

India Netherlands Fast Track Mechanism for business Operational under the bilateral economic dialogue

A channel through which Dutch companies investing in India, and Indian companies facing regulatory problems in the Netherlands, can escalate issues to designated officials in both governments. Practically, it is the route to use when a licensing, customs or permit problem stalls and normal correspondence is not moving it.

Which company type to use

Besloten vennootschap (BV)	The standard private limited company. Minimum capital is effectively one euro cent, incorporation is by notarial deed, and 100 percent foreign ownership is permitted. Shares are not freely transferable, which suits closely held groups.
Naamloze vennootschap (NV)	The public limited company, with minimum share capital of 45,000 euros and freely transferable shares. Used for larger ventures and listing rather than a first European entity.
Branch office (bijkantoor)	A registered branch of the Indian company in the Handelsregister. No separate legal personality, so the Indian parent carries liability, but it can trade and is often used for a distribution or service presence.
Representative office	Registered with the KVK for liaison and market research only. It cannot conclude contracts or generate revenue, so it is a temporary scouting device rather than an operating structure.
Cooperative (cooperatie)	A flexible entity historically used in international holding structures because of favourable dividend withholding treatment. Anti-abuse rules have narrowed the advantage substantially, so take current tax advice before choosing it.
Vennootschap onder firma (VOF)	A general partnership with unlimited liability for the partners. Simple and cheap but unsuitable for an inbound trading business.

Visas and tax

Getting yourself there

Indian nationals cannot use the Dutch American Friendship Treaty route that is open to US citizens. The main employment route is the highly skilled migrant residence permit, which requires the Dutch entity to be an IND recognised sponsor and a salary above the applicable age based threshold. Alternatives are the EU Blue Card, the intra-corporate transferee permit, the start-up permit through a recognised Dutch facilitator, and the self-employed permit assessed on a points system.

What you will pay

Corporate income tax is 19 percent on the first 200,000 euros of taxable profit and 25.8 percent above that. Qualifying research and development income can be taxed at an effective 9 percent under the innovation box. VAT is 21 percent standard, and an Article 23 licence allows import VAT to be deferred to the periodic return rather than paid at the border. A Double Taxation Avoidance Convention with India exists, signed on 30 July 1988 and in force from 21 January 1989.

Indian government support for this market

Federation of Indian Export Organisations (FIEO)

The apex export body under the Department of Commerce. It issues Registration cum Membership Certificates, runs European buyer seller meets and delegations, and is the main channel for official exporter guidance on the India EU FTA concluded in January 2026 and on preparing origin documentation ahead of implementation.

Marine Products Export Development Authority (MPEDA)

A statutory body under the Department of Commerce. The Netherlands is a leading EU importer of Indian marine products, and MPEDA handles exporter registration, approval of pre-processing and processing plants for EU listing, residue monitoring under the National Residue Control Plan, and the certification the EU border control posts demand.

Agricultural and Processed Food Products Export Development Authority (APEDA)

A statutory body under the Department of Commerce covering rice, fruit and vegetables, processed foods and floriculture, all of which move in volume through Dutch ports. APEDA registers exporters, runs traceability systems such as GrapeNet and PeanutNet that EU buyers rely on, and funds packaging and cold chain infrastructure upgrades.

Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL)

The Department of Commerce council for chemicals, dyes and cosmetics. It advises members on REACH registration, appointing an EU Only Representative, CLP classification and labelling and safety data sheets, which are the practical gatekeepers for chemical shipments arriving at Rotterdam.

Frequently asked questions

What is the minimum capital required to register a company in Netherlands

A Dutch BV (private limited company) can be registered with as little as 1 euro cent in share capital. This makes it one of the cheapest private company structures in Europe for Indian entrepreneurs.

How long does it take to register a BV in Netherlands

Registration with the KVK typically takes 1 to 2 weeks after the notary files incorporation documents. However, opening a Dutch business bank account is the slowest step and can take 4 to 8 weeks for foreign-owned companies.

Can an Indian citizen be a director of a Dutch BV

Yes, there is no Dutch residency requirement for BV directors. However, banks and the tax office examine where the company is actually managed. Indian founders can act through apostilled power of attorney with a Dutch notary.

What are the main compliance requirements for Indian exporters to Netherlands

All products require EU compliance: CE marking with technical file, REACH registration for chemicals, EU food approvals, packaging waste rules, and CBAM reporting for steel, cement and fertilisers. These apply at the Dutch border before EU distribution.

Can Indian companies hire staff in Netherlands without local sponsorship

Yes, but only through the highly skilled migrant route. Your company must become an IND recognised sponsor first. Standard work permits require demonstrating the role cannot be filled locally, so sponsorship is essential for hiring Indian staff.

What is the corporate tax rate for businesses in Netherlands

The standard corporate tax rate is 25.8 percent on profits above 200,000 euros annually. The Netherlands has strengthened anti-abuse rules, so companies must have real business substance and cannot operate as empty holding structures.

Before you apply: confirm every date, fee and eligibility rule on the official website linked on this page. Public and Policy is an independent portal, not a government body, and details change without notice.