Business in Holland; how to open or buy a company
Domestic entrepreneurs are increasingly looking at neighboring European countries in search of a comfortable and cozy place to open their business abroad. Moreover, they are looking not for an offshore in the classical sense of the word to hide income or savings, but for a jurisdiction with a really working economy, which will make it possible to calmly build and develop your business while staying at home.
Where and how
And for this it is absolutely not necessary to rush somewhere to the Balkans or to Scandinavia. Even the states bordering on us, or located in an hour of summer, are quite suitable if you want to open a business abroad. For example, Estonia, Hungary, Poland, Israel, Latvia, Lithuania, Czech Republic, Slovakia.
The seller can sell the goods to his own foreign company with a minimum mark-up and make the main mark-up on subsequent resales to real buyers, paying income tax in the country of residence of his business.
Also, the export of goods through your own non-resident company allows you to completely eliminate the risk of non-return of foreign exchange earnings and prevent the accrual of penalties for such non-return.
I am glad that there are often no requirements for the mandatory sale of currency in the EU states. There is one more good news: with all the mentioned countries we have agreements on avoidance of double taxation, which allow residents of each state not to pay taxes twice.
These countries have never been included in the "black" lists and are not offshore according to the legislation of other states.
In addition, keep in mind that almost all EU member states have stable tax laws, a supportive regulatory environment, and minimal corruption.
One of the most important advantages of your own non-resident company is the legal minimization of tax liabilities. Many European countries have a lower income tax rate. In Poland and the Czech Republic the profit tax is 19%, in Latvia and Lithuania - 15%, in Estonia only distributed profit is taxed at all. Accordingly, if an entrepreneur reinvests earnings in business development (acquires fixed assets, replenishes working capital), he does not pay tax. In Slovakia, the income tax is 22%. However, there is no tax on dividends, as well as tax on payment of dividends to a non-resident.
Latvia, Estonia and Hungary are ideal countries in terms of the tax burden on business. However, they are not considered offshore.
"Companies in these countries can be 100% foreign-owned, and the founders can be both residents and non-residents."
Opening their own business abroad is increasingly troubling Russians due to the difficult situation in their homeland. The obvious protraction of bureaucratic procedures, the country's unstable political position, corrupt officials, inflated interest rates on consumer loans, and virtually no state support to start-up entrepreneurs force to look for other solutions.
Our compatriots are increasingly willing to open their own business abroad
Business Features Abroad
The advantage of business development abroad is that there is a possibility of selecting an appropriate state with the maximum set of advantages affecting the development of small or medium-sized businesses. Among them, first of all, a number of the following characteristics can be distinguished:
How much taxes are paid in other states
For example, if you want to open an advertising business abroad, you should understand that there is no standard instruction for the implementation of the plan. Therefore, it is necessary to adhere to an indicative plan concerning the criteria related to the characteristics of life within a particular state:
- The state of the political situation in the state should not raise doubts about instability. For example, the situation in Ukraine, Spain or Iran is unlikely to characterize these countries from a positive point of view.
- As for the level of crime, here it is necessary to take into account not the number of robberies or thefts, but the corruption of officials, the number of raider seizures and other illegal actions that aggravate the profitability of their own business.
- Cultural values and mentality of the population, which can become a real problem in doing business. For example, opening a European-style entertainment venue in a residential area of a Muslim state is likely to end in complete failure.
Helpful! When considering options for starting your own business, one should not ignore offers to sell a business in a particular country of the world.
Where to start
If the decision to open a business abroad is made, it should be understood that this is a rather complicated procedure, the approach to which must be carefully considered. You should start by following these steps:
- Determine the scope of activity. It is advisable that this is something that you are well versed in. When choosing a direction related to the provision of services to the population, one can count on concessional lending and the provision of special conditions provided for by a number of European countries. A similar situation applies in several US states. For such enterprises, facilitated conditions of activity and taxation are created. Read about obtaining a loan in European countries and lending in American banks by following the links.
- Analysis of the market development of a particular country allows you to determine the saturation of the proposals that you want to deal with. It may well be that this direction may be completely devoid of such proposals. This will allow us to speak about the complete absence of competition. Otherwise, it is quite possible to open or buy a business abroad, which in the end turns out to be uncompetitive, that is, unclaimed due to the large number of similar offers.
- Having decided on the choice of a country for doing business or having reduced the list to a minimum, it is necessary to determine the maximum amount of investments that are planned to be used. It will not be superfluous to acquire an acquaintance with a possible partner, a citizen of this state.
- After the decision has been made, you should contact the specialists of this segment for advice on the legal and legal aspects inherent in the chosen direction.
- It is imperative to study the taxation of small businesses in foreign countries included in the approved list.
Hello dear readers of the blogfreo blog. u. How would you like to start a business abroad that is not in Russia? Further, a lot of relevant and effective options are proposed. But when choosing them, you should take into account some of the nuances.
If we turn to Russian history, it becomes clear that there was no entrepreneurship in Russia for a very long time. And Europe and the United States at this time were actively developing this area. And what was invented there 20 years ago has only begun to be applied in Russia today. In terms of marketing development, personnel management and many other factors, we are seriously inferior to the West. Therefore, a wider range of business solutions can be found there. This material reflects the most popular of them.
America and Europe are both a storehouse of diverse ideas. But far from all ideas that did not work out in Russia can be effectively developed in the West. And the reasons are as follows:
- Modest payment potential. Average salaries in developed countries are much higher than their Russian counterparts. And a certain category of services or goods has too high price tags for Russians.
- Fear of new things. Some businesses can be successfully implemented for a long time and require huge investments. Even to open an ordinary bar, you need about 2-5 million rubles. People will often come to a standard bar in a prime location. And if you create an original establishment, then spend a lot of money on quality marketing to increase the number of visitors.
- Mentality. The Western mentality is very different from ours. What interests the American, the Russian perceives as complete nonsense.
Also in that area it is difficult to rely on the experience of other businessmen. For example, you find an interesting idea and believe that you are an innovator, you start to implement it. How suddenly there is some figure from Siberia, who three years earlier implemented a similar plan, but could not. Closed business projects are extremely difficult to find. If you intend to bring something fresh to the Russian market, then try to find already realized or unrealized businesses.
Where to look for ideas
There are ways to do this:
- Foreign sites. In the Russian network, searches are useless. Explore only foreign resources: news, cultural, scientific, etc. An interesting idea can be anywhere.
- Visiting the country. This is ideal, but quite expensive. So you can visually study the mechanism of the business.
- Platform specific. It's called com. Here people make investments in interesting projects.
- Social networks. Study the accounts of people, groups. And even foreign bloggers with low popularity can suggest an excellent idea.
- Recordings of business conferences in any convenient format: video, audio, text.
These are the basic techniques. They can be combined with some of their own ways of finding solutions.
Budget Concept Test
To successfully implement a business, you will have to spend up to 5 million rubles. or colossal effort and time. In this case, the project can be completely fatal. Therefore, before implementing foreign solutions, it is necessary to test them.
The Netherlands attracts Russian businessmen and investors for several reasons. This is a stable economy that the Second World War could not unbalance, as well as the fact that Holland is the center of the largest trade organizations. The country ranks 9th in the world in terms of export volume. Flowers, perfumes, alcohol, food, machinery and accessories for agriculture are exported. This will be complemented by the location of the country. Holland has established road junctions and air routes, and, accordingly, the movement between the business centers of Europe and the export of exported goods from the country will be simplified. All these advantageous features make a businessman think: "How to open a business in the Netherlands?" In this article, we will tell you in detail how a Russian investor can buy or open a company in Holland.
How to start a business in the Netherlands
First of all, for organizing a business and living in Holland, an emigrant will need to apply for a visa and residence permit. The authorities encourage the interest of foreign investors, so there should be no problems with registration.
Although, there are several peculiarities that a Russian entrepreneur will face. First of all, in order to obtain a residence permit in the Netherlands, a businessman needs to open his own business or buy a share in it. Moreover, its part must be at least ¼.
Since the business visa and residence permit issues in the Netherlands are handled by the Ministry of Economy and the Immigration Service, a business project must meet certain requirements:
- Experience in business management.
- A forward-looking and innovative business plan.
- Maintaining the country economically.
The latter is understood as the quality of innovations, investments in the project, as well as the arrangement of workplaces.
If the application is approved, the businessman will acquire a residence permit in the Netherlands for a period of 2 years. The entrepreneur has the right to bring his family with him. After the expiration of the term, the residence permit can be extended if the businessman complied with the laws and paid taxes on time.
After staying in the country for more than five years, a citizen has the right to obtain citizenship.
For successful entrepreneurship in Holland, you should familiarize yourself with the mentality of the population. Do not forget that the Netherlands is a law-abiding country. Corruption in the country is strictly prohibited and punishable.
What you need to register a business in Holland
Modern business has no nationality. One of the signs of the era was the merger of large companies into international corporations, on the board of directors of which Russians, Americans, Chinese, citizens of the UAE and Saudi Arabia, Switzerland and Luxembourg work equally. The fact of entrepreneurs moving to work in other countries has become no less common. The reasons for this are different: the opening of new markets, the lack of economic, production prospects or human resources in their country, political circumstances, the search for optimal tax regimes. The inquisitiveness of the Russian mind, which the well-known satirist tells about from the stage, is fully manifested by “our” entrepreneurs. "Zhazhda" studied what kind of business was opened abroad by immigrants from Russia and the post-Soviet space.
Business: Mallino Development Ltd - construction and management of retail real estate
Yekaterinburg entrepreneur Timur Goryaev earned his "first million" as the owner of the Kalina cosmetic concern. The enterprise was founded on the basis of the Uralskiye Samotsvety factory, which was privatized after the collapse of the USSR. Goryaev became director of Kalina and a controlling shareholder in 1999 at the age of 32. In 11 years in this position, he has led the company to the status of one of the leaders in its industry.
According to the latest data at the time of his tenure as director Goryaev, the company's capitalization was estimated by the RTS stock exchange at $ 430 million. In 2021, after a series of changes in the company's top management, the businessman resigned from his post, selling his stake in Kalina to the international holding Unilever. According to unofficial data, the deal amounted to more than 17 billion rubles.
Timur later told Yekaterinburg entrepreneurs about his motives at the presentation of the book "Cheat sheets for bosses".
Today, Goryaev owns the international holding Mallino Development Ltd. The company is engaged in the construction and management of commercial real estate. The head office is located in Cobham (Surrey, England), the company's accounts are located in an offshore zone in Cyprus. The property owns shopping and business centers throughout England and other European countries. In Russia, the company also has a division (in which Goryaev is not formally listed in any way, but which is managed by his business partners). He manages several shopping centers and a water park in his native city of Yekaterinburg, as well as in Orenburg, Nizhny Tagil, Voronezh, Lipetsk, Tambov.
Business: Hedonism Drinks - elite alcohol trade
In 1997, at the age of 23, Evgeny co-founded Euroset, which started as a small business and within a few years has become a leader in the retail market for cell phones and mobile electronics. The history of Russian business includes shocking advertising slogans like “Euroset - the prices are just oh… et”; dildos as New Year's "gifts" to competitors; a system of payment for sales managers, unique for the Russian retail of its time, completely dependent on the number of sales; “Wars” with manufacturers, as a result of which Nokia and Samsung sometimes disappeared from store shelves.
Analysts are cautious about the company's success, pointing out the volatility of the industry as a whole. There are even voiced opinions that the main buyers of the chain are exclusively Russian businessmen.
However, in the summer of 2021, journalists of the British Daily Mail “caught” the famous football coach Jose Mourinho with the Hedonism Drinks branded bag, who in those days was negotiating a multimillion-dollar contract with the Manchester United club. So, a bottle of elite wine, which in the business environment of London is used to "wash" large contracts, before the official press release "handed over" the agreement to the general public.
The popularity of Hedonism Drinks is attributed by competitors and analysts to a wide range that other elite alcohol markets do not have. However, the presence of rare wines can be considered both an advantage and a disadvantage at the same time, because they are also rarely bought.