ABOUT THE NETHERLANDS

Amongst all the countries in Europe, the Netherlands, often referred to as Holland, is a densely populated country located in Western Europe, bordering the North Sea. It is famous for its flat landscape, canals, windmills, tulip fields, and dikes that protect much of its land, which lies below sea level. The Netherlands is a leading global player in international trade, logistics, and innovation. The capital of the Netherlands is Amsterdam, which is its largest city and a major financial and cultural hub. However, the seat of government is in The Hague. According to the World Bank, the Netherlands is classified as a High-Income Economy, consistently ranking among the top economies globally for its competitiveness, innovation, and ease of doing business. The currency of the Netherlands is the Euro (EUR). As of today’s exchange rates (June 2025), 1 Euro is approximately 89.85 Indian Rupees. The population of the Netherlands is estimated to be around 18.3 million in 2024. Its neighbouring countries are Belgium to the south and Germany to the east. The official language of the country is Dutch, with English widely spoken by the vast majority of the population, especially in business and urban areas. The religious landscape is diverse, with a significant portion of the population identifying as non-religious, followed by Roman Catholics and Protestants. Currently, the Netherlands has several international airports, with Amsterdam Airport Schiphol (AMS) being the primary international gateway and one of Europe’s busiest airports. Other international airports include Eindhoven (EIN) and Rotterdam The Hague (RTM). As a maritime nation, the Netherlands boasts some of the world’s largest and most crucial commercial seaports, including the Port of Rotterdam (Europe’s largest) and the Port of Amsterdam, which are vital for global trade and logistics.

The corporate income tax rate in the Netherlands is 19% for taxable profits up to EUR 200,000, and 25.8% for taxable profits exceeding this amount. The Netherlands is known for its attractive fiscal climate for international businesses, supported by a broad network of tax treaties designed to prevent double taxation and reduce withholding taxes. Key incentives include the “Innovation Box,” which allows a reduced effective tax rate of 9% on profits derived from qualifying intangible assets, and various R&D tax credits (WBSO). Additionally, the “30% ruling” offers significant tax benefits for highly skilled international employees. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in the Netherlands is highly efficient and straightforward, thanks to its business-friendly regulatory environment and supportive government agencies. The Netherlands Foreign Investment Agency (NFIA) is the key government body assisting foreign investors. A foreign investor who is planning to start his business in the Netherlands can form various company types, with the most common being a Besloten Vennootschap (BV – Private Limited Company) or a Naamloze Vennootschap (NV – Public Limited Company). A BV is the most popular choice, allowing 100% foreign ownership with no minimum share capital requirement (though a nominal capital of EUR 0.01 is typically subscribed). The Dutch legal system is robust and provides a strong framework for intellectual property protection and contract enforcement.

In case an investor is planning to establish a BV in the Netherlands or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in the Netherlands and we will also guide you about how to follow the procedure while formulating your company in the Netherlands.

Types of Business which can be started in the Netherlands:

• Logistics & Distribution: Leveraging its central location, excellent ports (Rotterdam), and advanced infrastructure (roads, rail, air), the Netherlands is a prime hub for European distribution centers, warehousing, and smart logistics solutions.
• Agri-Food & Horticulture: A world leader in agricultural innovation and food processing. Opportunities are vast in sustainable food production, smart farming (vertical farms, precision agriculture), food technology, and horticulture (e.g., greenhouses, flower bulbs).
• High-Tech Systems & Materials: Known for its innovation ecosystem, especially in semiconductors (ASML), photonics, robotics, and advanced materials. Opportunities exist in R&D, manufacturing, and specialized component production.
• Chemicals & Life Sciences & Health: A strong chemical industry, particularly in speciality chemicals and sustainable chemistry. The Life Sciences & Health sector is robust, offering opportunities in pharmaceuticals, medical technology, biotech, and personalized medicine.
• Information & Communication Technologies (ICT): A highly digitized economy with excellent digital infrastructure. Opportunities include software development, cybersecurity, AI, cloud computing, data centers, and FinTech.
• Creative Industries: A thriving sector encompassing design, gaming, architecture, media, and fashion. Opportunities for innovative startups and international collaborations.
• Sustainable Solutions & Circular Economy: Strong focus on renewable energy, waste-to-value, circular economy models, water management, and sustainable urban development. Opportunities in green tech innovation and implementation.

Advantages of Starting Business in the Netherlands:

• Strategic Gateway to Europe: Ideal location for accessing the European Single Market, with world-class logistics infrastructure.
• Highly Skilled & Multilingual Workforce: A productive, educated, and adaptable workforce with high English proficiency.
• Innovation & R&D Hub: Strong government support for R&D, a vibrant startup ecosystem, and excellent research institutions.
• Stable & Competitive Economy: A stable political and economic environment with a transparent legal system.
• Attractive Tax Climate: Competitive corporate tax rates and beneficial tax incentives for specific activities and international talent.
• Excellent Digital Connectivity: One of the most connected countries globally, with high internet penetration and advanced digital infrastructure.
• High Quality of Life: Attracts and retains international talent.

Business Opportunities for Indians in the Netherlands:

There are excellent business opportunities in the Netherlands for new investors who are planning to start their business abroad. The Netherlands’ open economy, innovation-driven environment, and status as a gateway to Europe make it a highly attractive destination. Indian investors with strengths in IT services, pharmaceuticals, agri-food technology, renewable energy, and advanced manufacturing can find significant avenues for investment, R&D partnerships, and market entry into Europe. The strong bilateral trade and investment ties between India and the Netherlands further enhance these opportunities.

Imports & Exports:

The Netherlands is a major trading nation, heavily involved in re-exports and high-value specialized goods.

Major items which are exported from the Netherlands to India:

• Machinery and transport equipment
• Chemicals and related products
• Manufactured goods classified by material (e.g., iron and steel)
• Pharmaceutical products
• High-tech equipment
• Agricultural products and food preparations (e.g., dairy products, specialized vegetables/fruits)

Major items which are imported in the Netherlands from India:

• Textiles and apparel
• Pharmaceutical products
• Organic chemicals
• Machinery and mechanical appliances
• Iron and steel products
• Gems and jewellery
• Agricultural products (e.g., coffee, tea, spices)

Manufacturing:

Opportunities in manufacturing in the Netherlands are primarily in high-value, high-tech, and sustainable sectors. This includes advanced manufacturing (e.g., semiconductors, precision instruments), chemical products, food processing (leveraging agricultural strengths), and automotive components, often driven by automation and R&D.

Mining:

The mining sector in the Netherlands is very limited. Historically, natural gas extraction from the Groningen field was significant, but production is being phased out due to seismic activity. There is some minor extraction of sand, gravel, and salt. Large-scale conventional mining for metals or other minerals is not a feature of the Dutch economy, which focuses on services and high-tech industries.

Major Indian companies which are currently working in the Netherlands:

The Netherlands is a significant European base for many Indian companies, particularly in IT, pharmaceuticals, and manufacturing, leveraging its strategic location and favorable business climate.

• Tata Consultancy Services (TCS): Has a substantial presence, providing IT services to numerous European clients.

• Infosys: Another major Indian IT services company with operations in the Netherlands.

• Wipro: Also present in the IT and consulting space.

• HCL Technologies: Has a strong footprint, offering IT and engineering services.

• Tech Mahindra: Provides IT and network technology solutions.

• Apollo Tyres: Owns Vredestein Banden, a major tire manufacturer based in the Netherlands.

• Wockhardt: Has a pharmaceutical manufacturing and R&D presence.

• Lupin Pharmaceuticals: Has a European headquarters and operations.

• Reliance Industries: Has an office and interests, particularly in the chemicals sector.

• GDP = $1.16 trillion (2024 est.)

• GDP Growth = 0.9% (2024 est.), 1.3% (2025 est.)

• Ease of doing business rank = Not directly ranked by the World Bank’s ‘Doing Business’ report (discontinued), but consistently ranks highly in global competitiveness and business environment indices.

• GDP per Capita = $64,493 (2024 est.)

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