The Netherlands – Gateway to The World for Indian Business
The world is the economic and financial oyster of multinational enterprises and investors. There are many positive sides to such an oyster, but unfortunately it is often true to say that the tastier the fish the riskier it is to devour it. One can think of the Fugu fish which is considered by many the tastiest food that one can buy, but if not properly prepared it is also the deadliest. Certainly, this can also be the case for investments, particularly those investments that are expected to yield a high rate of return. Such investments are frequently made in countries and projects that have a high risk profile. The question that we will try to deal with below is how to make these investments tasty, but with less risks. Risks can be the result of unfriendly acts by foreign governments such as nationalization. Risks can also stem from unexpected and unplanned taxation in one or more countries. Can these risks be reduced? And if that is so, do such risk reducing steps adversely influence the commercial aspects of the investment? We believe that for many outbound investments the answer has been and continues to be found in the use of a simple and proven corporate structure namely the Dutch holding company. Since decades a multitude of multinational groups and investors are using the Dutch holding company so as to protect their investments as well as possible and in a very tax efficient manner. Although several countries have in recent years tried to introduce similar systems, the combination of tax efficiency and investment protection systems available through Dutch (holding) companies appears unparalleled. Such companies, which are easy to incorporate and maintain, can also offer extra layers of protection to non-residents, both for new investments abroad as well as for investments already made. Simply put, one may create within a limited period of time and without too much difficulty a Dutch limited liability company.Read more on:
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