Despite its complexity, expansion into international markets is often a sound business growth strategy. However, businesses need to consider transaction fees and other cross-border costs that can significantly impact their yield. Bank transaction fees are just the tip of the iceberg.
International revenue collection costs could go up to 7 percent depending on the currency, payment service provider, and payment method.
Success requires proper planning and investing in the right sales process.
Procedure
Dutch advisor should comment on tax/and legal requirements of intended set-up.
Timing
10 business days
Executer
Dutch (tax) advisory firm
Procedure
Engage with Dutch notary, who will draft PoA for incorporating person or body and draft the articles of the to be incorporated company.
Timing
5 to 10 business days
Executer
Dutch notary
Procedure
Provide local director(s) to enable to local company to comply with local substance requirements (at least 50% of board should consist of resident directors).
Timing
5 to 10 business days
Executer
First European Gateway Services
Procedure
Current merchant agreements with US PSP’s may need to be amended or appendices need to be added to ensure the local entity will be collecting local revenue at regional interchange rates.
Timing
10 to 30 business days
Executer
US payments team and First European Gateway Services can assist
Procedure
Bank account(s) in the name of the DutchCo should be opened. Can be a bank in any jurisdiction as long as local board is managing the bank account.
Timing
10 to 90 business days
Executer
Finance or Treasury team or First European Gateway Services can assist
Procedure
Upon incorporation DutchCo will be registered with the local Chamber of Commerce and a tax identification number will be issued. In case applicable specific VAT and wage tax numbers can be applied for and DutchCo will be registered with the Dutch Central Bank.
Timing
2 to 5 business days
Executer
Dutch notary and/or First European Gateway Services
Procedure
DutchCo will have to arrange for local bookkeeping and file annual financial statements
Timing
1 business day
Executer
First European Gateway Services
Procedure
DutchCo will most likely have to register for (European) VAT reporting. If MOSS registration is necessary this can be arranged with Dutch tax authorities.
Timing
year-round
Executer
First European VAT Services and/or Dutch tax advisory firm
Procedure
DutchCo will have keep books, in case desired monthly reporting can be provided. Monthly or quartly VAT returns will have to be filed and annually financial statements will have to be filed.
Timing
year-round
Executer
First European VAT Services and/or Dutch tax advisory firm
Procedure
Our accounting team can process and initiate payments of local invoices or other payments in collaboration with the client’s Finance or Treasury team.
Timing
year-round
Executer
First European Gateway Services
Procedure
In case First European provides for a local director we will review all corporate documents and sign these off after approval.
Timing
year-round
Executer
First European Gateway Services
Procedure
In case First European will provide for a business address we will review and process all incoming mail.
Timing
year-round
Executer
First European Gateway Services
Procedure
Between group companies arm’s length pricing needs to be determined and documented.
Timing
10 to 20 business days
Executer
tax advisory firm
Procedure
The DutchCo may perform services (sales/BD/collecting) on behalf of the group so rights, obligations and liabilities and a remuneration will have to be agreed upon.
Timing
5 to 10 business days
Executer
tax advisory and law firm
Procedure
In case data of EU citizens will be processed and/or controlled then the GDPR is applicable. Some minimum requirements should have been met by 25 May 2018.
Timing
within one year aiming for full compliance and year-round maintenance.
Executer
First European Data Rep, in-house counsel and privacy lawyer
Procedure
DutchCo will have to file an annual corporate income tax return with the Dutch tax authorites. This tax return is based on the approved financial statements.
Timing
annually
Executer
Dutch tax advisory firm
Procedure
DutchCo’s website and other external documents may need to be checked for compliance with local laws and regulations. Same for any contracts DutchCo and suppliers would enter into.
Timing
year-round
Executer
First European Gateway Services, in collaboration with Dutch law firm where appropriate
Schiphol Boulevard 195
1118 BG Schiphol
The Netherlands
[buːtˌstræpɪŋ] noun
the process of starting and developing a business by using a lot of effort and no investment by outside owners