• +49 (1575) 390-25-60
  • +38 (044) 498-26-53
  • +7 (495) 204-17-51

Why is it worth opening an investment fund in the Netherlands?

2019-01-09

The Netherlands is a state located in Western Europe. It has borders with Germany and Belgium. The population in the country is over 16 million people, the official language is Dutch. The state has a resident tax system. The country is a member of the European Union.

Characteristics of the main types of funds

In total, two types of funds are common in the Netherlands. Their characteristics are somewhat different.
Features of the Stichting Fund:
• The purpose of creation can be any, should be specified in the Charter.
• The founder is entered into the register.
• The fund can make a profit on investment from the rental of real estate. Commercial activities should be organized so as not to compete with other types of business.
• There are no requirements for the use of the income received.

The difference with Foundation with PBE status is that its purpose is to represent public interest. There is a protector. As for confidentiality, the registry displays information about the founder and members.
Activities for the implementation of the exchange of goods for profit may be carried out if the income is distributed to specific goals useful to society. There are no requirements for the use of income received.

Pros and cons of opening a fund

A foundation in the Netherlands is a legal entity. It becomes fully legal after drawing up a legal act. The principles of the organizations are enshrined in the Civil Code. If the fund receives income from commerce, it must be registered with the relevant body of the municipality.

The advantages of opening a fund:
• It is possible to develop commercial activities in areas permitted by the laws of jurisdiction.
• You can invest assets.
• Profit is tax free.
• There are no restrictions on the smallest amount of assets.
• Jurisdiction is considered prestigious.
• Political stability.

The main disadvantages of creating a fund in a jurisdiction are the cost of creating and subsequent maintenance of funds is high, there are restrictions on the payment of income. The fund is a rather complicated financial instrument. If you use it incorrectly, there is a risk of losing finances.

To make the best decision regarding the opening of the fund, you can consult with our IT-OFFSHORE specialists. We will help answer questions regarding the creation of an organization that will meet the goals and requirements of the client.