Registration of a foreign legal form

A foreign company in the Netherlands may trade according to its own foreign legal form; this is known as the 'incorporation system'. A German 'Gesellschaft mit beschränkter Haftung' (GmbH is equivalent to a Dutch BV) can expand its activities into the Netherlands without having to set up a separate BV or such like. The German GmbH may start up a company here and be registered accordingly in the trade register: a German legal form with a business in the Netherlands. A foreign company does not therefore need to become immersed in the rules which govern Dutch BVs. The way in which a GmbH operates is subject to German law. However a foreign company in the Netherlands does have to comply with other Dutch legislation, such as the Environmental and Factories Acts.

Companies formally registered abroad
It is possible and legally permitted for purely Dutch companies to make use of a foreign legal form, such as 'Limited'. Such companies, which may often have no more than a correspondence address abroad, are subject to additional regulations stipulated in the 'Companies Formally Registered Abroad Act'.