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Doing Business in the Netherlands Doing Business in the Netherlands 2016 2016 c Baker & McKenzie Doing Business in the Netherlands Amsterdam South Sunset 2016 Editorial Contributions Robert van Agteren Umit Kahraman Yvonne Bakker Gillis Kempe Casper Banz Michiel Kloes Reinout Bautz Weero Koster Jurjen Bevers Frank Kroes Anna van Bracht Rebecca Kuijpers-Zimmerman Cornelien Broersma Mirko Marinc� Derk Christiaans Charlotte Moerman Boris de Best Christiaan van der Meer Remo Degano Margreet Nijhof Leonard van den Ende Itse Oosterhoff Wouter van den Goorbergh John Paans Sophie Dingenen Danielle Pinedo Ischa Gobius du Sart Silvia van Schaik Paul Halprin Remke Scheepstra Frederik Harms Corinne Schot Jasper Helder Amber Schijvens Ilya Hoekerd Wouter Seinen Maarten Hoelen Jan Snel Frenk Huisman Wibren Veldhuizen Folkert Idsinga Irene Vermeeren-Keijzers Tess Israël Johan Visser Mike Jansen Jan-Willem Gerritsen Marcel Janssen Cynthia de Witt Wijnen Table of Contents Introduction ____________________________________________________ 1 Baker & McKenzie Amsterdam N.V. ________________________________ 2 The Netherlands ________________________________________ 5 1.1 Country and cities ____________________________________ 7 1.2 Infrastructure, traffic and transport _____________________ 9 1.3 Government ________________________________________ 11 1.4 Economy ___________________________________________ 12 1.5 Dutch people and culture ______________________________ 15 Legal Forms of Doing Business ____________________________ 20 2.1 Branch _____________________________________________ 20 2.2 Subsidiary __________________________________________ 21 2.3 Branch versus subsidiary _____________________________ 22 2.4 Cooperative (Coöperatie) ______________________________ 23 2.5 European company/Societas Europaea (“SE”) ______________ 24 2.6 Societas Cooperativa Europaea (“SCE”) ___________________ 25 2.7 Partnership _________________________________________ 25 2.8 Formal foreign companies _____________________________ 26 Tax Benefits of Regional Headquarters/Coordination Centers ______ 27 3.1 General advantages __________________________________ 27 3.2 Tax ruling __________________________________________ 28 3.3 Holding of shares ____________________________________ 30 3.4 Group financing and group licensing _____________________ 31 The Subsidiary _________________________________________ 34 4.1 Incorporation of N.V. and B.V. __________________________ 34 4.2 Incorporation of a cooperative __________________________ 35 4.3 Capitalization _______________________________________ 36 4.4 Transfer of shares and membership interest ______________ 36 4.5 Shareholders’ register and members’ register ____________ 37 4.6 Issuance of new shares _______________________________ 38 4.7 Board of managing directors ___________________________ 38 ii Baker & McKenzie Doing business in The Netherlands 4.8 Board of supervisory directors _________________________ 39 4.9 Proxy holders _______________________________________ 39 4.10 Large companies regime ______________________________ 40 4.11 Developments _______________________________________ 41 Reporting, Auditing, Publication Requirements ________________ 44 5.1 Financial statements _________________________________ 44 5.2 Director’s report _____________________________________ 45 5.3 Accounting principles _________________________________ 46 5.4 Other information ____________________________________ 46 5.5 Language __________________________________________ 47 5.6 Currency ___________________________________________ 47 5.7 Classification _______________________________________ 47 5.8 Exemption for group companies ________________________ 48 5.9 Consolidated accounts ________________________________ 49 5.10 Auditing requirements ________________________________ 50 Corporate Governance Code _______________________________ 51 6.1 Principles and best practice provisions __________________ 52 6.2 Compliance and enforcement of the code _________________ 52 6.3 Management board __________________________________ 53 6.4 Supervisory board ___________________________________ 54 6.5 Shareholders and general meeting of shareholders ________ 56 6.6 Financial reporting ___________________________________ 57 Sales Support, Distribution and Production ___________________ 59 7.1 Liaison office _______________________________________ 59 7.2 Sales support _______________________________________ 59 7.3 Production _________________________________________ 60 Commercial Contracts ___________________________________ 61 8.1 General Dutch contract law ____________________________ 61 8.2 General terms and conditions __________________________ 62 8.3 Consumer protection/Consumer sales ___________________ 63 8.4 Consumer authority __________________________________ 64 8.5 Agency agreements __________________________________ 65 8.6 Distribution agreements ______________________________ 66 8.7 Franchise agreements ________________________________ 67 Baker & McKenzie iii Real Estate ___________________________________________ 68 9.1 Ownership __________________________________________ 68 9.2 Land register _______________________________________ 68 9.3 Other rights and obligations ___________________________ 69 9.4 Construction and renovation ___________________________ 70 9.5 Environmental aspects and soil pollution _________________ 71 9.6 Leases _____________________________________________ 72 9.7 Public housing ______________________________________ 73 Competition Rules and Free Movement of Goods ________________ 74 10.1 EU competition rules _________________________________ 74 10.2 Dutch Competition Act ________________________________ 76 10.3 Public procurement rules _____________________________ 80 10.4 Import and export: free movement of goods ______________ 84 10.5 The European Economic Area __________________________ 85 10.6 Standardization _____________________________________ 85 Intellectual Property ____________________________________ 86 11.1 Copyright __________________________________________ 86 11.2 Neighboring rights ___________________________________ 88 11.3 Protection of databases _______________________________ 88 11.4 Trademarks ________________________________________ 89 11.5 Designs and models __________________________________ 91 11.6 Trade names ________________________________________ 92 11.7 Patents ____________________________________________ 92 11.8 IP Enforcement ______________________________________ 95 11.9 Anti-counterfeit measures ____________________________ 96 11.10 IP protection of software and (IT) hardware _______________ 96 11.11 Advertising _________________________________________ 99 11.12 Advertising and freedom of expression _________________ 101 11.13 Unfair competition __________________________________ 102 11.14 Trade secrets ______________________________________ 102 11.15 Assignment, licensing and pledge ______________________ 102 11.16 Treaties and general European legislation _______________ 103 ICT and e-commerce ___________________________________ 104 12.1 General ___________________________________________ 104 12.2 Technology transfer _________________________________ 104 iv Baker & McKenzie Doing business in The Netherlands 12.3 ICT agreements and standard terms ___________________ 105 12.4 Sector-specific alternative dispute resolution (“ADR”) _____ 106 12.5 Shrink-wrap license agreements ______________________ 106 12.6 Source code escrow _________________________________ 106 12.7 The Internet and e-business __________________________ 107 12.8 Encryption _________________________________________ 109 12.9 Computer crime ____________________________________ 109 12.10 Online gambling ____________________________________ 110 Data Protection ________________________________________111 13.1 General ___________________________________________ 111 13.2 Data retention ______________________________________ 112 Internet, Technology and Telecommunications _________________113 14.1 Registration requirement for providers of public networks and telecommunications services ______________________ 113 14.2 Numbers __________________________________________ 113 14.3 Service numbers ___________________________________ 114 14.4 Net neutrality ______________________________________ 115 14.5 Legal interception __________________________________ 115 14.6 Data retention ______________________________________ 116 14.7 Unsolicited communications (spam) ____________________ 116 14.8 Cookies ___________________________________________ 117 14.9 Data breach notification ______________________________ 118 Labor Law ____________________________________________119 15.1 Term _____________________________________________ 119 15.2 Noncompetition clause ______________________________ 120 15.3 Termination ________________________________________ 121 15.4 Works council ______________________________________ 130 Social Securities and Pensions ____________________________ 134 16.1 The social security system ___________________________ 134 16.2 National insurance __________________________________ 134 16.3 Premiums _________________________________________ 136 16.4 Welfare provisions __________________________________ 137 16.5 Employees’ insurance _______________________________ 138 16.6 The Dutch Pension System ___________________________ 141 Baker & McKenzie v 16.7 Pension developments in the Netherlands _______________ 147 Visas, Residence Permits and Work Permits for Non-EU Nationals _ 152 17.1 Executive summary _________________________________
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