The Netherlands – a Gateway to Europe

WEBINAR THE NETHERLANDS – A GATEWAY TO EUROPE

Arnoud Besseling Moderator Saumil Shah Special Address KNAV NFIA

SPEAKERS

Vidhya Sampath Varun Agarwal Laurens Kelterman Gerard de Gooijer Carlos Apapoe Tata Consultancy Services Piramal Group VBC Notarissen KNAV - HLG KNAV - HLG AGENDA

▪ Saumil Shah - Welcome the participants, introduce the speakers ▪ Arnoud Besseling - Special Address ▪ Carlos Apapoe - Business Opportunities in the Netherlands ▪ Gerard de Gooijer - Compliance Requirements ▪ Laurens Kelterman - Corporate Law aspects ▪ Vidhya Sampath - Experience and insights ▪ Varun Agarwal - Practical insights ▪ Saumil Shah - Q&A ▪ Closing note - Arnoud Besseling

22 OPEN FOR BUSINESS| THE NETHERLANDS By Arnoud Besseling, Executive Director NFIA for India

33 ROLLING OUT THE ORANGE CARPET | NETHERLANDS FOREIGN INVESTMENT AGENCY

▪ Official Investment Promotion Agency (IPA) for the Netherlands ▪ Mission: to assist foreign companies to locate in NL (and expand) ▪ Established in 1978 ▪ Operational unit of Dutch Ministry of Economic Affairs and Climate Policy ▪ Team of 130 people across NFIA HQ in The Hague and 29 offices abroad ▪ Working with Dutch Embassies and Consulates-General abroad ▪ Founding partner of the Invest in Holland network with regional economic development agencies and several large cities in the Netherlands

44 WORLDWIDE OFFICES | NETHERLANDS FOREIGN INVESTMENT AGENCY

55 WORLDWIDE OFFICES | NETHERLANDS FOREIGN INVESTMENT AGENCY

We have hired people from Italy, Spain, France, Germany, the Nordics and the UK to work out of our Amsterdam office. Amsterdam, in particular, has offered our workforce a nice balance between a cosmopolitan city without the overcrowding of a big-city lifestyle.

David Hyman General Counsel Netflix

66 WORLDWIDE OFFICES | NETHERLANDS FOREIGN INVESTMENT AGENCY

In our search for new locations we look at the right environment, the right infrastructure, the reliability and availability of power, the possibilities of renewable energy, the right labor forces and how welcoming the community is. We are very familiar with the Netherlands thanks to our presence in Eemshaven and we are convinced of the possibilities here.

Fabien Vieau Principal in charge of Energy and Data Center Location Strategy for Europe, the Middle East and Africa, Google

77 STRENGTHS OF THE NETHERLANDS | KEY ADVANTAGES

Strategic location Highly skilled, productive and multilingual workforce

International business climate Political & economic stability

Superior logistics & Exceptional quality of life technology Infrastructure

Competitive fiscal climate Innovative key industries

88 GATEWAY TO EUROPE | STRATEGIC LOCATION

99 RANKING OF RANKINGS 2020 | SECOND HIGHEST RANKED BUSINESS DESTINATION

’20 (’19) IMD WEF GII HDI Happ Total

1 (1) Switzerland 3 ↑ 5 ↓ 1 - 2 - 3 ↑ 14 ↑ 2 (2) Netherlands 4 ↑ 4 ↑ 5 ↓ 10 - 6 ↓ 29 ↑ 3 (3) Sweden 6 ↑ 8 ↑ 2 - 7 - 7 - 30 ↑ 4 (4) Denmark 2 ↑ 10 - 6 ↑ 11 - 2 - 31 ↑ 5 (5) United States 10 ↓ 2 ↓ 3 - 14 - 18 ↑ 47 ↓ 6 (6) Finland 13 ↑ 11 - 7 ↓ 15 - 1 - 47 ↑ 7 (7) Norway 7 ↑ 17 ↓ 20 ↓ 1 - 5 ↓ 50 - 8 (9) Singapore 1 - 1 ↑ 8 - 9 - 31 ↑ 50 ↑ 9 (8) Germany 17 - 7 ↓ 9 - 5 - 17 - 55 ↓ 10 (10) United Kingdom 19 ↑ 9 ↓ 4 ↑ 14 - 13 ↑ 59 ↑

► IMD World Competitiveness Ranking ► UNDP Human Development Index ► WEF Global Competitiveness Index ► UN World Happiness Report ► INSEAD, Cornell University and WIPO Global Innovation Index ► Sum of all positions on rankings

Source: Financieele Dagblad, September 2020

1010 IMD WORLD COMPETITIVENESS RANKING 2020

100

USA

UAE

China

Qatar

Ireland

Austria

Taiwan

Iceland

Finland

Canada

Norway

Sweden

Belgium

Australia

Denmark

Germany

Singapore

HongKong

Korea,Rep.

Switzerland

Netherlands

Luxembourg

SaudiArabia

NewZealand UnitedKingdom

▪ Source IMD World Competitiveness Online, 2020

1111 QUALITY OF LIFE IN THE NETHERLANDS

▪ We rank our lives on average a 7.4. Dutch people give jobs, health, life satisfaction, safety and work-life balance a very high score. ▪ Our healthcare system ranks among the world’s best. ▪ The Hague, Eindhoven, Amsterdam and Rotterdam are all in the top twelve of ECA’s 2020 list of most livable cities for expats in Europe.

Source ECA Global LIvability Report 2020, World Happiness Report 2020, Euro Health Consumer Index 2018, OECD Better Life Index

1212 QUALITY OF LIFE (WORLDWIDE)

200

150

100

Qatar

Spain

Japan Oman

Austria

Iceland Croatia

Finland

Estonia

Norway

Canada

Sweden

Portugal

Slovenia

Australia

Denmark

Lithuania

Germany

Switzerland

Netherlands

New Zealand New

United States United

Czech Republic Czech

United Kingdom United United Arab Emirates Arab United

Source Numbeo 2020 (Global top 25)

1313 SKILLED LABOR IS READILY AVAILABLE

10 9 8 7 6 5 4 3 2 1

Italy

Spain

France

Poland

Ireland

Belgium

Portugal

Germany

Netherlands

CzechRepublic UnitedKingdom

Source IMD World Competitiveness Online, 2019 (Selection of European countries)

1414 ATTRACTING AND RETAINING TALENT IS A PRIORITY

9 8 7 6 5 4 3 2 1

Italy

Spain

France

Poland

Ireland

Belgium

Portugal

Germany

Netherlands

CzechRepublic UnitedKingdom

Source IMD World Competitiveness Online, 2019 (Selection of European countries)

1515 LANGUAGE SKILLS ARE MEETING THE NEEDS OF ENTERPRISES

10 9 8 7 6 5 4 3 2 1

Italy

Spain

France

Poland

Ireland

Belgium

Portugal

Germany

Netherlands

CzechRepublic UnitedKingdom

Source IMD World Competitiveness Online, 2019 (Selection of European countries)

1616 NUMBER OF DAYS TO START A BUSINESS (2018)

40 35 30 25 20 15 10 5

Italy

Spain

France

Poland

Ireland

Belgium

Portugal

Germany

Netherlands

CzechRepublic UnitedKingdom

Source IMD World Competitiveness Online, 2019 (Selection of European countries)

1717 NUMBER OF PROCEDURES TO START A BUSINESS (2018)

10 9 8 7 6 5 4 3 2 1

Italy

Spain

France

Poland

Ireland

Belgium

Portugal

Germany

Netherlands

CzechRepublic UnitedKingdom

Source IMD World Competitiveness Online, 2019 (Selection of European countries)

1818 INTERNATIONAL TAX SYSTEM

100.00 The International Tax Competitiveness Index (ITCI) seeks 75.00 to measure the extent to which a country’s tax system adheres to 50.00 two important aspects of tax policy: competitiveness and 25.00 neutrality. The Netherlands ranks 3rd overall 0.00 in the category International Tax

System.

Spain

Japan

Latvia

France

Turkey

Ireland

Austria

Iceland

Finland

Estonia

Canada

Norway

Sweden

Belgium

Slovenia

Hungary

Australia

Germany

Lithuania

Switzerland

Netherlands

Luxembourg

NewZealand

CzechRepublic UnitedKingdom

Source Tax Foundation ITCI on OECD countries, 2019 (Top 25 Countries)

1919 WE ROLL OUT THE ORANGE CARPET

Invest in Holland is the national network of the Netherlands Foreign Investment Agency (NFIA), an operational unit of the Dutch Ministry of Economic Affairs and Climate Policy, and our regional and local partners. Together we support foreign companies to set up and expand their business in the Netherlands.

We connect you We inform you with local networks, regulators, about incentives, business locations, clusters and consultants. regulations and procedures.

We organize We provide custom-made fact finding trips for confidential and free support. your investment project.

2020 POLL QUESTION

BUSINESS OPPORTUNITIES

• In General

• The Blue Envelope

• In Practice

• Business & Logistic Network

IN GENERAL

• Set up corporate structure is easy

• Stable political environment

• Highly educated population

• Bilingual

• Staffing – work permit

• Housing for expats

• Healthcare system

• High-quality education

THE BLUE ENVELOPE

The Dutch Tax and Customs Administration • Benefits Your Best Friend in Netherlands - Competitive statutory income tax rates, brackets 16.5 and 25% - Participation exemption regime - Fiscal unity regime (VAT and CIT) - VAT deferment upon importation - Advance Tax Rulings - R&D tax credit - Tax relief scheme for investments - 30% facility on wages tax - Wide treaty network to avoid double taxation - Easy access to the tax inspector

IN PRACTISE

• First steps

• Substance requirements

• KYC and CDD

• Bank account

• UBO register

• Compliance

BUSINESS & LOGISTIC NETWORK

• Port of Rotterdam

• Schiphol Airport

• Public transport

• Datacentres and reliable fast internet coverage

• First class infrastructure

• Central location within European market

COMPLIANCE

• Administration

• Reporting

• Company size

• Consolidation

• Accounting principles

• Financial Audit

ADMINISTRATION

• Clear administration obligated

• Insight in financial position

• Administration may be kept abroad

REPORTING • Different types of reporting o full o short (publication) o Fiscal

• Accepted Languages

• Contents o directors report o financial statements o Other

• Relevant dates o financial statements 5 months o shareholders + 2 months o chamber of commerce + 8 days o extension by shareholders + 5 months

COMPANY SIZE

Size Balance sheet Revenue Employees Micro < EUR 350k. < EUR 700k. < 10 fte. Small < EUR 6 mio. < EUR 12 mio. < 50 fte. Middle < EUR 20 mio. < EUR 40 mio. < 250 fte. Large > EUR 6 mio. > EUR 40 mio. > 250 fte.

Reporting, consolidation and audit obligations depend on company size.

CONSOLIDATION

• Only medium and large companies.

• 408 exemption

ACCOUNTING PRINCIPLES

• Dutch GaaP or (any) IFRS

• Many similarities

• Differences: • IFRS 9 / 15 / 16 / 19 • US GAAP pension accounting

• Reporting pack

FINANCIAL AUDIT

• Regulatory bodies (AFM / NBA)

• RA = CPA

• Risk based

• Focus on IT architectures

• Completeness of revenue

Legal forms I

Private limited liability company - BV Besloten vennootschap met beperkte aansprakelijkheid

• Legal entity

• Capital divided into (transferable) shares; ownership rights (voting and financial)

• Shareholders not further liable than capital contribution

• Flexibel

3636 CORPORATE LAW ASPECTS

Legal forms II

Public limited liability company - NV Naamloze vennootschap

• Similar to BV

• BV facilitates small group of (cooperating) shareholders, NV is suitable for a large group, more anonymous shareholders; IPO

• Inflexibel

3737 CORPORATE LAW ASPECTS

Legal forms III

Cooperative - Coop Coöperatie / Coöperatieve vereniging

• Legal entity – association

• Members; ownership rights (voting and financial)

• Possibility to exclude members from liability

• Flexibel

• Choice between BV and Coop: tax driven

3838 INCORPORATION OF A DUTCH BV - Procedure

1. Identification incorporator: legalized copy ID, search through various databases, questionnaire (and if required more investigation/ information/ documents) + UBO identification

2. Draw up AoA: information required: Company name, place of business, info board members

3. Share capital: desired number of shares and nominal value, obligation to pay up nominal value shares: payment by means of transfer to notarial bank account or agreement to pay up asap upon opening bank account (tax and legal liabilities)/ contribution in kind

4. Power of attorney: legalization, apostille and confirmation statement (i.e. confirmation authority)

5. Execute deed: registration with trade register and draw up shareholders’ register

6. Opening bank account (+ transfer incorporation capital)

3939 CORPORATE BODIES OF A DUTCH BV

Shareholders’ Meeting: 1. Meeting of owners 2. Corporate structure and organization thereof 3. Share capital, articles of association, appoints and removes management and supervisory board members, allocation/ distribution of profits, etc.

Management board: 1. Responsible for day-to-day business/ corporate policy 2. Represents the Company (jointly or together, reserved matters)

Supervisory board: 1. Optional 2. Supervises the management by the Management Board, independent, position governed by strict mandatory rules

4040 POLL QUESTION

▪ In-country since 1992 ▪ Work with 50+ clients ▪ Sectors include: Banking & Financial Services, Insurance, Manufacturing, Telecoms, Media & Entertainment, Travel & Hospitality. ▪ 11,100+ employees globally working for Dutch companies ▪ We work with: Netherlands: 3 of the top 5 banks in the region; Top airline carrier in the country; 1 of the top 4 global auditing companies; 2 of the top 3 suppliers in the semiconductor industry; 1 of the top 2 HR service providers globally

4242 CASE STUDY – TCS IN NETHERLANDS

What does Tata Consultancy Services do in Amsterdam?

▪ Provide services, consulting and business solutions

▪ Partnering with some of the country’s leading businesses in their transformational journeys

▪ Soon we will launch our European innovation hub: TCS Pace Port Amsterdam

4343 HISTORY

▪ Started as a temporary office in 1992, and is now No. 1 in Customer Satisfaction in the Netherlands – apps and infra (2020) ▪ Working with brands like KLM, Damen, ASML, Randstad, Albert Heijn – helped us understand the needs of the Dutch market ▪ Amsterdam and The Netherlands have always been considered by TCS as the gateway to Europe ▪ Multiple reasons: o As a small country, historically the Netherlands has invested in relationships with other countries o Open economy, many language skills o Amsterdam is an international city, where many nationalities live together o But also from a tech perspective, the Netherlands and especially Amsterdam is very advanced ▪ We saw potential in the Dutch market, specifically in Amsterdam, as many companies chose to have their HQ there ▪ Multiple household brands, corporations that could benefit from moving to digital and keeping their businesses agile and future-ready

4444 WHAT’S NEXT?

How has our industry changed since then? What keeps TCS in Amsterdam after all this time?

▪ We moved from offshore and low-cost IT ▪ The dynamic of the city and the corporate outsourcing to partner in digital world transformation to help companies respond to a changing world (4th industrial revolution) ▪ Strong customer base, the Netherlands is a large market for TCS ▪ Digital is no longer the domain of the CIO/IT manager, but as driver of business and innovation relevant to the wider board

4545 TCS & THE LOCAL COMMUNITY

Biggest benefit of working in Amsterdam? How does TCS support the local community in Amsterdam? ▪ Hub for Europe ▪ GROW@TCS – nurturing and empowering ▪ Innovative, creative mindset local talent

▪ Energy of people, organisations and city ▪ GoIT – Equipping and developing the talent of the future ▪ Constant curiosity and interest to do/know more ▪ Amsterdam Marathon – raise money for VUMC

▪ TEDx Amsterdam – promoting and encouraging start-ups, innovative ideas

▪ PacePort – offering the business community a platform to innovate and bring life to ideas 4646 ACROSS INDUSTRIES, WE SET THE PACE

TCS’ new brand promise

We are in the age of Business 4.0TM . An age of opportunity for exponential growth, as well as the threat of drastic disruption. As technologies change, touchpoints multiply and new competitions emerge, our clients need to innovate, adapt, track and build competitive advantage faster than ever before.

At TCS, we’re the ones who run the distance - with a macro view, constantly measuring and calculating, continuously optimizing, expending energy and resources intelligently.

At TCS, we set the pace.

4747 NEW FRONTIER OF GROWTH & TRANSFORMATION BEING ANNOUNCED

Brands are defined by the experiences 2 Pace Ports are they create, and the value generated for targeted to be launched their customers. TCS Pace brings together the best of TCS’ advanced search, TCS Pace Port solutions, experiential offerings and London: Q3 digital customer engagements under one umbrella. As we become the preferred innovation partner for our customers, we are building unmatched capabilities to ensure that our customers are best positioned to deliver an unprecedented wave of innovations, fulfil rapid demand lifecycles and exceed customer expectations TCS Pace Port Amsterdam: Q3 Rajesh Gopinathan, CEO, TCS

4848 AMSTERDAM MARATHON

TCS Amsterdam Marathon, a big event with around 45.000 runners from around 119 countries, one of the fastest tracks in the world right through the heart of the city. 2020 was the 10th year of TCS supporting this event.

Covid-19 made us decide to go Virtual, allowing people to run their own route in the week from 18- 25 October.

When Reality is Virtual, This Run Unites Us.

https://www.tcsamsterdammarathon.nl

4949 EXPERIENCES OF DOING BUSINESS IN NETHERLANDS

▪ Multilingual - As a rule the Dutch speak English almost fluently, speaking a multitude of languages including English, French and German.

▪ Excellent Pool of Resources - highly qualified workforce – both Dutch and internationals

▪ You will know where you stand - The Dutch are direct . Expect honesty and openness in both in their personal life and at work Saying what you mean, and then doing what you say

▪ Excellent atmosphere for International Business

▪ Innovation & Infrastructure - The Netherlands is one of the most technologically advanced countries in the world

5050 PERSONAL LIFE EXPERIENCE MOVING FROM INDIA TO NL

▪ Dual Language - Immersing yourself in a different language is an experience in itself.

▪ Work Life balance

▪ Dutch law favours employees significantly & Employees feel more entitled.

▪ Strong presence of Indian community and warm & friendly Dutch people

▪ Dutch pension system and efficient healthcare Facilities.

▪ The great outdoors of NL and easy to travel anywhere in EUROPE

▪ Dutch Cycling Habit

▪ 30% Tax Ruling

▪ Happy Kids – High rate of wellbeing in the world

5151 DONTS- NETHERLANDS

▪ Don’t Mess with their Agendas

▪ Don’t Show up Unannounced, Plan your meeting well in Advance

▪ Don’t be late

▪ Personal or intimate Questions

▪ What People Earn

▪ Dress, appearance or weight

5252 Questions & Answers

Arnoud Besseling Varun Agarwal NFIA Piramal Group [email protected] [email protected] Carlos Apapoe Vidhya Sampath KNAV-HLG Tata Consultancy Services [email protected] Gerard de Gooijer Laurens Kelterman [email protected] KNAV-HLG VBC Notarissen [email protected] [email protected]

53 NETHERLANDS OFFICE OTHER OFFICES

Netherlands Canada Fokkerstraat 12, 3833 LD Leusden, The Netherlands 55 York Street, Suite 401, Toronto, ON M5J 1R7, Canada India Mumbai 201/202, Naman Centre, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 T: +91 22 6164 4800 Pune A 401, Lotus Siddhi, Survey no. 162, D.P. Road, Aundh, Pune - 411007 Singapore 60 Paya Lebar Road, #10-31 Paya Lebar Square, Singapore 409 051 UK Ground floor, Hygeia Building, 66-68 College Road, Harrow, Middlesex HA1 1BE USA One Lakeside Commons, Suite 850, 990 Hammond Drive NE, Atlanta, GA 30328 T: +1 678 584 1200 For assistance, please contact New York [email protected] or visit us at: www.knavcpa.com 1177 6th Ave 5th Floor, New York, NY 10036, USA