Intercompany Solutions Forms Dutch BV for Distribution in 3-5 Business Days

Rafael imports kitchen equipment and tableware from Brazilian manufacturers and sells them throughout Europe via direct-order and wholesale channels. His Brazilian holding company has operated profitably for eight years, but cross-border VAT complexity and customer payment friction in euros have convinced him that a dedicated European entity might work better. He's torn between registering a branch of his Brazilian company in the Netherlands or creating a separate Dutch limited company (BV), and he needs to understand the timeline and structural consequences of each choice.

Branch vs. Separate Company: The Core Decision

Rafael learns that a Dutch branch is not a separate legal entity; it represents his existing Brazilian company's presence in the Netherlands. A branch must register as an extension of his Brazilian firm, shares the same legal identity, and remains tax-resident in Brazil for most purposes. In contrast, a separate Dutch BV is a distinct legal entity registered as a new company in the Netherlands, with its own tax residency, bank account, and corporate identity separate from his Brazilian operation.

For Rafael's distribution model:selling to European retailers and consumers:a separate Dutch BV offers clearer boundary between his Brazilian importing business and his European distribution operation. The BV can invoice in euros, hold European supplier relationships directly, and manage European customer payments independently. His Brazilian company remains the manufacturer's distributor; the Dutch BV becomes the European retailer or wholesaler. As another case illustrated, Mexican importer timeline, showing how this structure decision affects operational readiness.

Intercompany Solutions, a Rotterdam-based provider, outlines the incorporation process.

The Remote Formation Timeline for a Dutch BV

Rafael decides to explore the separate-entity route. Intercompany Solutions, a Rotterdam-based provider, outlines the incorporation process. The firm charges a fixed fee of €2,299 for remote Dutch company formation. This covers notary costs, legalisation of Rafael's foreign documents, and Chamber of Commerce (KVK) registration. Rafael does not need to travel to the Netherlands; he sends his valid ID and a completed company formation form once, and Intercompany Solutions' team handles the notary and KVK filing from there.

The firm states that starting a company in the Netherlands takes 3-5 business days, depending on document verification and notary scheduling. For Rafael, this fast incorporation is attractive because he wants to launch European operations within weeks, not months. He is also pleased that he can sign documents remotely and does not require a local Dutch representative or director. Intercompany Solutions provides "company formations, VAT applications, secretarial services, translation services and general assistance," meaning Rafael's newly formed Dutch BV is not an empty shell; the formation process includes help applying for a VAT number and administrative support to get the company operational.

The VAT Registration Delay That Matters

Then Rafael encounters a surprise: the company can be incorporated and registered with the Chamber of Commerce in 3-5 business days, but obtaining a VAT number takes much longer. Intercompany Solutions explains that obtaining a VAT number for a foreign-owned Dutch BV typically takes between 6 and 8 weeks. This timing gap affects Rafael's distribution strategy significantly. VAT delays shipment illustrates exactly this scenario:when company registration and tax readiness diverge.

If Rafael incorporates the Dutch BV this week, the company will be registered and ready to sign supplier contracts and open a bank account by next week. However, he cannot legally invoice European customers with a Dutch VAT number or claim VAT recovery on purchases for another six to eight weeks. This means Rafael has two options: delay his first significant European shipments until the VAT number arrives, or structure the initial period differently:perhaps fulfilling early orders through his Brazilian company or a temporary arrangement until Dutch VAT compliance is ready.

For Rafael's supply-chain planning, this VAT delay is critical. Many of his European retail customers expect VAT invoicing immediately upon purchase, and holding inventory in a warehouse without a VAT registration creates compliance risk. He needs to align his supplier payment, inventory positioning, and customer order timeline with the VAT registration completion date. This coordination ensures that when his Dutch BV is ready to invoice, he has customers, suppliers, and stock positioned for immediate sales.

Ongoing Support and the Relationship After Formation

Rafael also learns that company formation is only the beginning of his relationship with a service provider. Intercompany Solutions states that company formation is one part of what it does, and most clients stay on for accounting, VAT, and payroll after incorporation. For Rafael, this is significant: he can form the Dutch BV with Intercompany Solutions and then rely on the same provider for quarterly VAT returns, annual accounts preparation, and ongoing compliance as his distribution business grows.

This continuity appeals to Rafael because he does not want to hand off the company to a different accountant or compliance firm after formation. One specialist relationship, from incorporation through his first profitable year, simplifies communication and ensures consistent understanding of his business structure. A Dutch BV for a Singapore logistics startup shows how various founders structure their formation and ongoing support arrangements.

Costs and Structure Comparison

Aspect	Brazilian Branch	Separate Dutch BV
Legal entity	Extension of existing firm, not separate	New, independent company
Formation cost	Registration fees only (lower)	€2,299 fixed fee (Intercompany Solutions)
Formation timeline	Variable, depends on jurisdiction	3-5 business days
VAT registration	Branch of Brazilian firm, special rules apply	6-8 weeks for separate Dutch VAT number
Tax residency	Brazil (typically)	Netherlands
Supplier contracts	In name of Brazilian company	In name of Dutch BV

Rafael's Decision and Next Steps

After analyzing the timelines and costs, Rafael decides to form a separate Dutch BV with Intercompany Solutions. The three-to-five day incorporation window fits his six-month European launch plan, and the fixed €2,299 fee is clear and manageable. More importantly, a separate Dutch entity gives him clean separation between his established Brazilian importing operation and his new European distribution business, which simplifies future accounting, tax filing, and potential investor due diligence.

Rafael also appreciates that Intercompany Solutions can help with VAT registration and ongoing compliance after incorporation. He knows that the VAT number will take six to eight weeks, so he plans his first major supplier shipments and customer orders to align with that timeline. His Brazilian company continues handling imports to the Dutch warehouse; his Dutch BV takes ownership of goods upon arrival and invoices European customers from the Netherlands.

Rafael schedules a free consultation with Intercompany Solutions' team to outline his incorporation and timeline. He prepares his valid ID, company formation documents, and details about his planned business structure. Within days of sending documents, he expects to receive notification of his new Dutch company's registration. Within weeks, his VAT number will follow, and his European distribution operation will be fully compliant and operational. This phased approach:rapid incorporation followed by VAT registration:allows Rafael to build his European network on a solid legal and tax foundation.

Questions founders ask

What's the difference between a Dutch branch and a separate Dutch BV for a Brazilian company?

A branch is an extension of your existing Brazilian company with no separate legal identity. A Dutch BV is a new, independent company registered in the Netherlands. For distribution, a separate BV keeps your Brazilian imports and European sales operationally and legally distinct.

How long does it take to form a Dutch BV for a foreign importer?

Company formation takes 3-5 business days. However, obtaining a Dutch VAT number:essential for legal cross-border invoicing:takes 6-8 weeks. Plan your first major sales accordingly.

Can I form a Dutch BV without traveling to the Netherlands?

Yes. You send your valid ID and company formation documents remotely. A formation provider handles the notary process and Chamber of Commerce registration without requiring your physical presence.

Is company formation the only service I need after setting up a Dutch BV?

No. After incorporation, you'll need ongoing VAT compliance, quarterly returns, annual accounts, and possibly payroll processing. Most clients stay with their formation provider for these services after the initial setup.