Licensing companies are used to receive royalties from or on behalf of group companies. This can be their sole activity, but is in many cases combined with other activities like holding and/of financing functions.
The Dutch licensing company is another instrument that is widely used and respected in international tax structuring. The Dutch tax infrastructure, including its tax system, tax treaties, the possibility to obtain tax rulings et cetera, is the main driver to choose the Netherlands for a “group licensing company”.
Just as is the case with the holding company or the financing company, the BV is the most widely used entity for Dutch licensing activities, although any Dutch tax subject and resident legal entity, like an NV, Cooperative and UK Ltd, can be deployed for this purpose.
Below is an example of how a Dutch licensing company could be of use (click to enlarge):
We have vast experience with setting up and implementing Dutch licensing companies for our clients (see our sections company formation and tax structuringsection for more on how we can help structure your business). In case you are interested in how a Dutch licensing/royalty company can be of use for your business, please feel free to contact us.