Sunday, 05 Sep 2010
Doing business in the Netherlands
06 February 2009
The market is competitive. Fees can vary considerably, depending on the firm and its willingness to take on a given piece of business. Most charge on an hourly basis, although negotiation of fee levels and structure is common. Average hourly billing rates for a corporate partner in Amsterdam are between €300 and €400, although this can rise to as high as €750 at the international firms, particularly for cross-border work.
Notaries are an important part of the Dutch legal landscape and play a more prominent role than in most other jurisdictions. Most law firms employ a number of notaries, and many rise to senior positions, including at the top firms. In many transactions, for example in commercial property and M&A, the involvement of notaries, who are intended to straddle both parties' interests and to balance both parties' concerns, is essential.
Dutch law firms now have a certain level of professional indemnity insurance. Consequently, clients are advised to check the terms and conditions on their contracts and individual firm policies. Many Dutch firms limit liability by trading under the NV legal form. This serves the same function as an LLP, although it is a different structure.
Although a relatively small jurisdiction, the Netherlands supports a number of large firms that are instructed on large international transactions. One reason for this is the country's global importance as a focal point for tax structuring. Many foreign companies (notably from Russia and India) choose the Netherlands as their base, even if they have no significant operations there. Other foreign companies choose to structure cross-border acquisitions from one country to another, via a Dutch vehicle. The result is that Dutch lawyers can often work on transactions that at first glance have little to do with the country.
Last year saw a wave of important fiscal legislation that made the Netherlands one of the lowest taxed jurisdictions in Europe. Key measures implemented by the outgoing centre-right government include the abolition of capital tax and the reduction of corporate tax to 25.5%. As a result, the country has become a highly attractive venue for asset management.
Notaries are an important part of the Dutch legal landscape and play a more prominent role than in most other jurisdictions. Most law firms employ a number of notaries, and many rise to senior positions, including at the top firms. In many transactions, for example in commercial property and M&A, the involvement of notaries, who are intended to straddle both parties' interests and to balance both parties' concerns, is essential.
Dutch law firms now have a certain level of professional indemnity insurance. Consequently, clients are advised to check the terms and conditions on their contracts and individual firm policies. Many Dutch firms limit liability by trading under the NV legal form. This serves the same function as an LLP, although it is a different structure.
Although a relatively small jurisdiction, the Netherlands supports a number of large firms that are instructed on large international transactions. One reason for this is the country's global importance as a focal point for tax structuring. Many foreign companies (notably from Russia and India) choose the Netherlands as their base, even if they have no significant operations there. Other foreign companies choose to structure cross-border acquisitions from one country to another, via a Dutch vehicle. The result is that Dutch lawyers can often work on transactions that at first glance have little to do with the country.
Last year saw a wave of important fiscal legislation that made the Netherlands one of the lowest taxed jurisdictions in Europe. Key measures implemented by the outgoing centre-right government include the abolition of capital tax and the reduction of corporate tax to 25.5%. As a result, the country has become a highly attractive venue for asset management.
