Avoid getting rejected with this tips for opening a Dutch bank account
Are you planning on setting up a company in the Netherlands? Before you start setting up your Dutch company, it’s important that you check out whether or not you’re eligible to open a bank account in the Netherlands.
One of the most common mistakes we see our clients make is incorporating their Dutch company first, only to find out afterwards that they are unable to open a bank account.
They end up spending a ton of time visiting banks, filling in forms, exchanging countless emails, and waiting for an email or post to come in with an IBAN number, but nothing happens. Or worse yet, they get rejected by bank after bank.
What most people don’t realize is that once you’re rejected by a Dutch bank, it’s significantly more difficult to open a bank account, even if you head to another bank. If you’re planning on expanding your business to the Netherlands, this can be one of the biggest nightmares to face.
All of that time, effort and money gets wasted, and their new Dutch company is stalled, even before they really get started. They get stuck and don’t know what to do with their Dutch company.
Most common reasons for bank rejections
Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” We couldn’t agree more. So, let’s minimize some uncertainty so you’re well prepared when it comes to branching out with your new Dutch company.
There are a ton of reasons why you could be rejected by a Dutch bank, but in our experience, these are the most common reasons:
#1 You have no Dutch directors
Many Dutch banks do not accept clients who are not Dutch residents. We often see clients rejected because none of their directors are residents of the Netherlands. When it comes to defining residency, most banks require a director that is actually a resident of the Netherlands. Being an EU citizen is simply not enough.
#2 Your company structure is too complex
If you’re company structure is too complex you could face a delay or even rejection from a Dutch bank. The more simple, the better. In one case, we saw the bank’s compliance department take three months to go through the process due to the complexity of the organization.
#3 Your scope is risky
If the scope of your business is considered to be too risky from the bank, you could risk rejection. For example, businesses related to Bitcoin and cryptocurrency.
Learn from the mistakes of others
You don’t have to make the same mistakes as other companies, you can learn from them. With proper research and preparation, you could be well on your way to opening a Dutch bank account.
Moving your company to the Netherlands can be complex at times, but with the right help you can be well on your way to opening your Dutch bank account and incorporating your new company.
SME Solutions is dedicated to helping our clients move into the Dutch market. Our newest launch packages includes setting up a Dutch B.V. and opening a bank account. Our rates start at Euro 1,500 + VAT.