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Fokkerstraat 12 3833 LD Leusden, Netherlands

Fokkerstraat 12 3833 LD Leusden, Netherlands



WHAT WE DO

KNAV’S GUIDE TO SET UP A BUSINESS IN NETHERLANDS

COMPANY

The relief available to the micro, small and medium-sized regimes cannot be used by companies applying IFRS in the preparation of their financial statements, as these unquestionably fall under the large company regime.

The principal requirement for financial statements is that they must be prepared in accordance with generally accepted accounting principlesin the country and provide a true and fair view enabling a well-founded opinion of the entity’s assets, liabilities and results and, as far as the financial statements permit, of its solvency and liquidity.

The auditor’s report must include, among other things, the following points: 
(a) Whether the financial statements have been prepared, in all material respects, in accordance with the applicable accounting principles and provide a true and fair view of the financial position and result for the year, (b) Whether the directors’ reportmeets the legal requirements and is free from material inaccuracies; and 
(c) The auditoralso needs to include information on materiality, group scoping and key audit matters in the opinion for thesecompanies.

It is not mandatory for micro-sized and small companiesto includea directors’ report, nor do theyhave the requirement for an audit to be performed. Such companiesmay file an abbreviated balance sheet andsmallcompanies only, may file such balance sheets along with explanatory notes with the Chamber ofCommerce. Notwithstanding the general requirements,a micro-sized or small company may at its discretionprepare financial statements based on tax accountingprinciples. As a result, the equity and the profitaccording to the financial statements are equal to theequity and profit according to the corporate tax return.This facility was introduced in Dutch law in order toreduce the administrative burden for small entities.

A medium-sized company must be auditedbut ispermitted to file an abbreviated profit and loss accountas part of the financial statements and is exempt fromincluding certain notes to the balance sheet.

COSTS

Our proposals comprehensively encompass the scope of our engagements. We estimate the expected time required to be spent on an engagement and arrive at the quotation using our pre-determined charge-out rates. The time spent on the engagements vary depending on the size, nature and complexity of the transactions carried out by the company. This makes our fee estimates competitive and widely accepted.

AUDIT BENEFITS

The annual auditing of financial statements is a statutory requirement in Netherlands based on certain criterions, as discussed above. However, an audit should not be considered as an expense burden to the company but should be seen as a value addition to the existing procedures and policies adopted by the company. The following are notable advantages of an audit:

  • An audit helps to validate the adherence of the company’s books of account with legal and regulatory requirements.
  • An audit helps to eliminate the errors residing in the accounting procedures of the Company.
  • An audit enables the management to identify weaknesses in the internal control systems implemented by the company.
  • An audit report is the opinion on whether the Company’s financial statements show a true and fair view of the financial status of the Company, thus enhancing the credibility and reliability of the figures being submitted to prospective investors.
  • An audit, besides adding credibility to the financial statements,sprovides assurance to all stakeholders.
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