A Branch Company is a business that is operated by a foreign entity. Therefore you do not need to set up a separate Dutch entity. Setting up a Branch Company is attractive for companies who only want an establishment in the Netherlands, from which business operations are carried out. The advantage of setting up a Branch Company is that it is easier and less expensive than setting up a legal entity. The disadvantage is that the foreign company operating the branch is fully liable for all the obligations and liabilities of the branch. Therefore, it can sometimes be better to start a Dutch legal entity, like a BV.
You can find more on the characteristics of a Branch Company here. If you want to know whether a Branch Company best suits your business, or if you want to set up a Branch Company in the Netherlands, please contact us.