You might expect to see a rapid increase in sales when you first launch your firm in the Netherlands. If that’s the case, you should consider the audit requirements in the Netherlands.
Only medium and large companies are required by law to have their annual report audited by independent, qualified, and registered Dutch auditors. The auditor is appointed by the general meeting of shareholders or, in the absence of such an appointment, by the supervisory or managing board.
The goal of auditing financial statements is to provide assurance about their reliability, enabling management, shareholders, banks, investors, creditors, grant providers, and others to make informed decisions. An auditor’s report, which is issued after reviewing the annual statements, includes the auditor’s opinion. For the financial statements of medium-sized and large businesses, including publicly traded companies, as well as for the financial statements of public-sector bodies such as municipalities, such an audit is mandatory. These statutory audits are subject to strict regulatory requirements and can only be conducted by Dutch auditors who are licensed by the NBA (Dutch Professional Association of Accountants).
The exact audit requirements in the Netherlands vary depending on the size of the company. A company is classified as micro, small, medium, or large based on the following criteria:
- The value of the balance sheet assets
- The net turnover
- The number of employees
The table below provides a summary of the criteria for these classifications. Subsidiaries and group firms that are eligible for consolidation must also be considered in combination with their asset value, net revenue, and number of employees. At least two of the three criteria must be met over the course of two consecutive years in order to qualify as a medium or large company.
| Criterion | Micro | Small | Mid-sized | Large |
| Total Assets | ≤ € 450.000 | ≤ € 7.500.000 | ≤ € 25.000.000 | > € 25.000.000 |
| Net Turnover | ≤ € 900.000 | ≤ € 15.000.000 | ≤ € 50.000.000 | > € 50.000.000 |
| Employees | < 10 | < 50 | < 250 | > 250 |
Consolidation Requirements in the Netherlands
In general, parent companies are required to consolidate their financial statements to include the financial data of their controlled subsidiaries and other group entities.
According to Dutch law, a controlled subsidiary is a legal entity over which the parent company has the right to exercise, directly or indirectly, more than 50 percent of the voting power at the shareholders’ meeting, or the right to appoint or dismiss more than 50 percent of the managing or supervisory directors. The definition of a subsidiary also includes partnerships in which the corporation is a full participant. A group company is any legal entity or partnership forming part of a group of companies. The key factor is managerial control, not necessarily shareholding percentage.
It is not necessary to include the financial information of a subsidiary or group company in the consolidated financial statements if:
- its importance is negligible in comparison to the group as a whole;
- obtaining its financial information would be unreasonably expensive or time-consuming;
- it is held exclusively for disposal.
Consolidation may also be omitted if the group company or subsidiary being consolidated:
- qualifies as a small company under Dutch statutory law (see the classification table above);
- is not listed on a stock exchange
In addition, consolidation may be waived if:
- at least one-tenth of the company’s members or shareholders (holding at least one-tenth of issued capital) have not filed a written objection within six months after the end of the financial year;
- the relevant financial information is already included in the consolidated financial statements of the parent company;
- the consolidated financial statements and annual report were prepared in accordance with the EU’s 7th Company Law Directive;
- the consolidated statements, auditor’s opinion, and annual report—if not translated into Dutch—are available in French, German, or English, and all documents are in the same language;
- these documents or translations have been filed with the Dutch Trade Register within six months after the balance sheet date (or within one month of a permissible delayed publication date). Alternatively, a notice must be filed specifying where the documents can be accessed.
The following points must be included in the auditors’ report:
- Whether the financial statements comply with Dutch GAAP or IFRS and provide a true and fair view of the company’s financial position and result. This allows for a proper assessment of solvency and liquidity;
- Whether the management report complies with legal requirements;
- Whether adequate additional information has been disclosed.
The auditor i required to report their findings to the management and supervisory boards. These bodies must review the auditor’s report before adopting or approving the financial statements.
Parties may also choose to conduct a voluntary audit if an audit is not legally required — for example, when dealing with investors, grant providers, or financial institutions.
If you need assistance in organizing and/or collecting your audit requirements for your Netherlands company, please reach out to our Launch Crew.
The publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No presentation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Bolder Business Services (Netherlands) B.V., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in reliance on the information contained in this publication or for any decision based on it.
Last updated 10/06/2025
