What is the difference between a Dutch branch and a Dutch subsidiary?

A Dutch branch is not a separate legal entity — it remains part of the existing UK company and operates as an extension of it in the Netherlands, meaning the UK company itself carries the liability for the branch's activities. A Dutch BV subsidiary, by contrast, is a separate Dutch legal entity, incorporated in the Netherlands and owned by the UK parent company, with its own liability, accounting and tax position. The right choice depends on factors such as liability exposure, tax treatment, how the business plans to operate in the Netherlands, and whether full local ownership and control matter for the UK company's strategy.