Setting up a company in the Netherlands is a process that may seem complicated at first glance, but its clear laws and favourable business environment make it one of the most attractive places to start a business in Europe. The Netherlands offers many advantages to entrepreneurs, such as economic stability, access to international markets and support for small and medium-sized enterprises. In this article, we will explain in detail how to set up a company in the Netherlands, what steps you need to take and what you need to pay special attention to in order to start your business in accordance with local legislation.
Why set up a company in the Netherlands?
The Netherlands has been attracting entrepreneurs from all over the world for years. The country is characterised by a favourable tax system, transparent regulations and a highly developed infrastructure that makes running a business more convenient. In addition, the Netherlands is a member of the European Union, which allows free trade with other member states. The business culture in the Netherlands is also highly developed - large multinational corporations and small local businesses have the same opportunities for development.
When considering how to set up a business in the Netherlands, there are several important factors to consider, such as the legal form of the business, the administrative requirements and the costs associated with setting up a business. In the following chapters, we will look at the step-by-step process of setting up a business in the Netherlands.
What forms of business can you set up in the Netherlands?
Entrepreneurs can choose from several forms of business, which differ in terms of liability, legal requirements and costs.
- Eenmanszaak (sole trader) - This is the simplest form of business and is ideal for those who plan to run a small business independently. A sole trader in the Netherlands is characterised by minimal set-up costs and a simple management structure. It is worth noting that in this form of business, the owner is fully responsible for the financial obligations of the company.
- Vennootschap onder firma (VOF) - This is a civil association in which at least two shareholders share responsibility for the company. Each partner is liable for the company's obligations with his or her personal assets. This form of company is popular for small family businesses or for partners who want to run the company together.
- Besloten vennootschap (BV) - This is a limited liability company that requires a minimum share capital. It is a more complex form of business than a sole proprietorship, but offers greater protection of the owner's assets.
- Naamloze vennootschap (NV) - This is a public limited company that requires more capital and is suitable for large companies.
Each of the above forms has advantages and disadvantages, so the choice of the appropriate structure should be well considered depending on the nature of the intended business. How to set up a sole proprietorship in the Netherlands? This is a relatively simple process, especially compared to more complex structures such as BV or NV.
Steps for setting up a company in the Netherlands
Setting up a company in the Netherlands requires completing a few basic steps that include legal and administrative formalities. The first of these is the choice of the legal form of the company. Depending on the planned scope of the business, the number of shareholders and the level of risk you are willing to take, you can choose sole ownership, a civil association, a limited liability company (BV) or another legal form. Choosing the right structure is crucial because it determines the extent to which the owner is liable for the company's obligations and the costs associated with its activities. Once you have decided on a particular form of business, the next step is to register with the Chamber of Commerce (Kamer van Koophandel), which is compulsory for every company operating in the Netherlands. The registration process is relatively simple - just fill in the online registration form and then make an appointment at your local KvK office to confirm your identity.
Once registration with KvK is complete, your company will be assigned a tax identification number, known as a BTW-number, which is required for VAT payments. VAT registration in the Netherlands is mandatory for most companies doing business in the Netherlands, although some smaller companies may benefit from tax exemptions. The next step is to open a bank account for the company, which is necessary for financial payments. Banks in the Netherlands offer a variety of company account options that vary in fees and features, so it's worth comparing the available offers and choosing the best one for your business. Doing business in the Netherlands also involves paying for compulsory insurance, such as health insurance, which is mandatory for entrepreneurs. It's also worth considering supplementary insurances, such as third party insurance for businesses, which can protect your company from potential claims and give you more security when running your business.
How can I set up a sole trader company in the Netherlands?
Setting up a sole trader company in the Netherlands is a simple and quick process that does not require complicated paperwork, making it a popular form of business among budding entrepreneurs. The first step to setting up such a company is to register with the Kamer van Koophandel (KvK) or Chamber of Commerce. During the registration process, you need to provide basic information about your planned business, such as the name of the company, the address of the registered office and the type of business you intend to run. This process can be done online or at your local KvK office. Registration is relatively inexpensive and the actual visit to the chamber of commerce usually takes no more than an hour. Once registration is complete, your company will be automatically registered in the tax system, allowing you to legally do business in the Netherlands.
The next important step is to obtain a BTW number, which is similar to the Polish VAT number and will allow you to legally pay taxes. This number is essential, especially if you plan to do business on a larger scale or sell your services or products within the European Union. In addition, as a sole trader in the Netherlands you must pay compulsory health insurance, which guarantees you access to the Dutch healthcare system. It's also worth considering other insurances such as liability insurance, which protects your business against potential claims, and pension insurance, which can secure your financial future. With a thoughtful approach to insurance, you can do business in the Netherlands without having to worry too much about unforeseen financial problems.
What are the costs of setting up a business in the Netherlands?
The cost of setting up a company in the Netherlands can vary depending on the form of business you choose and other services such as registration fees, bank account and insurance. The first main cost you should be aware of is the registration of the company with the Chamber of Commerce, which is approximately €50. This registration is compulsory for any company operating in the Netherlands and in addition, a small amount must be paid each year to maintain the registration in the KvK register. The next step is to open a bank account for the company, which involves monthly fees of between EUR 5 and EUR 15 depending on the bank chosen and the services offered.
Another important aspect of doing business in the Netherlands is the obligation to pay health insurance contributions, which on average amount to approximately EUR 100 per month. This amount may vary depending on the insurance policy chosen and the individual needs of the insured person. It is also worth considering other insurances, such as third party (OC) insurance for businesses, which protects the business against potential claims from customers or consumers. In summary, the cost of setting up a company in the Netherlands is relatively low, making the country an attractive place to start a business.
How to set up your own business in the Netherlands - the necessary formalities
In addition to registering and obtaining a BTW number, the entrepreneur must ensure compliance with tax regulations, which include, among other things, regular filing of VAT returns as well as payment of other taxes such as income or capital gains taxes. It is important to monitor changes in tax laws and regulations that may affect your business. The Dutch tax system is stable and predictable, but due to various reliefs and changes in the law, regular updates can be financially beneficial for your business.
The Netherlands is a country with a favourable business environment that offers many advantages to entrepreneurs. Setting up a business in the country can be a relatively simple process, provided you are familiar with the local regulations and complete all formalities. Whether you choose to run a sole proprietorship or a more complex structure, the Netherlands offers a stable environment for doing business. However, it's important to remember that you'll then be facing a Dutch tax return, so it pays to think about proper support now - our Aangifte app will help you with all the formalities!
