When asked to name a Dutch city, people tend to come up with Amsterdam, the capital of the Netherlands, famous for its historic landmarks and open-minded citizens. They also think of Rotterdam – proud with the smartest port in the world, or the inventive city of Eindhoven situated in the Brainport region of Europe. But how about Den Haag?

The Hague is home to the Dutch government and has close to 500 000 residents. It is full of legislators, diplomats and leaders on the global business scene. No wonder that it is the birthplace of many international innovations, laws and ideas. Read this article to learn about this important Dutch city and contact us if you would like to receive more information on doing business in Den Haag.

The city of The Hague

The Hague, home to the classic paintings of Vermeer and the royal family, has an important place in the history of the Netherlands. It was established in 1230, originally as hunting grounds of the Counts of Holland. Its name originates from “s-Gravenhage”, meaning “The Hedge of the Count”. The city became the official seat of the Dutch government in 1588.

The Hague continues to host the Dutch cabinet, Supreme Court, State Council and States General. The Gothic Binnenhof complex, a castle serving as government seat, is the oldest functioning parliament house in the world.

The Hague: An international centre of justice and peace

The impressive historical legacy of The Hague in terms of government has earned its recognition as an international centre of justice. The Hague International Peace Conference of 1899 was the first of its kind in the world. Less than half a century later the UN selected the city as its international law centre. Today The Hague also accommodates the international justice and criminal courts where global disputes are often resolved.

Dedicated to security and peace, the city puts a lot of effort in supporting Holland on its way to becoming a secure gateway to the European continent. It encouraged the development of the world’s top cluster in the field of security: the Security Delta (HSD). It fosters cooperation between knowledge institutions, businesses and governments with the aim to achieve superior cybersecurity and build critical infrastructure.

The Hague is home to 400+ companies operating in the field of security. American data and technology companies like Dtex Systems and LeoStat have also recently established registered offices in the city.

The Hague: An attractive business hotspot

Thanks to its strong foundations, Den Haag is a very attractive destination for businesses. Various companies like Siemens, APM Terminals, AT&T, Shell and Samasource have established their European headquarters in the city. As a matter of fact, as many as 49 international companies made investments in the city in 2016.

In addition to private companies, Den Haag also hosts 240 foreign organizations, NGOs and tribunals, e.g. NATO’s Agency of Information and Communication, Europol and the European Patent Office.

The Hague: An experimental ground for innovations

NGOs, private companies and the government work together on this ideal ground for testing new ideas.

Some of the most recent innovative fields of work include the use of drones in emergencies, green energy alternatives and simplification of complex data communication. The first centre for Robotics and Artificial Intelligence of the UN was also established in The Hague.

The city boasts 20+ international higher education institutions and schools that support new ventures. Leiden University is the oldest in Holland and its Innovation Centre is located in the city of The Hague. The Hague also has an official centre for entrepreneurs called Impact City. It hosts programmes like the Innovators Challenge and Startup in Residence.

In case you are interested in starting a business in Den Hague, contact our specialists in company formation. They will gladly provide you with more information on company establishment and investment opportunities in the country.

The Netherlands provides a lucrative climate for foreign entrepreneurs with excellent infrastructure and a constructive strategy for international business. The corporative business environment is among the political priorities. According to Forbes, the Netherlands ranks 3^rd among the world’s top business destinations for 2017. And 4th according to the World Economic Forum 2022.

Many foreign companies benefit from the convenient business climate in the Netherlands. Foreign companies creating jobs and contributing to the country’s economy are highly valued.

The present guide to business culture is intended to help international exporters when dealing with Dutch partners.

Country profile

Language

The official language is Dutch, spoken by approximately 90 percent of the population. Dutch is the most widely used language with respect to national business affairs. Still, the capital of Amsterdam recognizes English as official. In total above 90 percent of the country’s inhabitants claim to have conversational English skills. Therefore many companies planning export to Holland rely on English in their business interactions.

Connectivity

Holland is famous with the best broadband coverage worldwide. About 99 percent of the households have a connection. The average speed of the broadband connection is also among the fastest on the globe: an important prerequisite for various businesses. A number of companies take advantage of this situation. It is not a coincidence that approximately a third of the data centers in Europe have chosen Amsterdam as a location. The most extensive internet exchange in the world is provided by AMS-IX.

Economy

According to IMF, Holland has the 18^th largest GDP in the world. Its GDP amounts to USD 777.5 billion. It is also rated 16^th as regards wealth per individual averaging USD 184 378 per adult. The Dutch economy is the 6^th largest in the EU and it is quite diverse. Ninety-five percent of the top European consumer markets can be reached from Rotterdam or Amsterdam within a day. Thus Holland has a very strong position for trade. Technology, banking, shipping, trade, agriculture and fisheries have significant importance for the country’s economy. The most developed sector is foods, while other major industries are metallurgy, chemicals, machinery, services, tourism and electrical goods.

The currency of the Netherlands is the Euro. In 2002 it replaced the local guilder.

Export and import

The key partners of the Netherlands in import and export trade are Belgium, Germany, Great Britain, Italy, France, China, Russia and the United States. The country is rated 2^nd in the Global Enabling Trade report for 2016, 3^rd in the Index of Global Innovation for 2017 and 5^th in the global ranking of competitive economies of the Swiss IMD.

Centuries ago the geographic location of the Netherlands determined its position as a key trade center and the country has retained this role ever since. The port of Rotterdam is the largest in Europe with approximately 450 M tonnes of shipments passing annually through it. The Netherlands offers much economic freedom, coupled with highly qualified multilingual workforce.

The World Bank’s service for Solutions in Integrated Trade has established that the Netherlands’ import amounts to approximately USD 400 billion worth of products per year, while its export totals USD 445 billion.

The key export partners of the Netherlands in terms of monetary values are Germany (USD 99 billion/year), Belgium (USD 46 billion/year), the United Kingdom (USD 40 billion), France (USD 36 billion) and the US (USD 19 billion). The top export goods include medicaments, petroleum oils, telegraphic equipment and parts/accessories for automatic data processing.

The Dutch business culture

Dutch businessmen are known for their skilled, highly professional approach. The country’s system for higher education is rated 3^rd worldwide and this is reflected in the local business culture. Dutch companies are famous with their high efficiency and productivity due to the skilled workforce, excellent IT infrastructure and practical labor laws in the country.

The visa option for highly skilled migrants enables companies to easily bring professional employees from overseas to Holland. As a result, the country is now home to at least 1 million international workers. In addition, the Dutch labor environment allows employers to easily hire personnel on part-time, flexible and temporary contracts. Thus the Netherland has an incredibly receptive and dynamic business environment.

Entrepreneurs planning to conduct business in Holland must have in mind some particular local customs. One important asset is punctuality. Meetings are organized in an efficient manner and end on time. Promptness is also essential as regards delivery times and commercial relationships.

Dutch business people are known for their honesty (the Netherlands takes the eighth place in the global ranking for Corruption Perceptions of Transparency International), so corruption and bribery are out of the question in their environment. Even the giving of gifts is rather uncommon.

Corporate environmental considerations and social responsibility are quite significant in Holland and must be considered when developing a business strategy.

If you are intending to start a company in the Dutch import/export sector, feel free to get in touch with our local specialists in company establishment. They will give you more details and legal assistance.

The media report daily on the mind-blowing achievements of the global leader in high technology – the Silicon Valley in San Francisco. Still, they are missing something. A country that appears quite small on the map is slowly emerging as a new leader in technological innovations. Thanks to its first-class technological and scientific advancements and workforce with excellent qualifications, the Netherlands will soon rival the Silicon Valley.

The home of Philips has the best business climate for start-ups in the EU, highly knowledgeable experts with a knack for technology and open business culture. It has developed an extraordinary European ecosystem for entrepreneurs.

It may seem odd to compare a country with a city, but this is not the intention of the present article. The Netherlands is bigger not only with respect to population and size, but also as regards entrepreneurship and disruptive innovation.

Furthermore, in contrast to the other major leaders on the European sci-tech scene – Germany and the United Kingdom – the Dutch expertise is not centralized in the capital. A number of flourishing technology hubs are scattered on the territory of the Netherlands. The start-up ecosystem radiates from the southern to the northernmost parts of the country and its achievements in the field of science and technology can surely surpass the triumphs of the prevailing backbone of high technology – the Silicon Valley in San Francisco.

Amsterdam

Western Europe’s start-up capital, Amsterdam, is rated third for scale-ups and start-ups in 2016. It attracts tech-savvy experts and growing businesses. Its programmes StartupDelta and StartupAmsterdam support start-ups in their development, establishment of connections and growth. The capital also has its own Science Park housing research institutes, excellent technical facilities, a Database of Business and Science and a special area for cooperative work of innovative start-ups operating in the field of science and high technology.

The financial technology unicorn Adyen was established in the start-up ecosystem of Amsterdam. Now the company is worth USD 2.3 billion. Its clients include Airbnb, Spotify, Uber and Netflix. Furthermore, many companies established in the Silicon Valley have registered offices in Amsterdam, including Uber, Cisco and Google.

Read more on starting your company in Amsterdam

Eindhoven

Eindhoven, where the company Philips was born, also hosts the world’s smartest square kilometre: the business park High Tech Campus. It was the first home of Philips Research (NatLab). Presently the park is a centre for talented specialist qualified in the field of technology with 140+ high technology institutes and companies, including IBM, ASML, NXP, Intel and Philips located there.

Additionally, Eindhoven has an extensive network of Research and Development and academic facilities, such as the Eindhoven TU/e. The extraordinary design and high-tech climate in Eindhoven has prompted the Singularity University based in San Francisco’s Silicon Valley to open a hub for innovations in the city. Its mission is to gather industry leaders representing research institutions, start-ups, other businesses and the government with the aim to design and test in practice technological solutions to humanity’s greatest challenges.

Groningen

Famous with its talented specialists, Groningen is second only to Amsterdam with respect to the number of prosperous start-ups. The Deloitte’s Technology Fast 50 ranking includes the fifty fastest growing technology companies in the Netherlands. In the 2016 ranking, 12 companies were located in Amsterdam and 7 in Groningen. Furthermore, the internet search giant Google chose Eemshaven (North Groningen) as the location of its new data centre.

Groningen is also the home of the most resourceful business growth accelerator for existing companies and start-ups in Northern Holland, VentureLab North. The Founded in Groningen portal supports, promotes and connects companies, initiatives and start-ups. Its impressive background includes 435 businesses established in the city.

Delft

Besides hosting the production site of the popular Delftware, the city is the home of the largest technological university in the country – TU Delft. It also has one of the greatest student populations in the country: approximately 10 to 15 percent of its 100,000 citizens are students. This lively city is focused on the development of high technology innovations. Hardware and engineering are two of the strong areas of work in Delft.

The high technology ecosystem of the city is the birthplace of YES!Delft, an incubator for start-ups. Established 12 years ago, it has already helped 200+ companies working in the field of technology, including inkless printing and modern laser technologies.

Utrecht

The city is among the most sustainable, healthiest environments worldwide and has given rise to many modern innovations. It has a Science Park, famous for its achievements in 3D-bioprinting, regenerative medicine, cancer research, organoids and stem cells, and smart solutions for urban sustainability. The park hosts 80+ businesses and organizations with a total labour force of 22,000 or about 21 percent of the city’s population.

Furthermore, the local ecosystem gave rise to a top 10 European incubator: UtrechtInc. The incubator also opened a creative centre for sustainability in start-ups called the Garage.

Read more on starting your company in Utrecht

The Hague

The City of Justice and Peace may be the last on our list, but it is definitely not the least in importance. The Hague is the spine of the Dutch security branch. It hosts the best European security cluster: the Security Delta. It helps start-ups in the field of cybersecurity, and in cooperation with the government, knowledge institutions and businesses it supports innovations in urban and national security, cybersecurity, forensics and critical infrastructure protection. The Hague Security Delta Campus is among the ten Dutch locations designated as major start-up hotspots by StartupDelta.

One of the many successful start-ups in the field of security established in the city is HackerOne, a Dutch-US company representing an ethical platform of hackers. Companies can employ hackers to search for security issues and bugs. In 2015 HackerOne generated a profit of 25 million USD and has worked with Slack, Twitter and Uber.

Read more on starting your company in The Hague

Holland: the European Silicon Valley

Several other thriving technology hubs in Holland are also worth mentioning:

• Leiden hosting the Bio Science Park;
• Twente with its accelerator programme Novel-T;
• Rotterdam with its Cambridge Innovation Centre and Start-up Foundation;
• Wageningen with its StartHub student incubator and StartLife – an organization supporting entrepreneurs in the sector of Agriculture and Food.

In summary, Holland fosters an extraordinary ecosystem for game-changing innovations and developments in the field of science and high technology, highly qualified IT professionals and aspiring entrepreneurs. Thus the country deserves to be called the European Silicon Valley.

In case you intend to establish a company in a popular Dutch start-up city, our specialists in company formation can give you more details on registering entities in The Netherlands and assist you throughout the process.

If you plan to open a cafe, a restaurant or a hotel in Holland, there are numerous regulations and rules you have to comply with. This guide will help you to determine quickly the scope of your obligations.

The present plan is only a guideline. There might be other relevant obligations not mentioned here. Please, contact us, if you need further information.

Check if you meet the requirements for a long-term stay in Holland

Entrepreneurs planning to stay for long periods need to meet a list of conditions. Sometimes a permit for residence is necessary.

Choose your office and check the plan for local zoning

Your registered office should conform to the plan for zoning in the particular area. Alternatively, you can ask the authorities to make an exception or ask the municipality to alter the plan for zoning.

Submit an application for a permit to build

In case you plan to build, renovate or modify an existing construction, you will probably need to apply for an Omgevingsvergunning (a comprehensive permit to change physical aspects). In the past, this document was simply called a permit for building.

Consider the requirements for fire safety

To guarantee that the catering establishment is safe with respect to fire, you will most likely need a permit for occupancy (included in the Omgevingsvergunning). In particular cases, however, an occupancy notification may be sufficient.

Consider the rules for the protection of the environment

All owners of catering businesses need to respect various environmental guidelines. Most often filing an application for an Omgevingsvergunning is unnecessary. It is sufficient to register your company at the local municipality.

Submit an application for a permit to operate a catering company

Some municipalities require operating permits for catering businesses. The requirements are connected to decency, safety and public order.

Register your business with the Netherlands Food and Consumer Product Safety Authority (NVWA)

In case your company produces, sells or processes food products, a registration at the NVWA is necessary.

Prepare or acquire an approved hygiene code

Drink and food preparation needs to be in line with a code on hygiene. You can prepare such a code yourself or use an already certified document (e.g. of the Board of the Catering and Hotel Industry). Hygiene codes need to follow the European Hazard Analysis and Critical Control Points (HACCP) principles. The compliance to a hygiene code approved for the sector automatically fulfils all legal requirements.

Submit an application for a licence that allows you to serve non-alcoholic or alcoholic beverages

In case you plan to sell or offer alcoholic beverages for consumption in your business, you need to obtain a licence for alcohol from the local municipality (under the Catering and Licensing Act). A drink and food permit is sufficient for selling non-alcoholic drinks.

Obtain a permit for running a terrace

If you plan to service a terrace in public space or private property, you will most likely need a permit issued by the municipality. Terraces are permitted only as parts of existing hotels and catering establishments.

Obtain a permit for gaming machines

If you plan to install a gambling machine in the catering establishment, you need to apply for a specific permit at the local municipality.

Submit an application for music licences

You have to obtain a special permission for playing music in public. Sena and Buma regulate the permission and issue licences.

Identify potential sources of risks and assess them

If you plan to employ personnel, you need to draft the so-called risk inventory, complete with risk evaluation (RI&E) prior to opening your catering establishment. The catering and hotel (Horeca) RI&E model fits this purpose.

Register at the Dutch Trade Registry and Tax Administration

All new businesses need to be registered at the Commercial Registry of the Netherlands. Your details will be passed on to the tax authorities. Therefore you do not have to go through a separate registration procedure with the Tax Administration.

Our local incorporation agents can help you in the process of establishing a hotel, restaurant or bar. Please do not hesitate to contact us.

Selling services or products online requires more than just creating a website. First of all, you have to register a company at the Trade Registry of the Dutch Commercial Chamber (KvK) and choose a name for your domain, then keep financial records and make payments for income and value-added tax (BTW). Starting an online shop in the Netherlands involves compliance with different regulations and rules, including particular requirements for selling online. The present guide will help you figure out what your obligations are. For more information and legal assistance, contact our incorporation agents.

Tip: For foreign entrepreneurs and non residents, a Dutch BV company is a more logical choice. 

Is your online shop considered a real business?

Up to a certain point, an online shop may be just a hobby, but when does it become a real business? The Commercial Chamber at the Customs and Tax Administration has set the following seven criteria:

1. independence;
2. profitability;
3. capital;
4. company size (in money and time);
5. entrepreneurial risk;
6. customers;
7. liability.

Registration at the Dutch Trade Registry and Tax Administration

All new businesses have to be registered at the Dutch Trade Registry. If your entity is a cooperative or a sole proprietorship, you will be issued a value-added tax number and your details will be passed to the National Customs and Tax Administration, so you do not have to go through a separate registration procedure with them. Associations and companies with limited liability need to be registered separately. For more information, please, refer to the articles on legal business forms.

Register the name of your domain (address on the Internet)

To purchase and register a domain, you need to reserve its name at a registrar. The name should be unique, chosen with respect for other companies’ trade names, trademarks and copyrights. The registrar shall forward your request to the institution administering domain names.

In case you have hired a designer to create your online shop, you will be allowed to modify it yourself only if you own the copyright. It is best if the designer agrees to waive his/her rights. Another option is to obtain a licence regarding the online shop use.

Third party E-commerce stores

Perhaps you will want to use third party E-Commerce portals such as Amazon Netherlands, Bol.com (biggest online retailer in the Netherlands), Ebay (Marktplaats in The Netherlands) or Shopify. For Bol.com and Amazon we have a more thorough guide on how to get started.

Applicable taxes

If your online shop is generating income, the authorities will probably consider you an entrepreneur liable for income tax. In this case, your profit from the business will be taxed. You have to pay value-added tax (BTW) for most services and products. In Holland, there are three different value-added tax rates. Some services and goods can be exempted from VAT. The VAT is charged to the customers and transferred to the office of the tax authorities. If your turnover exceeds a certain amount in another member state (MS) of the EU, you need to charge value-added tax using the rate of the respective state. You are liable for VAT in that MS too, so you must also register your business there. Thresholds for remote sales differ depending on the country.

Entrepreneurs must keep records of their business transactions. The same rules apply to online shops. The records must meet certain requirements. For example, you need to keep the records in your archive for a minimum of 7 years. You also have to record the hours that you spend working for the online shop, if you want to receive an entrepreneur allowance.

Provide straightforward information online

Your website needs to state clearly the identity of your company. You have to include your address, number in the commercial registry and VAT number. Also, you need to inform the customers of the features and prices of the products you offer, the preferred payment method, the ordering process, the warranty, the period for product return and the terms of delivery.

Make sure that the personal details of your customers are safe

Ask permission before placing cookies on your customers’ computers

Cookies are small files that save browser settings on the PCs of your customers. They allow you to follow your clients’ surfing patterns and introduce targeted adverts. You can use cookies only with your customers’ permission.

Handle your customers’ details with proper care. Personal data need to be protected from theft, loss and such. Ask your hosting provider about the available options for security. Provide secure payment methods to your customers. Secure payments require a secure connection to the internet, starting with “https” in the URL field of your browser.

Written order confirmations

You have to send order confirmations in a written form, including your general conditions, warranty conditions and contact details. Customers need to receive this info at the time of product delivery or service provision, at the latest.

Rules for advertising by email

You cannot make cell phone calls or send emails to companies or people for the purposes of advertisement if they have not given you their permission.

Rules for selling alcohol and tobacco

High-alcohol drinks can be sold online only with a permit or license, as stipulated in the Catering and Licensing Act. Low-alcohol drinks can be sold without a licence.

Holland permits online sales of tobacco. You can provide overviews of the tobacco products you offer (including logos) and list prices on the website. You cannot, however, recommend specific products.

Prepare your General Terms & Conditions (GTC)

It is advisable to have GTC in order to minimise risks and ensure transparency of your business operations. GTC include details about payment, periods for delivery, warranty and settlement of disputes.

Requirements for product safety, labelling and packaging

Final goods have to be safe for the customers. Therefore the products offered in your online shop need to meet certain requirements. See which rules are applicable to your business. Product labelling and packaging is also regulated. For example, in case of export, your label needs to include the official language at the destination.

If you plan to start an online shop in Holland, do not hesitate to contact our specialists. They can assist you in registering your Dutch business. They will give you more details on company registration and consult you on the relevant legal matters.

The life expectancy in the Netherlands is approximately 81 years. Studies also show that the country has the happiest children and the tallest population worldwide. The national healthcare system established 150 years ago is easily accessible and recognized all over the world. With good collaboration between the industries and scientific institutions, dedicated clusters and robust links between research, business creation and production, the national sector of Health and Life Sciences maintains its competitiveness in the world industry.

If you would like to establish a company in the Life Sciences and Health sector, please do not hesitate to contact our incorporation agents. They will be happy to give you more information and legal consultancy.

Combined solutions from scientific research to patients

The characteristic Dutch approach to creativity and collaboration and the readiness for cooperation in the name of greater goals has led the Netherlands to its top ranking in open innovation and private-public research. The success of the sector of Life Sciences and Health stems from the close collaboration and sharing of knowledge between research institutions and companies with full governmental support. This model linking research, innovation, knowledge and production generates affordable, sustainable and robust solutions to set global standards. The Dutch multidisciplinary approach yields superior expertise and knowledge in the area of healthcare, linking science to patients, and frequently leads to the adoption of comprehensive, combined solutions. The innovative services and products in fields like medical equipment and remote care, and the collaboration of Medtech and Pharma in the area of diagnostics provide solutions for many contemporary health care challenges faced worldwide.

Five advantages of the sector of Health and Life Sciences in the Netherlands

Impressive historical contributions

Holland has made remarkable contributions to medical science:

• In 1590, the Jansen brothers, Zacharias and Hans, invented the first compound microscope;
• Antonie Philips van Leeuwenhoek (born 1632, died 1723) is commonly referred to as the founding father of Microbiology;
• In 1658, the Dutch biologist and microscopist Jan Swammerdam observed and described erythrocytes;
• Willem Einthoven invented the electrocardiogram which earned him the 1924 Nobel Prize in Physiology or Medicine;
• In 1943, Willem Johan Kolff, considered among the most distinguished 20^th century physicians, developed the first prototype dialyzer and contributed to many pioneering achievements, including the first artificial heart and functioning heart-lung machines.

Cooperation, collaboration and building of coalitions

Holland maintains its position as a key global player in Health and Life Sciences with significant technological achievements in the fields of health infrastructure and medical technology, biomaterials (coatings for medical equipment), regenerative medicine, veterinary and human vaccines, biopharmaceuticals, medical informatics and molecular imaging. The success of the sector lays in the cooperation, collaboration and building of coalitions between research institutions, universities, businesses and the government that link research to business creation and production.

Turnkey projects

The Dutch expertise in the infrastructure of healthcare is represented by turnkey projects: local companies have the ability to simultaneously cover the aspects of medical equipment, waste management, design, engineering, financing, etc., with special attention to “healing environments” and energy efficiency.

Health and Life Sciences is among the leading industries in the national economy and is given first priority by the Ministry of Economy. The sector achieves its success by uniting partners and joining forces along the (value) chain of prevention, cure and care.

The Dutch programme in the field of genomics

The Netherlands has a national programme for genomics and three substantial private-public programmes connected to Regenerative Medicine, Pharmacotherapy and Translational and Molecular Medicine worth over a billion Euros. Within the framework of these programmes large industrial partners and small/medium enterprises cooperate with the 8 medical faculties (the faculties of medical technology of the 3 Technical Universities and the university hospitals) on projects for research and development with direct contributions to clinical practice. The programmes finished in 2012/2013, but their initiatives are still progressing.

Quality, accessibility and affordability of healthcare

The national health care services offer quality, accessibility and affordability for all. Many countries use Holland to illustrate how health care quality can be provided with the maintenance of a reasonable cost level. As regards future perspectives, Holland is directing its efforts towards eHealth (online prevention and therapy, telemedicine).

The Dutch economy is prosperous, advanced and open for international investments. Holland is also among the oldest and most trustworthy business partners of the United States. The historical roots of this relationship can be traced to the Revolutionary War.

The tax system in the Netherlands offers incentives to encourage business and innovation activities. The favourable business climate does not bring benefits only to Dutch entrepreneurs. Holland is open to international investments and has become the home of many skilled foreign workers. It also hosts the European headquarters of many USA corporations, including UPS and Coca-Cola.

The European gateway for trade

The Netherlands is very dependent on international markets, as more than 50% of its annual GDP comes from trade with foreign partners. The country is in the global top 10 for export: a big achievement for its modest size. US companies setting up offices in Holland can make the most of the advantages offered by its strategic location. They can use and service the markets of the EU, Eastern and Central Europe, Africa and the Middle East.

Nevertheless, about 65 percent of all Dutch exports head to only 5 countries: the US, Great Britain, France, Germany and Belgium. On one hand, this is excellent for American companies aiming to develop business relationships. On the other hand, it is a limiting factor for business owners planning to operate on a bigger multinational scale.

Holland often serves as a hub for companies. A significant percentage of the imports (e.g. computers) are re-exported straight away without being processed. Every year millions of tons of North American and Asian goods arrive at Amsterdam and Rotterdam for distribution elsewhere on the continent.

Read more on import-export trade in the Netherlands

Opportunities for business

Some world-famous Dutch companies do quite well on their domestic market: from ING and Shell to Heineken, Unilever and Philips. Nevertheless, this should not deter you from investing in Holland, especially if your business is in the industry of services.

In the past several years the demands for services have increased and they have quickly become the largest sector of the Dutch economy, accounting for approximately 70 percent of the GDP. Trade is the largest industry in the sector, followed by telecommunications, construction, transport, insurance, banking and different financial services. According to experts, significant growth is expected in the field of communications and information technologies. This is not surprising, as Holland is among the most “connected” countries with respect to e-commerce, outsourcing and communications.

Labour relationships

Holland’s stability is reflected in its employment sector. Any American company intending to develop a business and hire personnel should be prepared for interactions with works councils and trade unions. Bargaining is typical for Dutch people and the trade unions have strong relationships with the government and employers’ organisations.

Forget about at-will employment. Once you hire staff on permanent contracts, you need to pay attention to their workers’ rights and follow the employment regulation. As a Member State of the European Union, the Netherlands follows the European regulatory framework, including the Directive on working time. It limits the working hours of employees to 48 a week, on average. However, individuals may voluntarily agree to longer working hours and opt out of this right. American companies with operating businesses in Holland should seek consultancy to make sure that the relationships with their employees are arranged in compliance with the regulations from the start.

Business culture in the Netherlands

According to some, the Dutch approach to business is completely different from the American, but that is an overgeneralized statement and stereotyping. Holland and the USA would not have been traditional partners if they did not work together well! Nevertheless, Americans should take into account some peculiarities when doing business with Dutch companies.

The Dutch people are honest, direct, serious and very straightforward. Sometimes this could be perceived as harshness and lack of care. Be specific and concise in your business interactions. Dutch go straight to business matters without much socialising. Handshakes always have a purpose. They do not make empty promises and expect the same from you. If you say that you will do something, even if it is small and inconsequential, you will be expected to complete the task. When negotiating, any hint of deception, evasiveness or secrecy can ruin the deal, because trust is fundamental to the prosperity of working relationships in Holland.

Establishing a business in Holland

According to the business index of the World Bank, Holland is 32^nd in the world. The standard legal form for new companies is the BV (Besloten Venootschap) also known as a private company with limited liability. There are no minimum capital requirements and it takes three days to incorporate your business.

It is not surprising that Holland is among the leaders in international trade. The country is perceived by many as the Gateway to Europe, opening a world of new possibilities.

Call our local specialists who will help you with registering a company in the Netherlands and give you legal advice for a smooth start.

The creative industry of the Netherlands is gaining international recognition and is famous for its achievements in the fields of interior design, architecture, gaming and fashion. Creative companies work on the development of exciting new services, products, systems, strategies, work methods and ideas. They have the ability to consider complex issues in new, refreshing ways. As a result, creative businesses develop superior innovations of popular and controversial services and products.

If you are interested in starting a business in the Dutch creative industries, do not hesitate to contact our Dutch incorporation agents. They will provide you with more information and support on starting a new business and investing in the Netherlands.

The Dutch are not afraid of risks and unpredictable projects

The creative industries in the Netherlands embrace a quirky mentality whereby they welcome risks, rather than always count on safe choices. They go ahead with creative processes whose outcomes are difficult to predict. This has much to do with the creative thinking necessary to conceive, design and build applicable large-scale solutions for life in a region vulnerable to flooding. Dutch engineers, designers and architects are very talented and able to develop solutions in various fields, such as water security and urbanization. The creative industries are flexible: they use unconventional approaches, often collaborate in different areas and make important contributions in the search for solutions of societal issues, e.g. in the field of energy, safety and healthcare. They also catalyze the innovation processes in all sectors of the industry. Creative innovation can bring added value to various projects or products, regardless of the branch they come from.

Five astonishing facts about the creative industry in the Netherlands

Combining business and creativity

For hundreds of years, the creativity of the Dutch people has informed and inspired. The genius of Van Gogh and Rembrandt transformed our ways of perception. Contemporary Dutch masters include world-famous talents like the designers Viktor and Rolf, the illustrator and artist Dick Bruna and the architect Lucas “Rem” Koolhaas. They are prime examples of the strong sides of the signature Dutch design: pragmatism, open-mindedness, conceptuality, unconventional thinking and following the principles of minimalism. Dutch design embodies creativity, innovation and business intuition. It is a proof that creative thinking can bring business innovation, good competition and prosperity.

Pioneering in a variety of areas with national and global examples

Holland is famous with its pioneering design, architecture, television, music, fashion and gaming.

Rotterdam is a centre of urban design and architecture. Eindhoven is the technological centre of the Netherlands. Time Magazine dubbed its Design Academy, “The School of Cool”. Delft offers the oldest and largest academic industrial design program. Utrecht is proud with its Gaming Institute. The capital, Amsterdam is a multicultural centre of interactive design, fashion and communication and the ArtEZ Arts Institute in Arnhem is famous with its own Fashion Biennale. Many fashion designers enjoying international success are among its alumni.

Long-standing traditions in interior design

Holland has long-lived traditions in interior design. Gerrit Rietveld is a prime example with his furniture designs. One of the strengths of the Dutch school of design is visual communication and typography in particular. Famous examples are the design and signs at main airports like Schiphol in Amsterdam and JFK in New York.

Prestigious architecture worldwide

Architects from Holland have worked on a variety of prestigious projects, such as the Solomon Guggenheim Museum (Las Vegas), Governors Island (New York), the headquarters of Gazprom (Russia), the Public Library in Seattle and the Dalian Stadium (China). Holland is recognized for its characteristic integrated method of approach to building projects and urban development. Architectonic design is complemented by spatial design, while the social context and sustainability of the structures are also considered.

Original and popular television formats and an active industry for Online Gaming

Dutch television producers have occupied important positions in many global channels with their original formats. These include Big Brother, Idols, The Voice, So You Wanna be a Popstar and Hunt for Millions.

A main advantage of the gaming industry is the extensive adoption of mobile technologies and broadband (second highest internet broadband penetration rate in the world). Holland’s game market is among the most dynamic in Europe and accounts for 35% of the total spending. Holland is also a leader with respect to serious gaming, producing applications for industries, businesses and for educational purposes. The country is also pioneering in the field of popular dance events and dance music.

Rotterdam offers international corporations a rewarding, internationally oriented and stable business climate. The second biggest city in the Netherland is more than a good choice for establishing a business. Rotterdam offers great quality for your money and represents a gateway to the European market.

The Netherlands is internationally oriented

Holland is an internationally oriented European country. People of any nationality are welcome to work and live here. Rotterdam hosts more than 170 nationalities (> 30 000 immigrants) that give it a cosmopolitan, global personality.

Most Dutch nationals are bilingual and the majority of them speak English, besides their native language. The local economy, which is very dependent on trade with other countries, is famous for its relatively low rates of unemployment and inflation, and its stability. Holland also offers a highly qualified, strong labour force. All these factors contribute to its attractiveness for investors and entrepreneurs.

Rotterdam is a European gateway

Holland and particularly Rotterdam are known as the gateway to the European continent and represent a major transport hub. Companies located in the city of Rotterdam can reach more than 150M consumers in a radius of 500 kilometres.

Rotterdam is easily accessible by all means of transportation: via its port, the Maas River, railroads, roads and air. In this respect, it has the best connectivity in the whole of Europe. The airport in The Hague connects it to over 40 destinations abroad, while Amsterdam’s airport, Schiphol, is 30 minutes away by train. The port of Rotterdam is the largest in Europe (8^th largest worldwide).

The city also performs well in major business sectors, e.g. Agriculture and Food, Offshore and Maritime, Health and Sciences, Clean Energy and Technology, Business Services (e.g. Insurance), Gas and Oil, and Chemicals.

Innovation is ever present in the culture of Rotterdam

The favourable entrepreneurial climate of the city attracts venture capitalists, innovators and start-ups. There is a variety of programmes and centres for development of innovations focused on supporting new and expanding businesses in fulfilling their potential. The main trends of development are aimed at finding solutions for global issues such as food and energy shortage and overpopulation. Popular themes are circularity, sustainability, new economy and smart technologies. The Innovation Ecosystem of Rotterdam is a network of representatives of the national government, different corporations, research institutions, financers and service providers that collaborate actively to deliver new services, products and technologies and, ultimately, bring forward the economy of Rotterdam.

The Netherlands has an attractive tax regime

The Netherlands has an attractive fiscal climate for new businesses. The government has adopted a competitive taxation regime to stimulate entrepreneurs and foreign investors. The rate of corporate tax is lower compared to other countries in Europe and there are incentives bringing benefits to international companies that have chosen to register their businesses in the country. Incentives include programmes for development and research (WBSO, RDA) and many subsidy schemes financed by private and public organizations to support medical research. One of the most important incentives for foreign corporations is the advance tax ruling system (ATR) with respect to proposed transactions adopted by the local tax authorities. The country has also concluded numerous international treaties for the avoidance of double taxation. All these factors contribute to the attractive image of the Netherlands in the eyes of foreign companies.

Low costs for operating a business

Rotterdam is an attractive city for investing and doing business. KMPG’s ranking of major world cities, a part of the guide on Competitive Alternatives for 2016, places Rotterdam 7^th (the European city with highest ranking), while Holland 3rd in the countries’ ranking. The Competitive Alternatives guide is issued biannually and compares the costs of businesses at different locations worldwide, covering ten countries and over 130 cities. It focuses mainly on the costs of international businesses by location and type of operations. Apart from the overview of the expenses for doing business, the report contains important information about other factors influencing the attractiveness of the studied locations, namely: quality and availability of labour force, infrastructure, markets, economic conditions, legislation, personal living costs and general well-being.

Top international schools and knowledge institutions

The region of Rotterdam hosts world-famous universities and research institutions, including Erasmus University and Medical Centre, Rotterdam School of Management, Willem de Kooning Academy (WdKA) at Rotterdam UAS, Codarts and TU Delft. Erasmus University, named after the theologian and humanist born in Rotterdam, maintains a position in top 100 in the most popular international university rankings, including Reuters’ ranking for innovative universities for 2018 where it scored 56th. Besides prestigious institutions for high education, the city hosts several renowned schools for secondary and primary education.

Qualified labour force

The city has a very productive, highly skilled labour force. The main factors that contribute to the availability of qualified professionals are the openness of the country for international businesses, including its good fiscal climate, the top-class educational institutions in the region of Rotterdam and the outstanding performance of the city in major business sectors. Holland is placed second in Europe for talent availability.

A wonderful place to work and live

Along with its competitiveness as a place for doing business, Rotterdam is an excellent city to live in: welcoming, friendly and open-minded. It already has citizens from all around the world. International workers and expats will feel at home in the dynamic metropolis. Rotterdam is rife with possibilities and areas for exploration. The Netherlands’ architectural capital is safe, accessible and offers all types of accommodation covering a wide price range.

In case you are interested in starting a business in Rotterdam, please do not hesitate to contact our incorporation agents. They will provide you with more information and legal advice. You can also read more in our in-depth guide.

Holland is a global leader in water management. Over the years the nation has perfected its means for flood protection, water treatment and supply. The Dutch are maritime engineers and build ships, including utility vessels and superyachts. Their expertise is needed all over the world. The Netherlands is the main supplier of systems for sustainable water supply and production, and reintroduction (after collection and treatment) of “waste” water. In the sector, there are several significant engineering firms operating globally. The Water Partnership and other platforms in the Netherlands encourage international collaboration. The sector is mainly focused on continuous innovation and export.

If you plan to establish a business in the Dutch water sector, please, contact our agents in incorporation. They will give you more information on the investment opportunities and the procedures to establish a company in the Netherlands.

Water is an indispensable part of the local culture

The delta’s water is both life-threatening and lifesaving. This is why the water industry is perhaps the most fundamental to the Dutch character and culture. The sector is focused towards three primary areas: delta, maritime and water technology. They are directed towards land protection, energy generation, smart water recycling technologies and efficient, safe ships. The water expertise in the Netherlands is one of the best worldwide.

Five reasons why Holland handles water challenges well

1. Water takes a significant part in the Dutch history and life

Water is inextricably bound to the prosperity and history of the nation – it is a part of its DNA. Vast parts of the country were reclaimed and 2/3 of its territory would flood regularly if there were not complex interconnected systems of surge barriers and dykes in place.

2. The water technologies in the Netherlands safeguard the environment and water

The booming economy, urbanization and climate changes are threatening delta populations all over the world. Luckily the Dutch are experts in hydraulic engineering, foundation infrastructure and technology, flood protection and flood control. They are famous with their design of levees and search barriers, land reclamation through high technology dredging and engineering of entire harbours and coastal areas. The nation is also renowned for its river maintenance and engineering. It is at the forefront of climate-adapted construction that allows the building of houses in areas at risk of flood.

3. Expertise in water treatment

The Dutch sector of drinking water is owned publicly. Drinking water is supplied by 10 semi-public companies. Municipalities are responsible for the management of the system of sewers while 25 regional governmental water boards deal with wastewater treatment at a municipal level. Many local companies specialize in industrial wastewaters treatment, while several consulting bodies are world-famous for their expertise in water treatment.

Holland has been using innovative techniques for treatment of wastewaters since the 70s. Almost all households in the country have clean drinking water entirely free of chlorine. Furthermore, much of the industrial water is recycled so efficiently, that it may be even used in beverage and food production.

Meanwhile billions all over the world do not have access to sanitary facilities and clean water. In this respect, Dutch technologies can really make a difference. High-quality integrated cycles of water collection, filtration and recycling are in place to facilitate sustainability and economic development.

4. Solutions for integrated management of waters

The Netherlands is famous for its multidisciplinary approach to integrated management of waters that balances economic, social, engineering and environmental needs (“Building together with Nature”).

Dutch companies work on projects for the development of urban agglomerations at low elevations (e.g. Bangladesh and Jakarta), as well as on coastal development (Vietnam, Romania and Dubai).

5. Investments in R&D

Academic institutions and private companies invest considerable amounts of money in development and research related to water. This has led to many innovations if fields like filtration. Many investments in R&D and innovation go to private-public partnerships. Some of the collaborators are famous institutes of the rank of MARIN, Deltares, KWR and Wetsus. The Netherlands Organisation for Applied Scientific Research and some big private companies are also renowned for their developments in the water sector. The investments have already led to innovations such as water purification under anaerobic conditions, membrane technology, Annamox technology, and small-scale high-quality membrane bioreactors.

The Dutch sector of horticulture sets global trends, supplies markets worldwide and leads in innovative technologies for greenhouse cultivation. Holland is the undeniable leader on the international market of plants, plant reproductive material, cut flowers and bulbs, and is rated third for its export of nutritional products of horticulture. The country is in the centre of a global network for decorative trees, bulbs, floriculture and fruit and vegetable production.

In case you are considering incorporating a business in the field of horticulture, please, contact our agents specializing in company formation. They will provide you with legal advice and information about opening a company in the Netherlands.

An important contribution to national prosperity

The problems encountered during the establishment of sustainable urban centres often have to do with basic needs, e.g. shelter and food. The supply of indispensable resources (energy, food and water) needs to be secured through creative solutions and smart thinking. For centuries the Netherlands has been developing systems to cater for the needs of its population under such circumstances and now it offers excellent possibilities for export to countries experiencing shortages in resources. Local horticulture sets global trends and is differentiated in 6 clusters (Greenports). In these centres, research institutions and businesses collaborate in the areas of research and development, production, infrastructure, export and logistics. Horticulture has significant importance for the prosperity of the Netherlands, delivering large volumes of high-quality commodities and adopting technological innovations such as automated fruit pickers, intelligent greenhouses floating on water, glasshouses consuming less electricity than they generate and feeding the grid, and innovative methods for low-energy lighting and recycling of wastes and water.

Five reasons why the Netherlands is leading in the supply of trees, plants and flowers in the world

1. Developments in the field of Green Genomics

Holland is among the leaders in Green Genomics. The aim of this scientific field is to provide safe and sustainable production, higher yields, changed taste or design, and disease resistance in plants. TTI Green Genetics and Plant Research International are leading institutes in this area.

2. A large diversity of shrubs and trees

The variety of shrubs and trees produced in the Netherlands is unmatched. The industry is underpinned by a strong national market. Holland also maintains a leading position in R&D and trade related to tissue cultures, propagation material, young plants and seeds.

3. An original approach to innovation

The Netherlands has adopted a unique R&D approach to bring innovations: the government works closely with research institutions and companies in a “golden triangle” to complete innovation-related programmes and projects. Some examples of excellent innovations are intelligent greenhouses floating on water, robots, moving platforms, energy-saving lighting and recycling of water and wastes, glasshouses consuming less electricity than they generate and contributing to the reduction of carbon dioxide emissions, etc.

4. The famous greenhouses in the Netherlands: Glass City

Modern Dutch greenhouses already generate about 10% of Holland’s electricity by using a combination of power and heat (CHP). The country is famous with its inventive solutions for greenhouse cultivation and unrivalled scale of production. Its glasshouses cover over 60 square kilometres and look like a glass city, while their environmental impact is relatively low. Efforts are directed towards technologies and concepts facilitating adaptability to the changes in climate and energy-efficiency. Read more on the Dutch energy industry.

5. Logistics hubs and production of excellent quality

Rotterdam’s port and Schiphol Airport in Amsterdam are the most important logistics hubs in the country. Holland is conveniently located in the heart of Europe with easy access to the continent’s half a billion consumers. Furthermore, the development of methods to obtain high-quality produce has enabled its horticultural sector to gain global recognition. The Netherlands has developed effective supply chains capable of delivering freshly cut flowers to New York in less than a day. Also, true to their entrepreneurial spirit, the Dutch have set up nurseries in Ethiopia, Kenya, Costa Rica, Portugal and France.

Many enterprises and companies treat intellectual property as a significant asset. The rights related to it – copyrights, trademarks, patents – often prove to be more profitable in comparison to physical assets. Therefore, it is important for corporations to develop adequate strategies with respect to their intellectual property in order to guarantee the best use and protection of their assets. The present brief overview provides information on the major rights relevant to intellectual property and their protection under the law in Holland.

Patents in the Netherlands

In the Netherlands, the Act on Patents (Rijksoctrooiwet) from 1995 protects patent rights. By definition, patents are exclusive rights to inventions in all technological fields. Inventions are patentable if they meet several requirements:

• they concern a technical process or product;
• they are novel, i.e. have not been publicly disclosed by any means before the day of submission of the application for patent registration;
• they involve inventive steps, i.e. the inventions are not too obvious;
• they have industrial applications.

Applications for Dutch patents are submitted to the national Patent Office. The applicant must request a search for novelty 13 months after the submission of the application. In another 9 months, the search results become available. These results, however, do not decide whether the invention will be patented or not, even if it lacks novelty according to the report. In a dispute, the requirement for novelty is considered in court. The patent or application is included in the patent registry of the Netherlands eighteen months after the submission of the application. The protection term is twenty years from the filing date.

The owner of the patent has exclusive rights to prohibit the use of the invention for commercial aims by third parties. Invention use means production, placing on the market, lending, selling, offering, supplying, storing and importing the patented invention.

Trademarks in the Netherlands

Trademarks are signs that distinguish companies’ services or products (goods) from others on the market. They can be either logos or brand names. Company names or trade names can be considered trademarks.

The BCIP (Benelux Convention related to Intellectual Property) states that a trademark must first be registered to ensure protection in Belgium, Luxembourg and the Netherlands. The BOIP (Benelux Intellectual Property Office) is the institution for official registration of trademarks in Benelux. The definitive registration of a trademark is completed in about 4 months. The payment of an additional fee can speed up the procedure. The Office will refuse to register a trademark if, among other reasons:

• it lacks distinctive characteristics or does not satisfy the trademark definition;
• it conflicts with morality or public order;
• it can mislead the public.

All trademark registrations in Benelux are valid for 10 years. They are renewable every 10 years if the renewal request is submitted 6 months before the trademark expiration date. Trademarks need to be actively used to maintain their rights.

Trademark owners have the exclusive rights to prohibit other parties to use or register newer signs, identical to their trademarks and use them for identical services or goods. The registration or use of similar newer signs for similar services or goods may also be banned if there is a probability of confusion. Trademark owners that are popular in the region of Benelux can also dispute the usage of similar or identical newer signs for any services or goods (regardless of their level of similarity) if this usage takes unjust advantage of the original reputation or character of their trademarks or brings unfavourable consequences for the owners.

Certain multinational organisations give the possibility to foreign entrepreneurs to use their trademarks as a franchise. This can be concluded as part of a franchise contract, which regulates the franchise requirements and financial compensation between the franchisee and the franchisor. Naturally, franchise agreements have to comply with the Dutch law. Read here for more information on franchise agreements.

Trade names in the Netherlands

In Holland, trade names are protected by the Dutch Act on Trade Names (Handelsnaamwet). Trade names are defined as the names that companies trade under. In general, a company can freely choose a trade name, as long as the chosen name is not misleading, for example as regards the entity’s ownership or legal nature.

Protection does not require trade name registration, e.g. in the Commercial Registry of the Netherlands. The rights connected to trade names arise from their use. In contrast to trademarks, trade names do not have to be original. Still, descriptive names have limited protection.

The Act on Trade Names prohibits the usage of a name, similar or identical to a name in use by another entity if such usage is likely to cause confusion, given the location and nature of the entities.

Copyrights in the Netherlands

In Holland, the Act on Copyright (Auteurswet) protects copyrights. It gives authors of artistic, literary or scientific works exclusive rights to reproduce their works and make them publicly available.

According to Dutch law, works should have original, individual characters and reflect the personal imprints of their authors. The provisions contain an exemplary list of copyright-eligible works: paintings, books, computer programs, brochures, etc. Logos and website/product design can also be protected by copyrights. Ideas, concepts and formats are not protected if they are not embodied in specific works.

Copyrights are obtained through the creation of works meeting the abovementioned conditions. No official requirements, e.g. usage of a sign like “©“ or registration, exist. The protection of copyright ends 70 y. after the author’s death. If the creation is authored by a legal person, the copyright is protected for 70 y. after the work’s first publication.

There is an option to submit an i-DEPOT at the BOIP. This can prove the existence of a creation at a particular time and might be helpful when considering whether a particular work is original. The i-DEPOT, however, does not create an independent intellectual property right.

Copyright owners can prohibit other parties to publish or reproduce their work without authorization. If a particular product and a copyrighted work leave identical overall impressions, then there is an infringement of copyright. Disputes are taken to competent courts that assess the cases by considering the work’s copyrighted features.

If you have questions concerning intellectual property and the relevant rights or intend to develop a business in the Netherlands, you can contact our Dutch agents specializing in company set-up.