Setting Up a Business in the Netherlands

Types of businesses to consider

If you have a rough idea about the sector you would like to operate in and the core business you would like to be active in, then you should also consider what kind of business you want to establish. In the Netherlands, you can choose from a quite comprehensive list of business types. It is recommended that you learn about these types a bit before you make a definitive choice to be sure that you choose the best option for your personal and business goals and ambitions. Every business type has something unique to offer, and some types can be much better suited than others. Also note that there is a significant difference between incorporated and unincorporated business types. If you want to establish a company that offers you limited personal liability for any debts incurred with the company, then you need to pick an incorporated business type. This is due to the fact that incorporated business types are also legal entities: they have legal personality due to the incorporation and can enter into agreements with third parties. Should anything happen financially with the company, then the company itself is responsible, not you. The complete list of business types is as follows:

Unincorporated entities

• The sole proprietorship
• The general partnership
• The professional partnership

Incorporated entities

• The private limited liability company
• The public limited liability company
• The foundation
• The charitable foundation
• The cooperative and mutual insurance society

In truth, almost all entrepreneurs we work with (>99%) chooses the Dutch BV. Why? Because of the limited liability it offers, the crazy low minimum share capital, and the many tax and financial benefits it can offer you. For example, in some cases, you won’t have to pay taxes on dividends under the participation exemption. Intercompany Solutions will happily explain such benefits to you and how to make use of these possibilities. This can save you a lot of time and money in the future.

What do you need to establish a Dutch business?

The Dutch business market is highly competitive, so it is very important that you know what you are doing when establishing a business in the Netherlands. There are several affairs that you should arrange in advance, otherwise the establishment and start-up will be difficult. For starters, be very sure about the type of business you want to set up and the sector you want to operate in. Do you have any previous experience in this particular sector? Do you have anything original and unique to offer that sets you apart from your competitors? Secondly, there are practical questions. Do you have enough money for your start-up, or do you need to call upon the help of banks and/or investors? Will you need a physical building, such as a warehouse or office space? Will you need to hire personnel? Thirdly, you should also consider whether you will be operating alone or with business partners. In some cases, starting a company with multiple people can be beneficial, as you don’t have to carry the proverbial burden entirely alone. If you have a very unique idea, however, and would like to implement it yourself, you can also establish a Dutch BV with you as the sole director shareholder.

It’s not efficient to establish a business without answering such questions first, because you need a plan to work with in order to succeed. Without this basic information, your company won’t have a firm foundation. We strongly advise you to create a business plan, as it contains all the vital information about your future company. You can also use the business plan to try to attract investors: this is impossible without a business plan. Any bank or investor will like to know where their money is going, whether there are any chances of success in the future, and the potential risks that might jeopardize the endeavor. If you don’t provide such information, we can guarantee that you probably won’t find anyone willing to invest. A business plan also puts your own ideas into perspective and allows you to work in a more goal-oriented way towards your ambitions. If you would like assistance with the business plan, don’t hesitate to contact us directly. We can easily help you put everything in order for the start of your business.

The Dutch company incorporation process

Once you are ready to go, you will have to send us some documents and information for the official incorporation and registration process. The process itself is fairly straightforward, but it can be difficult for a foreigner to comprehend if one doesn’t know much about Dutch company laws. Nearly all our clients therefore provide us with a power of attorney to act on their behalf, so we can take care of the entire process for you. One of the biggest upsides of this approach is that you don’t have to travel to the Netherlands to establish your business, as everything can be taken care of remotely. What we will need from you to start is the following:

• The company type/legal entity you have chosen
• The names of all shareholders
• A valid form of ID for all shareholders
• The preferred company name
• A valid business registration address in the Netherlands

Most of the time that we spend during the establishment is related to the verification and processing of these documents. If you make sure to submit everything on time and correctly, the timeframe in which we can actually register your company can be significantly shorter. So make sure to deliver only valid documents and also legalize the documents with an apostille at a notary public in your country. Once we have the necessary documents and information, we make an appointment with a notary public to incorporate your company. You will have to deposit the share capital at this point, either to the notary public or on your own Dutch bank account, if you already have one. Once the deed of incorporation is finished, we use it to finally register your company with the Dutch Chamber of Commerce. 

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Reasons why other entrepreneurs have already established a Dutch business

As you would expect, many other entrepreneurs and investors have preceded you with the establishment of a Dutch business. Did you know that a very extensive list of world-famous brands already have headquarters, branch offices and subsidiaries in the Netherlands? Think of international corporations such as Google, Amazon, Panasonic and Tesla. Would you like to add the name of your company to that list? There are plenty of benefits that come with the ownership of a Dutch company, such as:

• The very stable national and local economy, which attracts many entrepreneurs who opt for setting up a business in the Netherlands
• The political and financial climate in the country is also favorable
• The World Bank considers the Dutch government among the most efficient worldwide
• The relevant policies facilitate the decision-making process at companies with respect to medium- and long-term prospects
• Its strategic position, which provides access to the entire European Single Market as well as the world, through the port of Rotterdam and Schiphol Airport
• The incredible infrastructure, which is considered to be one of the best in the world. Dutch roads are phenomenal and well-maintained.
• The high-speed and quality digital infrastructure that connects almost every single citizen with fast and reliable internet