Setting up a business means you will have to make a staggering amount of choices. This is not unusual of course, since there’s simply many options to choose from. Like the specific services you will be offering, the languages you will be working in, your business address and possible office space and the company that will make your website and PR materials. But did you also consider the country?
In what country do you want to start a business? Almost all start-ups and new entrepreneurs establish their company in their country of residence. Probably a little bit out of habit. But in a lot of cases, it might actually benefit you to browse around a bit. And consider starting a business in a different country than your own. Like the Netherlands. And you definitely won’t be the first one, as the number of foreign businesses and investments in Holland keeps growing. In this article we will tell you a bit more about the ‘why’!
Foreign companies are boosting the Dutch economy to great heights
The Netherlands has been flooded with foreign investments and entrepreneurs setting up businesses in our country for a while now. For example: the Netherlands Foreign Investment Agency (NFIA) and several regional partners involved in the ‘Invest in Holland’ network assisted in attracting around 350 different foreign investment projects worldwide in 2016 alone. All these actions total a massive amount of around 1,5 billion euros in capital investments. In turn, this created more than 10.000 new jobs.
In 2017, 1,7 billion was invested. In 2018, large multinationals such as Timerland, Giant and DAZN created almost 10.000 additional jobs in the Netherlands as well. All companies combined contributed around 2,85 billion euros to our national economy. All in all, we can safely say that foreign investments and businesses in the Netherlands have a very positive influence on our economy and thus, investing in the Netherlands is surely a safe way to grow your business quite rapidly.
Brexit caused many relocations of foreign companies’ offices
One of the biggest reasons for moving is Brexit.
Many business owners would rather be safe than sorry, and thus decided to pro-actively move some branch-offices or even their headquarters to the Netherlands. The Invest in Holland network brought more than 40 companies to the Netherlands in the year 2018. This was a direct result of Brexit and lead to the creation of almost 2.000 new jobs, next to around 291 million euros in investments. In 2019 large multinationals such as Discovery and Bloomberg have announced their wish to invest in the Netherlands due to Brexit.
Most of these companies are British in origin, but the lost also includes American and Asian organizations. These organizations are basically reconsidering many options, in order to minimize possible uncertainties and threats when Brexit finally follows through. These companies have origins in many sectors, such as the financial sector, media and advertising, life sciences & health and logistics.
So why do so many business owners choose the Netherlands?
There are obviously some good reasons for considering our rather small country for relocation. Because the companies that already made the move are not just small players; many huge well-known organizations have already established new headquarters in Holland. More than 6.300 foreign companies have established more than 8.000 different operations in the Netherlands.
Among the international companies are North American companies like Abbott Laboratories, Boeing, Bombardier, Cisco Systems, Dow, Eastman Chemical, Heinz, Medtronic, NCR Corporation and Reebok. European companies such as Bosch, Danone, Siemens and RWE are also included. A large number of Asian and Middle-Eastern companies is also represented by companies such as Astellas, BenQ, Daewoo, Fujifilm, Giant, Hitachi, Huawei, ICBC, LG Electronics, SABIC, Samsung, Saudi Aramco, Tata Consultancy Services, Teijin and Yakult.
The most prominent reasons for relocating a business to the Netherlands are listed below:
Fantastic location, educational system and business opportunities
The Netherlands is located on a prime position, with both Schiphol as well as the port of Rotterdam as main points in an already rich infrastructure. Next to that; Holland is home to an excellent ICT-infrastructure and perfect network coverage. An internationally oriented workforce with most people speaking at least two languages, and many fantastic and high quality (international and national) schools to choose from.
The standard of living is considered to be exceptionally high, with Amsterdam as capital offering you everything in terms of culture and activities. But also other beautiful cities like Rotterdam, the Hague and Utrecht. The cities are considered to be very safe and you will have many possibilities to expand your network with many shared working spaces all over town.
Stable government and fair legal system.
The Netherlands is considered to be a very stable and vibrant parliamentary democracy, recognized worldwide for its transparency, fairness and effectiveness. The political system is characterized by plurality and consensus-building, resulting in coalition governments that truly represent the voice of the people. The legal system is also considered to be fair and transparent and well equipped to deal with business, trade, taxation and patent issues.
There are specialized courts for dealing with criminal and administrative issues, as well as with tax law, planning law, environmental law and trade and commerce. There is a rich variety of world-class law firms – both home grown and large international ones – that can provide assistance with tax law, mergers and acquisitions, and European law. The Hague is the seat of the European Patent Office.
Low taxes compared to other European countries
The corporate income tax rate in the Netherlands is very low for European standards: 16.5% for profits up to 200.000 euros and 25% for profits more than this amount. In the next years, the government will reduce the minimum and maximum tax rates even further (15% lower rate and 21% higher rate in 2021).
The CIT rates will be gradually reduced. The standard rate will be reduced in steps from 25% to 22.55% in 2020 and to 20.5% in 2021. The lower rate has decreased from 20% to 19% in 2019, to 16.5% in 2020, and to 15% in 2021. Foreign investors can also profit from some beneficial tax exemptions, like a 30% tax break for hiring highly qualified employees.
Safe and developed financial system
The Netherlands also boasts a stable financial system and climate, with a large array of strong Dutch banks such as ING Group, ABN AMRO and the Rabobank. There are also many private equity investors, venture capital funds, as well as fund managers available for the picking.
Intercompany Solutions: your partner for a business in the Netherlands
You can always contact us for more information and assistance if you are considering opening a branch office in the Netherlands, or maybe a whole new business. We have a wide variety of services at your disposal to help you in any way we can.
The whole process can be concluded in just a few business days, offering you the chance to start doing business immediately. Interested in the possibilities? Contact us for more information.
Holland has long been attractive for entrepreneurs looking to establish a business due to numerous social, cultural and geographical factors. Its comparatively favorable tax climate is also an important prerequisite in the process of decision-making.
Value Added Tax (VAT)
Value Added Tax has a great influence on corporate cash flows. Generally, a business can request a VAT refund for the amount it has incurred. Still, it may take several months until the tax is recovered through the periodical return. The period for foreign VAT reclamation may even be longer than a year and its duration depends on the EU member involved with the application for refund.
Negative influence of VAT on cash flows is also observed in the process of import of products in the European Union. Importers are obliged to pay VAT that can be reclaimed only retroactively, in the VAT return, or in a time-consuming process requiring a separate refund application. As a consequence, companies have to prepay the VAT on their imports with adverse effects on their cash flows. On this background, few member states of the EU have adopted schemes for deferral of VAT payments that would otherwise be due at the time of import.
Article 23 license
Companies established in Holland have the option to apply for the Article 23 VAT deferral license. This document makes it possible to postpone the import VAT payment until the submission of the periodical return. In the statement, the VAT can be included as payable, but at the same time, its amount is also deducted under input VAT. This means that businesses do not necessarily have to pre-finance VAT. Without Art. 23 license, the VAT due for import would become immediately payable at the country’s border. Its subsequent reclamation occurs either through the periodical return or through a lengthy process for refund requiring a special application. As mentioned above, the refund of this VAT may take months, even years, depending on the case. VAT deferral licenses are granted to companies registered in Holland and international businesses without local establishment that have assigned a Dutch fiscal representative (a tax service provider holding a general licence) for the purpose of VAT.
In most members of the EU, the VAT payable at import has to be transferred to the customs and tax administration at the time of importation or shortly after. Countries like Ireland, Germany, Italy, Great Britain, Spain and Sweden do not offer options for postponed accounting. In other countries, the payment of VAT can be deferred, but only in specific cases and under strict conditions. The only country that provides an option comparable to the Dutch deferral license is Belgium. There the transfer of due VAT can be postponed until the submission of the periodical VAT return.
The EU Directive on the common system of value added tax provides the option to grant an exemption from VAT on import goods destined for another member state straight after import. Import goods intended for storage or sale in the respective member state cannot be exempt from import VAT. However, there is a possibility to suspend the payment of VAT and duties due at the time of import for a particular time period.
When goods enter the territory of the EU, companies the option to store them in the so-called customs warehouses. Such warehousing is possible in all member states, although the formal procedure varies depending on the state. In this case, the payment of duties and VAT is deferred until the goods’ removal from the customs warehouse. Thus VAT and duty payments are temporarily suspended to the advantage of cash flow. At some point in time, these taxes become payable. On the other hand, if the goods’ next destination is unknown, their storage in a customs warehouse can be beneficial. For example, if the goods are subsequently shipped to third countries, no VAT and customs duties become due.
Why should you choose the Netherlands as your gateway to Europe
Considering the above, one can conclude that logistic and geographical factors are just some of the significant reasons to import goods through Holland. The option to avoid VAT pre-financing can be decisive for companies in planning the routes of their import goods.
There is also another factor that must not be overlooked: the level of responsiveness of the different customs and tax administrations across the European Union. Some adopt a strictly formal approach, while others welcome dialogue. The customs and tax administration in Holland is open to discussions. It is acknowledged for its high quality of service and proactive approach. The officers are also ready to confirm particular arrangements in written form, guaranteeing certainty (in advance) to taxable entities. The responsiveness of the Dutch administration is a valuable quality and a strong motivator, along with the favourable VAT arrangements at import, for businesses to choose Holland as a European gateway.
Are you interested? Our company has the network, local competencies, and experience to assist you in the efficient structuring of your import/export operations, both in Holland and abroad. We are here to consider your needs and meet them. If you would like to receive more information on the possibilities, please, do not hesitate to get in touch with us.
Brainport Eindhoven is a combination of high tech campuses and businesses. The collaboration between commercial entities and Universities providing theoretical knowledge has proven a fertile ground for innovation. Eindhoven is famous for its Eindhoven University of Technology. Eindhoven is also known for major technology companies based in Eindhoven, such as Philips and ASML.
A complete small-scale high technology infrastructure
Brainport Eindhoven attracts organizations and companies with a wide variety of technologies, top technical universities, popular Original Equipment Manufacturers (OEMs), suppliers undertaking risk-bearing innovations, international knowledge institutions, high expenditure for Research and Development, student teams, start-ups, twenty thousand researchers, shared manufacturing facilities and R&D. This outstanding infrastructure offers all that technology and R&D organizations and companies need to perform to the best of their abilities.
(Article: Netherlands The European Silicon Valley)
Many opportunities to commercialize knowledge
Brainport provides the perfect environment for organizations and companies to commercialize sophisticated products and technologies. The region has developed a comprehensive one-of-a kind technology ecosystem where more than 20 OEMs in the field of high technology work in close collaboration with knowledge institutes and suppliers and has become a lucrative market in its own right. Furthermore, by cooperating with prominent high-quality companies in the development of pilot projects used as showcase, Brainport Eindhoven has become a label of quality leveraging the reputation of businesses. Last but not least, Holland is perceived as a country of pilot projects by the EU, providing various facilities for acquisition of quality labels needed for entry on the market. Brainport can provide independent final verifications of product compliance with global standards in different fields. Thus the region provides the means for companies to establish themselves on international markets.
Cost/risk competitive manufacturing and R&D
Holland, and Brainport in particular, offers businesses and organizations the complete set of tools to perform cost/risk competitive manufacturing of high technologies and R&D. The region makes it possible to work in collaboration with various contract manufacturers of original equipment used to cooperating with giants such as Philips and ASML . They take full responsibility regarding the design and the life cycle of the product. Brainport Eindhoven also offers various R&D facilities as metered services. Thanks to this and the huge diversity of collaborators in prototype design and industrialization, even comparatively small companies have the opportunity to work flexibly on revolutionary technologies and share the involved risks. Furthermore production facilities, services and buildings can be shared flexibly to achieve outstanding cost efficiency.
Eindhoven: A fertile ground for technology and innovation spotting
Brainport has many incubator and accelerator programs and hosts Eindhoven UT, recognized for its partnerships with industry representatives and unparalleled expertise in valorization of knowledge. Therefore the region provides a fertile ground for development of spin-offs, start-ups and scale-ups. These companies make significant contributions to the unique power of innovation of Brainport and its high density of patents. Brainport is also famous with its multidisciplinary initiatives, cross-collaboration and diverse technologies and sectors leading to resourceful crossovers. This combination of factors makes Brainport a perfect region for the purposes of technology spotting.
Cooperation in technology development decreases the period to market
Holland’s technology-minded government and Brainport’s open platforms for research, supply chains, campuses, clusters, and multidisciplinary approach to work allow companies to take advantage from sharing of knowledge, mutual strengthening of core competences, efficient use of Research and Development budgets, risk sharing and product development and testing with potential customers in public areas. The path is open for development of revolutionary technologies at reduced costs that can be quickly released on the market.
Availability of brilliant IT and tech specialists
The outstanding reputation of companies established in Brainport and the knowledge and educational institutions in the region attract talents from around the globe. These acknowledged professionals are willing to contribute to the development of sophisticated top-class technologies. Therefore companies benefit from a large talent pool, including scientists, researchers, physicists, engineers, designers and developers excelling in their fields. Attractive campuses and properties like Strijp-S (a village concept) and the local High Technology Campus offer specialists a sustainable, dynamic working environment. The options for accommodation contribute to a great extent to the attractiveness of the region.
Active support in starting new High Tech businesses
In Brainport, Research and Development companies find everything necessary for a successful business: close collaboration, easily accessible platforms for research, joint innovation programs, open supply chains and attractive campuses. On these campuses, knowledge institutions and companies work together on particular technologies, high-technology clusters and networks, as well as on various events dedicated to technology. The campuses facilitate business development and help newcomers find their way in the region. Furthermore they offer international businesses special partnerships to let them try out the benefits and become a part of the high technology ecosystem. The development agency of the region, Brainport Development, provides full support in setting up a new business locally or finding suppliers and partners.
A creative symbiosis between citizens, industries and governments
Brainport Eindhoven has a technology-minded government, adaptive and innovative citizens, cooperating industry partners, pilot opportunities and living laboratories offering organizations and companies plenty of room for experimentation. The region presents opportunities to test new services and products in real life situations, thus adding value to the goods and ensuring that they meet the end-users’s needs. Brainport is ideal for development and implementation of smart services and products in close collaboration with potential customers in realistic settings. With such background, it is not surprising that the region is leading in the area of smart mobility and city concepts.
Partners and expertise for creation of unimaginable technologies
Brainport Eindhoven is a melting pot of high technology organizations and companies specializing in diverse fields. To them collaboration is a major instrument for development. The region hosts partners who have the abilities to develop, evaluate, prototype and manufacture systems beyond imagination with unparalleled efficiency. There are also private and public partners contributing to the development of a unique platform facilitating an efficient and broad technology roll out. Therefore in Brainport the process from the initial development of products to their introduction on the market is incredibly fast.
Stability, prosperity and international orientation
Holland is a prosperous and stable country that welcomes international business entrepreneurs: a veritable European gateway. Brainport Eindhoven has a strategic location, the largest Dutch airport after Schiphol, a multilingual well-educated workforce, outstanding digital infrastructure, and a growing and thriving international community. The region offers everything needed for a great quality of life.
Do you intend to establish a business in the field of high technology in Brainport open a company? Our local office can assist you in registering your company in the region.
According to the legislation on the types of investment vehicles that can be registered in Holland, these structures may be established as investment companies or funds. Investors intending to go through the procedure for starting a fund can register their vehicles as closed- or open-ended forms of business.
Legal entities applicable for investment funds in the Netherlands
The Dutch legislation relating to investment funds includes various acts concerning the different regulated vehicles. To give an example, funds with a closed end are subject to Directive 2003/71/EC on the prospectus to be published when securities are offered to the public or admitted to trading, and are implemented in accordance with the EU legislation. Regardless of whether a fund has been established in a closed- or open-ended form or as a related vehicle, e.g. a start-up hedge fund, the Dutch laws prescribe the following five legal entities:
- private limited company (BV);
- public limited company (NV);
- cooperative;
- limited partnership;
- mutual fund (FGR).
Businessmen willing to open a Dutch fund also have the option to establish a variable capital investment company (BMVK). This entity acts as a fund for investments because its investors can set up umbrella funds in its structure. Still, in contrast to investment funds, a BMVK is not obliged to offer its stocks on the national market.
Corporate and non-corporate Dutch entities
The Dutch legal entities that can be used for investments belong to two general categories: corporate and non-corporate. The first group includes the BV, NV, cooperative and MBVK. The second features mutual funds and limited partnerships.
All these structures are taxed differently, in accordance with the system for taxation that covers them. The tax system in Holland allows legal entities open for investment funding to be established either as opaque or transparent. For opaque entities, the tax administration levies corporate tax with respect to capital gains and income.
Our company in the Netherlands can provide you with further information regarding the taxation of the structures listed above. Please, get in touch with our agents to receive detailed information on the legislation governing investment funds.
The Netherlands has a rare combination of characteristics that encourage international investments and form the country as a competitive and highly popular business centre.
Holland is strategically located in Western Europe, allowing investors to establish suitable bases for their shipping and trade operations. Furthermore, the outstanding infrastructure and accessibility make the country an extremely popular destination for European, American and Asian investors who have opted for setting up an office in the Netherlands.
Advantageous taxation principles
The tax system in the Netherlands offers international investors a 15% income tax for profits up to EUR 245 000 per year and 25% for amounts exceeding this threshold. It also ensures certainty and clarity regarding future tax liabilities. Investors can take advantage of certain benefits related to royalties, interests, debts, taxation of dividends and loss structuring. Holland offers various investment deductions and tax reliefs. A special tax regime called “innovation box” provides for preferential tax rates for income generated as a result of the development of intellectual property. Furthermore, freight companies benefit from a tonnage tax regime.
Holland has concluded numerous treaties for the avoidance of double taxation (>95 agreements). Therefore entities deriving income from Holland and a country that has signed a double tax treaty with Holland can be taxed using preferential rates.
Sound legal and financial systems
In addition to the abovementioned tax benefits, the Netherlands has a straightforward legal system allowing international investors to efficiently deal with legal issues arising from different transactions, e.g. patent/trademark or tax. Judgements from other countries can be enforced in Holland under specific conditions. As an EU member, Holland conforms to all European laws relevant to trade and business.
The area of Amsterdam hosts numerous globally acknowledged financial institutions and banks. Various banks have established branches in Holland, thus contributing to the good financial climate. Many investors of private equity and managers of trust funds have chosen the Netherlands as their base of operations.
Highly educated labour force
In case you intend to establish a business in the Netherlands, you are free to choose from different types of companies. If your scope of activities includes shared services, customer care or distribution/logistics, Holland is the perfect choice as it offers an unparalleled business environment for such operations.
Furthermore, Holland’s workforce is among the most qualified, motivated and flexible in the world. Most Dutch employees have good knowledge of two foreign languages, so they are a perfect match for foreign companies in any industry sector.
Great logistics and infrastructure
The Netherlands is a popular European destination for companies thanks to its superb transportation network. The country boasts the largest port in Europe, the Port of Rotterdam, and the best European airport for transport of cargo, Schiphol Airport.
As regards innovation and technology, Holland has made investments in e-commerce, communications, outsourcing and high-speed digital systems for communication and internet. The country has adopted the latest cell phone and computer technologies, creating ideal conditions for companies needing modern technologies for their operations.
If you intend to establish a Dutch company and take advantage of the opportunities for business offered by the country, please, contact our local agents in company formation. They will assist you in completing the necessary procedures.
Last year the Dutch electronic commerce was worth €22.5 billion and can grow to approximately €25 billion before the start of 2019, showing an 11% increase. This rate of expansion is a bit slower compared to the 13% increase in the Dutch electronic commerce turnover reported for 2017.
These conclusions are based on the report of the E-commerce Foundation on the Netherlands for 2018. Wijnand Jongen, chief executive officer of Thuiswinkel.org - a Dutch electronic commerce association, stated that online shopping in Holland is steadily increasing its share. This trend has to do with the recovery of the Dutch economy, as well as with the growing confidence of the consumers. According to him, both omnichannel and online retailers can benefit from the situation.
Read here in case you are interested in starting an online shop in the Netherlands.
81.5 percent of the Dutch population buys products and services online
Reportedly, 97% of the 17M Dutch residents use the internet and 84% of them shop online. Therefore 81.5% of the whole population shop on the internet.
The average amount of money a shopper spends online is on the increase. In 2016 the average spend was €1200 per person, while in 2017 this amount increased to €1700. Electronic commerce in Holland currently comprises 24% of the national market. Nevertheless, only 27% of the people prefer making purchases online. This percentage is lower than the estimates for other countries in Europe, such as France (35%), Germany (41%) and Great Britain (45%).
According to the forecast for this year, the Dutch electronic commerce industry is expected to grow by approximately 11%. This means that the online sales industry can reach almost €25 billion before the beginning of 2019.
Most popular category: Clothing
Considering the amounts of money that Dutch people spend online, the leading category of products is clothing. Consumers have spent approximately €2.3 billion on clothes. Other popular categories are Information Technology (€1.5 billion), telecom (also €1.5 billion) and food & near-food (€1.3 billion). Currently, there are around 34,000 websites where businesses offer their products and services directly to consumers. According to the forecast, this year the number may increase to 38,000+.
Are you still doubting where to start your E-commerce business? Read here 5 reasons to start a business in the Netherlands.
A Netherlands-based company may decide to sell shares due to the expansion of the business or as a plan to accumulate larger income. The acquired capital may be directed towards debt repayment or reinvestment in the business.
A Dutch company can sell or transfer shares only in accordance with the provisions of the Association Articles. Share transfers also require the preparation of notarial deeds. Companies can become public by entering the stock market and offering shares publicly. Only certain company types can use this option. Our Dutch experts in company formation can provide you with detailed information on the features of different commercial entities in the Netherlands.
Are you interested in buying Dutch company shares? Read here
Selling company shares in Holland
Only some types of Dutch companies are able to sell shares publicly. NVs (public limited companies) can list their shares in the Stock Exchange. BVs (private companies with limited liability) do not have this option, as their shares are registered privately and cannot be transferred freely.
The best way to sell stocks for most Dutch public companies with limited liability is to go on the exchange market. In Holland company owners go public using Euronext.
Transfer of shares in Holland
In the Netherlands, registered shares are transferable through notarial deeds. The process must take place in the presence of a Latin notary. Any developments or limitations regarding the share transfer are noted in the association articles of the private or public Dutch company with limited liability.
Dutch companies can be acquired through purchases of shares or assets. The two mechanisms are different with respect to the transfer of liabilities. In share purchases, the buyers also acquire the obligations and responsibilities of the respective companies.
Our Dutch agents specializing in company formation will be happy to provide you with further information on buying and selling company shares, and on the possibilities open to investors.
Investors who have decided to buy shares of Dutch companies are able to purchase them either directly or via a plan for dividend reinvestment. They can acquire the ownership shares of a particular company or implement a larger plan for stock investment in multiple companies.
Holland welcomes international investments and foreign companies are free to open headquarters in the country. The business climate is equally appropriate for making large investments and opening Dutch companies with the perspective to sell shares to investors from outside.
Are you interested in selling Dutch company shares? Read here
Direct purchases of stocks in the Netherlands
A widely used method to purchase shares in Dutch companies is to deal directly with the entities issuing them. Big international corporations are among the most attractive businesses and most of them provide plans for direct purchase of stocks. One of the advantages of this mechanism is that commissions are avoided, even though a minimal deposit is usually required.
Stock purchase is beneficial for both the buyer and the issuing company. This is a way for investors to maximize their earning, while companies raise additional budget at reduced costs. Companies allowing direct purchase of shares publicize this information. Our Dutch agents specializing in company formation can assist you with details about local companies offering shares publicly and on the Euronext listings.
Purchasing shares in the Netherlands
There are two other options open for investors: to purchase stocks through a plan for dividend reinvestment or brokerage.
Some companies offer plans for reinvestment of dividends, allowing investors to reinvest the amounts accumulated in dividends by buying additional shares.
Brokerage is the other method to purchase Dutch company shares. This is a preferable option for entities that want their investments in Holland to be managed by experts. The extra management of accounts is more costly compared to other options.
Would you like to learn more about establishing a business or investing in Holland? Please contact our Dutch agents specializing in company formation.
Thanks to its history of innovations and exceptional digital infrastructure Holland hosts the largest ecosystem for start-ups in Europe. In fact, as reported in the 2016 Start-up Scoreboard of the EDF, the country has the most beneficial business climate for start-ups in the European Union. With 10+ start-up and technology centres in a ninety-minute radius, the Netherlands provides many options for the establishment of innovative companies operating in any sector. The Netherlands is also referred to as ''The European Silicon Valley''. The Dutch cities offering the best conditions for start-ups are listed below.
The Hague
The international centre of justice and peace is currently the largest security and safety cluster on the European continent due to its many embassies and international organizations alongside some four hundred security companies. The Security Delta Campus in The Hague supports specifically start-ups in the field of cybersecurity by providing living laboratories, office spaces and training facilities.
HackerOne is among the most interesting start-ups in Den Haag’s security cluster. The company is an American-Dutch venture conceived by security leaders working for Microsoft, Google and Facebook. In 2015 this resourceful start-up established a centre of operations in Den Haag, after raising USD 25 million Series B funding. Until now it has provided services to fifty companies, including Twitter, Uber, Slack and the US Defence Department, finding more than 21 000 bugs.
Read more on the city of The Hague
Rotterdam
Rotterdam is the largest city in Holland, after Amsterdam. It boasts the biggest and most active shipping port in Europe. In recent years Rotterdam has been acknowledged as an excellent location for start-ups. Last year it was featured in Financial Times as a suitable location for launching new ventures. As a shipping centre, Rotterdam has encouraged the development of start-ups specializing in port-related technologies. They are aided by a dedicated Innovation Lab, established jointly by the YES!Delft incubator and Rotterdam’s Port.
Last year the Cambridge Innovation Centre (CIC) based in the USA opened its first international hub in Rotterdam. The city is located close to numerous renowned universities and the CEO of CIC, Tim Rowe, compared it to Boston, USA.
Read more on the city of Rotterdam
Utrecht
Utrecht is located at the heart of Holland and strives for healthy people, minds and environment. It is maintaining one of the most sustainable and healthiest living environments in the world and provides exceptional quality for business and life. The EC has recognized it twice as a leader among the competitive regions in Europe.
Utrecht hosts approximately 400 start-ups that benefit from the local institutions and resources. It is the home of UtrechtInc, rated in the top 10 for European incubators, and a Science Park fostering innovation in cancer research, stem cells, sustainable urban planning and bioprinting.
Read more on the city of Utrecht
Amsterdam
Holland’s capital is a global destination for businesses, famous among visitors with its scenic canals. Dubbed the capital of start-ups in mainland Europe, it offers all the necessary ingredients to transform an idea for a start-up into a business generating billions. Amsterdam hosts top European accelerators, such as Startupbootcamp and Rockstart, and establishments of giants like Salesforce, Uber and Google.
The unicorn company Adyen operating in the field of financial technology was started in Amsterdam. It was established in 2006 and is currently valued at USD 2.3B. According to Fortune, it is certainly a unicorn that you can bet your money on.
Read more on the city of Amsterdam
Eindhoven
Utrecht is the heart of the Netherlands, while Eindhoven with its region of Brainport is undoubtedly the country’s brain. In 2011 the Intelligent Community Forum rated it as the smartest region in the world. Eindhoven, a centre for high technology development and design, boasts a huge network of R&D and academic facilities, e.g. the High Technology Campus and its Holst Center dubbed Europe’s smartest square kilometre, as well as Eindhoven Technology University. The active collaboration within this network has enabled Brainport to generate USD 2.8B in innovation spending by private organizations.
The lucrative technology environment in Eindhoven attracted the interest of the Singularity University based in the Silicon Valley. As a consequence SU opened its first international department there: an innovation centre bringing together representatives of leading research institutions, start-ups, businesses and the government to work on new revolutionary technologies, such as food scanners, DIY drones and self-driving automobiles.
Read more on the city of Eindhoven
Are you intending to establish a start-up in Holland? It is easy to do so with the special Start-up Visa for international entrepreneurs. Get in touch with our team to receive further information and consultancy on start-up establishment in Holland.
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 3rd 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 18th largest GDP in the world. Its GDP amounts to USD 777.5 billion. It is also rated 16th as regards wealth per individual averaging USD 184 378 per adult. The Dutch economy is the 6th 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 2nd in the Global Enabling Trade report for 2016, 3rd in the Index of Global Innovation for 2017 and 5th 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 3rd 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.
The open economy in the Netherlands welcomes international entrepreneurs. The Dutch market is constantly growing and offers plenty of trade opportunities in all economic sectors.
Why invest in the Netherlands
Although small, the Netherlands is a wealthy country and its business climate allows companies to check the feasibility of their products before exporting them worldwide. Most Dutch people speak English well and welcome new products and ideas. This is why Holland is often perceived as a gateway to the European continent.
In Holland, the government supports the development of innovative products by offering companies different grants, tax benefits and innovation credits. The European Union also has several innovation-related grant schemes.
The government works closely with universities, research centres and the private sector, establishing top consortia for innovation and knowledge. This alliance works to place innovative services and products on the national market. The Ministry of Economic Affairs and Climate Policy also provides an incentive for entrepreneurs who wish to investments in research.
The Netherlands Foreign Investment agency has released a report on foreign investment in the Netherlands over 2017, and 2018.
Investment opportunities by sector
Agriculture and food
This is a thriving Dutch sector that includes both manufacturing and farming.
Read here on the Dutch agriculture and food sector.
Haulage / Logistics
The sectors of export and import are major for the Dutch economy. The businesses involved in international trade require logistic support and present various possibilities.
Read here on the Dutch logistics sector.
Innovative high-technology products
Holland is famous for its innovative inventions, e.g. Wi-fi, Bluetooth and Compact Discs. The Dutch government offers financial support to innovative enterprises. It also assists businesses to quickly place their innovative services and products on the market.
Read here on the Dutch high tech industry.
Propagation materials and horticulture
The sector of horticulture is leading on the global market of plants, bulbs, reproductive material and flowers.
Read here on the Dutch horticulture industry.
Health and life science
Holland has excellent infrastructure to facilitate clinical research, measures for tax support, strategic location and good business climate. It provides companies working in the field of life science with a gateway to the market of Europe. The environment of the sector is great for business acceleration and expansion.
Read here on the Dutch life sciences and health sector.
Chemicals, gas and petroleum products
The Dutch chemical sector brings huge profits. The port of Rotterdam, the country’s developed infrastructure, the local knowledge institutions and the qualified labour force offer outstanding opportunities to international businesses.
Read here on the Dutch chemical industry.
The creative industry
The creative industries in Holland are internationally recognized and have a particularly good reputation with respect to architecture, interior design, fashion and gaming.
