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 Netherlands is among the leading exporters of food and agricultural products worldwide due to its innovations in agri-food technology. The sector offers a reliable source of safe and healthy food produced using nature- and environment-friendly methods.

In case you are in interested in establishing a business in the agriculture and food sector of the Netherlands, please contact our agents specialised in company formation. They will provide you with legal advice and additional information on how to set up a Dutch company.

Delivering healthy food from sustainable sources

The rapid global urbanization and the migration of people from rural areas to the big cities lead to an increasing demand for healthy and sustainable food supplies in the urban zones. The security of food is paramount to social wellbeing and economic performance. The search is on for solutions regarding food safety, animal welfare, habitation and waste-disposal, as well as education, governance and social fairness. The Netherlands is located in a relatively small delta region with low elevation, where the land is a precious resource. This is one of the reasons why the local farms are among the most efficient, sustainable and intensive worldwide.

Due to the fertile soil, high produce quality, intensive farming, trading expertise and extensive knowledge in agriculture, the Netherlands exports food products on a global scale. This covers products of both plant and animal origin, i.e. poultry (meat), eggs and livestock. Other key export items are automated food processing machines such as pickers for soft fruit, meat separators and equipment for potato processing, as well as knowledge on food processing. Twelve of forty leading companies producing foods and drinks have Research and Development centres in the country.

Five reasons to choose the Netherlands for your business in the food and agriculture industry

1. The country is a world leader in innovation and export of foods and agricultural products

After the United States, Holland is second in export of agricultural products in the world. It falls in the global Top 3 of fruit and vegetable producers, along with the US and Spain, supplying 25% of all vegetables for export from the European continent. The Dutch sector of agriculture is diverse and covers a variety of plant cultivation and animal husbandry subsectors, including field and greenhouse cultivation, fruit-growing, pig and dairy farming.

The Netherlands sees things in perspective. This is evident from the world-famous innovation and research infrastructure in the country. The University of Wageningen was rated first among agricultural universities worldwide for three consecutive years in the Taiwan Ranking that includes 300+ universities dealing with scientific research. Of the leading twenty-six companies in the sector of agriculture and food, five have Research and Development facilities based in the country. Here are some examples of investments made by private companies:

• a new Research and Development centre of Danone in Utrecht concentrating the European research of the company on children nutrition and clinical nutrition;
• a new European Research and Development centre of Heinz in Nijmegen;
• a new Research and Development centre of Royal FrieslandCampina in Wageningen;

2. The Netherlands has a mild climate, fertile soils, flat terrain and favourable location in the centre of the European continent

Next to its excellent geographic characteristics, the country has extremely well-developed infrastructure, logistics, food processing branch and commerce.

3. Successful renewal of the chains of agri-food production

For many years the agriculture in the Netherlands has maintained its leading position in the international competition through active investment aimed to renew the chains of agricultural production. Growers and farmers are eligible partners in this chain. Their main goal is to supply food and plants (including ornamentals) with the best possible value for money using sustainable, innovative and socially responsible methods.

4. The Netherlands supports the Global Food Security Alliance

It has been estimated that by 2050 the world population will reach 9 billion. If the current levels of food production remain unchanged, there will be a 70% shortage. The Alliance plans to solve this problem by using a Dutch approach based on climate-smart systems in agriculture. It intends to intensify and expand small-scale projects of fishermen, small farmers and horticultural growers and to maintain a high level of food safety by focusing on beneficial private-public partnerships.

5. Environmentally friendly and sustainable agriculture

Regardless of the tight margins of profit, the agricultural business invests significant resources in protection of the environment and implements improvements regarding animal welfare. While the agricultural business is a main engine of the national economy, it carries certain risks for the environment. During the past decades, agriculture has shown a trend of increasing scale and intensity of production, leading to a growing impact of manure and fertilizers in non-urban areas. Farming needs to be more sustainable. Currently, the agricultural sector in the Netherlands is directed towards sustainability in order to provide safe and healthy food, produced with care for the environment and the landscape.

Read here to explore the Dutch horticulture industry.

International companies planning to establish presence on the Dutch market at a low cost can open local branches. The branch does not have a legal personality and is considered an extension to the international company. Therefore the parent company established abroad is liable for all of its actions.

The operations of Dutch branches are managed by representatives of the parent companies by virtue of a PoA (Power of Attorney).  The branch has to carry out the same operations as its parent and its name must be identical. Its actions are governed simultaneously by the Dutch laws and the legislation of the country where the international parent company is incorporated.

The branch provides permanent establishment at a lower cost in comparison to other Dutch company types and there are no minimum capital requirements with respect to its incorporation. This is why many international companies prefer this form of business.

Dutch branches vs. local companies

The main defining characteristic of a branch, as compared to other business forms like subsidiaries in Holland, is its full dependence on its international parent company. Therefore the international company carries liability for any obligations and debts of the Dutch branch.

The procedure for branch registration is easier compared to other company types, e.g. the private limited liability company, but it still needs to comply with the legislative requirements for taxation and employment. According to the law, all branch employees should be covered with social insurance. Otherwise, the branch representative may become personally liable in case of failure to pay the necessary contributions. Branches opened in the Netherlands usually have financial obligations identical to those of local companies.

The numerous treaties for avoidance of double taxation that the Netherlands has signed with other countries decrease the branches’ tax burden if they qualify for reduction of the rate of withholding tax for royalties, interest and dividends.

Registration of a Dutch branch

The branch has to be registered in the Trade Registry at the Commercial Chamber with the relevant documents and details before it can commence its business activities. All papers need to be notarized, with a legalized translation in Dutch. The notarization takes place in the state where the parent company resides.

The documents necessary for incorporation can be case-specific, but in general the following are necessary: 

• Proof of the establishment of the international company (an extract from the trade registry in the country of residence with registration date and company details)
• Registration certificate, name, registered address, names and details of the directors and the secretary (or other managers)
• Protocol of the discussion where the board decided to open the branch
• Address and name of the branch
• Representative’s name
• powers of the representative and branch activities

After the registration, the Company Register in the Netherlands will release the registration certificate recorded under a unique number. Then the branch has to be registered for tax and social security contributions. After all these steps the branch can begin to operate in Holland.

Advantages of opening a Dutch branch

The procedure for branch registration is easy and takes less time than the direct incorporation of a Dutch company. This is why some international corporations prefer to establish branches. Other advantages include low incorporation costs and mild accounting requirements.

The main characteristics of branches in the Netherlands are more or less the same as in other countries. For example, in Hong Kong, the procedures for branch taxation and registration are very similar. Still, it is in your best interest to use the services of a local specialist in incorporation or a lawyer to ensure that you follow the Dutch regulations and rules for company establishment.

If you need more details on starting a Dutch business, please, contact our local agents in company formation.

The worldwide transport of goods increases in distance and volume every day. The Netherlands plays a major role in the world market thanks to its developed logistics.

If you are interested in starting a logistics company in the Netherlands, please contact our incorporation agents. They will provide you with further information on opening a company in the Netherlands and legal advice.

A world trade centre

Logistics relates to the expertise and knowledge necessary for effective planning, performance and streaming of information and goods. The Netherlands is an age-old centre of world trade. It has two major European cargo ports, Rotterdam and Schiphol, and the drive from one to the other takes less than an hour. The country is a main logistics hub with respect to freight transport to Europe and, therefore, a desirable location for international companies.

The expanding global trade and the increasing transportation of commodities worldwide require efficient and sustainable logistics. Various new measures for reduction of the carbon dioxide emissions of the sector are in place: e.g. use of quayside electricity by ships in ports and hybrid vehicles for delivery in urban areas.

The logistics sector in the Netherlands has the ambition to become a global leader by 2020 thanks to sustainable innovation. Logistics also plays a key role for all other industries: from raw material to finished product transportation. The sector generates a profit of €55 billion a year and provides employment for 813 000 people creating a strong driving force for the national economy.

Five major factors for the key role of the Netherlands in the logistics industry of the world

1. Connecting consumers and producers worldwide

Holland is a key player in the global economy, connecting consumers and producers around the world through complex logistics. Its success lies in the combination of top service providers, modern infrastructure and a convenient coastal location in the middle of Europe. Its strategic location on the coast provides direct access to the continent’s market and its 500+ million end users.

2. Schiphol Airport in Amsterdam and Rotterdam Port

Rotterdam Port is the largest port in Europe and the fourth largest in the world, while Schiphol Airport is a major passenger and air-freight hub. They offer the services of leading providers in the area of logistics and are connected with a large network of railways, roads, pipelines and inland waterways. This combination makes the Netherlands a gateway to continental Europe with very active water and road transport.

3. Excellent infrastructure

The Global Economic Forum rates the infrastructure’s quality as one of the best worldwide, with modern facilities for air, maritime, railroad and road transportation, ranked 4^th, 1^st, 7^th and 2^nd, respectively for 2015. In 2015, the Business School of IMD ranked Holland first in the world with respect to its infrastructure for water transport.

4. Wide-ranging application of IT

Holland uses extensively Information Technology in order to provide optimised solutions for the supply chain in industries where time has crucial importance (e.g. flowers and food).

5. Sustainability is a priority

Holland is also pioneering developments with respect to silent logistics and environmentally sustainable operations.

The Dutch high technology industry is one of the most inventive worldwide due to the modern facilities and the innovations in the field of development and research. The Dutch high-tech products and expertise are in high demand and are subject to global export.

In case you are interested in starting a business in the Dutch high tech industry, please do not hesitate to contact our incorporation agents. They will assist you with information and legal advice on how to start your business in the Netherlands.

Achievements in collaboration and technology

The long-lasting Dutch tradition of entrepreneurship, creativity, openness, collaboration and pragmatism is a perfect match for the sector of High Technology Materials and Systems. These characteristics make the country the ideal place to seek solutions related to the contemporary challenges of society in the fields of wellness, health, renewable energy, security, climate and mobility. These challenges are quite complex and such solutions are mainly found through achievements in collaboration and technology. The key to success in this complex and fiercely competitive sector lies in active collaboration and innovation across the whole value chain and establishment of an effective network (or ecosystem) of institutions and companies. The Netherlands has such ecosystems, competency centres scattered on its territory. Perhaps the main centre is Brainport in Eindhoven, located in the south-eastern part of the country. In 2015 it was voted the most innovative region in the world. Other Dutch areas, in particular Delft and Twente, also boast good concentrations of universities and companies working in the field of high technology. The sector encompasses many industries that are closely related to each other, such as high technology systems, aerospace, materials (incl. steel) and automotive.

Five reasons why the high technology industry in the Netherlands is crucial to meeting contemporary global challenges

1. The Dutch tradition of openness, creativity and entrepreneurship

The long lasting Dutch tradition of pragmatism, creativity, openness, collaboration and entrepreneurship is the ideal match for the sector of high technology materials and systems. There are many examples of the nation’s ingenuity, including the sawmill, the rotary screw pump, the submarine, the microscope, the Variomatic, the  six-cylinder engine, various systems for navigation and methods for transformation of food crops and waste into energy. All these characteristics make the country the ideal place to seek solutions related to the contemporary challenges of society in the fields of wellness, health, renewable energy, security, climate and mobility. These challenges are quite complex and such solutions are mainly found through achievements in collaboration and technology.

2. Excellence in technology: The Netherlands is leading on the market of high technologies

The sector of high technology encompasses many industries that are closely related to each other, such as high technology systems, aerospace, materials (incl. steel) and automotive. National knowledge institutes and companies working in this sector are famous with their technological competence and leadership in their segments of the market. Fast advancement and strong collaboration within the whole value chain is necessary in this complex and competitive sector.

The country is among the leaders in nanotechnologies. Publications from the Netherlands yield more citations in relation to patents than studies from any other country worldwide. The nation ranks third with respect to citation impact. It is also a global leader in design, development and production of micro – and nanocomponents and high technology equipment. The characteristics of the high tech products are:

• high intelligence (embedded software, systems and sensors);
• impeccable precision (precision manufacturing, nanoelectronics);
• high efficiency (smart electronics and mechagronics).

The high technology sector in the Netherlands strives for value, diversity and complexity. It is generally directed towards niche markets and small product patches, relying on high technological competence for success.

3. A population with advanced computer skills

The Dutch are advanced computer users with an exceptionally high rate of broadband / computer penetration and use of mobile services. The IT infrastructure in the Netherlands is among the most developed worldwide and has specialized networks that power global efforts in Research and Development. This environment supports the rise of world-class hardware companies, IT consultancies and software developers working in the fields of safety, healthcare, mobility, business and simulation. Furthermore, a lot of companies develop gaming content for the internet, mobile telephones and major platforms. The country is ranked first in Europe in the embedded systems industry and first in the world in equipment for manufacturing of microchips.

About seventy percent of the Dutch innovations are related to Information Technologies and enable key developments in many fields, e.g. water management, production of ornamental plants and foods, and the automotive industry. The considerable number of partnerships between public and private institutions, where the Dutch government collaborates with the private and educational sector, leads to active development in the diverse fields of embedded systems, modeling, multimedia technologies, virtual laboratories and parallel computing.

4. Specialized networking between institutions and companies, and leadership in open innovations

It is crucial to have an efficient network (or an “ecosystem”) of institutions and companies specializing in the high technology industry. One region with high concentration of entrepreneurs in the sector of high technologies is Brainport, Eindhoven, located in the southeastern part of the country. Other regions, such as Delft and Twente (Yes! and Knowledge park), also boast numerous universities and companies working in the field of high technologies.

The country is a global leader in open innovations and public-private collaborative research. In 2011, the region of Brainport, Eindhoven was voted as the smartest region in the world. This is a good example of collaboration between researchers, companies and governmental institutions with the aim to accumulate knowledge and deliver innovative technologies that set standards worldwide. The result is extensive cooperation between specialized suppliers, OEMs and academia.

5. Always considering future perspectives

The Dutch sector of high technologies is a global frontrunner in the creation of novel materials and technologies for applications in state-of-the-art communication systems, safe and economical aircraft, electric and hybrid cars, large scale production of solar energy and its storage, and modern medical equipment for early detection and effective treatment of diseases.

If a group of individuals wants to fulfil a particular goal, for example, all members want to participate in a given sport, make music or improve a shopping area, they have the option to establish an association (vereniging) that is a type of legal entity.

Main characteristics of the Dutch association

• Associations in the Netherlands should have at least two members.
• All association members are entitled to a vote.
• The Members Meeting (Ledenvergadering) has exclusive authority and power.
• The Members Meeting nominates a Committee that includes, as a minimum, a chairperson, a secretary and a treasurer.

Association types

Practically there are two forms of associations in the Netherlands, depending on their legal capacity:

1. Full capacity associations

When you establish an association with full capacity (or volledige rechtsbevoegdheid), theoretically, you do not carry personal liability for its debts. However, you need a Latin notary to prepare a deed that states the establishment of the association and its statutes, including:

• name and address;
• objective (profit sharing among partners is not considered an objective);
• requirements for inclusion of members;
• procedure for holding a general Members Meeting;
• procedures for appointment and removal of committee members;
• post-dissolution surplus allocation.

In case you decide to amend any of the above, you need to hire a Latin notary to update the deed of establishment of the association. Associations have internal regulations complementary to the statutes. They concern the practical daily affairs. These internal rules do not need to be notarized.

Associations with full capacity have to be listed in the Trade Registry (Handelsregister) at the Commercial Chamber (Kamer van Koophandel).

Full capacity associations have the duties and rights of public members, e.g. they can borrow money and inherit and own registered property.

Subsidizing organizations usually require subsidized associations to have full capacity in legal terms.

2. Limited capacity associations

An association set up without a Latin notary has only limited capacity in legal terms (beperkte rechtsbevoegdheid) and its owner carries personal liability for all of its obligations. This liability can be limited by registering the association in the National Commercial Registry.

Limited associations are not allowed to own registered property, for example, real estate.

Both limited capacity associations and full capacity association can be used to form a cooperative. Read here on cooperatives in the Netherlands.

Registration at the National Commercial Registry

You are obliged to register your association at the Dutch Trade Registry to obtain full statutory capacity. You carry personal liability until the date of registration. Usually, the Latin notary dealing with the establishment of your association will also complete the registration, but it is advisable to require confirmation.

You have to report any changes in the list of committee members to the Chamber of Commerce in eight days. Former members of the committee continue to carry liability if they are listed in the National Commercial Registry.

Read more on the Dutch Company Register. 

Taxation

Associations functioning as businesses owe corporative taxes (vennootschapsbelasting). All profits have to be directed to the purpose or objective of the association. Depending on the situation, the association may have to charge and pay Value Added Tax.

Liability of committee members

The association is a form of legal entity. Therefore, in theory, the members of its committee do not carry personal liability for its debts. Still, there are exceptions, e.g. in cases of negligence, mismanagement or failure to register the association at the Commercial Registry.

Members of the committee and staff

Associations are free to employ staff. The members of its committee, however, are usually not employees. Therefore they are not covered by any schemes for employee insurance.

Dissolution of the association

Dissolution of the association is possible when the General Members Meeting votes in favor, there are not any members left or bankruptcy is declared. The procedures and rules for dissolution are laid out in the statutes.

Homeowner associations

All owners of apartments in Holland must be members of homeowners associations (VVE or vereniging van eigenaars). These associations represent the mutual interests of all apartment owners regarding matters of building service and maintenance. VVEs have several obligations. They need to hold at least one members’ meeting per year, to keep reserve funds and prepare yearly financial statements. VVEs have to be listed in the National Commercial Registry.

Do you have any questions about establishing an association or another company type? Our company formation agents can help you open a company in the Netherlands.

Holland has a good standing with respect to energy efficiency and renewable energy and leads the charts for greenhouse farming, processing of biomass and wind energy in marine environments. The energy industry provides a substantial part of the national income, employment and exports of the country. Therefore the Dutch government has adopted a modern industrial policy in order to take better advantage of any economic opportunities related to grey and green energy.

In case you are interested in opening an energy company in the Netherlands, please contact our experienced incorporation consultants. They will assist you with company establishment and legal advice.

Affordable, reliable and clean

Economic development and social well-being, in general, are largely dependent on the provision of robust and sustainable energy that is affordable, reliable and clean. The achievement of these fundamental goals is inextricably bound to the reduction of carbon dioxide emissions and the globalization of energy markets. The ever-increasing demands for sustainable sources of energy open various opportunities for energy trade, transport and generation in the margins of the sector. Holland has strong prerequisites for continuous growth in the global energy industry. Thanks to its geographic location it has a long coastline for harvesting wind energy. It hosts two of the key harbours in Europe: Rotterdam and Amsterdam. Furthermore, it has significant reserves of natural gas and a developed gas infrastructure. Hence the country possesses a firm basis for development with the aim to become a top European energy hub.

Five strengths of renewable energy in the Netherlands

1. Bold expectations for 2050

Holland has an ambitious plan for the future: it aims to develop a system for affordable, reliable and sustainable energy by 2050. In this respect, the country expects to decrease the emissions of carbon dioxide by 50% and to generate about 40% of its electricity in a sustainable manner by harvesting wind power and producing energy from biomass. The CO₂ emissions can be reduced through the use of renewable and nuclear energy, energy saving, and capture /storage of carbon. The European Directive on Renewable Energy foresees that, by 2020, 14% of the energy used in the EU will be renewable.

2. Decentralised energy

Holland experiments with energy generation from waves, biomass and algae. It has found innovative solutions concerning on-site energy generation in greenhouses, “recycling” of carbon dioxide and utilization of waste heat in horticulture. Therefore the share of distributed energy in Holland is considerably higher in comparison to many other countries.

3. European leader in the production of green gas

Holland is an established key player in the gas market of Europe. It is a major producer of natural gas, develops advanced technologies in the field and is the top gas broker on the continent. The country has five decades of experience with the organization of partnerships between the public and private sector in the business with gas and is currently considered a European hub. The Netherlands has an unparalleled capacity to handle the seasonal changes in demand and to ensure the flexibility in supply sought by northwest Europe. Famous institute, e.g. the Energy Delta in Groningen, educate students from all over the world. Additionally, Holland is also becoming a leader in the area of green gas.

4. Extensive experience in efficient energy and solid reputation in the field of renewable energy research

The Dutch energy industry and the government have a long-lasting tradition of voluntary multiannual agreements regarding energy efficiency that has led to the accumulation of extensive experience. This is why the Dutch industry is among the most efficient worldwide in terms of energy use. The Netherlands is internationally recognized for its research in the area of renewable energy, such as solar energy, performed by the institutes ECN, FOM and a number of universities. The University of Technology in Delft has won 7 times the biennial solar car world competition (Solar Challenge) since 2001.

5. Extensive expertise in harvesting wind energy offshore and plans to become the biofuel hub of Europe

The Dutch are leading experts in harvesting wind energy at sea, biomass co-combustion in power plants fired with coal, methods for pre-treatment of biomass, landfill gas use, and heat pumps with cold and heat storage. The Netherlands is also conveniently located in the middle of the European continent and has a state-of-the-art petrochemical, industrial and logistics centre around Rotterdam. It is not surprising that the country has the ambition is to become the biofuel hub of Europe.

Read here to explore the Dutch chemical industry.

Advantages of working in a cooperative

In case you are planning to use the advantages of cooperative work, such as pooled marketing and purchasing efforts, one of the options is to register an entity called “coöperatie” or cooperative. This form of entity is also useful if you are dealing with increasing workloads or have health problems. The other participants in the collective can handle some of your work.

Definition and types of cooperatives

The cooperative is an association concluding specific contracts with its members and on their behalf. Two of its forms are “bedrijfscoöperatie” or business cooperative and “ondernemerscoöperatie” or entrepreneur cooperative.

Read more on associations in the Netherlands. 

Business cooperative

This type of collective works in support of the members’ interests in particular fields, e.g. advertising or procurement. A popular Dutch example of such a cooperative is Friesland Campina; it is a substantial cooperative uniting dairy farmers, where each member contributes to the collective profits.

Entrepreneur cooperative

This type of cooperative has members who work independently and may decide to collaborate on particular projects. This form of entity is suitable for persons who are self-employed and do not have employees of their own (zzp'er or zelfstandige zonder personeel). The entrepreneur cooperative allows members to work together on projects or assignments that would otherwise be too bulky for them to complete on their own. The customers also benefit from the situation by having one contact person and more certainty that the deadlines of their projects will be kept.

Please note, that all participants in common projects working in the capacity of natural (not legal) persons need to have other clients outside the project to be considered as entrepreneurs for the purposes of income tax collection (ondernemer voor de inkomstenbelasting). The distinction is important for the Customs and Tax Administration (Belastingdienst).

All members of the cooperative have the right to vote and are free to leave or enter the collective, as long as this does not jeopardize its long-term existence. Entrepreneur cooperatives are suitable for short-term or small-scale collaborative projects.

Mutual insurance companies

Companies with mutual insurance (onderlinge waarborgmaatschappij) are cooperatives whose members conclude insurance contracts between themselves and with their companies aimed at mutual profits.

Establishment and management of a cooperative

A cooperative may include two or more members. The entity is controlled by an Algemene Ledenvergadering or General Members Meeting (GMM). The GMM appoints a management board to handle the affairs of the cooperative. You will have to use the services of a Latin notary to prepare a deed for the establishment of the entity and to register it at the National Commercial Registry (Handelsregister).

The members of the cooperative cover the costs of its setup and functioning. Any generated profits are distributed with respect to the shares of the members in the general turnover of the collective. The members are free to negotiate particular arrangements with respect to profit sharing.

Liability

The collective is held accountable in its capacity of an entity, but in case its members plan to dissolve it at a time when it has outstanding debts, all of them owe equal shares. Still, liability can be excluded by establishing a limited liability cooperative (BA or beperkte aansprakelijkheid) or an excluded liability cooperative (UA or uitgesloten aansprakelijkheidcooperative).

In entrepreneur cooperatives, partners collaborating in projects carry the responsibility for their outcomes.

Tax

Cooperatives pay corporative tax (or vennootschapsbelasting) with respect to their profits. Their individual members owe income tax (or inkomstenbelasting) with respect to the income they obtain through the cooperative.

Please, refer to this article on Dutch taxes for additional information.

Yearly accounts and reports

Cooperatives are required to prepare and publish yearly financial accounts and reports.

Social security

Regular and board members of self-governing cooperatives have effective fictitious employment relationships (fictieve dienstbetrekking) with the entity. In this case, the salary deductions are the same as for regularly employed persons.

Our legal agents can help you register a cooperative in the Netherlands. Read here if you would like to explore other Dutch company types.

A sole proprietorship is also called a one-man business or sole trader. Registering such a business guarantees your full independence as its owner and founder. The proprietorship can have more members working for it and employ staff, but its owner is only one.

Establish a Sole Proprietorship in the Netherlands

A sole proprietorship can be established without a deed prepared by a notary. It is mandatory, however, to register the business at the Trade Registry. Each private individual can establish only one sole proprietorship, but the proprietorship can have several trade names and perform various activities using the different names. These business operations can be performed at the registered address or at a branch of the sole proprietorship located elsewhere.

Company liability

The owner of a sole proprietorship carries the responsibility for everything relevant to the enterprise, i.e. all its legal acts, liabilities and assets. The law makes no distinction between business and private property. Therefore business creditors are free to require the recovery of any debts from personal property and vice versa – private creditors can require recovery from business property. In case the proprietorship faces bankruptcy its owner goes bankrupt as well. In case the owner is married under a regime of common property, the creditors are also eligible to claim the spouse’s property. Spouse liability may be avoided through an agreement prepared by a Latin notary and concluded before or after the marriage. Spouses, however, are generally asked to co-sign loan-related documents and the mentioned agreement may fail to provide the expected protection. Our agents in company incorporation can help you with further details regarding liability.

In order to decrease liability risk, many sole traders change their company type to a limited liability company, also known as B.V. Read our article: Establishing a Dutch company: Sole Proprietorship or B.V. 

Tax & social security

For taxation purposes, the profit of sole proprietorships is considered as income. If the Tax Service considers the owner an entrepreneur, then he is entitled to investment, entrepreneurship and retirement allowances. The owner is not entitled to benefits for sickness, income and work, and unemployment insurance. It is best to cover such risks by taking out insurances. Sole proprietorship owners can use any of the national schemes for insurance listed below:

Tax & social security

With sole proprietorship, the law makes no distinction between business and private property. If the owner of the sole proprietorship dies, both his/her private and business property will be inherited by the heirs. It is advisable to ensure the continuity of your business in advance. Our tax experts can give you more information on the matter. Our experienced incorporation agents can consult you on company formation Netherlands.