I amsterdam - Law & Regulations

The latest global business environment rankings published by the Economist Intelligence Unit (EIU) put the Netherlands in third place behind Canada and the US, making it the best place in Europe to do business in until 2008. Amsterdam is a vibrant, creative, tolerant and cultural city attracting many foreign companies and their employees. With the dismantling of trade barriers within Europe and the development of EU-wide law and policy, companies need to consider law not only on a pan-European scale, but also country-specific.

Legal Forms of Doing Business
A company can be engaged in business in the Netherlands via a subsidiary or branch. Compared with other EU countries, in the Netherlands corporate law provides a very flexible and liberal corporate framework for the organization of branches and subsidiaries by non-resident companies or individuals. There are no special restrictions on foreign-owned companies starting a business in the Netherlands, nor are there restrictions on foreign ownership of land or on repatriation of capital and profits.

Investment Incentives
The Dutch government and the authorities of the European Union grant incentives to encourage investment in new business activities, expansion of existing activities, research and development in respect of new technologies and investment in regions with a weaker economic structure. The incentives may take the form of financing credits or subsidies. Incentive schemes, conditions for awarding subsidies and budgets are often amended, but professional guidance will help you discover the variety of funds and the beneficial opportunities offered by EU organizations, State governments and local authorities.

Employment, Visas & Work Permits
With the dismantling of trade barriers within Europe and the development of EU-wide employment law and social policy, companies need to consider employment law on a pan-European scale. But there are variations per country that need to be considered too. As in most European countries, the process of applying for visas, residence permits and work permits has become increasingly complicated in the Netherlands. The time when applications were simply rubber-stamped is long past; it is not rare for applications to be denied because the required documentation has not been expertly prepared. Today, a thorough knowledge of the applicable regulations and a professional presentation of the documentation and facts are necessities.

• Visit to the Netherlands Not Exceeding Three Months: Many foreign nationals require a tourist or business visa to enter the Netherlands if they do not intend to stay more than three months. It is advisable to check with the Dutch Embassy or Consulate whether a visa is required. The visa is issued for a maximum period of 90 days and cannot be extended.
• Visit to the Netherlands Exceeding Three Months: A foreign national who intends to remain in the Netherlands for more than three months must apply for a residence permit. The conditions for obtaining a residence permit depend entirely on the purpose for which the individual comes to the Netherlands. As a rule, foreign nationals who intend to work and reside in the Netherlands must obtain three types of documents: a temporary residence permit or a residence permit, which enables the holder to live in the Netherlands and under certain conditions, a work permit, which enables the holder to work in the Netherlands.
• Knowledge Economy Workers (Knowledge Migrants): As of October 1, 2004, skilled and highly educated foreign workers do not require work permits to work in the Netherlands. This new regulation is applicable to nationals of the countries that are not members of the European Economic Area and most nationals of the countries that joined the European Union on May 1, 2004. With this new regulation, the Netherlands intends to stimulate its knowledge economy.

Baker & McKenzie
Baker & McKenzie Amsterdam has more than 50 years’ experience assisting and advising international companies looking for business opportunities in the Netherlands. Baker & McKenzie was the first law firm in The Netherlands to join a multinational network and offers innovative legal and tax advise to its clients. With an integrated practice of attorneys, tax consultants and civil law notaries and with a global network of more than 3,000 lawyers in 39 countries, Baker & McKenzie has the knowledge and resources to deliver the broad scope of quality legal services required to respond effectively to both international and local needs. 

Information & Contact
Baker & McKenzie Amsterdam NV
Leidseplein 29
1017 PS Amsterdam
P.O. Box 2720
1000 CS  Amsterdam
The Netherlands

Tel:  +31 (0)20 551 7555
Fax: +31 (0)20 626 7949

More information about the legal, tax and civil law aspects of Doing Business in the Netherlands can be found at the website of Baker & McKenzie: www.bakernet.com/amsterdam.  

Another Amsterdam-based, full-service legal firm is Van Doorne.