Starting a business

From business plan to execution

You’ve got a name. Check. You’ve got a location. Check. But have you researched whether you can actually start a business as a non-Dutch citizen?

To become self-employed, you will need to have certain documentation like the correct residence status and business insurance, among other essentials. The IND (Immigration and Naturalisation Service) can advise on your individual situation. Once you’ve been given the green, you’re just a few steps away from the director’s chair.

Please note: If you are neither a Dutch national nor EU citizen and do not have permanent residency, you will need to check carefully with the IND (or a lawyer) concerning your individual situation and residency rights. Highly skilled migrants, for instance, are unable to establish a private company with their existing residence permit.

Determine what legal form your company will take

One of the first decisions you’ll make as a business owner is how the company should be structured. Businesses take many legal forms, for example:

• Sole trader. A sole trader is the only owner of a business, though there may be employees. Business obligations apply to sole traders, and may also apply to spouses.

• Freelancer (ZZPer). A freelancer is a self-employed individual without employees. Consult our Guide to Going Freelance in Amsterdam.

• Partnerships. Partners are classed as self-employed entrepreneurs and are liable for business (financial) obligations individually. Liability may also extend to spouses although a marriage contract can protect assets.

• Partnership under common firm or Vennootschap Onder Firma (VOF). A general partnership is a business structure with one or more partners. Partners are classed as self-employed entrepreneurs, and are liable for business (financial) obligations individually. Liability may also extend to spouses although a marriage contract can protect assets.

• Limited partnership or Commanditaire Vennootschap (CV). This is a business structure with one or more general partners and one or more limited partners. Limited partners tend to be financial investors (and do not need to register with the KVK or Chamber of Commerce) while general partners are active in the day-to-day operations and decisions of the business.

• Limited liability private company or Besloten Vennootschap (BV). A BV is classed as a legal entity, thereby limiting the risks to the owner(s), and must be registered with the KVK. Set-up costs for a BV can range from anywhere between €10,000-20,000.

Write a business plan

A good business plan is essentially a carbon copy of your business model – how you will start and run your business successfully. Seek advice from business professionals on how to commit your goals to paper.

Choose a business name

Your business or trade name must be clear and unique. If you are unsure of existing trademarks, contact The Benelux-Merkenbureau (Benelux Office for Intellectual Property). It's important you only advertise the services you provide. So, for example, don’t say your business is a BV (private limited company) if it is not.

Register your business with the Kamer van Koophandel (KVK) – the local equivalent of the Chamber of Commerce

Registration is compulsory for every business – you pay an annual fee. To register, you will need:

• A valid form of ID

• Copy of a recent bank statement (which is not older than 30 days)

• Copy of your home address

• You may be asked to show a rental contract if using hired premises

Once you are registered, you will be given proof of registration and a unique eight-figure number, which you must use for your outgoing post and invoices. If your details change, you must inform the KVK immediately. In addition to registering a company, the Chamber of Commerce offers advice and information about being self-employed. They also have plenty of brochures and can help formulate a business plan.

Contact the tax authorities

As a business owner you will have to pay tax, some of which to the government and some to the municipality. These include:

• Wage Tax (loonbelasting)

• Income tax (inkomstenbelasting

• National Insurance contributions (volksvezekeringen)

• Employee Insurance contributions (werknemersverzekeringen)

• VAT or Value Added Tax (omzetbelasting)

The Belastingdienst (tax office) website provides information in English on taxation for businesses. It is also recommended to seek out professional tax advice before starting a business.

Find a location

Location, location, location... is everything. The nature of your business will dictate the best demographic for your services. Know your market and you’re sure to find a winning venue.

Get the right insurance

There are two types of insurance that concern an entrepreneur:

• Personal insurance (such as health insurance and unemployment insurance)

• Business insurance (such as insurance of inventory and stock)

It is recommended that you speak to a financial advisor about what cover suits your business activities and costs.

Arrange various other administrative issues

These include tax, invoices (factuurs), terms & conditions, and expenses. A legal invoice, for example, must include:

• Invoice date and a unique sequential number

• Date of delivery or service, or the date a payment is made (if different from the invoice date)

• Name and address of your client

• KVK or business number

• VAT or BTW (Belasting over de Toegevoegde Waarde) number and the amount of tax payable

• If relevant, the quantity and nature of the goods or services excluding VAT.

Either you can do the administration yourself or outsource it. See Taxes for our recommended partners and general information on taxes.

Representing the interests of entrepeneurs

With all the steps completed, business owners may wish to join the Dutch Federation of Small and Medium-sized Enterprises (MKB-Nederland). The site is only in Dutch. MKB-Nederland represents the interests of entrepreneurs in small and medium-sized businesses and they consult with the government, politicians, the unions, knowledge institutes and other organisations that have an influence on the development and maintenance of the business environment.

Useful resources

• Netherlands Foreign Investment Agency - Information on business law, taxation, establishing a facility.

• Chamber of Commerce (KVK) - Provides information on having your own business and offers workshops on various aspects or procedures related to this.

• Belastingdienst - Tax office. Website offers tax-related information including payroll, VAT refunds, and describes the Dutch income tax system in detail.

Related articles

• Guide to Going Freelance

• Taxes