Start a company in the Netherlands - How hard is it?

The nation of tulips is one of the best destinations to set up a company for entrepreneurs. Many successful international agricultural trades with the Netherlands have proved the attractiveness of this country.

Procedures for setting up a company in the Netherlands

So is it easy or difficult to register a business in the Netherlands? The basic procedures that need to be followed when setting up a company in the Netherlands can be summarized into the following steps.

Erasmusbrug (Swan) Bridge in Rotterdam

1. Drafting a business plan

A business plan is essential to register a business in the Netherlands. In a business plan, it is necessary to outline the steps to be taken: what legal business structure is appropriate; what products or services will be sold or produced; who will be the customers; where the financing will come from; is there a demand in the market? These are the basic questions to think about before you start if you want to be successful.

2. Choose a legitimate business structure (rechtsvorm)

Owners of the company must choose a legal business structure (for example: private limited liability company or BV) before setting up a company in the Netherlands. The legal structure of the Dutch company will determine its liability and future tax obligations.

3. Choose a name for the company

When setting up a company in the Netherlands, the government also requires a company name (also known as a trade name). Business owners must have an account to register their business in the Netherlands in the Dutch Trade Register (Handelsregister).

4. Register your business in the Netherlands with the Dutch Trade Registry (KVK), the Dutch Tax Administration and the Employers Registry

A company in the Netherlands must be registered with KVK. After registration in the Commercial Register, KVK will transfer the details of the business to the Dutch Customs and Tax Administration (Belastingdienst). If there is any employee hiring, the business owner also needs to register with Belastingdienst.

A private limited liability company must register its business in the Netherlands through a notary public according to civil law. The notary public will make the registration on behalf of the company at the Dutch Tax Administration.

5. Zone planning, construction, regulations on environment and fire safety

Make sure the location of the Dutch company is in line with the zone planning (bestemmingsplan) or ask the city government to change the plan accordingly. If there is an impact on the environment, a notice must be sent to the authorities. If the company is located in a building, fire safety measures must be taken and notification should be sent to the authorities.

An Omgevingsvergunning License can be used for all three of the above scenarios in addition to building or renovating a business. Business owners can apply for this license with the local government.

A financial center in Amsterdam, Netherlands

6. General Terms and Conditions

General terms and conditions clarify the rights and obligations of the business and its customers or partners. This is not a mandatory task, but should be done nonetheless. Business owners should draft these when setting up a company in the Netherlands.

7. Corporate bank account

Since a Dutch company usually has to pay expenses before it is officially registered to do business in the Netherlands, the business owner must create a business account as soon as possible. The Dutch company is legally obligated to maintain the accounts for 7 years.

Support for international trade deals in the Netherlands

In addition to government agencies, there are many organizations and associations ready to support foreign trade deals in the Netherlands. For example, the Dutch Business Association Vietnam (DBAV in short), specializes in supporting Vietnamese domestic businesses to start a new company in the Netherlands. These associations focus on promoting trade with the Netherlands, which are extremely useful for import and export in the Netherlands.