Month: May 2018

In order to make a decision on which legal form your company will take you will have to consider issues such as:

• Will you be the only owner of the company?
• Will you work with partners?
• Will the company have stakeholders or financial partners?

Business with partners (unincorporated business structure) 

If you want to start a business with other self-employed individuals there are three options:

• General partnership (VOF)
• Limited partnership (CV)
• Professional partnership (Maatschap)

General Partnership (VOF) and Professional partnership (Maatschap) will be merged into one entity called “partnership “.

More information about this change is available on https://business.gov.nl/amendment/difference-professional-partnership-general-partnership/   It is not yet known when this change will come into force as both the House of Representatives (Tweede Kamer) and Senate (Eerste Kamer) still need to approve the proposed change.

For more detailed information about several entities, have a look at the government website for entrepreneurs.

Incorporated business structures 

Incorporated business structures are legal entities because they require a legal form in the shape of notarial deed. There are five different types:

• Private limited company (BV)
• Public limited company (NV)
• Association (Vereniging)
• Cooperative(Coöperatie)
• Foundation (Stichting)

For more detailed information about several entities, have a look at the government website for entrepreneurs.

Sole proprietorship

A Dutch eenmanszaak  (sole proprietorship) is a legal structure in which you alone are responsible and liable for the company. Many starting entrepreneurs choose the eenmanszaak as their legal structure. You can find more information about this legal structure on the website of the government .

The Chamber of Commerce (KVK) has created a guide in English to help you starting your own business. Below we have summarised the most relevant information. https://www.kvk.nl/english/starting-a-business-in-the-netherlands/

The goverment has an English website,  providing answers to the many questions related to starting a business in the Netherlands.

 The Citizen Service Number

You need to have a Citizen Service Number (BSN) issued by the municipality in which you reside. The BSN is used by all public organisations in your dealings with them.

Business plan

Providing a business plan is one of the prescribed criteria for entrepreneurs who are not EU, EEA and Swiss nationals and wish to begin their own business in The Netherlands.

Company Name

Choosing a good company name for your company is very important but not easy. A few tips:

• Your business name should fit you and your company, now, but also in the future.
• It is best if the company name is short, to the point, easy to remember and to search on the internet.
• Make sure that your company name is unique and does not already exist as brand or domain name. Check in the Commericial Register. You search for existing names/brands under “Handelsnaam”.
• Be alert to cultural sensitivity and inappropriate or silly words in Dutch. Think about how the name sounds in English and other languages should you ever consider taking your business abroad.

Find out more about how to choose a business name on the KvK’s website:

 Legal Form

Entrepreneurs in the Netherlands have to choose a legal form for their business. That applies also to self-employed professionals and freelancers. The choice will determine, for example, liability and tax obligations.

 Types of legal forms

There are legal forms with and without corporate (legal) personality. An important difference is that forms without corporate (legal) personality involve debt liability for both the company assets and your private assets. For legal entities liability is tied solely to company assets. Visit the question different types of legal forms to get more detailed information on this topic.

Once you fulfil the conditions for residence it is good to get  acquainted with the legal requirements for setting up a business in the Netherlands.

Informing yourself about the Dutch economy, business climate, regulations and practices  in which you want set up your business is  important. So is market research, for orientation about your future place in the complex business mosaic.

Then you need to develop a business plan and prepare for fulfilling the administrative prerequisites to make  your business idea a reality.

A business plan is a requirement for non-EU/EEA/Swiss nationals. Even when legally not required, it helps you to identify areas of strengths and weaknesses. Banks require a business plan for granting loans.

You will need to consider issues such as checking if you require specific professional qualification, selecting a legal form for your business, choosing a trade name, taxation and insurance, employment laws and registering at the Chamber of Commerce.

There are  institutions and organisations that provide useful information for your market research:

Central Bureau of Statistics

The CPB Netherlands Bureau for Economic Policy Analysis regularly reports about the Dutch economy and provides forecasts. Only a limited number of publications is also available in English. Most publications are only in Dutch.

Half-yearly Economic Developments and Outlook is published by the Dutch central bank DNB:

If you prefer , there are also many business consultants and market research firms that can help you during this phase.