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Business services | Establishing a company in the Netherlands

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Business services lawyers help businesses through legal support. Starting a business venture in the Netherlands is a thriving and rewarding step for many people. The Netherlands is known for its favorable business climate, geographical location in Europe and access to international markets. Whether you want to start a local SME, establish a branch of an international company or launch a startup, the Netherlands offers numerous opportunities and benefits for entrepreneurs. In this text, we will discuss the key aspects and steps involved in setting up a business in the Netherlands, and how you can take advantage of this country's thriving business landscape. For many, setting up a business in the Netherlands is quite an exciting adventure that requires well-considered steps. In this article, we will take a closer look at the steps and considerations involved in setting up a Dutch company.

The steps for establishing a Dutch company

  1. Prepare financial plan: A solid financial plan is essential when starting your business. This plan gives you insight into the financial resources you need and helps you determine if you need external financing. It includes detailed budgets and forecasts of cash flows. For additional help and advice on preparing a financial plan, visit the Chamber of Commerce (KVK) website.
  2. Company name devise: When establishing your business, choosing an appropriate company name is of great significance. A good company name is recognizable, sticks, meets legal requirements and is unique. The choice of your business name affects your brand identity and ultimately your business success. Make sure the name you select is unique and not already in use by other companies, as this is a requirement when registering with the Chamber of Commerce.Register with the Chamber of Commerce (KVK): Officially registering your company is an important step in the Netherlands. This requires registration with the KVK, which can be done either online or in person at a KVK office. After registration, you will receive a Chamber of Commerce number and your company will be registered in the Commercial Register, which is essential for administrative and legal purposes.
  3. Choosing legal form: Choosing the right legal form for your business is a crucial decision. Several legal forms are available in the Netherlands, including a sole proprietorship, general partnership (VOF), limited liability company (BV), and public limited company (NV). The choice of your legal form affects issues such as liability and taxes. We will clarify the legal forms in the next paragraph below.
  4. Taking care of tax matters: As an entrepreneur in the Netherlands, you need to take care of various tax issues, such as applying for a VAT number and keeping accurate records. For comprehensive information and guidance regarding taxes, please visit the website of the Tax Office.
  5. Apply for any permits: depending on the nature of your business, specific permits, consents or registrations may be required. It is critical to check that you meet all legal requirements and, if necessary, apply for the necessary permits. These can range from business-related permits to environmental permits, depending on the nature of your business.

Setting up a business in the Netherlands is a process that requires careful planning and attention. Following proper procedures, seeking legal advice and complying with legal obligations lay the foundation for a solid start to your business.

The different types of legal forms

When starting a business, one of the most important decisions you have to make is choosing the right business form. Each business form has unique characteristics and implications. The following is an overview of some common business forms in the Netherlands:

1. Sole proprietorship:
The sole proprietorship is the easiest way to start a business. As a sole proprietor, you bear personal responsibility for the finances and liability of the business. This means that your personal assets, such as your home and savings, can be at risk in the event of business problems.

2. Limited liability company (BV):
A BV is a legal entity whose capital is divided into shares. As the owner of a BV, you are usually not personally liable for the company's debts. This provides a degree of protection for your personal assets in the event of business problems.

3. General partnership (VOF):
A VOF is a partnership between two or more persons. All partners are personally liable for the debts of the business. This means that personal assets of all partners may be at risk in the event of business problems.

4. Limited partnership (CV):
A limited partnership is similar to a VOF, but it also has silent partners who only contribute financially and do not play an active role in the business. The general partners bear personal liability, while the limited partners have limited liability, meaning their financial risk is limited to their investment.

5. Limited Liability Company (SA):
An NV is a legal entity whose capital is divided into marketable shares. This makes it possible to raise capital by issuing shares and trading them on the stock exchange. Owners of an SA are usually not personally liable for the company's debts.

Each business form has specific advantages and disadvantages, and choosing the right form depends on your business goals, financial situation and personal risk appetite. It is important to seek legal advice and carefully consider the implications of each business form before making a final decision.

Advantages and disadvantages of legal forms

When evaluating different business forms, it is important to take a deeper look at the advantages and disadvantages that each form brings. Let's take a deeper dive into the considerations:

  • Sole proprietorship:
    A sole proprietorship offers attractive advantages, including easy incorporation, full control of the business, and tax advantages. This makes it a popular choice for start-up entrepreneurs. However, personal liability can be a concern because your personal assets may be at risk in the event of business problems. In addition, growth opportunities may be limited due to the limited availability of capital.
  • Limited Liability Company (BV):
    A limited liability company offers limited liability, which means that your personal assets are generally protected from business debts. It also offers the opportunity for share sales and growth potential. But, the incorporation process is often more complex, and there are increased administrative obligations, which can require more time and resources.
  • General partnership (VOF):
    A VOF has the advantage of easy incorporation and sharing of risks and costs between partners. It is a good option for cooperating entrepreneurs. However, personal liability remains a concern, as all partners are personally responsible for business debts. In addition, dependence on other partners can complicate decision-making.
  • Limited partnership (CV):
    The limited partnership offers the possibility of involving silent partners, who contribute financially without active involvement. This can offer advantages, along with limited liability for limited partners. On the other hand, general partners bear personal liability, and the structure can be more complex.
  • Limited Liability Company (SA):
    The SA offers the possibility of share sales, which gives access to greater sources of capital and growth opportunities. But, the incorporation process is generally more complex, and there are increased administrative obligations. This makes it more suitable for larger companies.

When choosing the right form of business, it is essential to consider your specific needs and goals. There is no "one-size-fits-all" approach, and it is often wise to seek legal or tax advice to make the best choice that fits your situation. Selecting the right business form is a crucial step in laying a solid foundation for your business.

Frequently asked questions about business services

What is a KOR arrangement?

The KOR (Kleineondernemersregeling) in the Netherlands is intended for small entrepreneurs such as. Under the KOR, you do not have to charge VAT to customers or remit VAT to the government. This simplifies administrative tasks. You do not have to mention VAT on invoices and purchase invoices are less time-consuming.

Generally, you no longer have to file a regular VAT return if you participate in the KOR, except in specific cases. Keep in mind that you cannot reclaim VAT on business expenses and investments, including VAT paid in other EU countries.

Participation is voluntary and usually for at least three years, unless your turnover rises above €20,000 a year. Starting in 2025, it becomes more flexible, as the mandatory three-year minimum application period expires. Consider carefully whether the KOR suits you as it affects tax obligations. For more information or questions, I am at your disposal.

Your company's visiting address is accessible to everyone, as required by law. But in situations where there are security concerns, this can be problematic. For sole proprietors, however, there is the option of keeping the visiting address private. This can be accomplished by registering a separate mailing address, separate from your residential and visiting addresses.

This measure is there to ensure personal security and protect privacy when necessary. It is important to remember that these steps are primarily intended to give you peace of mind.

Consult a specialist, the lawyers of Law Office Der Bedrosian specialize in Business services and can therefore assist you in changing your sole proprietorship anar a BV or NV.

Establish a plan for transferring your assets and liabilities to the new company. This plan will help manage the transition efficiently. Fill out the necessary forms depending on your company's new address and other relevant details. Ensure that the BV or NV is properly registered with the Chamber of Commerce (KVK). This is essential to comply with legal requirements.

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Starting a business in the Netherlands requires not only business acumen but also legal expertise. The Dutch legal system is complex, so it is essential to be aware of the laws and regulations that apply. Therefore, it may be advisable to engage the services of experienced lawyers, such as criminal lawyers and immigration lawyers. Derbedrosian Law Firm, based in Enschede and operating in the Overijssel region, is a leading law firm offering business services to entrepreneurs who want to start a business in the Netherlands. They understand the legal challenges entrepreneurs face and offer expert advice to help them comply with legal requirements. Criminal lawyers play an important role in protecting the rights of entrepreneurs and their businesses. They provide legal assistance in the event of disputes, charges or other criminal matters that may affect a business. It is very important to have a lawyer who is skilled in Dutch criminal law. Alien lawyers are crucial for entrepreneurs doing international business or looking to hire foreign workers. They can help with visa applications, residence permits and other immigration-related matters. A lawyer blog can be a valuable source of information for entrepreneurs who want to learn more about business legal issues in the Netherlands. It can offer insight into relevant changes in the law, case studies and legal tips for setting up and growing a successful business in the Netherlands. It is a way to share the expertise of law firms such as Derbedrosian Law Firm with the business community and help entrepreneurs navigate the complex legal aspects of entrepreneurship.