10 Easy Steps for Starting a Business in the Netherlands

Starting a business in the Netherlands is a great choice as the Netherlands offers a stable and strong economy proven by a GDP of 1,092.75 billion US dollars in 2023 which offers a conducive atmosphere for businesses to flourish. 

Additionally, the Netherlands is also strategically located in Europe and serves as a gateway to the European market, making it ideal for companies looking to expand internationally.

If you are wondering how to start a business in the Netherlands, read the 10 steps to starting a business in the Netherlands below.

12 Steps Starting a Business in the Netherlands 2024

With its resilient economy, strategic location, and progressive business environment, the Netherlands offers an enticing platform for turning entrepreneurial dreams into reality.

Whether you're a seasoned entrepreneur or venturing into business ownership for the first time, starting a business in the Netherlands requires a clear roadmap and understanding of the essential steps. 

In this comprehensive guide, we'll outline the 10 steps to starting a business in the Netherlands, from market research and legal considerations to registration, taxation, and more.

1. Conduct Your Market Research

Market research is an important step in starting a business in the Netherlands because it helps you understand consumer behavior and make informed business decisions. 

To conduct effective market research, you should start by defining buyer personas to engage and ensure that the questions asked are tailored to the target audience. 

After that, you can structure the interview process, and preparing questions clearly and sequentially is crucial to gaining meaningful insights. 

In addition, analyzing competitors' strengths and weaknesses provides valuable context for market positioning. You can summarize the findings clearly and concisely facilitating communication and knowledge sharing within the organization. 

2. Develop a Strategic Business Plan

After conducting market research, you also need to develop a strategic business plan so that you can set clear objectives and guide the direction of a new venture. 

You can define the unique value proposition and positioning within the market. The business plan should outline specific goals and milestones, as well as strategies for achieving them.

Some aspects you need to consider are marketing, sales, operational plans, financial projections, and budgeting. Additionally, a strategic business plan should be flexible and adaptable to changing market conditions.
 

3. Obtain Residence and Work Permit

Before starting a business in the Netherlands, it's crucial to ensure legal permission to reside and work in the country. 

EU, EEA, and Swiss nationals have the right to live and work in the Netherlands under EU law. However, non-EU/EEA citizens and Swiss nationals must obtain a provisional residence permit (MVV) and sometimes a work permit (TWV). 

Aspiring entrepreneurs can also apply for a residence permit as self-employed individuals, subject to meeting certain criteria, including serving an essential Dutch interest. 

Additionally, since 2015, the Netherlands has introduced a startup visa, offering a one-year residence permit tailored for international entrepreneurs aiming to establish businesses in the country.
 

4. Choose the Legal Structure

Business structures in the Netherlands are divided into two types, unincorporated and incorporated. Below is an explanation of both business structures available in the Netherlands (rechtsvormen). 

For unincorporated business structures (Rechtvormen zonder rechtspersoonlijkheid), you as the owner are personally liable for the debts of the business. These include:

• Eenmanszaak: A sole trader or one-person business.
• Vennootschap onder firma (VOF): A general partnership.
• Maatschap: A commercial or professional partnership.
• Commanditaire vennootschap (CV): A limited partnership.

Incorporated business structures (Rechtvormen met rechtspersoonlijkheid) provide a level of protection for your assets against business debts. These include:

• Besloten vennootschap (BV): A private limited company (ltd. or Inc.).
• Naamloze vennootschap (NV): A public limited company (plc or Corp.).
• Coöperatie en onderlinge waarborgmaatschappij: Cooperatives and mutual insurance societies.
• Stichting: A foundation.
• Vereniging: An association.

5. Register Your Business in the KvK

After deciding on the type of business you want to start before proceeding with registration. Now, it’s time to register your business with the KvK (Dutch Chamber of Commerce) to be listed in the Dutch Trade Register.

The thing you must remember is registration should occur within a week before or after commencing business activities. Here are some tips for starting a business in the Netherlands in terms of business registration:

• Ensure prior registration with your local municipality, or provide authenticated proof of residence abroad if necessary.
• Choose a business name and prepare a description of your business activities.
• Verify the availability of your chosen business name through the KvK search page.
• For unincorporated businesses (like eenmanszaak or VOF), submit registration forms directly at the KvK.
• For incorporated businesses (such as BV or stichting), incorporate via notarial deed, with the notary typically submitting registration forms to the KvK.

Once you have understood the requirements above, you can register your business yourself by these several steps below.

Complete a form: Begin by completing a form available on the KVK's registration form page, which offers forms in both English and Dutch. You can fill out the form online and print it in both languages. Please ensure that every text is translated into Dutch.

Alternatively, if you're proficient in Dutch, you can use the KVK online registration form (inschijven bij de KvK). Select the appropriate option ("enterprise or corporation") and proceed to fill in a series of pages in Dutch detailing your business information.

Schedule an appointment: After completing the registration form, you need to schedule an appointment to visit your local KvK branch through the appointment page (afspraak maken).

Registration documents: During your appointment, bring along your completed form, valid identification (such as a passport, residence permit, or Dutch driving license), and your business address and contact details (including a rental contract if your business is not at your home address).

Additionally, you also must be wondering how much it costs to start a business in the Netherlands. The payment for business registration in the Netherlands is typically 50 euros.

Upon registration, you'll receive a unique business number, known as the KvK number, which must be used on all invoices and outgoing correspondence for your new business.

6. Organize Your Business Administration

In the Netherlands, businesses are required to maintain administrative records for a duration of seven years. These records encompass various forms, including electronic and paper documents, such as:

• Outgoing invoices.
• Incoming invoices.
• Bank statements.
• Contracts and agreements.
• Expenditures related to business activities.
   

7. Open a Business Bank Account

Opening a business bank account is essential, streamlining your business administration and saving you time.

Additionally, having a separate account ensures the protection of your assets in case of fraud or bankruptcy. Several banks in the Netherlands cater to entrepreneurs, including Finom, bunq, and Wise.

When formatting your invoices, it's crucial to number them consecutively and include essential details including:

• The date and invoice number.
• Business name, address, BTW, and KvK numbers.
• Customer's details such as name and address.
• Product/service description.
• Price excluding BTW (VAT).
• BTW rate and amount.

8. Register Your Business Tax

The next step in starting a business in the Netherlands is to register your business tax. 

Your newly established business must also undergo registration with the Belastingdienst, the Dutch tax office. It's advisable to complete this registration promptly to enable the claiming of VAT deductions on initial investments for your business.

For unincorporated business structures like eenmanszaak, VOF, maatschap, or CV, registration with the Belastingdienst can be done during your KvK appointment. 

In the case of incorporated business structures such as BV, NV, cooperatie, stichting, or vereniging, the registration with the Belastingdienst can be arranged through the notary. 

As a business owner in the Netherlands, you'll likely be subject to various taxes. Here are some tax types for business.

• BTW (VAT).
• Income tax.
• Payroll tax (for employees).
• Corporation tax (for incorporated businesses).
   

9. Get Insurance and Pension

The other crucial step in starting a business in the Netherlands is to obtain insurance and a pension. As an independent business owner, you face unique risks such as illness, accidents, business damage, and liability. 

Additionally, you're responsible for aspects like maternity/paternity leave and pension. Insurance protects against these risks and ensures income stability during challenging times. You can consider obtaining these types of insurance:

• Personal Insurance: The options include health insurance, invalidity insurance, accident insurance, and maternity leave benefits. Entrepreneurs also need to prioritize building retirement funds through pension or annuity policies.
• Professional Insurance: It covers aspects like liability, legal expenses, loss of profits, property, partner/associate coverage, machinery breakdown, computer damage, goods transport, and credit insurance.
• Employee Insurance: It is managed through payroll tax deductions, and is compulsory for businesses with employees.

10. Develop a Marketing and Promotion Strategy

The last step in starting a business in the Netherlands is developing a robust marketing and promotion strategy.

As an entrepreneur, you can utilize various marketing channels such as digital marketing, social media, content marketing, and traditional advertising to reach your audience effectively. 

You can also tailor your messaging and content to resonate with the Dutch culture and values, ensuring authenticity and relevance. 

Additionally, by implementing tracking and analytics tools it helps you to measure the effectiveness of your marketing efforts and make data-driven adjustments as needed.

Conclusion

That was the comprehensive guidance on starting a business in the Netherlands. We are confident that with the right strategic approach, you can establish a thriving business and attain your objectives. 

In the Netherlands, a well-executed marketing strategy, particularly focusing on SEO, holds paramount importance for ensuring your business's growth in the digital realm. 

Implementing SEO tactics enables you to bolster your online visibility and attract potential customers. Moreover, developing high-quality, SEO-friendly content enriched with relevant keywords can significantly drive up website traffic and revenue. 

Explore the benefits of our personalized SEO Services, and entrust us to optimize your listings, content, and website with pertinent keywords. Together, let's propel your business toward digital success!