If you decide to start our own business in the Netherlands, there are many possibilities. You can open a small store, create a company independently or with partners, become a freelance or professional.
But before you start, you have to be well informed, keep in mind that being your own boss shall have many advantages, but is not without risks and responsibilities.
It is important to understand the difference between being employee and entrepreneur. When you are employee, the employer is responsible for payment of social premiums and wage tax to the authorities. Maybe your income is lower than an case of entrepreneurship, but you have a lot of security and protection. If you are the entrepreneur, you will be responsible for withholding and paying social premiums and wage tax.
How to register at a virtual office in Amsterdam?
Setting up our own company in the Netherlands will not take much time: utmost a few weeks. As a starting point you have to know that if you want to establish a business in the Netherlands, you have to register your company, a virtual office Amsterdam, is very suitable. You can obtain more information from your company formation specialist. Registration with the trade register is mandatory for any Dutch business, and the company will have to pay a fee to be registered. The notary will register the company within a day after the formation of the company. A rental agreement for the virtual office shall be concluded before the moment of incorporation as proof to the notary that the registration address can be used by the newly established company.
How to obtain a VAT number in the Netherlands?
Once the company is registered, the tax authorities will provide companies which provide good and services with a VAT number. Holding companies normally do not have a VAT number. Through this number the value added tax is charged and paid. The Dutch VAT number can also be used as an EORI number. The number will automatically activated at first use.
The VAT has to be mentioned in the invoices, which you have to keep for a period of 7 years. In case you stop your VAT activities though continue your company, you can request to terminate the number. When you want to close the business, the shareholder will have to resolve to dissolve, unsubscribe from the trade register of the Chamber of Commerce. This terminates the VAT number.
How to handle company formation in the Netherlands?
Prior to this step, we have to Consider the Following:
- Have a name for the company
- Choose a legal form for the company
- An extended first financial year
- Capital amount and currency
There are not many limitations to the name of the company altough it should not cause confusion. This can be the case when using a company name which shows similarity with the name of your competitor. Most entrepreneurs chose for a limited liability company or sole proprietorship. In case of a substantial turnover a limited liability company is strongly advised. An extended first financial year can often bring the start up costs somewhat and limit the paperwork. The Netherlands offer full flexibility in regard of the capital amount and the currency the capital with be donominated in.
How to plan the Dutch company registration?
If you do not have Dutch nationality and want to start a business in the Netherlands, you shall find a good formation specialist helping you with the formalities of Dutch company registration.
The incorporation process can be executed remotely using notarial certified passports and legalised powers of attorney. When you plan to visit the Netherlands, an identification in person can safe you from the paperwork. Dutch notaries are able to provide bi-lingual incorporation documents.
Can I bring my business from abroad?
In the Netherlands, legal entities from European member states are recognized.
If you have your company abroad, you can transfer the seat of that company to the Netherlands by registering it with the Chamber of Commerce. Also the legal form can be converted in a Dutch limited liability company (BV), called a cross border conversion. In general there will have to be tax advantages or legal obligations which can not easily be transferred to make it worth to transfer the seat or apply a cross border conversion.
Can I open a Branch in the Netherlands?
It is necessary to register a branch company with the Chamber of Commerce. It is a faster and cheaper way than the option of setting up a company. Losses from the branch can be deducted directly from its parent in the foreign country. It can also be a sales office, or production, or even just for representation, market research, or for information gathering. In that case, it is not constituted as an independent legal entity, but is part of the foreign parent. A disadvantage of a branch can be the reluctance of banks to open bank accounts or clients and business partners to do business.
More information on Dutch company formation and help you can get from Netherlands | ABiLiTieS Trust.