- Thinking of starting a business in the Netherlands? The Netherlands government highly values foreign direct investments and has provided foreign investors with a business-friendly environment in the Netherlands. The nation lays out numerous attractive benefits to facilitate and ease the integration of international business owners into the country’s economy. Prior to starting a business in the Netherlands, while it is necessary to register company in the Netherlands first, you should also develop a deeper understanding of the Netherlands’s unique culture and way of life.
- Starting a business as a foreigner in the Netherlands is not complicated; nonetheless, understanding the business environment here, market dynamics and characteristics, as well as the workforce, can help you succeed. Whether you wish to transfer your existing business or start a new one from another country in the Netherlands, gathering knowledge on the local market is critical. From this vantage point, you may engage in investigating similar company concepts, do market research, and get advice from our experts.
- In this article, Tetra Consultants has outlined the important point of consideration as to why the Netherlands has the best business environments and the things you need to know to get started in the Dutch market.
Why start a business in the Netherlands as a foreigner?
The Netherlands is very offering and there are plenty of opportunities you can explore, so if you need guidance on how to run a successful company as a foreigner, you can definitely rely on our business consultants.
- Access to EU market: The fact that the Netherlands is a member of the EU undoubtedly plays a significant influence, since this has allowed the Dutch to establish excellent relationships with the majority of countries across the world. The European Single Market allows you to freely import and export products and services throughout the EU.
Aside from that, the Netherlands’ location has proven to be a tremendous benefit for merely practical reasons. Schiphol and the port of Rotterdam are two of the most important logistical gateways for commodities entering and leaving Europe.
- Strong economy: The Netherlands is routinely ranked as one of the most competitive industrialized economies in the world. It has an appealing business and investment climate and is still a popular destination for commercial investment from the United States and internationally.
The Dutch economy’s strengths include a stable political and macroeconomic environment, a well-developed financial sector, a strategic position, a well-educated and productive labor population, and high-quality physical and communications infrastructure. Investors in the Netherlands benefit from its highly competitive logistics, which are anchored by Europe’s biggest seaport and fourth-largest airport. In terms of telecommunications, the Netherlands has one of the highest levels of internet penetration in the European Union (EU) at 96 percent and is home to the Amsterdam Internet Exchange, one of the world’s major data transit hubs.
- Taxation favours for foreign investors: The Dutch taxation structure, which favors foreign direct investments, is one of the numerous reasons why the Netherlands is a desirable place to establish a business.
Those who want to minimise their taxes in the Netherlands can take advantage of numerous benefits when forming a specific type of company. One of the best solutions for this purpose is a limited liability corporation. Another approach for international businesspeople to reduce their taxes is to invest in certain sectors.
Furthermore, ex-pats benefit from the ‘30% ruling’. This helps compensate for the extra costs incurred by an ex-pat working abroad, whereby 30% of their income is exempt from income tax. There are, of course, some conditions that must be met.
- The easiness of starting a business: According to the World Bank, the Netherlands is one of the simplest European nations in which to start a business. Thanks to the modern internet system made available to investors by the Dutch government, the business registration process may be finished in a matter of days. Furthermore, foreign businesses that desire to relocate here do not need to meet any further conditions other than getting residency permits. Further, the requirement of having a resident director can be filled by a nominee. Tetra Consultants team can assist with the provision of nominee director services who will not be involved actively in your business operation.
- Access to a large talent pool: In comparison to other European nations where access to the local labor force is difficult, the Netherlands is the polar opposite: access to bright, multilingual, and competent workers is rather simple. This is because the Netherlands draws a large number of young people from surrounding nations.
- Innovation: The World Economic Forum ranks the Netherlands as the fifth most innovative and competitive country in the world, while Forbes Magazine ranks it as the third finest country in the world for business.
Because the Netherlands is one of the most technologically sophisticated countries in the world, it relies on new sectors as well as established ones. Those interested in innovation will so find it simple to expand their efforts here.
- Social benefits: The Netherlands is also an attractive country for ex-pats. The country’s second language is English. The Netherlands is also seen internationally as an open and tolerant country so employees and employers alike feel at home here.
Want to start a business in the Netherlands? Navigate the structure!
Before you start a business in the Netherlands, you must evaluate a variety of legal structures. Knowing which business structure best matches your requirements and intentions, whether you want to create a company or grow through a Dutch branch—will allow you to make educated decisions while reducing risks. If you want to start a business in the Netherlands, the following are the most popular options:
- Dutch BV: Setting up a Dutch BV (Besloten Vennootschap) or Private Limited Company is rather simple. It is the most popular choice for international investors wishing to start a business in the Netherlands. It does not need a minimum capital contribution, a local shareholder, or a local director. However, the services of a Dutch notary are required to notarize the articles of incorporation and register company in Netherlands.
- Dutch NV: The Dutch NV (Naamloze vennootschap) or the public limited company is an alternative to the Dutch BV. To start a public business in the Netherlands or a Dutch NV, an investor needs at least €45,000 as a starting capital. This is the only legal entity in the Netherlands that can get listed on the stock exchange.
- Dutch branch: A company’s Dutch branch is not considered a legal entity in the Netherlands. Needless to say, to register a Dutch branch, there must be an existing company overseas. Foreign investors usually take this option to enter the Dutch market. To set up the branch, it must be registered at the Chamber of Commerce. It does not require paid-up capital, but registering a Dutch branch requires the translation of legalized company documents.
- Navigating the country of the Netherlands’ complex business climate as an entrepreneur planning to register a company in the nation might be a challenging process – a hassle to say the least. As such, Tetra Consultants hopes that this article has provided you with a much better understanding of the business culture of the Netherlands so that you can truly decide whether you should do so yourself. So, what are you waiting for?
- Contact us to find out more about the process of starting a business in the Netherlands, and our dedicated and experienced team will respond within the next 24 hours.
- Tetra Consultants will not only empower you by helping to navigate the different regulations of Liechtenstein but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges