The flourishing city of Utrecht is famous for being creative, healthy, talented and smart. Its residents, knowledge institutes, local authorities and companies work in collaboration to achieve social sustainability. This is the ideal location for establishing a business, thanks to its central position on the map, accessibility, favourable business atmosphere and highly qualified workforce. Furthermore, Utrecht offers various office and business locations in its historic inner part and its innovative Science Park.

One of the most competitive regions in Europe

According to the EU Regional Competitiveness Index Utrecht is the second most competitive region on the European continent after London. The region offers excellent business climate, qualified workforce and a strong economy. The region achieves regular high ranking, much better than the indices for Paris, Frankfurt and Amsterdam. Utrecht is famous for its superior digital infrastructure, institutions for higher education, job market, innovation and technology, and healthcare.

Healthy city life

Utrecht is the healthiest and fastest growing city in Holland. It has achieved outstanding results in combining economic growth and rapid urbanization with the ambition of healthy living. Health, prosperity and well-being are the main points in the development of a sustainable and healthy environment for living. The region cooperates for innovative, creative solutions, services and products to guarantee that the environment remains liveable, healthy and green.

Central location, excellent accessibility

Many consider Utrecht as a central intersection point. It offers great accessibility by any means of transport. All important Dutch highways lead to the city. Schiphol Airport is 30 minutes away. Utrecht boasts the biggest railway station in Holland that offers transport to any destination, both in the country and abroad. The business park of Lage Weide accommodates a large inland port. Furthermore, Utrecht has an outstanding digital infrastructure.

Young, qualified labour force

The smart, vibrant Utrecht has young and bright residents. The city hosts many students and every year it attracts a new flow of smart, talented, young individuals. Many of them decide to remain in Utrecht and work here after their graduation. In general, it is fairly easy to reach ambitious entrepreneurs and innovative talents in the area of Utrecht.

High living standards

Utrecht is a compact metropolis, welcoming, open and accessible. Due to its relatively small size, the city can easily be explored by bicycle or on foot. Utrecht is popular with its charming historic inner city, various cultural amenities and extensive shopping area. It offers lively festivals, gorgeous parks, inspiring museums, exciting architecture and unique events. The city offers an excellent environment for living, working and studying and takes the second place in the countdown of the most inviting cities in Holland (Dutch Councils Atlas, 2017).

International communities

The region of Utrecht hosts sixty thousand international professionals and 900+ foreign companies. Its International School has a diverse range of European Baccalaureate programmes for secondary and primary education. For international students pursuing higher education, Utrecht has an International Campus and a University College. The Centre for Expats in the city welcomes newcomers to obtain practical information on studying, working and living in Utrecht.

In case you are interested in establishing a business in Utrecht, contact our incorporation agents. They will lead you through the process of starting a company in the Netherlands.

The Netherlands has a rare combination of characteristics that encourage international investments and form the country as a competitive and highly popular business centre.

Holland is strategically located in Western Europe, allowing investors to establish suitable bases for their shipping and trade operations. Furthermore, the outstanding infrastructure and accessibility make the country an extremely popular destination for European, American and Asian investors who have opted for setting up an office in the Netherlands.

Advantageous taxation principles

The tax system in the Netherlands offers international investors a 15% income tax for profits up to EUR 245 000 per year and 25% for amounts exceeding this threshold. It also ensures certainty and clarity regarding future tax liabilities. Investors can take advantage of certain benefits related to royalties, interests, debts, taxation of dividends and loss structuring. Holland offers various investment deductions and tax reliefs. A special tax regime called “innovation box” provides for preferential tax rates for income generated as a result of the development of intellectual property. Furthermore, freight companies benefit from a tonnage tax regime.

Holland has concluded numerous treaties for the avoidance of double taxation (>95 agreements). Therefore entities deriving income from Holland and a country that has signed a double tax treaty with Holland can be taxed using preferential rates.

Sound legal and financial systems

In addition to the abovementioned tax benefits, the Netherlands has a straightforward legal system allowing international investors to efficiently deal with legal issues arising from different transactions, e.g. patent/trademark or tax. Judgements from other countries can be enforced in Holland under specific conditions. As an EU member, Holland conforms to all European laws relevant to trade and business.

The area of Amsterdam hosts numerous globally acknowledged financial institutions and banks. Various banks have established branches in Holland, thus contributing to the good financial climate. Many investors of private equity and managers of trust funds have chosen the Netherlands as their base of operations.

Highly educated labour force

In case you intend to establish a business in the Netherlands, you are free to choose from different types of companies. If your scope of activities includes shared services, customer care or distribution/logistics, Holland is the perfect choice as it offers an unparalleled business environment for such operations.

Furthermore, Holland’s workforce is among the most qualified, motivated and flexible in the world. Most Dutch employees have good knowledge of two foreign languages, so they are a perfect match for foreign companies in any industry sector.

Great logistics and infrastructure

The Netherlands is a popular European destination for companies thanks to its superb transportation network. The country boasts the largest port in Europe, the Port of Rotterdam, and the best European airport for transport of cargo, Schiphol Airport.

As regards innovation and technology, Holland has made investments in e-commerce, communications, outsourcing and high-speed digital systems for communication and internet. The country has adopted the latest cell phone and computer technologies, creating ideal conditions for companies needing modern technologies for their operations.

If you intend to establish a Dutch company and take advantage of the opportunities for business offered by the country, please, contact our local agents in company formation. They will assist you in completing the necessary procedures.

A Netherlands-based company may decide to sell shares due to the expansion of the business or as a plan to accumulate larger income. The acquired capital may be directed towards debt repayment or reinvestment in the business.

A Dutch company can sell or transfer shares only in accordance with the provisions of the Association Articles. Share transfers also require the preparation of notarial deeds. Companies can become public by entering the stock market and offering shares publicly. Only certain company types can use this option. Our Dutch experts in company formation can provide you with detailed information on the features of different commercial entities in the Netherlands.

Are you interested in buying Dutch company shares? Read here

Selling company shares in Holland

Only some types of Dutch companies are able to sell shares publicly. NVs (public limited companies) can list their shares in the Stock Exchange. BVs (private companies with limited liability) do not have this option, as their shares are registered privately and cannot be transferred freely.

The best way to sell stocks for most Dutch public companies with limited liability is to go on the exchange market. In Holland company owners go public using Euronext.

Transfer of shares in Holland

In the Netherlands, registered shares are transferable through notarial deeds. The process must take place in the presence of a Latin notary. Any developments or limitations regarding the share transfer are noted in the association articles of the private or public Dutch company with limited liability.

Dutch companies can be acquired through purchases of shares or assets. The two mechanisms are different with respect to the transfer of liabilities. In share purchases, the buyers also acquire the obligations and responsibilities of the respective companies.

Our Dutch agents specializing in company formation will be happy to provide you with further information on buying and selling company shares, and on the possibilities open to investors.

Investors who have decided to buy shares of Dutch companies are able to purchase them either directly or via a plan for dividend reinvestment. They can acquire the ownership shares of a particular company or implement a larger plan for stock investment in multiple companies.

Holland welcomes international investments and foreign companies are free to open headquarters in the country. The business climate is equally appropriate for making large investments and opening Dutch companies with the perspective to sell shares to investors from outside.

Are you interested in selling Dutch company shares? Read here

Direct purchases of stocks in the Netherlands

A widely used method to purchase shares in Dutch companies is to deal directly with the entities issuing them. Big international corporations are among the most attractive businesses and most of them provide plans for direct purchase of stocks. One of the advantages of this mechanism is that commissions are avoided, even though a minimal deposit is usually required.

Stock purchase is beneficial for both the buyer and the issuing company. This is a way for investors to maximize their earning, while companies raise additional budget at reduced costs. Companies allowing direct purchase of shares publicize this information. Our Dutch agents specializing in company formation can assist you with details about local companies offering shares publicly and on the Euronext listings.

Purchasing shares in the Netherlands

There are two other options open for investors: to purchase stocks through a plan for dividend reinvestment or brokerage.

Some companies offer plans for reinvestment of dividends, allowing investors to reinvest the amounts accumulated in dividends by buying additional shares.

Brokerage is the other method to purchase Dutch company shares. This is a preferable option for entities that want their investments in Holland to be managed by experts. The extra management of accounts is more costly compared to other options.

Would you like to learn more about establishing a business or investing in Holland? Please contact our Dutch agents specializing in company formation.

 

The labour force in Holland is an essential factor for the country’s progress. The strong Dutch economy is growing rapidly, relying on well-developed infrastructure and skilled, productive employees. Undoubtedly the superior training and adaptability of the Dutch employees contribute significantly to the welfare of the Netherlands in the long run.

Our local consultants in company registration can give you details on the legal procedures for hiring employees in the Netherlands.

Highly qualified professionals

Dutch employees are ready to embrace changes and to acquire new skills and competencies. The national labour force is among the most flexible worldwide. The same applies to the local employers who readily make investments in their staff and motivate them to take up new challenges.

The Dutch labour force has one undeniable advantage: most people speak two or three languages. This is important for the role of the Netherlands on the European economic scene. Dutch employees are constructive, skilled and productive. They are well educated and open for cooperation. As regards the level of qualification, Holland is third in the global top for higher education.

The labour market in Holland

Foreigners who have moved to Holland only a few years ago with the aim to work for local companies now possess the skills to establish their own businesses. Regions such as West Holland offer great opportunities to entrepreneurs intending to create start-ups.

The labour market in Holland has evolved accordingly and the current demands are mainly focused on engineers and technicians. West Holland contributes significantly to the workforce qualifications because many of its universities cooperate with local companies to educate prospective employees.

Our agents in company formation in the Netherlands can help international investors planning to start Dutch businesses.

The law on employment in Holland

The Dutch law on Labour and Employment is quite complex. A contract for employment in the Netherlands may be concluded in oral or written form. In any case, the employer has to clarify certain aspects to the employee. Some of the key aspects are:

1. job description and position;
2. hiring date;
3. place of work;
4. temporary or permanent employment;
5. salary;
6. working hours;
7. rights to pension (if relevant).

Employment contracts can be concluded for a particular or indefinite time period. Employment agreements often include restrictive clauses related to confidentiality and non-competition. Read here on appointment and dismissal of staff in the Netherlands. 

International employees in Holland

The Netherlands has its own skilled labour force, but also attracts international talent. Foreign employees need residence permits to work in Holland. Highly qualified individuals can take advantage of the visa program for skilled migrants facilitating the procedure of hiring foreign staff in the Netherlands. The employer also needs to obtain a special employment permit. Swiss and EEA nationals are excluded from the rule.

Would you like to receive more information on the employment legislation in Holland? Contact our experts.

Thanks to its history of innovations and exceptional digital infrastructure Holland hosts the largest ecosystem for start-ups in Europe. In fact, as reported in the 2016 Start-up Scoreboard of the EDF, the country has the most beneficial business climate for start-ups in the European Union. With 10+ start-up and technology centres in a ninety-minute radius, the Netherlands provides many options for the establishment of innovative companies operating in any sector. The Netherlands is also referred to as ''The European Silicon Valley''. The Dutch cities offering the best conditions for start-ups are listed below.

The Hague

The international centre of justice and peace is currently the largest security and safety cluster on the European continent due to its many embassies and international organizations alongside some four hundred security companies. The Security Delta Campus in The Hague supports specifically start-ups in the field of cybersecurity by providing living laboratories, office spaces and training facilities.

HackerOne is among the most interesting start-ups in Den Haag’s security cluster. The company is an American-Dutch venture conceived by security leaders working for Microsoft, Google and Facebook. In 2015 this resourceful start-up established a centre of operations in Den Haag, after raising USD 25 million Series B funding. Until now it has provided services to fifty companies, including Twitter, Uber, Slack and the US Defence Department, finding more than 21 000 bugs.

Read more on the city of The Hague

Rotterdam

Rotterdam is the largest city in Holland, after Amsterdam. It boasts the biggest and most active shipping port in Europe. In recent years Rotterdam has been acknowledged as an excellent location for start-ups. Last year it was featured in Financial Times as a suitable location for launching new ventures. As a shipping centre, Rotterdam has encouraged the development of start-ups specializing in port-related technologies. They are aided by a dedicated Innovation Lab, established jointly by the YES!Delft incubator and Rotterdam’s Port.

Last year the Cambridge Innovation Centre (CIC) based in the USA opened its first international hub in Rotterdam. The city is located close to numerous renowned universities and the CEO of CIC, Tim Rowe, compared it to Boston, USA.

Read more on the city of Rotterdam

Utrecht

Utrecht is located at the heart of Holland and strives for healthy people, minds and environment. It is maintaining one of the most sustainable and healthiest living environments in the world and provides exceptional quality for business and life. The EC has recognized it twice as a leader among the competitive regions in Europe.

Utrecht hosts approximately 400 start-ups that benefit from the local institutions and resources. It is the home of UtrechtInc, rated in the top 10 for European incubators, and a Science Park fostering innovation in cancer research, stem cells, sustainable urban planning and bioprinting.

Read more on the city of Utrecht

Amsterdam

Holland’s capital is a global destination for businesses, famous among visitors with its scenic canals. Dubbed the capital of start-ups in mainland Europe, it offers all the necessary ingredients to transform an idea for a start-up into a business generating billions. Amsterdam hosts top European accelerators, such as Startupbootcamp and Rockstart, and establishments of giants like Salesforce, Uber and Google.

The unicorn company Adyen operating in the field of financial technology was started in Amsterdam. It was established in 2006 and is currently valued at USD 2.3B. According to Fortune, it is certainly a unicorn that you can bet your money on.

Read more on the city of Amsterdam

Eindhoven

Utrecht is the heart of the Netherlands, while Eindhoven with its region of Brainport is undoubtedly the country’s brain. In 2011 the Intelligent Community Forum rated it as the smartest region in the world. Eindhoven, a centre for high technology development and design, boasts a huge network of R&D and academic facilities, e.g. the High Technology Campus and its Holst Center dubbed Europe’s smartest square kilometre, as well as Eindhoven Technology University. The active collaboration within this network has enabled Brainport to generate USD 2.8B in innovation spending by private organizations.

The lucrative technology environment in Eindhoven attracted the interest of the Singularity University based in the Silicon Valley. As a consequence SU opened its first international department there: an innovation centre bringing together representatives of leading research institutions, start-ups, businesses and the government to work on new revolutionary technologies, such as food scanners, DIY drones and self-driving automobiles.

Read more on the city of Eindhoven

Are you intending to establish a start-up in Holland? It is easy to do so with the special Start-up Visa for international entrepreneurs. Get in touch with our team to receive further information and consultancy on start-up establishment in Holland.

Holland has strict rules that regulate the liability of public and private limited company (NV and BV) directors, both prior to and after a declaration of bankruptcy. The liability of director(s) in BV and NV companies is limited if the company capital is paid up by the shareholders. The public notary will then legalize the statutory capital as 'paid in full'. The company will be liable for all actions, with a few exceptions which we will explore in this article. To advise you on the matter, it is of the utmost importance to have an experienced notary and incorporation agent.

Civil liability with respect to the company

When a company director makes choices that, at a future point, prove to be destructive to the business, this does not necessarily mean that he/she will carry personal liability for the outcome. A certain degree of calculated risk is inherent to operating a business. Therefore the Dutch corporate laws give business directors considerable freedom in fulfilling their job responsibilities.

Still, according to Art. 2:9, Civil Code of the Netherlands, directors should fulfil their tasks with appropriate attention and care. Failure to do so shall result in personal liability for any subsequent damages to the business. According to the Supreme Court of the Netherlands, a director can be held personally liable in case of gross misconduct. The court also gives guidance for measuring the extent of misconduct. If a fully experienced, reasonably acting director would never take such actions then the behaviour is considered as serious misconduct. Some examples include:

• Adoption of illegal or fraudulent practices;
• Taking unsubstantiated financial risks;
• Stripping of assets;
• Diversion of company funds for private use;
• Inadequate insurance of tangible assets.

In case the company has two or more directors, all members of the Directors Board share equally the liability for any damages. A director can avoid liability only if able to prove that she/he did not know of the serious misconduct or took all reasonable measures to stop the detrimental actions. Therefore, if a director disagrees with the course of action chosen by the Board, it may be in his/her best interest to step down and avoid accountability.

Civil liability with respect to creditors

Under particular circumstances, company creditors can hold separate directors liable for damages resulting from decisions made in their course of duty. Some examples include the provision of inaccurate financial data or taking impracticable initiatives on the company’s behalf that are evidently impossible to fulfil.

Post-bankruptcy liability

When bankruptcy is declared, the Civil Code provides the trustee with the option to hold the directors of the company personally responsible for the fund deficit that has occurred as a result of the bankruptcy.

According to Art. 2:248, Civil Code of the Netherlands, in case of bankruptcy the directors share equally the liability to the estate as regards the portion of the bankrupt entity’s debts that would not be covered by its asset liquidation. This applies in cases of manifestly improper management on behalf of the directors when it can be concluded that their actions represent a significant cause for the bankruptcy.

It is automatically considered that the Board of Directors has performed its duties improperly if the next circumstances are ascertained:

• The management has not submitted the company’s annual financial reports at the Dutch Commercial Chamber within the specified period following the financial year’s end;
• The company’s accounts were not kept in line with good practices and the records give a false impression of the company’s actual financial position.

In these cases, it is the directors’ responsibility to prove that the inability to submit the company reports or administrate them correctly is not among the important causes of bankruptcy. Under such circumstances, it may be very difficult for them to avert liability.

On the other hand, the trustee may hold them liable due to gross misconduct (as indicated in the point on civil liability with respect to companies). Then, however, the trustee must prove that gross misconduct on behalf of the directors led to the declaration of bankruptcy.

If the trustee has reasons to believe that individuals who are not official directors but have presumably controlled the business are mostly responsible for the misconduct or failure to fulfil the company’s duties, the Civil Code (Art. 2:248) gives the trustee the right to hold these individuals liable, as if they were actual directors. In case a company director is a legal person, the Dutch law allows for piercing of the corporative veil, so that the actual individuals behind the entity are reached. Then these individuals are held responsible for the bankruptcy. Therefore appointing holding companies or foreign legal entities as directors cannot protect the individuals behind the entities.

Fiscal liability

The directors of legal entities can be held responsible for overdue tax liabilities, provided that they have failed to report the entities’ inability to transfer the respective payments (e.g. outstanding payments for Value Added Tax, withholding tax, etc.) within the legal period after the tax liabilities have become due. If the Tax Office declares a director responsible for outstanding tax payments, the director carries the burden of proving that the failure to pay the tax liabilities resulted from reasons outside of his/her control. Fiscal liabilities often arise after bankruptcy since companies become unable to pay their own taxes and the tax authorities focus on the individuals behind the companies.

When asked to name a Dutch city, people tend to come up with Amsterdam, the capital of the Netherlands, famous for its historic landmarks and open-minded citizens. They also think of Rotterdam – proud with the smartest port in the world, or the inventive city of Eindhoven situated in the Brainport region of Europe. But how about Den Haag?

The Hague is home to the Dutch government and has close to 500 000 residents. It is full of legislators, diplomats and leaders on the global business scene. No wonder that it is the birthplace of many international innovations, laws and ideas. Read this article to learn about this important Dutch city and contact us if you would like to receive more information on doing business in Den Haag.

The city of The Hague

The Hague, home to the classic paintings of Vermeer and the royal family, has an important place in the history of the Netherlands. It was established in 1230, originally as hunting grounds of the Counts of Holland. Its name originates from “s-Gravenhage”, meaning “The Hedge of the Count”. The city became the official seat of the Dutch government in 1588.

The Hague continues to host the Dutch cabinet, Supreme Court, State Council and States General. The Gothic Binnenhof complex, a castle serving as government seat, is the oldest functioning parliament house in the world.

The Hague: An international centre of justice and peace

The impressive historical legacy of The Hague in terms of government has earned its recognition as an international centre of justice. The Hague International Peace Conference of 1899 was the first of its kind in the world. Less than half a century later the UN selected the city as its international law centre. Today The Hague also accommodates the international justice and criminal courts where global disputes are often resolved.

Dedicated to security and peace, the city puts a lot of effort in supporting Holland on its way to becoming a secure gateway to the European continent. It encouraged the development of the world’s top cluster in the field of security: the Security Delta (HSD). It fosters cooperation between knowledge institutions, businesses and governments with the aim to achieve superior cybersecurity and build critical infrastructure.

The Hague is home to 400+ companies operating in the field of security. American data and technology companies like Dtex Systems and LeoStat have also recently established registered offices in the city.

The Hague: An attractive business hotspot

Thanks to its strong foundations, Den Haag is a very attractive destination for businesses. Various companies like Siemens, APM Terminals, AT&T, Shell and Samasource have established their European headquarters in the city. As a matter of fact, as many as 49 international companies made investments in the city in 2016.

In addition to private companies, Den Haag also hosts 240 foreign organizations, NGOs and tribunals, e.g. NATO’s Agency of Information and Communication, Europol and the European Patent Office.

The Hague: An experimental ground for innovations

NGOs, private companies and the government work together on this ideal ground for testing new ideas.

Some of the most recent innovative fields of work include the use of drones in emergencies, green energy alternatives and simplification of complex data communication. The first centre for Robotics and Artificial Intelligence of the UN was also established in The Hague.

The city boasts 20+ international higher education institutions and schools that support new ventures. Leiden University is the oldest in Holland and its Innovation Centre is located in the city of The Hague. The Hague also has an official centre for entrepreneurs called Impact City. It hosts programmes like the Innovators Challenge and Startup in Residence.

In case you are interested in starting a business in Den Hague, contact our specialists in company formation. They will gladly provide you with more information on company establishment and investment opportunities in the country.

The Netherlands provides a lucrative climate for foreign entrepreneurs with excellent infrastructure and a constructive strategy for international business. The corporative business environment is among the political priorities. According to Forbes, the Netherlands ranks 3^rd among the world’s top business destinations for 2017.

Many foreign companies benefit from the convenient business climate in the Netherlands. Foreign companies creating jobs and contributing to the country’s economy are highly valued.

The present guide to business culture is intended to help international exporters when dealing with Dutch partners.

Country profile

Language

The official language is Dutch, spoken by approximately 90 percent of the population. Dutch is the most widely used language with respect to national business affairs. Still, the capital of Amsterdam recognizes English as official. In total above 90 percent of the country’s inhabitants claim to have conversational English skills. Therefore many companies planning export to Holland rely on English in their business interactions.

Connectivity

Holland is famous with the best broadband coverage worldwide. About 99 percent of the households have a connection. The average speed of the broadband connection is also among the fastest on the globe: an important prerequisite for various businesses. A number of companies take advantage of this situation. It is not a coincidence that approximately a third of the data centers in Europe have chosen Amsterdam as a location. The most extensive internet exchange in the world is provided by AMS-IX.

Economy

According to IMF, Holland has the 18^th largest GDP in the world. Its GDP amounts to USD 777.5 billion. It is also rated 16^th as regards wealth per individual averaging USD 184 378 per adult. The Dutch economy is the 6^th largest in the EU and it is quite diverse. Ninety-five percent of the top European consumer markets can be reached from Rotterdam or Amsterdam within a day. Thus Holland has a very strong position for trade. Technology, banking, shipping, trade, agriculture and fisheries have significant importance for the country’s economy. The most developed sector is foods, while other major industries are metallurgy, chemicals, machinery, services, tourism and electrical goods.

The currency of the Netherlands is the Euro. In 2002 it replaced the local guilder.

Export and import

The key partners of the Netherlands in import and export trade are Belgium, Germany, Great Britain, Italy, France, China, Russia and the United States. The country is rated 2^nd in the Global Enabling Trade report for 2016, 3^rd in the Index of Global Innovation for 2017 and 5^th in the global ranking of competitive economies of the Swiss IMD.

Centuries ago the geographic location of the Netherlands determined its position as a key trade center and the country has retained this role ever since. The port of Rotterdam is the largest in Europe with approximately 450 M tonnes of shipments passing annually through it. The Netherlands offers much economic freedom, coupled with highly qualified multilingual workforce.

The World Bank’s service for Solutions in Integrated Trade has established that the Netherlands’ import amounts to approximately USD 400 billion worth of products per year, while its export totals USD 445 billion.

The key export partners of the Netherlands in terms of monetary values are Germany (USD 99 billion/year), Belgium (USD 46 billion/year), the United Kingdom (USD 40 billion), France (USD 36 billion) and the US (USD 19 billion). The top export goods include medicaments, petroleum oils, telegraphic equipment and parts/accessories for automatic data processing.

The Dutch business culture

Dutch businessmen are known for their skilled, highly professional approach. The country’s system for higher education is rated 3^rd worldwide and this is reflected in the local business culture. Dutch companies are famous with their high efficiency and productivity due to the skilled workforce, excellent IT infrastructure and practical labor laws in the country.

The visa option for highly skilled migrants enables companies to easily bring professional employees from overseas to Holland. As a result, the country is now home to at least 1 million international workers. In addition, the Dutch labor environment allows employers to easily hire personnel on part-time, flexible and temporary contracts. Thus the Netherland has an incredibly receptive and dynamic business environment.

Entrepreneurs planning to conduct business in Holland must have in mind some particular local customs. One important asset is punctuality. Meetings are organized in an efficient manner and end on time. Promptness is also essential as regards delivery times and commercial relationships.

Dutch business people are known for their honesty (the Netherlands takes the eighth place in the global ranking for Corruption Perceptions of Transparency International), so corruption and bribery are out of the question in their environment. Even the giving of gifts is rather uncommon.

Corporate environmental considerations and social responsibility are quite significant in Holland and must be considered when developing a business strategy.

If you are intending to start a company in the Dutch import/export sector, feel free to get in touch with our local specialists in company establishment. They will give you more details and legal assistance.

 

The media report daily on the mind-blowing achievements of the global leader in high technology – the Silicon Valley in San Francisco. Still, they are missing something. A country that appears quite small on the map is slowly emerging as a new leader in technological innovations. Thanks to its first-class technological and scientific advancements and workforce with excellent qualifications, the Netherlands will soon rival the Silicon Valley.

The home of Philips has the best business climate for start-ups in the EU, highly knowledgeable experts with a knack for technology and open business culture. It has developed an extraordinary European ecosystem for entrepreneurs.

It may seem odd to compare a country with a city, but this is not the intention of the present article. The Netherlands is bigger not only with respect to population and size, but also as regards entrepreneurship and disruptive innovation.

Furthermore, in contrast to the other major leaders on the European sci-tech scene – Germany and the United Kingdom – the Dutch expertise is not centralized in the capital. A number of flourishing technology hubs are scattered on the territory of the Netherlands. The start-up ecosystem radiates from the southern to the northernmost parts of the country and its achievements in the field of science and technology can surely surpass the triumphs of the prevailing backbone of high technology – the Silicon Valley in San Francisco.

Amsterdam

Western Europe’s start-up capital, Amsterdam, is rated third for scale-ups and start-ups in 2016. It attracts tech-savvy experts and growing businesses. Its programmes StartupDelta and StartupAmsterdam support start-ups in their development, establishment of connections and growth. The capital also has its own Science Park housing research institutes, excellent technical facilities, a Database of Business and Science and a special area for cooperative work of innovative start-ups operating in the field of science and high technology.

The financial technology unicorn Adyen was established in the start-up ecosystem of Amsterdam. Now the company is worth USD 2.3 billion. Its clients include Airbnb, Spotify, Uber and Netflix. Furthermore, many companies established in the Silicon Valley have registered offices in Amsterdam, including Uber, Cisco and Google.

Read more on starting your company in Amsterdam

Eindhoven

Eindhoven, where the company Philips was born, also hosts the world’s smartest square kilometre: the business park High Tech Campus. It was the first home of Philips Research (NatLab). Presently the park is a centre for talented specialist qualified in the field of technology with 140+ high technology institutes and companies, including IBM, ASML, NXP, Intel and Philips located there.

Additionally, Eindhoven has an extensive network of Research and Development and academic facilities, such as the Eindhoven TU/e. The extraordinary design and high-tech climate in Eindhoven has prompted the Singularity University based in San Francisco’s Silicon Valley to open a hub for innovations in the city. Its mission is to gather industry leaders representing research institutions, start-ups, other businesses and the government with the aim to design and test in practice technological solutions to humanity’s greatest challenges.

Groningen

Famous with its talented specialists, Groningen is second only to Amsterdam with respect to the number of prosperous start-ups. The Deloitte’s Technology Fast 50 ranking includes the fifty fastest growing technology companies in the Netherlands. In the 2016 ranking, 12 companies were located in Amsterdam and 7 in Groningen. Furthermore, the internet search giant Google chose Eemshaven (North Groningen) as the location of its new data centre.

Groningen is also the home of the most resourceful business growth accelerator for existing companies and start-ups in Northern Holland, VentureLab North. The Founded in Groningen portal supports, promotes and connects companies, initiatives and start-ups. Its impressive background includes 435 businesses established in the city.

Delft

Besides hosting the production site of the popular Delftware, the city is the home of the largest technological university in the country – TU Delft. It also has one of the greatest student populations in the country: approximately 10 to 15 percent of its 100,000 citizens are students. This lively city is focused on the development of high technology innovations. Hardware and engineering are two of the strong areas of work in Delft.

The high technology ecosystem of the city is the birthplace of YES!Delft, an incubator for start-ups. Established 12 years ago, it has already helped 200+ companies working in the field of technology, including inkless printing and modern laser technologies.

Utrecht

The city is among the most sustainable, healthiest environments worldwide and has given rise to many modern innovations. It has a Science Park, famous for its achievements in 3D-bioprinting, regenerative medicine, cancer research, organoids and stem cells, and smart solutions for urban sustainability. The park hosts 80+ businesses and organizations with a total labour force of 22,000 or about 21 percent of the city’s population.

Furthermore, the local ecosystem gave rise to a top 10 European incubator: UtrechtInc. The incubator also opened a creative centre for sustainability in start-ups called the Garage.

Read more on starting your company in Utrecht

The Hague

The City of Justice and Peace may be the last on our list, but it is definitely not the least in importance. The Hague is the spine of the Dutch security branch. It hosts the best European security cluster: the Security Delta. It helps start-ups in the field of cybersecurity, and in cooperation with the government, knowledge institutions and businesses it supports innovations in urban and national security, cybersecurity, forensics and critical infrastructure protection. The Hague Security Delta Campus is among the ten Dutch locations designated as major start-up hotspots by StartupDelta.

One of the many successful start-ups in the field of security established in the city is HackerOne, a Dutch-US company representing an ethical platform of hackers. Companies can employ hackers to search for security issues and bugs. In 2015 HackerOne generated a profit of 25 million USD and has worked with Slack, Twitter and Uber.

Read more on starting your company in The Hague

Holland: the European Silicon Valley

Several other thriving technology hubs in Holland are also worth mentioning:

• Leiden hosting the Bio Science Park;
• Twente with its accelerator programme Novel-T;
• Rotterdam with its Cambridge Innovation Centre and Start-up Foundation;
• Wageningen with its StartHub student incubator and StartLife – an organization supporting entrepreneurs in the sector of Agriculture and Food.

In summary, Holland fosters an extraordinary ecosystem for game-changing innovations and developments in the field of science and high technology, highly qualified IT professionals and aspiring entrepreneurs. Thus the country deserves to be called the European Silicon Valley.

In case you intend to establish a company in a popular Dutch start-up city, our specialists in company formation can give you more details on registering entities in The Netherlands and assist you throughout the process.

If you plan to open a cafe, a restaurant or a hotel in Holland, there are numerous regulations and rules you have to comply with. This guide will help you to determine quickly the scope of your obligations.

The present plan is only a guideline. There might be other relevant obligations not mentioned here. Please, contact us, if you need further information.

Check if you meet the requirements for a long-term stay in Holland

Entrepreneurs planning to stay for long periods need to meet a list of conditions. Sometimes a permit for residence is necessary.

Choose your office and check the plan for local zoning

Your registered office should conform to the plan for zoning in the particular area. Alternatively, you can ask the authorities to make an exception or ask the municipality to alter the plan for zoning.

Submit an application for a permit to build

In case you plan to build, renovate or modify an existing construction, you will probably need to apply for an Omgevingsvergunning (a comprehensive permit to change physical aspects). In the past, this document was simply called a permit for building.

Consider the requirements for fire safety

To guarantee that the catering establishment is safe with respect to fire, you will most likely need a permit for occupancy (included in the Omgevingsvergunning). In particular cases, however, an occupancy notification may be sufficient.

Consider the rules for the protection of the environment

All owners of catering businesses need to respect various environmental guidelines. Most often filing an application for an Omgevingsvergunning is unnecessary. It is sufficient to register your company at the local municipality.

Submit an application for a permit to operate a catering company

Some municipalities require operating permits for catering businesses. The requirements are connected to decency, safety and public order.

Register your business with the Netherlands Food and Consumer Product Safety Authority (NVWA)

In case your company produces, sells or processes food products, a registration at the NVWA is necessary.

Prepare or acquire an approved hygiene code

Drink and food preparation needs to be in line with a code on hygiene. You can prepare such a code yourself or use an already certified document (e.g. of the Board of the Catering and Hotel Industry). Hygiene codes need to follow the European Hazard Analysis and Critical Control Points (HACCP) principles. The compliance to a hygiene code approved for the sector automatically fulfils all legal requirements.

Submit an application for a licence that allows you to serve non-alcoholic or alcoholic beverages

In case you plan to sell or offer alcoholic beverages for consumption in your business, you need to obtain a licence for alcohol from the local municipality (under the Catering and Licensing Act). A drink and food permit is sufficient for selling non-alcoholic drinks.

Obtain a permit for running a terrace

If you plan to service a terrace in public space or private property, you will most likely need a permit issued by the municipality. Terraces are permitted only as parts of existing hotels and catering establishments.

Obtain a permit for gaming machines

If you plan to install a gambling machine in the catering establishment, you need to apply for a specific permit at the local municipality.

Submit an application for music licences

You have to obtain a special permission for playing music in public. Sena and Buma regulate the permission and issue licences.

Identify potential sources of risks and assess them

If you plan to employ personnel, you need to draft the so-called risk inventory, complete with risk evaluation (RI&E) prior to opening your catering establishment. The catering and hotel (Horeca) RI&E model fits this purpose.

Register at the Dutch Trade Registry and Tax Administration

All new businesses need to be registered at the Commercial Registry of the Netherlands. Your details will be passed on to the tax authorities. Therefore you do not have to go through a separate registration procedure with the Tax Administration.

Our local incorporation agents can help you in the process of establishing a hotel, restaurant or bar. Please do not hesitate to contact us.

 

Selling services or products online requires more than just creating a website. First of all, you have to register a company at the Trade Registry of the Dutch Commercial Chamber (KvK) and choose a name for your domain, then keep financial records and make payments for income and value-added tax (BTW). Starting an online shop in the Netherlands involves compliance with different regulations and rules, including particular requirements for selling online. The present guide will help you figure out what your obligations are. For more information and legal assistance, contact our incorporation agents.

Tip: For foreign entrepreneurs and non residents, a Dutch BV company is a more logical choice.

Is your online shop considered a real business?

Up to a certain point, an online shop may be just a hobby, but when does it become a real business? The Commercial Chamber at the Customs and Tax Administration has set the following seven criteria:

1. independence;
2. profitability;
3. capital;
4. company size (in money and time);
5. entrepreneurial risk;
6. customers;
7. liability.

Registration at the Dutch Trade Registry and Tax Administration

All new businesses have to be registered at the Dutch Trade Registry. If your entity is a cooperative or a sole proprietorship, you will be issued a value-added tax number and your details will be passed to the National Customs and Tax Administration, so you do not have to go through a separate registration procedure with them. Associations and companies with limited liability need to be registered separately. For more information, please, refer to the articles on legal business forms.

Register the name of your domain (address on the Internet)

To purchase and register a domain, you need to reserve its name at a registrar. The name should be unique, chosen with respect for other companies’ trade names, trademarks and copyrights. The registrar shall forward your request to the institution administering domain names.

In case you have hired a designer to create your online shop, you will be allowed to modify it yourself only if you own the copyright. It is best if the designer agrees to waive his/her rights. Another option is to obtain a licence regarding the online shop use.

Third party E-commerce stores

Perhaps you will want to use third party E-Commerce portals such as Amazon Netherlands, Bol.com (biggest online retailer in the Netherlands), Ebay (Marktplaats in The Netherlands) or Shopify. For Bol.com and Amazon we have a more thorough guide on how to get started.

Applicable taxes

If your online shop is generating income, the authorities will probably consider you an entrepreneur liable for income tax. In this case, your profit from the business will be taxed. You have to pay value-added tax (BTW) for most services and products. In Holland, there are three different value-added tax rates. Some services and goods can be exempted from VAT. The VAT is charged to the customers and transferred to the office of the tax authorities. If your turnover exceeds a certain amount in another member state (MS) of the EU, you need to charge value-added tax using the rate of the respective state. You are liable for VAT in that MS too, so you must also register your business there. Thresholds for remote sales differ depending on the country.

Entrepreneurs must keep records of their business transactions. The same rules apply to online shops. The records must meet certain requirements. For example, you need to keep the records in your archive for a minimum of 7 years. You also have to record the hours that you spend working for the online shop, if you want to receive an entrepreneur allowance.

Provide straightforward information online

Your website needs to state clearly the identity of your company. You have to include your address, number in the commercial registry and VAT number. Also, you need to inform the customers of the features and prices of the products you offer, the preferred payment method, the ordering process, the warranty, the period for product return and the terms of delivery.

Make sure that the personal details of your customers are safe

Ask permission before placing cookies on your customers’ computers

Cookies are small files that save browser settings on the PCs of your customers. They allow you to follow your clients’ surfing patterns and introduce targeted adverts. You can use cookies only with your customers’ permission.

Handle your customers’ details with proper care. Personal data need to be protected from theft, loss and such. Ask your hosting provider about the available options for security. Provide secure payment methods to your customers. Secure payments require a secure connection to the internet, starting with “https” in the URL field of your browser.

Written order confirmations

You have to send order confirmations in a written form, including your general conditions, warranty conditions and contact details. Customers need to receive this info at the time of product delivery or service provision, at the latest.

Rules for advertising by email

You cannot make cell phone calls or send emails to companies or people for the purposes of advertisement if they have not given you their permission.

Rules for selling alcohol and tobacco

High-alcohol drinks can be sold online only with a permit or license, as stipulated in the Catering and Licensing Act. Low-alcohol drinks can be sold without a licence.

Holland permits online sales of tobacco. You can provide overviews of the tobacco products you offer (including logos) and list prices on the website. You cannot, however, recommend specific products.

Prepare your General Terms & Conditions (GTC)

It is advisable to have GTC in order to minimise risks and ensure transparency of your business operations. GTC include details about payment, periods for delivery, warranty and settlement of disputes.

Requirements for product safety, labelling and packaging

Final goods have to be safe for the customers. Therefore the products offered in your online shop need to meet certain requirements. See which rules are applicable to your business. Product labelling and packaging is also regulated. For example, in case of export, your label needs to include the official language at the destination.

If you plan to start an online shop in Holland, do not hesitate to contact our specialists. They can assist you in registering your Dutch business. They will give you more details on company registration and consult you on the relevant legal matters.