The life expectancy in the Netherlands is approximately 81 years. Studies also show that the country has the happiest children and the tallest population worldwide. The national healthcare system established 150 years ago is easily accessible and recognized all over the world. With good collaboration between the industries and scientific institutions, dedicated clusters and robust links between research, business creation and production, the national sector of Health and Life Sciences maintains its competitiveness in the world industry.

If you would like to establish a company in the Life Sciences and Health sector, please do not hesitate to contact our incorporation agents. They will be happy to give you more information and legal consultancy.

Combined solutions from scientific research to patients

The characteristic Dutch approach to creativity and collaboration and the readiness for cooperation in the name of greater goals has led the Netherlands to its top ranking in open innovation and private-public research. The success of the sector of Life Sciences and Health stems from the close collaboration and sharing of knowledge between research institutions and companies with full governmental support. This model linking research, innovation, knowledge and production generates affordable, sustainable and robust solutions to set global standards. The Dutch multidisciplinary approach yields superior expertise and knowledge in the area of healthcare, linking science to patients, and frequently leads to the adoption of comprehensive, combined solutions. The innovative services and products in fields like medical equipment and remote care, and the collaboration of Medtech and Pharma in the area of diagnostics provide solutions for many contemporary health care challenges faced worldwide.

Five advantages of the sector of Health and Life Sciences in the Netherlands

Impressive historical contributions

Holland has made remarkable contributions to medical science:

• In 1590, the Jansen brothers, Zacharias and Hans, invented the first compound microscope;
• Antonie Philips van Leeuwenhoek (born 1632, died 1723) is commonly referred to as the founding father of Microbiology;
• In 1658, the Dutch biologist and microscopist Jan Swammerdam observed and described erythrocytes;
• Willem Einthoven invented the electrocardiogram which earned him the 1924 Nobel Prize in Physiology or Medicine;
• In 1943, Willem Johan Kolff, considered among the most distinguished 20^th century physicians, developed the first prototype dialyzer and contributed to many pioneering achievements, including the first artificial heart and functioning heart-lung machines.

Cooperation, collaboration and building of coalitions

Holland maintains its position as a key global player in Health and Life Sciences with significant technological achievements in the fields of health infrastructure and medical technology, biomaterials (coatings for medical equipment), regenerative medicine, veterinary and human vaccines, biopharmaceuticals, medical informatics and molecular imaging. The success of the sector lays in the cooperation, collaboration and building of coalitions between research institutions, universities, businesses and the government that link research to business creation and production.

Turnkey projects

The Dutch expertise in the infrastructure of healthcare is represented by turnkey projects: local companies have the ability to simultaneously cover the aspects of medical equipment, waste management, design, engineering, financing, etc., with special attention to “healing environments” and energy efficiency.

Health and Life Sciences is among the leading industries in the national economy and is given first priority by the Ministry of Economy. The sector achieves its success by uniting partners and joining forces along the (value) chain of prevention, cure and care.

The Dutch programme in the field of genomics

The Netherlands has a national programme for genomics and three substantial private-public programmes connected to Regenerative Medicine, Pharmacotherapy and Translational and Molecular Medicine worth over a billion Euros. Within the framework of these programmes large industrial partners and small/medium enterprises cooperate with the 8 medical faculties (the faculties of medical technology of the 3 Technical Universities and the university hospitals) on projects for research and development with direct contributions to clinical practice. The programmes finished in 2012/2013, but their initiatives are still progressing.

Quality, accessibility and affordability of healthcare

The national health care services offer quality, accessibility and affordability for all. Many countries use Holland to illustrate how health care quality can be provided with the maintenance of a reasonable cost level. As regards future perspectives, Holland is directing its efforts towards eHealth (online prevention and therapy, telemedicine).

The Dutch economy is prosperous, advanced and open for international investments. Holland is also among the oldest and most trustworthy business partners of the United States. The historical roots of this relationship can be traced to the Revolutionary War.

The tax system in the Netherlands offers incentives to encourage business and innovation activities. The favourable business climate does not bring benefits only to Dutch entrepreneurs. Holland is open to international investments and has become the home of many skilled foreign workers. It also hosts the European headquarters of many USA corporations, including UPS and Coca-Cola.

The European gateway for trade

The Netherlands is very dependent on international markets, as more than 50% of its annual GDP comes from trade with foreign partners. The country is in the global top 10 for export: a big achievement for its modest size. US companies setting up offices in Holland can make the most of the advantages offered by its strategic location. They can use and service the markets of the EU, Eastern and Central Europe, Africa and the Middle East.

Nevertheless, about 65 percent of all Dutch exports head to only 5 countries: the US, Great Britain, France, Germany and Belgium. On one hand, this is excellent for American companies aiming to develop business relationships. On the other hand, it is a limiting factor for business owners planning to operate on a bigger multinational scale.

Holland often serves as a hub for companies. A significant percentage of the imports (e.g. computers) are re-exported straight away without being processed. Every year millions of tons of North American and Asian goods arrive at Amsterdam and Rotterdam for distribution elsewhere on the continent.

Read more on import-export trade in the Netherlands

Opportunities for business

Some world-famous Dutch companies do quite well on their domestic market: from ING and Shell to Heineken, Unilever and Philips. Nevertheless, this should not deter you from investing in Holland, especially if your business is in the industry of services.

In the past several years the demands for services have increased and they have quickly become the largest sector of the Dutch economy, accounting for approximately 70 percent of the GDP. Trade is the largest industry in the sector, followed by telecommunications, construction, transport, insurance, banking and different financial services. According to experts, significant growth is expected in the field of communications and information technologies. This is not surprising, as Holland is among the most “connected” countries with respect to e-commerce, outsourcing and communications.

Labour relationships

Holland’s stability is reflected in its employment sector. Any American company intending to develop a business and hire personnel should be prepared for interactions with works councils and trade unions. Bargaining is typical for Dutch people and the trade unions have strong relationships with the government and employers’ organisations.

Forget about at-will employment. Once you hire staff on permanent contracts, you need to pay attention to their workers’ rights and follow the employment regulation. As a Member State of the European Union, the Netherlands follows the European regulatory framework, including the Directive on working time. It limits the working hours of employees to 48 a week, on average. However, individuals may voluntarily agree to longer working hours and opt out of this right. American companies with operating businesses in Holland should seek consultancy to make sure that the relationships with their employees are arranged in compliance with the regulations from the start.

Business culture in the Netherlands

According to some, the Dutch approach to business is completely different from the American, but that is an overgeneralized statement and stereotyping. Holland and the USA would not have been traditional partners if they did not work together well! Nevertheless, Americans should take into account some peculiarities when doing business with Dutch companies.

The Dutch people are honest, direct, serious and very straightforward. Sometimes this could be perceived as harshness and lack of care. Be specific and concise in your business interactions. Dutch go straight to business matters without much socialising. Handshakes always have a purpose. They do not make empty promises and expect the same from you. If you say that you will do something, even if it is small and inconsequential, you will be expected to complete the task. When negotiating, any hint of deception, evasiveness or secrecy can ruin the deal, because trust is fundamental to the prosperity of working relationships in Holland.

Establishing a business in Holland

According to the business index of the World Bank, Holland is 32^nd in the world. The standard legal form for new companies is the BV (Besloten Venootschap) also known as a private company with limited liability. There are no minimum capital requirements and it takes three days to incorporate your business.

It is not surprising that Holland is among the leaders in international trade. The country is perceived by many as the Gateway to Europe, opening a world of new possibilities.

Call our local specialists who will help you with registering a company in the Netherlands and give you legal advice for a smooth start.

The creative industry of the Netherlands is gaining international recognition and is famous for its achievements in the fields of interior design, architecture, gaming and fashion. Creative companies work on the development of exciting new services, products, systems, strategies, work methods and ideas. They have the ability to consider complex issues in new, refreshing ways. As a result, creative businesses develop superior innovations of popular and controversial services and products.

If you are interested in starting a business in the Dutch creative industries, do not hesitate to contact our Dutch incorporation agents. They will provide you with more information and support on starting a new business and investing in the Netherlands.

The Dutch are not afraid of risks and unpredictable projects

The creative industries in the Netherlands embrace a quirky mentality whereby they welcome risks, rather than always count on safe choices. They go ahead with creative processes whose outcomes are difficult to predict. This has much to do with the creative thinking necessary to conceive, design and build applicable large-scale solutions for life in a region vulnerable to flooding. Dutch engineers, designers and architects are very talented and able to develop solutions in various fields, such as water security and urbanization. The creative industries are flexible: they use unconventional approaches, often collaborate in different areas and make important contributions in the search for solutions of societal issues, e.g. in the field of energy, safety and healthcare. They also catalyze the innovation processes in all sectors of the industry. Creative innovation can bring added value to various projects or products, regardless of the branch they come from.

Five astonishing facts about the creative industry in the Netherlands

Combining business and creativity

For hundreds of years, the creativity of the Dutch people has informed and inspired. The genius of Van Gogh and Rembrandt transformed our ways of perception. Contemporary Dutch masters include world-famous talents like the designers Viktor and Rolf, the illustrator and artist Dick Bruna and the architect Lucas “Rem” Koolhaas. They are prime examples of the strong sides of the signature Dutch design: pragmatism, open-mindedness, conceptuality, unconventional thinking and following the principles of minimalism. Dutch design embodies creativity, innovation and business intuition. It is a proof that creative thinking can bring business innovation, good competition and prosperity.

Pioneering in a variety of areas with national and global examples

Holland is famous with its pioneering design, architecture, television, music, fashion and gaming.

Rotterdam is a centre of urban design and architecture. Eindhoven is the technological centre of the Netherlands. Time Magazine dubbed its Design Academy, “The School of Cool”. Delft offers the oldest and largest academic industrial design program. Utrecht is proud with its Gaming Institute. The capital, Amsterdam is a multicultural centre of interactive design, fashion and communication and the ArtEZ Arts Institute in Arnhem is famous with its own Fashion Biennale. Many fashion designers enjoying international success are among its alumni.

Long-standing traditions in interior design

Holland has long-lived traditions in interior design. Gerrit Rietveld is a prime example with his furniture designs. One of the strengths of the Dutch school of design is visual communication and typography in particular. Famous examples are the design and signs at main airports like Schiphol in Amsterdam and JFK in New York.

Prestigious architecture worldwide

Architects from Holland have worked on a variety of prestigious projects, such as the Solomon Guggenheim Museum (Las Vegas), Governors Island (New York), the headquarters of Gazprom (Russia), the Public Library in Seattle and the Dalian Stadium (China). Holland is recognized for its characteristic integrated method of approach to building projects and urban development. Architectonic design is complemented by spatial design, while the social context and sustainability of the structures are also considered.

Original and popular television formats and an active industry for Online Gaming

Dutch television producers have occupied important positions in many global channels with their original formats. These include Big Brother, Idols, The Voice, So You Wanna be a Popstar and Hunt for Millions.

A main advantage of the gaming industry is the extensive adoption of mobile technologies and broadband (second highest internet broadband penetration rate in the world). Holland’s game market is among the most dynamic in Europe and accounts for 35% of the total spending. Holland is also a leader with respect to serious gaming, producing applications for industries, businesses and for educational purposes. The country is also pioneering in the field of popular dance events and dance music.

Rotterdam offers international corporations a rewarding, internationally oriented and stable business climate. The second biggest city in the Netherland is more than a good choice for establishing a business. Rotterdam offers great quality for your money and represents a gateway to the European market.

The Netherlands is internationally oriented

Holland is an internationally oriented European country. People of any nationality are welcome to work and live here. Rotterdam hosts more than 170 nationalities (> 30 000 immigrants) that give it a cosmopolitan, global personality.

Most Dutch nationals are bilingual and the majority of them speak English, besides their native language. The local economy, which is very dependent on trade with other countries, is famous for its relatively low rates of unemployment and inflation, and its stability. Holland also offers a highly qualified, strong labour force. All these factors contribute to its attractiveness for investors and entrepreneurs.

Rotterdam is a European gateway

Holland and particularly Rotterdam are known as the gateway to the European continent and represent a major transport hub. Companies located in the city of Rotterdam can reach more than 150M consumers in a radius of 500 kilometres.

Rotterdam is easily accessible by all means of transportation: via its port, the Maas River, railroads, roads and air. In this respect, it has the best connectivity in the whole of Europe. The airport in The Hague connects it to over 40 destinations abroad, while Amsterdam’s airport, Schiphol, is 30 minutes away by train. The port of Rotterdam is the largest in Europe (8^th largest worldwide).

The city also performs well in major business sectors, e.g. Agriculture and Food, Offshore and Maritime, Health and Sciences, Clean Energy and Technology, Business Services (e.g. Insurance), Gas and Oil, and Chemicals.

Innovation is ever present in the culture of Rotterdam

The favourable entrepreneurial climate of the city attracts venture capitalists, innovators and start-ups. There is a variety of programmes and centres for development of innovations focused on supporting new and expanding businesses in fulfilling their potential. The main trends of development are aimed at finding solutions for global issues such as food and energy shortage and overpopulation. Popular themes are circularity, sustainability, new economy and smart technologies. The Innovation Ecosystem of Rotterdam is a network of representatives of the national government, different corporations, research institutions, financers and service providers that collaborate actively to deliver new services, products and technologies and, ultimately, bring forward the economy of Rotterdam.

The Netherlands has an attractive tax regime

The Netherlands has an attractive fiscal climate for new businesses. The government has adopted a competitive taxation regime to stimulate entrepreneurs and foreign investors. The rate of corporate tax is lower compared to other countries in Europe and there are incentives bringing benefits to international companies that have chosen to register their businesses in the country. Incentives include programmes for development and research (WBSO, RDA) and many subsidy schemes financed by private and public organizations to support medical research. One of the most important incentives for foreign corporations is the advance tax ruling system (ATR) with respect to proposed transactions adopted by the local tax authorities. The country has also concluded numerous international treaties for the avoidance of double taxation. All these factors contribute to the attractive image of the Netherlands in the eyes of foreign companies.

Low costs for operating a business

Rotterdam is an attractive city for investing and doing business. KMPG’s ranking of major world cities, a part of the guide on Competitive Alternatives for 2016, places Rotterdam 7^th (the European city with highest ranking), while Holland 3rd in the countries’ ranking. The Competitive Alternatives guide is issued biannually and compares the costs of businesses at different locations worldwide, covering ten countries and over 130 cities. It focuses mainly on the costs of international businesses by location and type of operations. Apart from the overview of the expenses for doing business, the report contains important information about other factors influencing the attractiveness of the studied locations, namely: quality and availability of labour force, infrastructure, markets, economic conditions, legislation, personal living costs and general well-being.

Top international schools and knowledge institutions

The region of Rotterdam hosts world-famous universities and research institutions, including Erasmus University and Medical Centre, Rotterdam School of Management, Willem de Kooning Academy (WdKA) at Rotterdam UAS, Codarts and TU Delft. Erasmus University, named after the theologian and humanist born in Rotterdam, maintains a position in top 100 in the most popular international university rankings, including Reuters’ ranking for innovative universities for 2018 where it scored 56th. Besides prestigious institutions for high education, the city hosts several renowned schools for secondary and primary education.

Qualified labour force

The city has a very productive, highly skilled labour force. The main factors that contribute to the availability of qualified professionals are the openness of the country for international businesses, including its good fiscal climate, the top-class educational institutions in the region of Rotterdam and the outstanding performance of the city in major business sectors. Holland is placed second in Europe for talent availability.

A wonderful place to work and live

Along with its competitiveness as a place for doing business, Rotterdam is an excellent city to live in: welcoming, friendly and open-minded. It already has citizens from all around the world. International workers and expats will feel at home in the dynamic metropolis. Rotterdam is rife with possibilities and areas for exploration. The Netherlands’ architectural capital is safe, accessible and offers all types of accommodation covering a wide price range.

In case you are interested in starting a business in Rotterdam, please do not hesitate to contact our incorporation agents. They will provide you with more information and legal advice. You can also read more in our in-depth guide.

Holland is a global leader in water management. Over the years the nation has perfected its means for flood protection, water treatment and supply. The Dutch are maritime engineers and build ships, including utility vessels and superyachts. Their expertise is needed all over the world. The Netherlands is the main supplier of systems for sustainable water supply and production, and reintroduction (after collection and treatment) of “waste” water. In the sector, there are several significant engineering firms operating globally. The Water Partnership and other platforms in the Netherlands encourage international collaboration. The sector is mainly focused on continuous innovation and export.

If you plan to establish a business in the Dutch water sector, please, contact our agents in incorporation. They will give you more information on the investment opportunities and the procedures to establish a company in the Netherlands.

Water is an indispensable part of the local culture

The delta’s water is both life-threatening and lifesaving. This is why the water industry is perhaps the most fundamental to the Dutch character and culture. The sector is focused towards three primary areas: delta, maritime and water technology. They are directed towards land protection, energy generation, smart water recycling technologies and efficient, safe ships. The water expertise in the Netherlands is one of the best worldwide.

Five reasons why Holland handles water challenges well

1. Water takes a significant part in the Dutch history and life

Water is inextricably bound to the prosperity and history of the nation – it is a part of its DNA. Vast parts of the country were reclaimed and 2/3 of its territory would flood regularly if there were not complex interconnected systems of surge barriers and dykes in place.

2. The water technologies in the Netherlands safeguard the environment and water

The booming economy, urbanization and climate changes are threatening delta populations all over the world. Luckily the Dutch are experts in hydraulic engineering, foundation infrastructure and technology, flood protection and flood control. They are famous with their design of levees and search barriers, land reclamation through high technology dredging and engineering of entire harbours and coastal areas. The nation is also renowned for its river maintenance and engineering. It is at the forefront of climate-adapted construction that allows the building of houses in areas at risk of flood.

3. Expertise in water treatment

The Dutch sector of drinking water is owned publicly. Drinking water is supplied by 10 semi-public companies. Municipalities are responsible for the management of the system of sewers while 25 regional governmental water boards deal with wastewater treatment at a municipal level. Many local companies specialize in industrial wastewaters treatment, while several consulting bodies are world-famous for their expertise in water treatment.

Holland has been using innovative techniques for treatment of wastewaters since the 70s. Almost all households in the country have clean drinking water entirely free of chlorine. Furthermore, much of the industrial water is recycled so efficiently, that it may be even used in beverage and food production.

Meanwhile billions all over the world do not have access to sanitary facilities and clean water. In this respect, Dutch technologies can really make a difference. High-quality integrated cycles of water collection, filtration and recycling are in place to facilitate sustainability and economic development.

4. Solutions for integrated management of waters

The Netherlands is famous for its multidisciplinary approach to integrated management of waters that balances economic, social, engineering and environmental needs (“Building together with Nature”).

Dutch companies work on projects for the development of urban agglomerations at low elevations (e.g. Bangladesh and Jakarta), as well as on coastal development (Vietnam, Romania and Dubai).

5. Investments in R&D

Academic institutions and private companies invest considerable amounts of money in development and research related to water. This has led to many innovations if fields like filtration. Many investments in R&D and innovation go to private-public partnerships. Some of the collaborators are famous institutes of the rank of MARIN, Deltares, KWR and Wetsus. The Netherlands Organisation for Applied Scientific Research and some big private companies are also renowned for their developments in the water sector. The investments have already led to innovations such as water purification under anaerobic conditions, membrane technology, Annamox technology, and small-scale high-quality membrane bioreactors.

The Dutch sector of horticulture sets global trends, supplies markets worldwide and leads in innovative technologies for greenhouse cultivation. Holland is the undeniable leader on the international market of plants, plant reproductive material, cut flowers and bulbs, and is rated third for its export of nutritional products of horticulture. The country is in the centre of a global network for decorative trees, bulbs, floriculture and fruit and vegetable production.

In case you are considering incorporating a business in the field of horticulture, please, contact our agents specializing in company formation. They will provide you with legal advice and information about opening a company in the Netherlands.

An important contribution to national prosperity

The problems encountered during the establishment of sustainable urban centres often have to do with basic needs, e.g. shelter and food. The supply of indispensable resources (energy, food and water) needs to be secured through creative solutions and smart thinking. For centuries the Netherlands has been developing systems to cater for the needs of its population under such circumstances and now it offers excellent possibilities for export to countries experiencing shortages in resources. Local horticulture sets global trends and is differentiated in 6 clusters (Greenports). In these centres, research institutions and businesses collaborate in the areas of research and development, production, infrastructure, export and logistics. Horticulture has significant importance for the prosperity of the Netherlands, delivering large volumes of high-quality commodities and adopting technological innovations such as automated fruit pickers, intelligent greenhouses floating on water, glasshouses consuming less electricity than they generate and feeding the grid, and innovative methods for low-energy lighting and recycling of wastes and water.

Five reasons why the Netherlands is leading in the supply of trees, plants and flowers in the world

1. Developments in the field of Green Genomics

Holland is among the leaders in Green Genomics. The aim of this scientific field is to provide safe and sustainable production, higher yields, changed taste or design, and disease resistance in plants. TTI Green Genetics and Plant Research International are leading institutes in this area.

2. A large diversity of shrubs and trees

The variety of shrubs and trees produced in the Netherlands is unmatched. The industry is underpinned by a strong national market. Holland also maintains a leading position in R&D and trade related to tissue cultures, propagation material, young plants and seeds.

3. An original approach to innovation

The Netherlands has adopted a unique R&D approach to bring innovations: the government works closely with research institutions and companies in a “golden triangle” to complete innovation-related programmes and projects. Some examples of excellent innovations are intelligent greenhouses floating on water, robots, moving platforms, energy-saving lighting and recycling of water and wastes, glasshouses consuming less electricity than they generate and contributing to the reduction of carbon dioxide emissions, etc.

4. The famous greenhouses in the Netherlands: Glass City

Modern Dutch greenhouses already generate about 10% of Holland’s electricity by using a combination of power and heat (CHP). The country is famous with its inventive solutions for greenhouse cultivation and unrivalled scale of production. Its glasshouses cover over 60 square kilometres and look like a glass city, while their environmental impact is relatively low. Efforts are directed towards technologies and concepts facilitating adaptability to the changes in climate and energy-efficiency. Read more on the Dutch energy industry.

5. Logistics hubs and production of excellent quality

Rotterdam’s port and Schiphol Airport in Amsterdam are the most important logistics hubs in the country. Holland is conveniently located in the heart of Europe with easy access to the continent’s half a billion consumers. Furthermore, the development of methods to obtain high-quality produce has enabled its horticultural sector to gain global recognition. The Netherlands has developed effective supply chains capable of delivering freshly cut flowers to New York in less than a day. Also, true to their entrepreneurial spirit, the Dutch have set up nurseries in Ethiopia, Kenya, Costa Rica, Portugal and France.

Many enterprises and companies treat intellectual property as a significant asset. The rights related to it – copyrights, trademarks, patents – often prove to be more profitable in comparison to physical assets. Therefore, it is important for corporations to develop adequate strategies with respect to their intellectual property in order to guarantee the best use and protection of their assets. The present brief overview provides information on the major rights relevant to intellectual property and their protection under the law in Holland.

Patents in the Netherlands

In the Netherlands, the Act on Patents (Rijksoctrooiwet) from 1995 protects patent rights. By definition, patents are exclusive rights to inventions in all technological fields. Inventions are patentable if they meet several requirements:

• they concern a technical process or product;
• they are novel, i.e. have not been publicly disclosed by any means before the day of submission of the application for patent registration;
• they involve inventive steps, i.e. the inventions are not too obvious;
• they have industrial applications.

Applications for Dutch patents are submitted to the national Patent Office. The applicant must request a search for novelty 13 months after the submission of the application. In another 9 months, the search results become available. These results, however, do not decide whether the invention will be patented or not, even if it lacks novelty according to the report. In a dispute, the requirement for novelty is considered in court. The patent or application is included in the patent registry of the Netherlands eighteen months after the submission of the application. The protection term is twenty years from the filing date.

The owner of the patent has exclusive rights to prohibit the use of the invention for commercial aims by third parties. Invention use means production, placing on the market, lending, selling, offering, supplying, storing and importing the patented invention.

Trademarks in the Netherlands

Trademarks are signs that distinguish companies’ services or products (goods) from others on the market. They can be either logos or brand names. Company names or trade names can be considered trademarks.

The BCIP (Benelux Convention related to Intellectual Property) states that a trademark must first be registered to ensure protection in Belgium, Luxembourg and the Netherlands. The BOIP (Benelux Intellectual Property Office) is the institution for official registration of trademarks in Benelux. The definitive registration of a trademark is completed in about 4 months. The payment of an additional fee can speed up the procedure. The Office will refuse to register a trademark if, among other reasons:

• it lacks distinctive characteristics or does not satisfy the trademark definition;
• it conflicts with morality or public order;
• it can mislead the public.

All trademark registrations in Benelux are valid for 10 years. They are renewable every 10 years if the renewal request is submitted 6 months before the trademark expiration date. Trademarks need to be actively used to maintain their rights.

Trademark owners have the exclusive rights to prohibit other parties to use or register newer signs, identical to their trademarks and use them for identical services or goods. The registration or use of similar newer signs for similar services or goods may also be banned if there is a probability of confusion. Trademark owners that are popular in the region of Benelux can also dispute the usage of similar or identical newer signs for any services or goods (regardless of their level of similarity) if this usage takes unjust advantage of the original reputation or character of their trademarks or brings unfavourable consequences for the owners.

Certain multinational organisations give the possibility to foreign entrepreneurs to use their trademarks as a franchise. This can be concluded as part of a franchise contract, which regulates the franchise requirements and financial compensation between the franchisee and the franchisor. Naturally, franchise agreements have to comply with the Dutch law. Read here for more information on franchise agreements.

Trade names in the Netherlands

In Holland, trade names are protected by the Dutch Act on Trade Names (Handelsnaamwet). Trade names are defined as the names that companies trade under. In general, a company can freely choose a trade name, as long as the chosen name is not misleading, for example as regards the entity’s ownership or legal nature.

Protection does not require trade name registration, e.g. in the Commercial Registry of the Netherlands. The rights connected to trade names arise from their use. In contrast to trademarks, trade names do not have to be original. Still, descriptive names have limited protection.

The Act on Trade Names prohibits the usage of a name, similar or identical to a name in use by another entity if such usage is likely to cause confusion, given the location and nature of the entities.

Copyrights in the Netherlands

In Holland, the Act on Copyright (Auteurswet) protects copyrights. It gives authors of artistic, literary or scientific works exclusive rights to reproduce their works and make them publicly available.

According to Dutch law, works should have original, individual characters and reflect the personal imprints of their authors. The provisions contain an exemplary list of copyright-eligible works: paintings, books, computer programs, brochures, etc. Logos and website/product design can also be protected by copyrights. Ideas, concepts and formats are not protected if they are not embodied in specific works.

Copyrights are obtained through the creation of works meeting the abovementioned conditions. No official requirements, e.g. usage of a sign like “©“ or registration, exist. The protection of copyright ends 70 y. after the author’s death. If the creation is authored by a legal person, the copyright is protected for 70 y. after the work’s first publication.

There is an option to submit an i-DEPOT at the BOIP. This can prove the existence of a creation at a particular time and might be helpful when considering whether a particular work is original. The i-DEPOT, however, does not create an independent intellectual property right.

Copyright owners can prohibit other parties to publish or reproduce their work without authorization. If a particular product and a copyrighted work leave identical overall impressions, then there is an infringement of copyright. Disputes are taken to competent courts that assess the cases by considering the work’s copyrighted features.

If you have questions concerning intellectual property and the relevant rights or intend to develop a business in the Netherlands, you can contact our Dutch agents specializing in company set-up.

 

In the Netherlands, a subsidiary is a normal company – a separate legal entity with share capital partially or fully owned by an international company. This is an important difference from the Dutch branch – an entity that is more strongly linked to its international founder.

The international company established abroad can control its subsidiary in Holland, but, in contrast to the situation with branches, it does not carry full liability for the Dutch subsidiary’s debts, obligations and actions. The subsidiary does not have to engage in the same operations as its parent company and, if necessary, it can register for the performance of more activities. This and the limited liability of the parent company are the two main advantages when opening a subsidiary.

The founders of a Dutch subsidiary are able to choose between 2 very common types of entities: private or public companies with limited liability.

Types of legal forms for Dutch subsidiaries

The private company with limited liability (or BV) is suitable for small and medium businesses. There is no minimum capital requirement for the incorporation of a BV as a Dutch subsidiary – it can be established with 1 Euro. Its share capital has to be split into non-transferable registered shares.  The shareholders carry limited liability to the extent of their contributions to the capital of the company. One or multiple directors can be appointed to manage the business. There are different methods for BV incorporation, depending on the main goal: privacy of the directors and shareholders, tax minimization, a holding structure for international business or a BV owned by a special structure, e.g. a foundation.

Entrepreneurs can also open public limited liability companies (NVs) as subsidiaries. The minimum capital required to establish an NV is EUR 45 000 split into bearer and registered shares. NVs can issue certificates of shares with respect to bearer shares, in contrast to private companies with limited liability. Shares can also be transferable. The shareholders carry limited liability covering the capital they have provided to the company. In contrast to BVs, NVs can be traded on the Securities Exchange.

Dutch subsidiaries must have a minimum of 2 managers, forming a management board. A board of supervisors can also be formed to oversee the activities of the managers. Large companies like NVs follow more stringent requirements in yearly reporting, auditing and accounting.

The procedure for registering a Dutch subsidiary

The first step in registering a Dutch subsidiary is to open an account in a local bank, deposit the required capital and obtain a document to certify the deposit.

The subsidiary founders need to check whether the name they chose for the subsidiary is unique. This is done at the Commercial Chamber. A confirmation of the name’s validity is sent by email. If the name is available, the founders can proceed with registration.

Before registration at the Commercial Chamber, the subsidiary founders must obtain a non-objection declaration issued by the Ministry of Justice. For this purpose, they have to file an application and pay the relevant fees.

The association articles, the subsidiary establishment application and the deeds of foundation need to be notarized. All documents mentioned above have to be presented at the Commercial Chamber, accompanied by a deposit certificate and the non-objection declaration.

Taxation of Dutch subsidiaries

Any subsidiary registered in Holland is considered a resident company and has to pay corporate taxes identical to those of any other local company. Therefore, registration at the Tax Office is obligatory. The subsidiary should be registered at the Administration for Social Security in order to hire employees locally.

The corporate tax in Holland is 16.5% for yearly profits up to EUR 200 000 and 21.7% for income exceeding this threshold in 2020, in 2021 the rates will be lowered to 15-21.7%. Local companies pay taxes with respect to any profits generated worldwide. Holland is an EU member, so the EU Directive for parent companies and subsidiaries is applicable to Dutch subsidiaries of international companies. The Directive and the treaties for avoidance of double taxation between Holland and other countries guarantee significant tax relief and incentives.

Other taxes that Dutch companies need to pay include the tax on real property, transfer tax and contributions to social security. The fiscal year usually matches the calendar one. All subsidiaries of international companies need to follow the Dutch reporting and accounting principles. Incompliance with the filing requirements can result in fines and penalties.

The procedure for subsidiary registration for business purposes in Holland is uncomplicated and takes approximately 8 work days.

If you need more information on the procedures for setting up a Dutch business, do not hesitate to contact our local agents. They will provide you with more information on company formation and legal advice.

The Netherlands is among the leading exporters of food and agricultural products worldwide due to its innovations in agri-food technology. The sector offers a reliable source of safe and healthy food produced using nature- and environment-friendly methods.

In case you are in interested in establishing a business in the agriculture and food sector of the Netherlands, please contact our agents specialised in company formation. They will provide you with legal advice and additional information on how to set up a Dutch company.

Delivering healthy food from sustainable sources

The rapid global urbanization and the migration of people from rural areas to the big cities lead to an increasing demand for healthy and sustainable food supplies in the urban zones. The security of food is paramount to social wellbeing and economic performance. The search is on for solutions regarding food safety, animal welfare, habitation and waste-disposal, as well as education, governance and social fairness. The Netherlands is located in a relatively small delta region with low elevation, where the land is a precious resource. This is one of the reasons why the local farms are among the most efficient, sustainable and intensive worldwide.

Due to the fertile soil, high produce quality, intensive farming, trading expertise and extensive knowledge in agriculture, the Netherlands exports food products on a global scale. This covers products of both plant and animal origin, i.e. poultry (meat), eggs and livestock. Other key export items are automated food processing machines such as pickers for soft fruit, meat separators and equipment for potato processing, as well as knowledge on food processing. Twelve of forty leading companies producing foods and drinks have Research and Development centres in the country.

Five reasons to choose the Netherlands for your business in the food and agriculture industry

1. The country is a world leader in innovation and export of foods and agricultural products

After the United States, Holland is second in export of agricultural products in the world. It falls in the global Top 3 of fruit and vegetable producers, along with the US and Spain, supplying 25% of all vegetables for export from the European continent. The Dutch sector of agriculture is diverse and covers a variety of plant cultivation and animal husbandry subsectors, including field and greenhouse cultivation, fruit-growing, pig and dairy farming.

The Netherlands sees things in perspective. This is evident from the world-famous innovation and research infrastructure in the country. The University of Wageningen was rated first among agricultural universities worldwide for three consecutive years in the Taiwan Ranking that includes 300+ universities dealing with scientific research. Of the leading twenty-six companies in the sector of agriculture and food, five have Research and Development facilities based in the country. Here are some examples of investments made by private companies:

• a new Research and Development centre of Danone in Utrecht concentrating the European research of the company on children nutrition and clinical nutrition;
• a new European Research and Development centre of Heinz in Nijmegen;
• a new Research and Development centre of Royal FrieslandCampina in Wageningen;

2. The Netherlands has a mild climate, fertile soils, flat terrain and favourable location in the centre of the European continent

Next to its excellent geographic characteristics, the country has extremely well-developed infrastructure, logistics, food processing branch and commerce.

3. Successful renewal of the chains of agri-food production

For many years the agriculture in the Netherlands has maintained its leading position in the international competition through active investment aimed to renew the chains of agricultural production. Growers and farmers are eligible partners in this chain. Their main goal is to supply food and plants (including ornamentals) with the best possible value for money using sustainable, innovative and socially responsible methods.

4. The Netherlands supports the Global Food Security Alliance

It has been estimated that by 2050 the world population will reach 9 billion. If the current levels of food production remain unchanged, there will be a 70% shortage. The Alliance plans to solve this problem by using a Dutch approach based on climate-smart systems in agriculture. It intends to intensify and expand small-scale projects of fishermen, small farmers and horticultural growers and to maintain a high level of food safety by focusing on beneficial private-public partnerships.

5. Environmentally friendly and sustainable agriculture

Regardless of the tight margins of profit, the agricultural business invests significant resources in protection of the environment and implements improvements regarding animal welfare. While the agricultural business is a main engine of the national economy, it carries certain risks for the environment. During the past decades, agriculture has shown a trend of increasing scale and intensity of production, leading to a growing impact of manure and fertilizers in non-urban areas. Farming needs to be more sustainable. Currently, the agricultural sector in the Netherlands is directed towards sustainability in order to provide safe and healthy food, produced with care for the environment and the landscape.

Read here to explore the Dutch horticulture industry.

 

International companies planning to establish presence on the Dutch market at a low cost can open local branches. The branch does not have a legal personality and is considered an extension to the international company. Therefore the parent company established abroad is liable for all of its actions.

The operations of Dutch branches are managed by representatives of the parent companies by virtue of a PoA (Power of Attorney).  The branch has to carry out the same operations as its parent and its name must be identical. Its actions are governed simultaneously by the Dutch laws and the legislation of the country where the international parent company is incorporated.

The branch provides permanent establishment at a lower cost in comparison to other Dutch company types and there are no minimum capital requirements with respect to its incorporation. This is why many international companies prefer this form of business.

Dutch branches vs. local companies

The main defining characteristic of a branch, as compared to other business forms like subsidiaries in Holland, is its full dependence on its international parent company. Therefore the international company carries liability for any obligations and debts of the Dutch branch.

The procedure for branch registration is easier compared to other company types, e.g. the private limited liability company, but it still needs to comply with the legislative requirements for taxation and employment. According to the law, all branch employees should be covered with social insurance. Otherwise, the branch representative may become personally liable in case of failure to pay the necessary contributions. Branches opened in the Netherlands usually have financial obligations identical to those of local companies.

The numerous treaties for avoidance of double taxation that the Netherlands has signed with other countries decrease the branches’ tax burden if they qualify for reduction of the rate of withholding tax for royalties, interest and dividends.

Registration of a Dutch branch

The branch has to be registered in the Trade Registry at the Commercial Chamber with the relevant documents and details before it can commence its business activities. All papers need to be notarized, with a legalized translation in Dutch. The notarization takes place in the state where the parent company resides.

The documents necessary for incorporation can be case-specific, but in general the following are necessary: 

• Proof of the establishment of the international company (an extract from the trade registry in the country of residence with registration date and company details)
• Registration certificate, name, registered address, names and details of the directors and the secretary (or other managers)
• Protocol of the discussion where the board decided to open the branch
• Address and name of the branch
• Representative’s name
• powers of the representative and branch activities

After the registration, the Company Register in the Netherlands will release the registration certificate recorded under a unique number. Then the branch has to be registered for tax and social security contributions. After all these steps the branch can begin to operate in Holland.

Advantages of opening a Dutch branch

The procedure for branch registration is easy and takes less time than the direct incorporation of a Dutch company. This is why some international corporations prefer to establish branches. Other advantages include low incorporation costs and mild accounting requirements.

The main characteristics of branches in the Netherlands are more or less the same as in other countries. For example, in Hong Kong, the procedures for branch taxation and registration are very similar. Still, it is in your best interest to use the services of a local specialist in incorporation or a lawyer to ensure that you follow the Dutch regulations and rules for company establishment.

If you need more details on starting a Dutch business, please, contact our local agents in company formation.

Corporate Law in the Netherlands, also called “Company Act”, is the major source of statutory regulations and rules for company incorporation and management.

The law lists the different types of companies that can be incorporated in the Netherlands and the rules pertinent to the procedure of establishment. It covers the compliance, taxation and management of corporations, and the procedures in cases of bankruptcy, merger and company acquisition. The document also stipulates the allocation of responsibility and power within companies.

Company establishment in the Netherlands

The Dutch Company Act specifies what business forms can be incorporated and what regulations and rulings are applicable to each form. Depending on the particular activities and the preferred manner of managing a business, investors can choose between a private (BV) and public company with limited liability (NV), or a limited and a general partnership. The law does not recognize partnerships as legal persons.

The Company Act also describes the process of formation and the corporate purposes of companies. The procedure for incorporation must follow the steps outlined in the law. The necessary documents, e.g. incorporation deed, must be notarized locally. The company’s managing directors are its representatives and their liability is determined by the specifics of the entity they decide to establish. For the purposes of incorporation, the entity will need a contributed capital; the subsequent share transfer is also covered by the corporate law.

All regulations in the Dutch Civil Code are consistent with the EC Directives, the law on securities trade supervision and the act on listed companies, partially governing the manner in which Dutch companies are managed. Foreign investors planning to form a Dutch company can initiate a process of due diligence.

Dutch company management

Company management, as provided in the Company Act, is a two-layered system, consisting of an executive board of managers and an advisory board of supervisors that oversees the managerial work. The model is valid for both public and private companies with limited liability. These boards are compulsory for large companies.

The company owners appoint the members of the managing board during incorporation. The responsibilities and powers of the managing board are laid out in the association articles. The liabilities and duties of the directors are legally established and may include criminal and civil liability.

Business owners hiring personnel in Holland should also observe the law on employment. It contains important rulings with respect to the employment conditions, the obligations and rights of employees and employers, the dismissal procedure, the wages and the working hours. The Dutch legislation on labour is flexible as regards workforce and has many particularities.

Do you need more information about the Dutch corporate law or would you be interested in registering a company in the Netherlands? Call our local agents in company incorporation for support and advice.

 

The worldwide transport of goods increases in distance and volume every day. The Netherlands plays a major role in the world market thanks to its developed logistics.

If you are interested in starting a logistics company in the Netherlands, please contact our incorporation agents. They will provide you with further information on opening a company in the Netherlands and legal advice.

A world trade centre

Logistics relates to the expertise and knowledge necessary for effective planning, performance and streaming of information and goods. The Netherlands is an age-old centre of world trade. It has two major European cargo ports, Rotterdam and Schiphol, and the drive from one to the other takes less than an hour. The country is a main logistics hub with respect to freight transport to Europe and, therefore, a desirable location for international companies.

The expanding global trade and the increasing transportation of commodities worldwide require efficient and sustainable logistics. Various new measures for reduction of the carbon dioxide emissions of the sector are in place: e.g. use of quayside electricity by ships in ports and hybrid vehicles for delivery in urban areas.

The logistics sector in the Netherlands has the ambition to become a global leader by 2020 thanks to sustainable innovation. Logistics also plays a key role for all other industries: from raw material to finished product transportation. The sector generates a profit of €55 billion a year and provides employment for 813 000 people creating a strong driving force for the national economy.

Five major factors for the key role of the Netherlands in the logistics industry of the world

1. Connecting consumers and producers worldwide

Holland is a key player in the global economy, connecting consumers and producers around the world through complex logistics. Its success lies in the combination of top service providers, modern infrastructure and a convenient coastal location in the middle of Europe. Its strategic location on the coast provides direct access to the continent’s market and its 500+ million end users.

2. Schiphol Airport in Amsterdam and Rotterdam Port

Rotterdam Port is the largest port in Europe and the fourth largest in the world, while Schiphol Airport is a major passenger and air-freight hub. They offer the services of leading providers in the area of logistics and are connected with a large network of railways, roads, pipelines and inland waterways. This combination makes the Netherlands a gateway to continental Europe with very active water and road transport.

3. Excellent infrastructure

The Global Economic Forum rates the infrastructure’s quality as one of the best worldwide, with modern facilities for air, maritime, railroad and road transportation, ranked 4^th, 1^st, 7^th and 2^nd, respectively for 2015. In 2015, the Business School of IMD ranked Holland first in the world with respect to its infrastructure for water transport.

4. Wide-ranging application of IT

Holland uses extensively Information Technology in order to provide optimised solutions for the supply chain in industries where time has crucial importance (e.g. flowers and food).

5. Sustainability is a priority

Holland is also pioneering developments with respect to silent logistics and environmentally sustainable operations.