Company Registration
There are three main entities with which a company can register: sole proprietorship, BV, and Holding.
Sole proprietorship (eenmanszaak)
An eenmanszaak is a single-person company in the Netherlands. As a single trader, you are solely and completely responsible for the company, its finances, and its debts. In the Netherlands, you may establish just one sole proprietorship, but you can use various trade names and take on different commercial activities.
You are required by law to keep accounting records for your firm. There are a number of criteria for your records. The finances (the books) are an important aspect of your company’s documents. They provide insight into your company’s financial health by determining if all bills have been paid.
BV (esloten vennootschap)
A BV is a limited liability company. The shareholders of a BV are not liable for the debts of the company. This type of company is suitable for companies with more than one shareholder. A minimum of two shareholders is required to establish a BV.
The shareholders are liable for the debts of the company up to the amount they have invested in the company. The company’s assets can be used to repay its debts. A BV must have a board of directors that is responsible for the management of the company.
Holding
A Holding can be used to divide your company structures into several BV’s, allowing you to never be personally responsible in the case of bankruptcy. The Netherlands has a strong global reputation and is, therefore, an excellent location to establish a business. The BV is internationally renowned as part of the Holding, giving it the ideal position for conducting local and international trade.
When you establish a company in the Netherlands, you will need to register it with the Chamber of Commerce. The Chamber of Commerce is responsible for issuing business licenses and registering companies. After your company has been registered, you will receive a Certificate of Incorporation. This document is proof that your company has been legally established and can now start operating.
Office Rental
Office rental prices in the Netherlands vary widely depending on factors such as location, size, and the level of amenities and services offered.
In major cities like Amsterdam, Rotterdam, and Utrecht, prime office spaces in central business districts can be relatively expensive, with prices ranging from €250 to €700 per square meter per year or even higher. These premium locations offer easy access to transportation, networking opportunities, and a prestigious business address.
In contrast, office spaces in less central areas or smaller cities can be more affordable, with rates starting from €150 to €300 per square meter per year.
Co-working spaces and flexible office solutions are also prevalent adding further diversity to the market. These options allow businesses to rent desk space with options like a Day Pass, Premium Desk or Private Offices on a short-term or flexible basis, offering a more budget-friendly alternative to traditional leases which is great for startups.
Ultimately, the rental price range in the Netherlands offers a spectrum of choices to accommodate a wide range of businesses and their specific needs.
Equipment
You will need to purchase equipment such as a telephone, computer and other essentials that your business requires. This can vary depending on the type of company you’re setting up, but for an average startup, it’s around €2,000.
Accounting Services
To make sure you do not mess up your taxes, especially as a startup, getting an accountant is a necessary investment. Accountants can get quite expensive in the Netherlands. Expect to pay between €150 – €300 per month for accounting services.
Legal Services
Getting legal advice is extremely important when setting up a company in any country, let alone the EU. Legal services in the Netherlands are expensive compared to many other European countries, but they can be much more costly in other non-EU countries. Expect to pay around €200 – €500 p/m for legal services.
Tax Rates
There are different types of taxes in the Netherlands:
- Company Tax: This is a tax on the profits of a company.
- Corporate Income Tax: This is a tax on your income. In 2024, the corporate income tax rates will remain unchanged, with 19% for profits up to €200,000 and 25.8% for profits that exceed €200,000.
- Value-added tax (VAT): This is a value-added tax that is charged on goods and services. The standard VAT rate in the Netherlands is 21%.
Tax rates vary depending on which setup you choose and how your business is structured.
Costs Overview
The cost overview is divided into two parts:
- One-time setup costs (starting from €100):
- Monthly recurring costs (starting from €100):
- Office space rent
- Equipment and supplies
- Phone bills
- Utilities
- Insurance
- Lawyer & accountant
- Inventory
- Employee salaries
- Marketing
- Market research
- Printed marketing materials
- Making a website