Starting a Business in the Netherlands from the UK

Interested in launching a new company in the Netherlands? There are quite a few reasons why UK businesses are choosing to set up a base there. This includes the country’s strategic location as the gateway to Europe, along with its business-friendly environment, skilled workforce, stable economy and attractive tax benefits.

But how easy is starting a business in the Netherlands, and what do you need to know? We’ll cover all of the essentials here in this guide, including crucial info on Netherlands company formation.

We’ll also show you a smart way to manage your new Dutch company’s finances, using Wise Business - the ideal solution for international businesses.

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📝 Table of contents:
Doing business in the Netherlands Netherlands company house Netherlands company formation Sole proprietorship (eenmanszaak) Private limited company (bv) Commercial partnership (vof) Professional partnership (maatschap) Starting a business in Netherlands - Step-by-step Manage your Dutch Company's finances with Wise Business

Doing business in the Netherlands

Before setting up a company in a new international market, it’s useful to know a little about the business landscape there.

The Netherlands has a competitive business climate, and one of the most open economies in the world. Companies benefit from innovative and sophisticated infrastructure, highly educated and skilled workers, and access to the whole of Europe.

The major industries in the Netherlands include:¹

• Agrifood
• Logistics
• Energy, particularly renewable energy
• Creative industries, such as art, design, media, broadcasting, fashion, entertainment and architecture
• High tech systems, such as aerospace and automotive technology
• Chemicals
• Life sciences and health.

If your company is active in any of these sectors, there could be opportunities for you in the Netherlands.

It’s easy to see why UK businesses are attracted to the idea of doing business in the Netherlands. It has it all, from a pro-business climate to a talented workforce, along with a strategic location and excellent infrastructure.¹ It’s also one of the leading European (and global) countries for digital transformation. Plus, most people speak English.

The Dutch business culture is known to be progressive, and workers are more involved in decision-making processes. Traits such as honesty and reliability are highly valued, and there’s a focus on getting things done as efficiently as possible.²

Netherlands company house

One of the first things you need to know about when setting up a business in the Netherlands is its Chamber of Commerce (KVK).This is the equivalent to Companies House in the UK.

The KVK is where you’ll register your new business in the Dutch Business Register, once you’ve chosen a legal structure - we’ll cover this in more detail next. You’ll need a Netherlands business address, and will need to make an appointment and provide relevant documentation such as your ID and proof of address. There’s also a registration fee.³

Before you register, it’s a good idea to do a quick KVK company search. This is to check that your chosen business name is already in the Dutch company register. You’ll also be able to look up your own company once registered.

Netherlands company formation

Now, how do you actually incorporate a Dutch company? Like in the UK, there are a number of business entities or structures you can choose from in the Netherlands.

This includes:

• Sole proprietorship (eenmanszaak)
• Private limited company (bv)
• Commercial partnership (vof)
• Professional partnership (maatschap)
• Cooperative.

We’ll run through all of these in more detail below. It’s important to remember that the legal business structure you choose will determine things like tax obligations and liability. It also needs to fit the nature and purpose of your company.

Not sure which is the best fit? Dutch entrepreneur support website Business.gov.nl has a handy tool to help you choose.

For each legal structure type listed below add what it is, how it works and the relevant requirements, liability and tax obligations related.

Sole proprietorship (eenmanszaak)⁴

If it’s just you running your business, you might want to establish it as a sole proprietor (sole trader or eenmanszaak).

As a sole trader, you will be solely responsible and liable for the company. This includes its finances and debts. You’ll need to keep records, but you don’t need to file an annual account with the Netherlands Chamber of Commerce (KVK). You’ll need to pay income tax on your company’s profits.

In the Netherlands, it’s only permitted to set up one sole proprietorship. However, you can work from multiple business premises, change trading names (or have more than one) and carry out a range of commercial activities.

To set up as a sole trader, you simply need to register at the KVK. They will inform the Dutch Tax and Customs Administration (Belastingdienst), who will determine if you are classed as an entrepreneur for BTW (VAT).

Private limited company (bv)⁵

A Dutch bv is a private limited company, which you can start on your own or with partners. The entity is liable for debts, while directors only have limited private liability.

As a company director, you’re considered to be an employee acting on behalf of the bv.

The company’s equity is divided into shares, and these are owned by shareholders. The shareholders control the company, but the board of directors will handle the day-to-day running of the business.

A director owning at least 5% of shares will need to pay income tax and perhaps Dutch dividend tax too. The bv needs to pay corporation tax (vennootschapsbelasting or VPB) on its profits.

It all works in much the same way as a limited company in the UK.

To set up a bv in the Netherlands, you’ll need the services of a civil-law notary. They will help you with the legal requirements, such as drawing up the incorporation documents, registering in the KVK’s Netherlands company register and registering with the tax authorities.

Commercial partnership (vof)⁶

Known as a vennootschap onder firma (vof), a commercial or general partnership is an entity set up by at least two people. It’s a popular choice for self-employed people looking to start a business together in the Netherlands.

Each participant in the business becomes a partner, and must contribute in the form of money, goods or labour. It isn’t a legal corporate entity though, so all partners will be personally liable for business debts. Each also pays income tax on their share of the profits.

All you need to set up a vof is to register at the KVK and draft a partnership agreement.

Professional partnership (maatschap)⁷

Known as a maatschap, a professional partnership is an entity in which partners practise their professions under one shared name. It’s suitable for self-employed people in professions such as architecture, dentistry, law or physiotherapy.

You don’t need to put in any starting capital, but each partner brings equity to the company in the form of money, labour or goods. All partners are equally liable for company debts, and share financial gains. Income tax is paid by partners on their share of the profit.

To set up a _maatschap _in the Netherlands, you simply need to list your partnership in the Business Register. It’s also a good idea to draw up a partnership agreement.

Cooperative⁸

Another popular legal business structure in the Netherlands is a cooperative (coöperatie). This is where members work as a collective, pooling resources and sharing the work and profits.

A cooperative can be set up with one or more members, using a civil-law notary to draft a deed and list the business in the Dutch Business Register.

Control of the cooperative is managed by the ‘general meeting of members’ or Algemene Ledenvergadering (ALV). They appoint a board to manage the day-to-day running of the business. Profits are distributed in proportion to the work that each member puts in, determined by an agreement.

Members are not usually liable for the debts of the business, although there are exceptions. Tax can be a little complicated for cooperatives, but this business type does have to pay corporate income tax on its profits.

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Starting a business in Netherlands - Step-by-step

To make setting up your new Dutch company a little easier, here’s a step-by-step guide to the process:

1. Research all you can about the Dutch business landscape and culture. It’s also a good idea to do some market research to help you identify opportunities, competitors and markets for your new business.
2. Choose a legal structure for your business
3. Get a Netherlands business address
4. Register your business with the Netherlands Chamber of Commerce (KVK) - you’ll need ID and proof of address, and will need to pay the registration fee.
5. The KVK will pass on your details to the Dutch tax authorities - they’ll be in touch if you need to be VAT registered or meet other requirements.
6. Learn about your tax obligations.
7. Set up a system for keeping business records.
8. Start the process of setting up your new business.

Manage your Dutch company's finances with Wise Business

While you’re focusing on the legal aspects of setting up your new Dutch business, it’s also important to think about how you’ll manage your finances overseas. Luckily, there’s an ideal solution available.

Open a Wise Business account and you can manage your company’s finances between the UK and the Netherlands. You’ll be able to pay suppliers and staff in their own currency, as well as receiving payments in multiple currencies.

You can easily make batch payments when making multiple payments at once, and even automate the process using the powerful Wise API to save even more time. See how it works here in our case study.

There’s even Wise cards to cover business expenses, letting you and your team spend like locals in 150+ countries.

Wise payments are fast and fully secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get mid-market exchange rate.

This is the rate that banks use to buy and sell currency, and is widely considered the fairest rate you can get. When banks carry out currency conversions on behalf of customers, they usually add a mark-up or margin to the exchange rate. This makes it more expensive for your business, as less of your money reaches your recipient.

By sticking to margin-free rates along with low, transparent fees, Wise levels the playing field for businesses trading across borders.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. See what you need here, and then click ‘sign up’ to get started.

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Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

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And that’s it - all the essentials you need to know about starting a business in the Netherlands. It’s not too complicated, and could be well worth it for the opportunities on offer for your expanding business. Good luck!

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Sources used for this article:

1. PWC - Doing Business in the Netherlands
2. Business.gov.nl - The Dutch culture and business climate
3. Business.gov.nl - Starting a business in the Netherlands from abroad
4. Business.gov.nl - Sole trader or sole proprietorship
5. Business.gov.nl - Private limited company (bv) in the Netherlands
6. Business.gov.nl - General partnership (vof)
7. Business.gov.nl - Professional partnership (maatschap)
8. Business.gov.nl - Cooperative

Sources checked on 08-12-2023.