If you've selected the Netherlands, a hotspot for global businesses and home to renowned companies like Booking and Spotify, as your launchpad for turning your business idea into a successful startup, thanks to its enticing business and investment environment. What key considerations should you keep in mind, and what valuable tips can simplify establishing and growing your company in the Netherlands? Join us in exploring the answers to these questions as we delve into the 6 expert tips provided by Unusual Companies, specialists in transforming innovative concepts into profitable ventures
1. Understand the Dutch business environment
You have most likely done in-depth research and are confident in your knowledge of the Dutch business ecosystem. However, it is helpful to understand the general characteristics of the Dutch business environment to make your decision. A new detail you notice may cause you to pivot, design your business idea differently, and build your business plan accordingly.
- The Netherlands is one of the ideal countries to realise a business idea. It hosts the strongest business centre cities of the region with its international focus, high-level physical and digital infrastructure, and connections to Europe.
- In recent years, the Netherlands has been one of the markets chosen by many foreign entrepreneurs to implement their business ideas.
- The Netherlands offers various incentives for entrepreneurs.
- Hosting the world's leading universities, the country provides access to a rich talent pool interested in lifelong learning.
- The Netherlands is among the focal points of sustainability and renewable energy initiatives in line with the European Union's 2050 goals. In addition, leading sectors such as agricultural technologies, chemicals, and artificial intelligence are among the sectors supported by the Dutch government.
2. Learn the requirements for establishing a company in the Netherlands for foreign entrepreneurs
The Netherlands supports innovative foreign entrepreneurs who will add value to the Dutch economy to attract foreign direct investment and turn it into one of Europe's technology centres. The most important of these supports is the Netherlands Startup Visa, which offers a 1-year residence permit in the Netherlands when establishing an innovative Startup in the Netherlands, the details of which you can find in our previous blog. Additionally, the Netherlands is implementing innovative tax policies such as the 30% Ruling to attract highly skilled migrants to the country. Foreign entrepreneurs who want to establish a company in the Netherlands can complete all processes without problems through facilitating companies in the Netherlands.
3. Understand Dutch tax law, labour laws and company structures
To reduce business and compliance risks, it is essential to learn the taxes companies are obliged to pay in the Netherlands and the basics of Dutch labour law. While details such as minimum corporate tax, Dutch value-added tax, and Dutch payroll tax ensure your compliance with Dutch labour law, information about the Dutch tax system also makes it easier to discover tax incentives. In addition, there are different Dutch business structures with different liabilities in the Netherlands, such as private limited company, public limited company, and cooperative, and understanding this helps you answer the question, "Which corporate structure in the Netherlands suits my company?”.
4. Prepare your Business Plan meticulously
Application conditions for the Netherlands Startup Visa include writing a Business Plan in which you show how innovative your Startup idea is. We have written a previous blog on Business Plans in the Netherlands. Peruse it to discover the importance of a Business Plan and what should be included in it.
5. Patience is Key
If you have embarked on the entrepreneurial journey, you are expected to have already understood and accepted that it may take time to achieve your goals. The Dutch government conducts a rigorous process to select initiatives that will truly add value to the country. Designing all the steps meticulously, listening to the Dutch Startup advice of the business partner who mentors your company establishment process, and being patient are among the key tips for establishing a company in the Netherlands.
6. Work with a business partner familiar with Dutch law
Considering that entrepreneurs often start with little capital and do not make a profit for a significant time, it is necessary to remember that the process of establishing a Startup in the Netherlands is important and should not be taken at risk and may lead to material losses in case of a negative outcome. In a brand new country, within a new and complex legal structure, implementing a new business idea may not be as easy as expected. It is, therefore, beneficial to work with a business partner in the Netherlands who is familiar with the Dutch business ecosystem, Dutch labour law, etc.
At Unusual Companies, our international team has been assisting companies worldwide in launching their Dutch operations, and we're here to support you every step in establishing and growing your business in the Netherlands. We offer comprehensive assistance, including services such as establishing your business, UBO registration, Chamber of Commerce registration, and handling tax processes on your behalf. Furthermore, we continue to be your dedicated business partner in the Netherlands, offering a Business Acceleration Program for Startups. If you're ready to embark on your journey to success in the Netherlands, simply fill out the form, and we'll contact you promptly.
