The Netherlands is a prime destination for international entrepreneurs looking to expand their business horizons. With its strategic location, robust infrastructure, and favorable economic climate, the country has become a thriving hub for foreign startups and innovative businesses. The Dutch Government’s policy for the entrepreneurs aims to strengthen the Netherlands’ position in the world’s competitive economies. In addition, the government encourages investors with tax breaks, direct and project founds.
The government expenditure on R&D will increase by more than €1 billion over the period 2020-2026. For those considering making the leap, understanding the Netherlands' advantages is key to long-term success.
More information you can look into Rathenau Instituut report.
Why Foreign Entrepreneurs Choose the Netherlands
Several factors make the Netherlands an attractive choice for global business innovation. First, its central location in Europe offers easy access to key markets within the European Union, providing entrepreneurs with opportunities to scale across borders. According to the DHL Global Connectedness Index 2020, Netherlands is one of the leading countries of the world’s most globally connected country.
Additionally, the country boasts a high-quality logistics network, including ports like Rotterdam and Schiphol Airport, making it an ideal location for distribution and international trade.
The Netherlands entrepreneur visa, also known as the “Startup Visa”, is another significant pull for foreign startups. This visa, designed for international entrepreneurs, allows individuals to start their business in the Netherlands, providing a gateway to the Dutch and EU markets. Kamer van Koophandel (KvK), The Netherlands Chamber of Commerce (KVK), uses different criteria’s for determining the entrepreneur status. KvK also helps the entrepreneurs to understand the Netherlands’ business structure, registering process and running the company successfully. Furthermore, entrepreneurs can apply for a Dutch startup visa tailored to innovative businesses aiming to develop cutting-edge solutions.
Moreover, the Netherlands has a reputation for its favorable corporation tax rates and business-friendly environment, making it easier for startups to thrive financially. With English widely spoken and a culture that promotes sustainability and innovation, it’s clear why many entrepreneurs opt for the Netherlands.
Selecting the Ideal Business Entity in the Netherlands
Foreign entrepreneurs must select the most appropriate legal structure when establishing a business in the Netherlands. The choice of business entity will significantly affect tax obligations, debts, and operational flexibility.
The most common legal entities are the sole proprietorship, limited liability company (BV), and the public limited company (NV).
Sole Proprietorship: The Dutch term for the sole proprietorship is “eemanszaak” which means that sole trader or sole proprietor.
Limited Liability Company (BV): A “bestolen vennootschap” or BV means that the private company with limited liability under Dutch law.
The Public Limited Company (NV): A “naamloze venootschap” is known as a publich limited company or open corporation with publicly tradeable shares.
Major difference between BV and NV is that the shares of an NV can be publicly traded on the stock market. But with a BV it is only possible to transfer shares via a notary.
A BV (besloten vennootschap) is the most popular choice among foreign entrepreneurs due to its limited liability, flexibility in ownership, and favorable taxation rules. Depending on your business goals and scale, consulting experts on Dutch regulations is essential to make an informed decision.
Unusual Companies specializes in guiding entrepreneurs through these early stages by helping them choose the proper structure that aligns with their strategic goals and long-term vision. Unusual Companies can also take care of the entire establishment process, ensuring a quick and seamless process.
Navigating the Dutch Tax Incentives for New Businesses
The Dutch government offers a range of financial incentives to attract international entrepreneurs and innovative businesses. One such initiative is the Innovation Box, which provides favorable tax rates for companies investing in research and development. Additionally, the Netherlands has numerous tax treaties with other countries, helping entrepreneurs avoid double taxation and easing the financial burden of global expansion.
Entrepreneurs can also benefit from reduced corporation tax rates on qualifying profits derived from patented innovations or technical advancements. The Dutch Tax and Customs Administration (Belastingdienst), is the official government office which in charge of the administrating the Netherlands’ tax system. Public and private companies pay their taxes and taxable amount is determines according to their taxable profits.
For startups, especially those involved in sustainable entrepreneurship or technology, these tax incentives can play a crucial role in the initial growth phase of the startup/ company.
Understanding your debts and tax obligations as an entrepreneur is critical to staying compliant with local laws. Fortunately, the Dutch tax system is designed to support startups with flexible arrangements that encourage innovation while ensuring long-term sustainability.
Innovation and Startup Support in the Netherlands
The Netherlands is globally recognized for its commitment to fostering innovation. Startups operating in tech, renewable energy, and healthcare sectors are especially well-positioned to benefit from the country’s thriving innovation ecosystem. The government actively encourages sustainable entrepreneurship by offering grants, subsidies, and mentorship programs through organizations like the Netherlands Enterprise Agency (RVO).
In addition to financial support, the resident permit program for entrepreneurs makes it easier for non-EU citizens to set up businesses in the Netherlands. The startup visa program has become a key driver for foreign startups. This one-year permit allows entrepreneurs to grow their businesses in the country, provided they meet specific innovation criteria and collaborate with an approved Dutch facilitator.
The Dutch startup visa is an important program that attracts foreign entrepreneurs with innovative business ideas. This one-year resident permit allows non-EU entrepreneurs to live and establish their business in the Netherlands, provided they meet specific conditions. An essential requirement is that the startup work on a new, innovative product or service that differentiates itself in the market. Entrepreneurs must also collaborate with a recognized Dutch facilitator, an experienced business mentor or organization that can provide support and guidance to help the startup grow. The visa can be extended after the first year, provided the business shows sufficient progress and potential for long-term success. This program offers access to the Dutch market and connects entrepreneurs with the broader EU market, making it a vital opportunity for startups looking to scale internationally.
These supportive policies have made the Netherlands a destination for ambitious startups looking to test and scale their ideas in a fertile and supportive market.
The Role of Unusual Companies in Facilitating Dutch Business Ventures
Starting a business in a foreign country can be challenging, especially when navigating complex legal and tax regulations. Unusual Companies, simplifies this process for entrepreneurs, helping them take advantage of the Netherlands various opportunities.
From securing the Netherlands startup visa to assisting with resident permit applications and ensuring compliance with Dutch regulations , Unusual Companies provides end-to-end support. Unusual Companies also helps startups explore financial incentives and navigate the country's corporation tax rates, ensuring entrepreneurs have everything they need to succeed in this dynamic market.
Whether you're looking to establish a small business or scale a large multinational venture, Unusual Companies is the strategic partner that will guide you through every step of your entrepreneurial journey in the Netherlands.
If you are considering expanding your business into the Netherlands, Unusual Companies can provide the expertise and support to ensure your success. Embrace this strategic opportunity and make the Netherlands your gateway to sustainable entrepreneurship and global business innovation. Get in contact with the specialized team from Unusual Companies today!
