The Netherlands hosts 23 out of the top 1,000 cities in the 2023 Global Startup Ecosystem Index. Thanks to its vibrant startup scene, company establishment in the Netherlands can be compelling for foreign entrepreneurs.
The Dutch government plays a vital role in fostering a great startup ecosystem in the country through initiatives like the €75 million Ambitious Entrepreneurship Action Plan. This program supports entrepreneurs, including providing temporary resident permits or startup visas.
Despite its high cost of living and labor laws that heavily favor employees, the Netherlands remains an attractive destination for starting a business, thanks to its high level of English proficiency, favorable tax structure, strategic location and global connectivity. For foreign entrepreneurs, there are a few considerations to take into account before establishing a company in the Netherlands.
Choosing a Suitable Business Structure
Selecting the appropriate business structure before establishing a company in the Netherlands is crucial. Business structures in the Netherlands can be broadly categorized into three groups, namely corporate entities (with a legal personality), non-corporate entities (without a legal personality) and foreign legal entities.
Business structures without legal personality encompass sole proprietorships or sole traders, general or commercial partnerships (VOF), professional or public partnerships, limited partnerships (CV) and shipping companies.
Opting for a structure without legal personality entails assuming personal liability for the company's debts, thereby exposing one's private capital to potential risks.
On the other hand, legal structures with legal personality include private limited liability companies (BV), public limited companies (NV), cooperatives, associations, foundations and religious societies.
Company establishment with legal personality involves a civil law notary drafting necessary documents, including registration at the Netherlands Chamber of Commerce (KVK). In general, individuals are not personally liable for the debts of a legal personality, except in cases of grave mismanagement, recklessness or fraud on their part.
The last category, a foreign legal entity, is a subsidiary or branch of a foreign business where the owner is not a resident or someone who needs a Dutch startup visa. A subsidiary is independent, requiring registration with KVK and the Dutch Tax Administration.
Minimum Starting Capital
When starting a business, money is another important factor to consider. Different business structures require different amounts of capital.
Establishing a BV requires business owners to invest a minimum of €0.01 in starting capital. Hence, it is among the most popular choices for foreign entrepreneurs. It also does not need a local shareholder or local director. However, a BV still needs a Dutch notary service to notarize the articles of incorporation and register the company.
Cooperatives and CV businesses don't require a minimum starting capital. A foreign legal entity also does not require paid-up capital, but registering a Dutch subsidiary/branch requires translated legal company documents.
Meanwhile, an NV requires a company capital of at least €45,000. It is quite a large amount, but this is the only business structure that can get listed on the stock exchange.
Importance of Branding and Marketing Strategy
Branding and marketing strategy are among the key factors that make a company successful. Therefore, deciding the best branding and marketing strategy is necessary before setting up a company.
A well-crafted brand not only distinguishes the business in the Netherlands or European market but also shapes how customers perceive it. It goes beyond logos and visuals, encompassing the overall experience and values that the company represents. A consistent brand can harmonize the packaging, physical space, and customer communication.
Meanwhile, a thoughtfully devised marketing strategy complements branding by effectively identifying and reaching the target audience. It involves selecting the proper channels, making compelling messages, and employing tactics that resonate with potential customers.
The combination of a strong brand and an effective marketing strategy enhances brand visibility, builds credibility, and fosters customer loyalty.
Consider also hiring a marketing consultant or service to develop a tailored branding and marketing strategy for the business if assistance and guidance are needed.
To help new companies with these tasks, Unusual Companies offers a Business Accelerator Program that assists entrepreneurs in increasing brand awareness and generating leads within three months.
The program includes various benefits, such as:
- Competitor, Industry and Keyword Analysis: An analysis of industry rivals, helping businesses identify which keywords have more search volume.
- Content Marketing: An SEO-optimized landing page with content that includes clear CTA's for potential customers to generate leads as well as two library contents with high search volumes.
- Performance Marketing and Lead Generation: Paid and mail campaigns to track brand awareness and lead generation with live reporting screens.
