Conditions for Company Registration in the Netherlands
Company registration in the Netherlands is a popular pathway for immigration and investment. It offers access to a strong economy, a work permit, European bank account, and tax advantages. This method also provides temporary residency, which can lead to permanent residency after a few years.
Residency in the Netherlands through company registration is a legal and transparent option for individuals who wish to enter this country through entrepreneurship and economic activities.
If you plan to immigrate to the Netherlands and need detailed information, we recommend reading this article first. For free expert advice, contact Malekpour Institute or leave your questions in the comments section for a quick response.
Advantages and Disadvantages of Company Registration in the Netherlands
The advantages of registering a company in the Netherlands are as follows:
- Global Business Hub: The Netherlands is a leading economic and entrepreneurial center with advanced digital infrastructure and high internet accessibility.
- Open and Inclusive Society: With a diverse population, the country values freedom of belief and expression.
- High Quality of Life: The Netherlands is known for its pleasant climate and excellent living conditions.
- Strong Social Benefits: Children born to residents enjoy full citizenship rights and social protections.
- Widespread English Proficiency: Most Dutch citizens speak English, easing business communication.
- Top-Tier Education System: The Dutch education system is advanced, structured, and future-focused.
- Low Tax Rates: Corporate taxes are competitive, and VAT is not applied to trade with EU countries.
- Political & Economic Stability: The Netherlands offers a secure environment for business growth.
- Low Bank Interest Rates: Interest rates are currently at their lowest in a decade (around 1%).
Note: A possible drawback is the need for cultural adaptation, as integration into Dutch society may require letting go of certain cultural norms.
Residency in the Netherlands Through Company Registration
Registering a company in the Netherlands is a key pathway to residency and eventual citizenship. Applicants with innovative business ideas can benefit from faster processing. Initially, they may receive a 3-month visa, extended to 1 year, and then up to 5 years if they continue their innovative activities. After five years, permanent residency is possible.
To qualify, the applicant must transfer their project to the Netherlands and invest at least €125,000. The plan must be approved by Dutch immigration.
For standard company registration, applicants must present a clear business plan and verified financial documents. The investment must be transferred from the beginning. A profitable company greatly increases the chance of residency approval.
Steps include selecting a business name, defining the type of activity, specifying the intended duration (temporary or permanent), and applying for a visa after approval.
Introduction to Types of Companies in the Netherlands
The companies that exist in the Netherlands operate in a highly specialized and professional manner. This is something that is less observed in other parts of the world. The types of companies in the Netherlands are as follows:
- Sole Proprietorship (Eenmanszaak)
- Private Limited Company (Besloten Vennootschap – BV)
- Public Limited Company (Naamloze Vennootschap – NV)
- General Partnerships (Vennootschap onder Firma – VOF)
- Limited Partnerships (Commanditaire Vennootschap – CV)
- Partners in General Partnerships
- Foundations (Stichting)
- Associations Registered with a Notary (Vereniging met notariële akte)
- Cooperative Associations with Joint Insurance (Coöperatie)
Among all these companies, limited liability companies are the most popular type in the Netherlands. The initial capital required to register these types of companies is €18,000. This article has been prepared by the consulting team of the Malekpour Institution, and any copying of it without mentioning the source is not acceptable to us.
Registering a Start-up and Innovative Company in the Netherlands
The first step in the process of registering a start-up in the Netherlands is to consciously take the steps involved in registering a company because any negligence in this area will lead to legal and regulatory challenges.
To start a business in the Netherlands, first assess whether you meet the qualifications for company registration. Then, develop a basic business plan and choose the right company type (e.g., BV, NV, sole proprietorship).
Next, verify your identity, select a business location, and pay a registration fee of €25–€50. After registering your company, complete your registration with the Dutch tax authorities.
Cost of Company Registration in the Netherlands
The cost of registering a company in the Netherlands is lower than in other European countries. The registration fees include trademark registration, brand registration, tax registration, etc. Some of the incidental costs of registering a company in the Netherlands are as follows:
- Fees for preparing official documents
- Fee for personal identification and registration of documents in official documents
- Fee for business registration, which is collected at the same time as the company registration fee.
- Fee for obtaining various business licenses
In addition to the initial capital you have transferred, this should also be considered among the registration costs.
In the Netherlands, registering a company in the form of a start-up and innovative company is based on a point system. The individual must achieve the required and sufficient points. For registering a start-up and innovative company, not only is having sufficient points necessary, but the applicant must also invest at least €1,250,000 in this country.
The table below lists the points required for registering a start-up and innovative company:
1. Experience (Minimum 30 Points Required)
| Subcategory | Max Points | Example | Typical Score |
|---|---|---|---|
| Educational Level | 40 | Master’s Degree | 30 |
| Entrepreneurial Experience | 35 | Company Owner | 30 |
| Work Experience (as Employee) | 10 | Senior Employee | 9 |
| Dutch Market Experience | 15 | Dutch Clients | 5 |
2. Business Plan (Up to 50 Points)
| Subcategory | Max Points | Example/Details | Typical Score |
|---|---|---|---|
| Business Vision | 50 | Market analysis, client base, etc. | 15 |
| Unique Selling Proposition + Marketing | 25 | Differentiation, marketing strategy | – |
| Pricing Strategy | 10 | Competitive pricing | – |
| Organizational Support | 10 | Product support | 10 |
| Financial Justification | 40 | Private funds, €10,000 investment | 15 |
| Sales Revenue | 10 | €125,000 annual revenue | 10 |
3. Added Value to the Dutch Economy (Minimum 30 Points Required)
| Subcategory | Max Points | Example/Details | Typical Score |
|---|---|---|---|
| Innovation | 40 | Patent registration | 20 |
| Job Creation (excl. applicant) | 30 | 0–2 jobs: 5 pts2–5: 10 pts5–10: 20 pts>10: 30 pts | Varies |
| Payroll (≥ €45,000 per job) | 30 | 1–3 jobs: 10 pts3–6: 20 pts>6: 30 pts | Varies |
| Capital Investment | 30 | <€50,000: 5 pts>€50,000: 10 pts>€100,000: 20 pts>€1M: 30 pts | Varies |
Minimum Required Points:
- Experience: 30 points
- Added Economic Value: 30 points
- Business Plan: Strong overall scoring improves approval chances
This system helps Dutch immigration authorities evaluate business applicants based on their background, innovation potential, and contribution to the economy.
Minimum Capital Required to Register a Company in the Netherlands
The minimum capital required to register a company in the Netherlands varies depending on the type of company:
| Company Type | Minimum Required Capital | Description |
|---|---|---|
| Private Limited Company (BV) | €1 (Recommended: €1,000+) | Legally requires only €1, but at least €1,000 is recommended for better operation. |
| Public Limited Company (NV) | €45,000 | Suitable for large businesses; requires higher startup capital. |
| General Partnership (VOF) | No minimum capital | Can start with any amount, but partners have unlimited liability. |
| Limited Partnership (CV) | No minimum capital | General partners have unlimited liability; limited partners are liable only up to their investment. |
| Sole Proprietorship (Eenmanszaak) | No minimum capital | Ideal for freelancers and small businesses with no required initial capital. |
| Foundation (Stichting) | No minimum capital | Best suited for non-profit and charitable activities. |
If you intend to receive an investment visa, at least €1.25 million must be invested in a Dutch investment fund or an innovative business.
It is mandatory to have a corporate bank account, and some banks determine the minimum deposit amount.
Steps to Register a Dutch Company at KVK
To register a company in the Netherlands, you must follow the legal process at the Dutch Chamber of Commerce (KVK). The general steps for company registration are as follows:
- Choosing the Type of Company: First, you need to specify the type of company you want. The most common options include BV (limited liability company), NV (public limited company), VOF (general partnership), and Eenmanszaak (sole proprietorship).
- Choosing a Company Name and Checking with KVK: The company name must not be previously registered and should not mislead customers. This can be checked through the Dutch Chamber of Commerce (KVK) database.
- Preparing Documents: Required documents include the company’s articles of incorporation, official address, information about shareholders and directors, and, in some cases, a business plan. These documents are essential for the legal registration of the company.
- Scheduling an Appointment and Visiting KVK: To register the company, you need to make an appointment through the KVK website and visit on the designated day with your documents. The registration fee is around €75.
- Obtaining a Tax Number (BTW-nummer): After registration at KVK, the company’s information is sent to the Dutch Tax Office (Belastingdienst), and a tax number is assigned for tax-related matters.
- Opening a Corporate Bank Account: After receiving your KVK number, you must open a business account at a Dutch bank. Some banks request an initial minimum deposit (e.g., €1,000).
- Registering with the Tax Office and Paying Insurances: If you have employees, you must register with the insurance and tax office and pay payroll and social security taxes. Corporate income tax must also be settled annually.
- Starting the Company’s Official Activity: After completing all the steps, your company is officially registered, and you can begin your business activities. For some specific professions, additional permits may be required.
Required Documents for Company Registration in the Netherlands
The required documents for registering a company in the Netherlands may vary slightly depending on the type of company, but generally include the following:
- Valid identification (passport or valid international ID card) for all founders and directors of the company
- Legal address of the company in the Netherlands
- Company name (which must be checked and approved by the KVK)
- Company articles of association including objectives, structure, shareholders and directors
- Company contact information (telephone, email, website if available)
- Business plan (if required) especially for startups and entrepreneurial visas
- Company registration form through the Dutch Chamber of Commerce (KVK)
- Receipt of payment of the company registration fee (approximately €75)
- Identification in person or through notaries if registering from outside the Netherlands
Necessary Permits for Company Registration in the Netherlands
In addition to the administrative registration steps at the Chamber of Commerce (KVK), applicants may need to obtain specific permits that vary depending on the type of activity of the company. These permits include the following:
- Business License: Required for certain businesses like shops, restaurants, and service companies, issued by local or national authorities.
- Health and Safety Permits: Mandatory for companies involved in food, pharmaceuticals, or healthcare to meet hygiene and safety standards.
- Environmental Permits: Needed for businesses with environmental impact, such as manufacturing or waste processing.
- Professional Licenses: Required for regulated professions like law, medicine, accounting, and engineering.
- Import/Export Licenses: Necessary for international trade companies, issued by customs and relevant authorities.
Therefore, before registering a company in the Netherlands, it is very important to carefully review the type of activity and necessary permits to ensure a legal and smooth process. Otherwise, the company’s activities may face restrictions or penalties.
Obtaining a Visa for Company Registration in the Netherlands
Obtaining a visa for company registration in the Netherlands allows entrepreneurs to legally enter the country and launch a business. To qualify, applicants must submit a viable business plan, prove sufficient capital, and show economic value to the Dutch market.
After company registration, a one-year temporary residence permit is issued, which can be extended and eventually lead to permanent residency. Opening a Dutch bank account, complying with tax laws, and being aware of registration costs are essential steps for success.
Investment in the Netherlands offers a great path to European residency and entrepreneurial growth.
Best Cities in the Netherlands for Company Registration
The best cities in the Netherlands for company registration vary depending on the type of business, target market, and your budget. However, some important and popular cities for company registration due to facilities, access to labor, geographical location, and investment attractiveness are:
- Amsterdam
- Rotterdam
- The Hague
- Eindhoven
- Utrecht
How Much is the Company Registration Tax in the Netherlands?
Company registration in the Netherlands involves several types of main taxes that have different rates depending on the type of company and amount of income:
| Tax Type | Tax Rate | Description |
|---|---|---|
| Corporate Income Tax (CIT) – Profit up to €200,000 | 19% | Applies to companies with annual profits below €200,000. |
| Corporate Income Tax (CIT) – Profit above €200,000 | 25.8% | Applies to companies with profits exceeding €200,000. |
| Value Added Tax (VAT / BTW) | 21% (reduced 9%) | Standard VAT on goods and services; a reduced rate of 9% applies to some items like food and medicine. |
| Payroll Tax | 36.97% – 49.5% | Applies if the company employs staff and must pay taxes on employee salaries. |
| Dividend Tax | 15% | Tax on dividends distributed to shareholders. |
Frequently Asked Questions About Company Registration in the Netherlands
- What is the most popular type of company to register in the Netherlands?
Limited liability companies
- Will the government confiscate the company’s assets if it incurs losses?
The level of confiscation of assets in the event of company losses is very low.
- How is the tax system for companies in the Netherlands?
A 20% tax applies to the company’s profits, and severe consequences follow if this is not paid.
- What necessary standards for company registration does the Netherlands adhere to?
Low income tax, low value-added tax rate, low bank interest rate, low asset confiscation, economic stability, and very low rates of administrative and financial corruption in the Netherlands are among the necessary standards for company registration in the Netherlands.
Conclusion:
This article introduced residency in the Netherlands through company registration, covering company types, registration steps, innovative startups, costs, and pros and cons. To immigrate via company registration, you must present an innovative business plan that benefits the Dutch economy. Using the Dutch innovation route offers better residency conditions and profitable investment opportunities.
For detailed info and free expert advice on company registration and innovation in the Netherlands, contact us or leave your questions below.
