Why should an entrepreneur go to the Netherlands: visa, markets, taxes, financing.
Selfmadetrip described the conditions for business in the Netherlands and listed the documents that will be required for the start-up of the move, as well as the demanded markets and potential sources of financing in the country.
There is an opinion that opening a business in central and western Europe is long, expensive and difficult. However, the Kingdom of the Netherlands over the past few years has refuted this by all means.
As a result of 2015, Holland has outperformed such business giants as Britain and Germany in terms of the number of attracted investments in start-ups: this figure amounted to 560 million dollars.
On the economic stability in the Netherlands says a lot: the country ranks 10th in the rating of the richest countries in the world, in Holland, one of the lowest unemployment rates in Europe is 6%, and the geopolitical position of the state allows businessmen to maintain trade and partnership relations with most European countries. In the Netherlands, the logistics system is developed at the highest level: the country ranks first in the world in water logistics, the fourth – in the air.
Starters choose Holland for doing business because of low tax rates, ease of registration and a variety of options for financial support from the state and private companies. Long-term start-up visas are also an important reason to start a business in the Netherlands.
First of all, Holland is known as the largest supplier of floral products, fruits and vegetables. Dutch entrepreneurs provide 70% of world exports of tulips, 33% of exports of cucumbers and 25% of exports of tomatoes. Therefore start-ups in the agricultural sphere will be successful.
Do not forget about the Dutch contribution to electronics and technology: the concern Phillips has been in the lead for many years. New companies supplying electronics, computer software, software, high technologies have every chance to reach the world level from Holland. You can also pay attention to the positive experience of the well-known site-aggregator Booking.com and try the forces in the Internet sphere – this type of business receives a lot of support from all kinds of investors and business incubators.
Other demanded areas for start-ups in the Netherlands are food trade, logistics, chemical and medical industry, alcohol and tobacco production (special licenses are required for businesses in the field of alcohol and tobacco, which can be obtained from the Ministry of Economy).
To win the support of Dutch and international investors, you need to present a unique project that has no analogues in the world. Innovative business provides real opportunities for foreign entrepreneurs to live and work in the Netherlands.
Taxes and registration.
Start, and most importantly – keep your business in the Netherlands inexpensive and easy. Legislation of the country in the sphere of taxation and trade fully has to successfully conduct business. So, the VAT is 19% (reduced rate – 6% for enterprises in the field of pharmaceuticals, food and print), corporate income tax – 25%, tax on dividends – 15%, income tax – 8.4%. The income tax of holdings and the tax on royalty income are 0%. In addition, entrepreneurs who opened a firm in the Netherlands, can take advantage of lower rates for lending from state-owned banks. Another advantage of the Dutch business: the Government of the Netherlands concluded an agreement on avoidance of double taxation in trade with 95 countries of the world.
The most convenient and popular forms of doing business in the Netherlands are anonymous society and a closed society with limited liability.
Selection of company name. Drawing up the company’s charter, which should contain information about the owners and the amount of the authorized capital. Submission of application to the Chamber of Commerce and Industry. Obtaining a registration number. Registration in the tax service. The statutory capital for each form of business ownership in the Netherlands is not less than 18 thousand euros. This amount, in whole or in part, may consist of the founders’ own funds or investments. In the first year of operation, the company is allowed to contribute 20% of the total amount.
Registration of the company takes no more than 4 days and costs an average of 1500 euros.
To help start-ups who want to start a business in the Netherlands, travelers and all interested have created this useful resource. In the section “Business” you can find all the information on how to start your own business. So, the website says that in Holland there are 73 business incubators and the same number of investors.
Another informative resource will tell about hubs, coworkings and even calculate the cost of financial costs at all stages of business development.
The most popular accelerators, business incubators and venture funds of the Netherlands:
Rockstart is an accelerator offering mentor support for 180 days, an investment of 20,000 euros and office space.
Priority areas for support: medical technology, mobile applications, web programming, energy. Accelerator cooperates with Microsoft, Google, IBM, Amazon and other influential companies that may be interested in the business project and help in its development. Over the past 3 years, Rockstart has launched 68 start-ups, which are now successfully operating in the Netherlands. You can contact the commission for start-up companies by sending an application with personal details and a detailed business idea by e-mail – [email protected]
The international accelerator’s Startupbootcamp branch in Amsterdam also offers support for start-ups in the early stages. Beginning entrepreneurs with a high-potential business idea are offered an investment of 15 thousand euros and comfortable offices. Supported industries: medical technology, energy, heating and air conditioning, construction, mobile applications. Applications for participation in accelerator programs are accepted by e-mail – [email protected]
PrimeVentures is one of the largest venture capital funds in Europe, based in the Netherlands. The main goal of the fund is to invest and support high-potential startups in the field of software, mobile applications, media and industrial technologies. If the commission recognizes the business idea as interesting and highly profitable in the future, the fund invests in a start-up from 5 to 15 million euros. A business plan, summaries and questions can be sent by e-mail to [email protected]
The team of investors from the fund henQ helps prospective and unusual start-ups. In recent years, they have participated in the implementation of business ideas related to music television, fitness, food delivery and distance learning.
Internet start-ups should pay attention to the investment fund EnDeit, which over the past 10 years helped in the development of 47 international business projects. The amount of financial support depends on the decision of the investment committee of the fund. Ask questions and submit a business project at [email protected]
In addition, a unique Dutch project – B.Amsterdam – can be useful for beginning entrepreneurs. The founders call it the largest “start-up ecosystem” in Europe. B.Amsterdam is a zone of offices, conference halls, coworking, restaurants, parking lots and even fitness centers in an area of 28 thousand square meters. Young business projects are provided with impressive discounts. Here you can make useful acquaintances and find partners.
Since January 1, 2015, Holland, following other European countries, has introduced a special type of visa for entrepreneurs – a start-visa. It is a residence permit for 1 year and is issued to all members of the applicant’s family.
What you need to get a Dutch start-up visa:
Innovative and high-potential business project, supported by an investment fund or business accelerator in the Netherlands. Registration in the Commercial Register. Required package of documents: application, copy of identity card, information on family composition, photograph, diploma of higher education and so on. Proof of sufficient funds for life in the amount of not less than 9000 euros (bank statement). Payment of state duty – 307 euros. All documents are submitted to the Immigration Service of the Netherlands. This can be done by arriving in the country on an ordinary Schengen visa or by contacting the consulate or embassy of the Netherlands. The period for consideration of the application is 20 days.
After the expiry of the start-up visa, a standard residence permit is issued. And after 5 years of stay in the country you can apply for citizenship.
The Netherlands is the center of European business.
Holland is a very attractive country for doing business. Opening their business in the country, entrepreneurs can count on the support of the state and a variety of business platforms, low tax rates and great opportunities for international cooperation and the development of a start-up far beyond the Kingdom of the Netherlands. And the legal system in business and trade is considered one of the best in the world.
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Why should an entrepreneur go to the Netherlands: visa, markets, taxes, financing.