The costs of company registration in the Netherlands are one of the attractive topics for people who plan to start a new business. Starting a business in the Netherlands is simple and easy nowadays, however, there are a few aspects to consider. Meanwhile, business start-up costs are especially important for foreign investors who decide to open a company in the Netherlands.
The costs of opening a business and registering a company in the Netherlands depend on various factors, including the type of company chosen and the documents that must be prepared.
The main costs involved in setting up a Dutch business
The Netherlands ranked 36th in the World Bank’s Doing Business report in 2019, which is a very high position compared to the country’s size. One of the reasons that the Netherlands ranks high is the relatively low costs of setting up a company in the Netherlands.
When opening and registering a company in the Netherlands, you should consider the following start-up costs:
– Preparation and registration of documents necessary for company registration;
– Authentication and authentication of various documents that must be translated if the shareholder is a foreign citizen.
– Business registration fees that must be paid with the registration of companies.
– Costs related to applying for various business permits and licenses;
– The capital of the company can also be considered as the start-up cost.
If you are planning to set up a business in the Netherlands and need guidance, our Dutch company formation agents will provide you with information on the formalities you need to complete, especially if you are a foreign investor.
How much does it cost to prepare company registration documents in the Netherlands?
The first costs to consider when setting up a new business in the Netherlands are related to the preparation of legal company documents. These are provided by the company’s articles of association, which must be drafted and notarized. They must be prepared by a notary and the costs of this method depend on the city where the company will operate and whether the notary applies a fixed fee or an hourly rate. In the case of foreigners opening companies in the Netherlands, certain documents may need to be translated, so these documents should also be included in the start-up costs. These cases must also be notarized.
Business registration fees in the Netherlands
After the documents are prepared, the business owner should consider the costs of company registration, which is carried out by the Dutch business register.
Costs to be considered include the following:
– Brand booking which is now free.
– The registration fee is set at 50 euros.
– Registration in the tax organization is free.
– Fees of the registered representative to complete the company registration process, if necessary.
To avoid wasting time and money with incomplete and incorrect paperwork regarding company registration in the Netherlands, it is recommended to use the services of our representatives and team.
What is the most popular type of company to register in the Netherlands?
Private Limited Company or BV is one of the most popular companies to register in the Netherlands.
The cost of registering a company with the Dutch Chamber of Commerce is one of the start-up costs in the Netherlands. This is approximately 50 euros. You can register your company as a limited liability company or cooperative as described above. There are different types of registration: Single registration that includes social security and employee benefits.
Capital of a company in the Netherlands as start-up costs
Most people consider the share capital to be deposited as the first cost associated with setting up a business in the Netherlands. Even if the choice of a private limited liability company requires no minimum share capital requirement according to Dutch law, the foreign or domestic investor must calculate the amount of money he needs for the company’s business activities.
In the case of Dutch public limited companies, the law sets a minimum share capital of 45,000 euros.
Other costs related to company registration in the Netherlands Apart from the costs mentioned above, the future business owner should also consider other costs such as opening a company bank account, which depends on the bank the investor decides to work with. is subject to a special fee. Also, if additional services are needed, such as a virtual office that can be used as a temporary registered address for the Dutch company, these costs should also be considered as start-up costs. Otherwise, traditional office rental will be required, however, this option is more expensive.
The last cost related to setting up a company in the Netherlands is related to the costs of obtaining specific business licenses and permits according to the industry in which the business will operate. If you are planning to start a Dutch business and need information about start-up costs, contact us as soon as possible.
What are the company registration procedures in the Netherlands?
- In order to register the company in the Netherlands, submit a business plan.
- Specify the type of company you want
- First of all, you need to fill out the registration form at the Dutch Chamber of Commerce KVK. All forms related to the legal structure are bilingual (English and Dutch).
- Choose a brand name for your company.
- You must translate the description of your business activity into Dutch for company registration in the Netherlands.
- After completing the relevant forms, you need to request an in-person appointment to attend one of the local KVK branches.
- When an appointment is made at the KVK Chamber of Commerce, you must have the following documents ready and present on the day of the appointment:
- The completed form
- Payment of 50 euros
- Valid identity documents such as passport, birth certificate, Dutch driver’s license and residence permit for yourself and other partners and shareholders, if any.
- Address and details of the business, including lease agreements for the company’s premises, if any
- Register to pay company tax and payroll tax at the Dutch Tax Office
- Register with the Dutch Social Security Administration
After you register with KVK Chamber of Commerce, you will be assigned a unique business number called KVK Number.
As a business owner, after registering your company in the Netherlands, you must use this number for business and transactions in all your invoices and official documents.
Taxes and duties
Taxes and duties are a big part of starting a business in the Netherlands. 15% tax is charged on taxable income. Also, the minimum wage must be observed when hiring people. This amount varies depending on the age group of employees, but can be very costly for small businesses. Duties are also charged for importing and exporting goods.
How does the VAT system work?
Regarding company registration in the Netherlands, when you invoice your customers for services or products, you must add 21% VAT to the cost. The additional amount must be reserved by you, as you will have to pay this VAT to the tax office every three months.
Payroll tax: A company with employees must deduct payroll taxes from the employees’ wages. The employer keeps these funds separately and sends them to the tax office every month.
Value Added Tax (BTW) Most businesses must pay VAT on all services or products they sell in the Netherlands. Businesses receive this 21 percent on top of their sales price, which is paid quarterly to the tax office. VAT is not a cost to business owners, only to consumers. Business owners only collect taxes. You can claim the VAT that you paid for your investment and company expenses when registering your company in the Netherlands.
Business management in the Netherlands
You can keep your accounting documents and invoices on paper or digitally. Records should be kept for 5 to 7 years. Your financial accounting includes: Invoices you’ve sent, invoices you’ve received, bank statements, contracts and small expense receipts as your accountant processes these transactions, and quarterly tax filings, annual corporate income tax and annual reports. The annual report is sent by the accountant to the Chamber of Commerce, where the numbers are entered in the company register.
Registering a company in the Netherlands, starting a new business or getting a representative office is one of the ways that, in addition to earning money for you, after 5 years of activity and paying taxes on time, you will get a Dutch residence and a Dutch passport. . The government is a big fan of entrepreneurship. They offer subsidies, grants and tax breaks to businesses in the Netherlands. To receive these benefits, you must apply as soon as possible while completing all the necessary steps. While starting a business in the Netherlands may be a bit more expensive than other countries, this is offset by the country’s high standard of living and low crime rate.
You, dear ones, can contact our colleagues at Andisheh Immigration Institute to get information about the costs of registering a company in the Netherlands and how to set it up. Our colleagues will provide you with the necessary explanations in this regard.