Knowing the cost of company registration in the Netherlands is one of the most interesting 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, the cost of starting a business is very important, especially 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 of company registration in the Netherlands
The Netherlands ranks 36th in the World Bank’s 2019 Doing Business report. which is a very high position compared to the size of this country. One of the reasons why the Netherlands ranks high is the relatively low costs of setting up a company registration in the Netherlands.
When opening 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 are at your disposal 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. In addition, they must be prepared by a notary and the costs of this method depend on the city where the company is supposed to operate and on the notary’s fixed fee or hourly rate. In the case of foreigners opening companies in the Netherlands, certain documents may need to be translated, so these documents should be included in the start-up costs. In addition, these documents must also be notarized.
Business registration fees in the Netherlands
After the documents are prepared, the business owner should consider the company registration fees imposed by the Dutch business register.
These costs 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, it is recommended to contact our colleagues at Andisheh Institute.
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 setting up a Dutch business 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 that the investor decides to use. That work 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 licenses 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, do not hesitate to contact us.
What are the company registration procedures 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.
- The description of your business activity must be translated into Dutch.
- 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 prepare the following documents and present them 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, 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?
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 back the VAT you paid on your investment and business expenses.
Business management in the Netherlands
You can keep your accounting 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 your quarterly tax filings, annual corporate income tax, and annual reports. prepares 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.