Thinking about launching your business in the Netherlands in 2025? You’re not alone. Entrepreneurs from all corners of the world are drawn to this thriving European hub for its open economy, strategic location, and business-friendly climate. Whether you’re setting up a tech startup, a consultancy firm, or an import-export venture, understanding the legal landscape is the first critical step.
In this guide, we’ll walk you through the top legal requirements for starting a company in the Netherlands, including practical insights on business formation, costs, and compliance. If you’re curious about company formation in Holland or looking for a seamless route to international expansion, this is the place to begin.
1. Choose the Right Legal Structure
One of the first decisions you’ll make is selecting the legal form of your business. The Netherlands offers several types of legal entities, but for most international entrepreneurs, the most popular choice is the Besloten Vennootschap (BV)—a private limited liability company.
Other legal forms include:
- Sole proprietorship (Eenmanszaak)
- General partnership (VOF)
- Public limited company (NV)
- Foundation (Stichting)
The BV structure is preferred due to its flexibility, limited liability, and attractiveness to investors. It’s ideal for scalable businesses and provides a clear separation between personal and company assets.
2. Register with the Dutch Chamber of Commerce (KvK)
Once you’ve chosen your legal form, the next step in business formation in the Netherlands is registration with the Kamer van Koophandel (KvK). This process involves:
- Submitting your company name and address
- Defining your activities under the Dutch SBI code
- Providing identification of directors and shareholders
After registration, you’ll receive your KvK number, which is necessary for opening a bank account, signing contracts, and handling tax matters.
3. Get a Dutch Business Bank Account
After your business is officially registered, opening a corporate bank account is essential. This allows your company to receive payments, manage expenses, and stay compliant with financial reporting standards. Dutch banks typically require:
- Proof of registration from the KvK
- Identification documents
- Articles of association
- A business plan (for some sectors)
While it’s possible to set up a bank account remotely, some banks may require an in-person appointment. Digital banking options have also become increasingly available, making it easier for foreign entrepreneurs to manage finances from abroad.
4. Obtain a VAT Number
If your company engages in taxable activities, you must apply for a BTW (VAT) number from the Dutch Tax and Customs Administration (Belastingdienst). This number enables you to:
- Invoice clients with VAT
- Reclaim input tax
- File quarterly or annual VAT returns
After registration with the KvK, your information is automatically forwarded to the Belastingdienst, and you’ll typically receive your VAT number within a few weeks.
Also Read: Eligibility Criteria to Register a Company in Canada
5. Consider Business Licenses and Permits
Depending on your industry, you might need specific licenses or permits before beginning operations. Sectors like food services, healthcare, transport, and financial services are heavily regulated.
For example:
- Restaurants must meet hygiene standards and obtain a hospitality permit.
- Financial advisors require registration with the Dutch Financial Markets Authority (AFM).
- Import/export businesses might need customs licenses.
It’s crucial to check with local municipalities and relevant authorities to ensure full compliance.
6. Understand the Costs of Opening a Company in the Netherlands
When discussing the cost of opening a company in the Netherlands, several factors come into play:
- Registration fee: Approx. €75 at the Chamber of Commerce
- Notary fees: €300 to €1,200 for drafting and notarizing the articles of association (mandatory for a BV)
- Bank account setup: Varies by provider; some may charge setup fees
- Accountancy fees: Annual accounting and tax filing could range from €800 to €3,000+
- Legal and consultancy services: Budget around €1,000 to €5,000 depending on complexity
While the opening a company in Netherlands cost may vary, it’s generally considered affordable, especially when compared to other Western European countries.
7. Comply with Dutch Employment Laws (if hiring)
If you plan to hire employees, you’ll need to register with the Dutch Employee Insurance Agency (UWV) and adhere to national labor laws. Key requirements include:
- Drafting employment contracts
- Withholding payroll taxes
- Providing sick leave, holiday pay, and social security contributions
- Adhering to minimum wage and working hours regulations
Additionally, businesses must implement health and safety policies aligned with the Dutch Working Conditions Act (Arbowet).
Also Read: Different Types of Taxes in Canada
8. Understand Corporate Tax Obligations
Companies in the Netherlands must meet annual tax and reporting requirements, including:
- Corporate income tax returns
- Annual financial statements (mandatory for BVs)
- VAT filings (if applicable)
- Payroll tax reporting (if hiring)
The Dutch corporate income tax rate in 2025 is expected to remain competitive. For profits up to €200,000, the rate is around 19%, and for profits above that, it’s approximately 25.8%. The Netherlands also has tax treaties with over 100 countries, minimizing the risk of double taxation.
9. Appoint a Local Representative (If Required)
If you’re not based in the Netherlands, having a local representative—either as a director, tax agent, or legal advisor—can help streamline compliance and day-to-day operations. While it’s not legally required to have a Dutch resident director, it’s often recommended for credibility and communication with local authorities.
10. Consider Professional Assistance
Finally, engaging a local consultancy or legal firm for company formation in Holland can save you time and prevent mistakes. Experienced advisors can guide you through every step, from registering with the KvK to obtaining the necessary licenses and understanding local tax rules.
For many entrepreneurs, working with professionals makes business formation in the Netherlands faster, smoother, and fully compliant from day one.
Conclusion
Starting a company in the Netherlands in 2025 is a strategic move for international entrepreneurs seeking growth, stability, and access to the European market. By following these legal requirements—from choosing the right structure to understanding the opening a company in Netherlands cost—you’re already well on your way to success.
The Dutch business environment is built to support innovation, internationalization, and entrepreneurship. With the right preparation, launching your company in the Netherlands can be a rewarding and efficient experience.
FAQs
1. Do I need to live in the Netherlands to start a company there?
No, you do not need to be a resident. Foreign entrepreneurs can start and own a business in the Netherlands, although having a local representative is often beneficial.
2. How long does it take to complete company formation in Holland?
Typically, the process takes between 5 and 10 working days if all documentation is in order. Engaging a local consultant can help expedite the process.
3. Is it mandatory to hire a notary for business formation in the Netherlands?
For certain legal entities like a BV, yes. A notary is required to draft and authenticate the articles of association.