SELF EMPLOYMENT IN THE NETHERLANDS
When you have decided to start your own business a new world is opening up, with a wide variety of possibilities.
You could open a shop or start your own consultancy fi rm; become a full-time or a part-time entrepreneur. Clients may wish to hire you for advice or construction work. Before plucking up which is planted, there is a time to plant. In other words: you will have to be prepared to tackle challenges as well - either as a provider of services or products, as a selfemployed entrepreneur, a sole trader, an independent contractor, or as a freelancer or so-called “ZZP-er”.
Being self-employed in the Nteherlands radiates a pleasant sense of freedom and independence, but it may carry certain risks as well. Whether you offer services or products: you will
do so at your own risk, expense and with full responsibility towards third parties. Apart from that, being self-employed in the Netherlands entails certain obligations, such as paying taxes and VAT and keeping records of your business activities. Preparing well is the best way to start. You are defi nitely not on your own; plenty of competent assistance is to be found in the Netherlands’ business world.
More and more people in the Netherlands work as self-employed. The synomyns for being self-employed in the Netherlands are Freelance or ZZP (zelfstandig zonder personeel or self-employed without staff). You made a decision to work for yourself. What do you need to know about starting up your own company?
When you set up your own business you have to deal with a number of issues which are relevant for every new starter.
Before you visit the Chamber of Commerce to register your enterprise, do consider the following issues carefully:
• a permit to start a business in the Netherlands
• a business plan
• legal form and trade name of your enterprise
• taxation and necessary insurance
• business location, commercial lease
• a ‘VAR’-statement from the Tax
Administration, declaring you a self-employed entrepreneur
LEGAL FORMS TO START A BUSINESS IN THE NETHERLANDS
There are various legal forms for company within the Netherlands. The Dutch legal system provides a framework with different options:
Sole trader (ZZP)
Limited partnership
Partnership under common firm (VOF)
The partnership
Private limited liability company (BV)
Foundation
Association
Branch office
INSURANCE FOR SELF EMPLOYMENT IN THE NETHERLANDS
Anyone starting up a new business takes risks. To some extent, you can insure against these risks. Think about which risks you wish to run and which insurances you wish to take out. In the case of small risks it may be more cost-efficient to put some money aside than take out an expensive insurance policy.
As an entrepreneur you will be dealing with two kinds of insurance:
Personal insurance(such as health insurance and household contents insurance)
Business insurance(such as insurance of inventory and stock).
Insurance companies make a distinction in this respect. For example, the third party liability insurance which you have as a private individual does not apply in the context of your business activities.
READ ABOUT SMALL BUSINESS & SELF EMPLOYMENT
COMPANY'S ADMINISTRATION
Company's administration includes all the electronic or paperwork. You are obliged by law to record anything with financial implications for your business in a systematic administration. It is important for yourself to keep a proper financial administration. It gives you a wealth of business information and insight into how your company is progressing. All information which you record on paper or electronically such as: cashbook administration and receipts; sales and purchases book; invoices received and copies of invoices sent; bank statements; contracts, agreements and other such documents; software and databases. All the administration should be kept for at least 7 years.
CHAMBER OF COMMERCE REGISTRATION
You have to register your business in the trade register of the Chamber of Commerce (KVK). The enteries in the trade register are open to review by the public. After having registered at KVK you will get automatically the BTW number from the tax office (belastingdienst). Read more about Chamber of Commerce (KVK) registration
LOCATION
When choosing a location for your business you need to take in to consideration a number of things:.
Residents: For retailers is the population in the area and their spending is important.
Status: Some industries are sensitive to status. A broker that focuses on individual villas will not settle in such a business center.
Permits: You have an environmental or planning permission
Competition: Which competitors are there now and in the near future? Is that harmful or does it strengthen your position in the market.
Government Rates: What are the costs of municipal property taxes? Are sufferance rights such as taxes for the display of goods for your shop or putting up a billboard? Are there enough opportunities for your building or business expansion?