Expand Business in the Netherlands

Global Upside helps you expand business in the Netherland by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Dutch laws and regulations.

The hiring and incorporation processes in the Netherlands are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in the Netherlands. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Amsterdam

Currency

Euro (€)

Language

Dutch

Government

Constitutional Monarchy

Country Overview

The Netherlands, situated in Northwest Europe, has a population of 17.4 million. The country has a developed economy that provides a base for important regional and international trade. The Netherlands has emerged as a leading financial center, with the communications and IT, banking, energy manufacturing, and pharmaceutical industries all experiencing consistent growth. According to data, the Netherlands:

  • Ranks as the 17th largest economy in the world by GDP
  • Ranks as the 7th largest economy in Europe by GDP
  • Ranks as the 6th most business-friendly countries in the world
  • Has a highly-skilled workforce

Legal Entity Setup

Due to the business-friendly conditions of the legal system and tax environment, the process of incorporation in the Netherlands is generally smooth. In conformity with the Dutch law, options for entity set up include:

BV (Besloten Vennootschap) – Private Limited Liability Company

BV (Besloten Vennootschap) – a private limited liability company is a common business structure in the Netherlands in which the company owners assume all liability and risk. The stockholders are responsible for only their own investments. The minimum share capital required to establish a private limited liability company is €18,000.

NV (Naamloze Vennootschap) – Public Limited Company

NV (Naamloze Vennootschap) – a public limited company is a subsidiary of an overseas company that is owned by its shareholders. Company stock is traded in the share market. The minimum share capital required is €45,000.

CV (Commanditaire Vennootschap) – Limited Partnership

CV (Commanditaire Vennootschap) – a limited partnership requires a minimum of 2 partners: an active partner and a limited partner. The active partner is responsible for all third parties and individual properties. The limited partner is the financial supporter of the business.

Sole Trader (Eenmanszaak)

A sole trader (Eenmanszaak) is a type of setup in which the owner assumes full liability for the business.

Branch Office

A branch office is easier to establish than a subsidiary. It is not considered a distinct legal entity. The head office is usually accountable for most liabilities.

In most cases, it takes at least three weeks to establish a legal entity in the Netherlands.

Human Resources

Employment law in the Netherlands is structured by the Collective Employment Agreement (CEA), which is a collection of labor laws and obligations. It is a mandatory requirement that the employer provides their staff with a statement that mentions all specific terms in an employment contract.

There are two kinds of employment contracts:

  1. Fixed-term contract
  2. Indefinite-term contract

According to Dutch employment law, detailed information is required on:

  • Work location
  • Job description
  • Name and address of both the employer and employee
  • Wage details
  • Overtime and bonus details
  • Holiday and leave entitlements
  • Other benefits and pension
  • Termination policy­

Payroll

The payroll frequency in the Netherlands is once a month, usually at the end of the month. Employers must also provide payslips that detail the complete salary breakdown.

Accounting

All local and international public businesses in the Netherlands must comply with the Generally Accepted Accounting Principles (GAAP). These accounting regulations are comprised of the International Financial Reporting Standards (IFRS) as implemented by the EU.

Taxation

Tax Rate

The tax rate on income higher than €200,000 is 25%. The income tax rate on earnings up to €200,000 has been decreased from 19% to 16.5%.

Value Added Tax (VAT)

The common VAT rate is 21%. A reduced rate of 9% is placed on certain items such as food and medical devices.

Data Privacy

The Dutch Data Protection Act (Wet bescherming persoonsgegevens, Wbp) has been replaced by the General Data Protection Regulation (GDPR), also known as Algemene Verordening Gegevensbescherming (AVG). According to the European GDPR, the guidelines concerning the automated processing of personal details are very strict.

Anti-Bribery & Anti-Corruption Law

As per the Dutch Criminal Code (DCC), there are two forms of bribery – active bribery and passive bribery. The former refers to the bribing of a public official and the latter deals with the officials being bribed. Article 177 DCC describes the penalty for active bribery, while Article 363 outlines the penalty for passive bribery.

Bribery of Public Officials

For Individuals:

  • Imprisonment of at least 6 years
  • Fine of €82,000
  • Prohibition from their work for a certain period of time
  • The relevant items of bribery will be seized

For Businesses:

  • Seizure of all items of bribery
  • Fine of 10% of annual revenue

Bribery of Private Individuals

For Individuals:

  • Imprisonment of at least 4 years
  • Fine of €82,000
  • Prohibition from their work for a certain period of time
  • The relevant items of bribery will be seized

For Businesses:

  • Seizure of all items of bribery
  • Fine of 10% of annual revenue