Start a Business in the Netherlands as a Foreigner | Complete Guide 2026

Yes, start a business in the Netherlands as a foreigner. Depending on your nationality, business structure, and business activities, you may be able to establish a Dutch company while living abroad. If you intend to reside and work in the Netherlands, additional immigration requirements may apply.

Starting a business in the Netherlands is an exciting opportunity, especially for foreigners looking to leverage the country’s business-friendly environment, strong legal framework, and central European location. With its favourable tax system, skilled workforce, and open attitude towards foreign investments, the Netherlands stands out as a prime destination for entrepreneurs. This article guides you through the steps and considerations of starting a business in the Netherlands as a foreigner, covering legal structures, permits, taxation, and more.

Why Choose the Netherlands?

The Netherlands is recognized for its strategic geographic position, being a gateway to European markets. It’s home to one of the largest economies in the EU, driven by a competitive corporate sector, advanced infrastructure, and a strong focus on innovation. Here are some compelling reasons why the Netherlands is a preferred business hub:

• Favourable Tax System: In the Netherlands, there is no single flat corporate tax rate, and there is a structured corporate tax system. In 2026, the Dutch corporate income tax rate is 19% on taxable profit up to €200,000 and 25.8% on taxable profit above €200,000. Some tax exemptions may also be applicable, depending on the business and the activities. There are also specific tax measures in the Netherlands for qualifying activities such as research and development and intellectual property. Businesses must evaluate the requirements of each incentive before using them.
• Double Tax Treaties: The Netherlands has more than 100 double-tax treaties, protecting businesses from paying taxes in multiple jurisdictions. These treaties help mitigate tax burdens and boost cross-border trade and investments.
• Skilled Workforce and Infrastructure: The Netherlands boasts a highly skilled workforce with excellent English proficiency, a well-connected logistics network, and a top-tier financial services sector, making it easier for companies to grow and succeed.
• Access to Incentives: The country offers a variety of business incentives, particularly in research and development. Programmes like the “Innovation Box” allow businesses to benefit from reduced tax rates on profits derived from intellectual property.

Can a Foreigner Start a Business in the Netherlands?

Yes. Foreign entrepreneurs can open a company in the Netherlands, but the requirements for doing so vary based on factors like nationality, business type, business activities, and plans to reside in the Netherlands.

Entrepreneurs who live outside the Netherlands may be able to register a Dutch business from abroad in certain circumstances. However, Dutch rules can require the business to have structural physical activities in the Netherlands and a Dutch business address. A simple postal address or virtual address may not be sufficient in every situation.

Also, it is important to know the difference between company formation and immigration. Setting up a Dutch company does not provide the foreign entrepreneur with the right to reside or work in the Netherlands.

Process to Start a Business in the Netherlands as a Foreigner

The following steps to start a business in the Netherlands as a foreigner include:

Step 1: Choose the Right Legal Structure

Choosing the right legal structure is a crucial decision when starting a business. Each business form has its own legal and financial implications. In the Netherlands, the most common business structures include:

Business structure	Suitable for	Liability	Key consideration
Dutch BV	Companies, growing businesses, and many international entrepreneurs	Limited	Requires a civil-law notary
Sole Proprietorship (Eenmanszaak)	Individual entrepreneurs	Personal	Simple structure, but the owner has personal liability.
General Partnership (VOF)	Businesses with two or more partners	Partners generally have personal liability.	Partnership structure
Public Limited Company (NV)	Larger businesses and companies raising substantial capital	Limited	More complex structure and capital requirements
Branch or Subsidiary	Existing foreign companies expanding into the Netherlands	Depends on structure.	A branch and subsidiary have different legal characteristics

1. Dutch BV (Private Limited Company): The most frequently used legal structure for both local and foreign entrepreneurs. A BV is a separate legal entity and may offer limited liability to the shareholders, as per the applicable legal provisions. A civil-law notary has a role in the formation of a BV.
2. Sole Proprietorship (Eenmanszaak): This is an ideal structure for individual entrepreneurs looking to start a small business. It’s easy to set up but offers no liability protection, meaning the owner is personally responsible for business debts.
3. General Partnership (VOF): A business entity formed by two or more partners who share profits, losses, and liability. Partners are jointly responsible for the company’s debts.
4. Public Limited Company (NV): Suitable for larger companies planning to raise capital through the stock market, the NV requires a minimum share capital of €45,000. This structure is ideal for businesses with significant capital investments.
5. Branch or Subsidiary: Foreign companies can also set up a branch or subsidiary in the Netherlands. While a subsidiary is an independent entity, a branch is considered an extension of the foreign company.

The choice of structure will depend on a number of factors, including liabilities, number of owners, planned activities, employees, taxation, and company operations in another country.

Once you’ve chosen a business structure, you can proceed with the registration process.

Step 2: Register Your Business

All businesses in the Netherlands must be registered with the Dutch Chamber of Commerce (KvK), which administers the Dutch Trade Register. The process involves several key steps:

1. Choose a Business Name: The first step is to select and register a unique business name that reflects the nature of your business. The name should be distinctive and must comply with Dutch naming conventions. A name check can be performed with the KvK to ensure that no other company is using the same name.
2. Prepare Incorporation Documents: There are a number of documents to prepare, such as the Articles of Incorporation, the shareholder agreements, and other statutory documents, if any. In the case of a BV and other legal entities, a civil-law notary can be involved in preparing and executing the necessary notarial documents.
3. Submit Documents to the KvK: After preparing the necessary documentation, submit it to the Dutch Chamber of Commerce (KvK) to officially register your business. The exact registration process depends on your business structure. For a BV, cooperative, or NV, the civil-law notary handles registration with KVK and the Dutch Tax Administration on the company’s behalf. For structures such as a sole proprietorship or partnership, KVK passes the relevant information to the Tax Administration.
4. Receive a KvK Number: Upon successful registration, you will be assigned a KvK number, which identifies your business in the Dutch Business Register. For registration, you may need documents such as valid identification, evidence relating to your Dutch business address and, where registering from abroad, additional legalised documents. The exact documentation depends on your situation.

Step 3: Open a Corporate Bank Account

After registering your business, you will need to organise suitable business banking facilities in the Netherlands. The requirements for banks differ, especially for non-resident founders.

Banks may require documents such as company registration/KVK information, identification documents, ownership details, business activities details, expected transactions, and source of funds information as part of the KYC process.

Accordingly, the registration of a Dutch company does not ensure that a specific bank will provide a company bank account.

Step 4: Secure Necessary Permits and Licences

Depending on the nature of your business, you may need additional permits or licences to operate legally in the Netherlands. For example:

• Environmental Permits: Businesses involved in manufacturing, construction, or agriculture may need to obtain environmental permits.
• Sector-Specific Licences: Certain sectors, such as healthcare, financial services, or hospitality, may require industry-specific licences.

It’s important to check with local authorities to ensure that you meet all regulatory requirements before starting operations.

Step 5: Tax Registration

After registering your company, you must also register with the Dutch Tax and Customs Administration for tax purposes. This includes obtaining a Value Added Tax (VAT) number, as well as registering for payroll taxes if you plan to hire employees.

The VAT rate in the Netherlands is 21%, with reduced rates of 9% and 0% applying to specific goods and services.

For 2026, corporate income tax is 19% on taxable profits up to €200,000 and 25.8% on taxable profits above €200,000.

Foreign-owned companies in the Netherlands are subject to the same tax rates as local businesses, although they may benefit from exemptions under double tax treaties.

The tax treatment may vary based on the legal entity type, activities of the company, residence of its owners, transactions, and applicable tax treaties. Foreign-owned businesses should therefore check their own tax situation and not take it for granted that all businesses will be treated in the same way.

Step 6: Hire Employees (if applicable)

If your business requires hiring local or foreign employees, there are specific regulations you must follow. Employees are protected by Dutch labour laws, which cover minimum wage, working hours, holiday entitlements, and more.

Foreign workers from outside the EU, EEA, or Switzerland will need a work permit and residence visa. Additionally, all employees must be registered for social security and health insurance.

Step 7: Residence Permits for Non-EU Entrepreneurs

For non-EU citizens who wish to reside in the Netherlands, a residence permit is required. There are several types of permits available for entrepreneurs:

• Self-Employed Residence Permit: This permit is available for third-country nationals looking to establish an innovative business in the Netherlands. Applicants must meet specific criteria related to personal experience, business plans, and their contribution to the Dutch economy.
• Startup Visa: The Dutch startup visa offers ambitious entrepreneurs a one-year temporary residence permit to develop a business plan and launch their company in the Netherlands.

Both types of permits require a solid business plan and evidence that the business will contribute to the Dutch economy.

Step 8: Utilize Available Business Support

The Netherlands offers a range of support services and incentives for entrepreneurs. For example, the Netherlands Foreign Investment Agency (NFIA) provides assistance to foreign companies setting up in the country. Additionally, various tax incentives are available to businesses, particularly in research and development, sustainability, and innovation.

Documents Needed to Start a Business in the Netherlands as a Foreigner

The documents required may vary for foreign entrepreneurs based on their business structure and whether they register in the Netherlands or abroad. Documents can include:

• Valid passport or other accepted identification
• Proof of residential address
• Proof of the Dutch business address
• Business activity information
• Ownership/shareholding information
• Incorporation documents for companies such as a BV
• Legalised copies of documents where required
• Additional documents requested by KVK, a notary, bank or immigration authority, depending on the situation

When registering from abroad, KVK may request a legalised copy of valid identification, a signed lease/rental/sales contract for the Dutch business address, and evidence showing the entrepreneur’s foreign address.

How Much Does It Cost to Start a Business in the Netherlands?

A company incorporation fee of around €50, as required by the Dutch Companies Register.

The KVK registration fee is €85.15 in 2026 for registering a new company or organisation in the Dutch Business Register. This is a one-time KVK registration fee and is separate from professional costs such as notary or incorporation-service fees.

A virtual office service fee, starting at approximately €70 per month, depending on the chosen services.

Accounting services are available, with fees starting at about €75 per month.

Virtual office and accounting prices are service-provider costs rather than fixed Dutch government fees, so actual prices vary depending on the provider, location, and services required.

For a BV, you should also consider civil-law notary fees and any professional company-formation services. Immigration applications, business premises, banking and sector-specific permits can create additional costs depending on your circumstances.

The previously stated €1,400 “full company formation” figure should therefore be treated as a service-provider price rather than a mandatory government cost.

Timeline to Register and Incorporate a Company in the Netherlands as a Foreigner

The process of registering and starting a business in the Netherlands, especially for foreigners, involves several steps and generally takes a few weeks to complete. Here is a timeline for the main phases:

1. Business Name Reservation: The process begins with selecting and reserving a company name with the Dutch Chamber of Commerce (KvK). This step can be done online and typically takes a few hours to complete.
2. Document Preparation and Notarization: You need to prepare the incorporation documents, such as Articles of Incorporation and shareholder agreements. These documents must be notarized by a Dutch notary, which can take 1-2 days, depending on the complexity.
3. Submission to KvK: After notarization, submit your documents to the KvK. Once submitted, the registration process usually takes 1-2 days, and you will receive your KvK number, making your company officially registered.
4. Tax Registration: After receiving your KvK number, you must register with the Dutch Tax and Customs Administration for VAT and corporate taxes. This step takes about 1-2 days.
5. Corporate Bank Account Opening: After registration, opening a corporate bank account is required, which can take a few days to complete, depending on the bank.

Overall Time Frame

There is no single guaranteed timeline for every foreign entrepreneur. A straightforward setup may move relatively quickly, while foreign document legalisation, notarial work, banking, permits, or immigration requirements can extend the process.

For this reason, it is better to treat the 2–3 week figure as a possible timeframe for a straightforward setup rather than a guaranteed processing period.

Conclusion

Starting a business in the Netherlands presents numerous opportunities for entrepreneurs, thanks to the country’s favorable tax policies, skilled workforce, and open business environment. From selecting the right legal structure to navigating the registration process, following the outlined steps will ensure a smooth and efficient start to your business journey.

For foreign entrepreneurs, however, the process involves more than simply registering a company. Business structure, Dutch address requirements, KVK registration, taxation, banking, and, where applicable, residence permission should all be considered before starting operations.

Be sure to consult with incorporation specialists from On Demand International’s Dutch incorporation desk to ensure compliance with Dutch laws and maximize the benefits available to you. 

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