To start small business in the Netherlands, you pick a legal form (usually an eenmanszaak or a BV), register with the KvK, and wait for the Belastingdienst to send your VAT number. A sole proprietorship can be registered the same day for €85.15. A BV goes through a notary and takes a week or two, but the minimum capital is just €0.01.
You don’t have to live in the Netherlands to own a Dutch BV. That’s why most of our clients from India and the UAE go that route. Below, we’ve laid out the steps, paperwork, costs, and taxes to plan for before you open a business in the Netherlands.
Can a Foreigner Start Small Business in the Netherlands?
Yes, and nationality doesn’t matter for ownership. It only matters for where you can run the business from.
If you hold an EU, EEA, or Swiss passport, you can move to the Netherlands and register whatever business type you like. No permit needed.
Non-EU founders can own and direct a BV from abroad without any visa. Moving there to work in the business is a separate question. For that, you’d need either the self-employed residence permit or the Dutch Startup Visa. The Startup Visa is valid for one year and only works if an approved facilitator backs you. Americans and Japanese nationals have it easier, thanks to old friendship treaties both countries signed with the Netherlands.
One practical point: a sole proprietorship really only suits people living in the country, since you have to show up at a KvK office in person to register it. For anyone running things from Delhi or Dubai, a BV is the sensible choice.
Which Business Structure Should You Choose?
Go with an eenmanszaak if you’re a freelancer living in the Netherlands and the risk is low. Go with a BV if you want your personal assets protected, expect investors, or plan to manage the company from abroad.
| Eenmanszaak (Sole Proprietorship) | VOF (General Partnership) | BV (Private Limited Company) | |
|---|---|---|---|
| Owners | 1 | 2 or more | 1 or more shareholders |
| Liability | Personal, unlimited | Personal, shared | Limited to the company |
| Minimum capital | None | None | €0.01 |
| Notary required | No | No (a written agreement is wise) | Yes |
| How profit is taxed | Personal income tax | Income tax per partner | Corporate tax: 19% / 25.8% |
| Best for | Freelancers, consultants | Small partnerships | Foreign founders, growing companies |
A lot of Dutch accountants will tell you to move from an eenmanszaak to a BV once your profit climbs well past €100,000 a year. That number isn’t a rule, though. Your own tax position decides the real break-even, so run the figures with an adviser first.
How to Start a Business in the Netherlands: 7 Steps
The order is straightforward: legal form, KvK registration, tax numbers, bank account. Here’s how it plays out when we help clients start a small business in the Netherlands.
Step 1: Sort out your residence status:
If you’re non-EU and want to live in the Netherlands, get the permit side moving first. Running the company from abroad? Skip ahead and go with a BV.
Step 2: Choose your legal form:
The table above covers the main trade-offs.
Step 3: Check your trade name:
Search the KvK’s Handelsregister before you get attached to a name. It can’t copy an existing business or mislead customers.
Step 4: Get a Dutch business address:
The KvK won’t register you without one.
Step 5: Register with the KvK:
Sole proprietors fill in an online form, book an appointment, bring ID and pay €85.15. You leave with your 8-digit KvK number.
For a BV, the notary does the heavy lifting. They draft the deed of incorporation, register the company, and file the UBO details. UBO stands for ultimate beneficial owner, meaning anyone who holds more than 25% of the company.
Step 6: Get your tax numbers:
You don’t have to apply separately. The KvK forwards your details to the Belastingdienst, and your VAT number and VAT ID usually turn up by post within about two weeks. Hiring staff means one extra registration, as an employer for payroll tax.
Step 7: Open a bank account and set up your books:
In our experience, this is the step that slows non-resident clients down most. Dutch banks are thorough with identity checks, so give it a few weeks. Also note that Dutch law requires you to keep business records for seven years.
What Documents Do You Need to Open a Business in the Netherlands?
At minimum, a valid ID and a Dutch business address. A BV also needs details on every shareholder, director and beneficial owner.
Here’s what we usually ask clients to prepare:
- Passport or EU ID card for each owner and director
- Proof of your Dutch business address, such as a lease or address agreement
- A residence permit, if you’re non-EU and living in the Netherlands
- Your BSN (citizen service number), if you’re a resident
- For a BV: draft articles of association, shareholder and director details, and UBO proof
- Apostilled company documents, if one of the shareholders is a foreign company
The KvK won’t ask for a business plan. Banks will, though, and so will the Startup Visa and self-employed permit applications, so it’s worth writing one anyway.
How Much Does It Cost to Start a Company in the Netherlands?
Government fees are cheap: €85.15 for the KvK and €0.01 minimum capital for a BV. The real spending goes on the notary, an address, and an accountant.
| Cost Item | Typical Amount |
|---|---|
| KvK registration fee | €85.15 (one-time) |
| BV share capital | From €0.01 |
| Notary fees (BV only) | Roughly €500 to €1,500 |
| Business address | Varies by city and provider |
| Accountant and bookkeeping | Depends on transaction volume |
Keep in mind these are only government and third-party costs. If you start a small business in the Netherlands from overseas, a full-service package costs extra. Those packages usually cover notary coordination, the address, bank support and ongoing compliance, and are priced separately from the fees above.
What Taxes Does a Small Business Pay in the Netherlands?
A BV pays corporate tax, while a sole proprietor pays income tax on profit. Both normally charge VAT, unless they qualify for the small business scheme in the Netherlands.
- Corporate tax for a BV is 19% on the first €200,000 of taxable profit and 25.8% above that.
- Sole proprietors pay progressive personal income tax on profit. Put in at least 1,225 hours a year, and you can claim entrepreneur deductions, which bring the bill down noticeably.
- VAT (btw) rates:
- 21% standard rate
- 9% for things like food, books and medicines
- 0% on certain exports
Most small businesses file VAT quarterly.
The small business scheme in the Netherlands (KOR) is worth a look if your turnover is €20,000 a year or less. You can apply to stop charging VAT altogether. The catch is that you can’t reclaim VAT on what you buy.
Other taxes to plan for:
- Dividend tax of 15% on profits a BV pays out to shareholders
- Payroll taxes once you hire employees
Do You Need a Business License in the Netherlands?
For most small businesses need a business license in the netherlands, no. Registering with the KvK is enough to start trading. A few sectors are different:
- Restaurants, bars and cafés: an exploitation permit from the municipality, plus an alcohol licence if you serve alcohol
- Food businesses: registration with the NVWA, the food safety authority
- Taxi and transport: a transport licence
- Financial services: a licence from the AFM or DNB, the Dutch financial regulators
- Childcare and healthcare: sector-specific registration
Not sure where you fall? Check with your local gemeente (municipality) or the official Government portal before opening.
Conclusion
Getting a company registered in the Netherlands is the easy part. For founders in India, the UAE or anywhere outside the EU, delays tend to come later: coordinating with a Dutch notary, getting the UBO filing right, waiting on bank checks, and keeping up with compliance once you’re trading.
That’s the work OnDemand International handles. We take care of BV incorporation, KvK and VAT registration, bank account setup and ongoing compliance, and we can provide a local nominee director if you need one. Ready to start a small business in the Netherlands? And we’ll help you choose the right structure and get registered.
FAQs
How long does it take to start a small business in the Netherlands?
A sole proprietorship can be registered with the KvK in a day. A BV usually takes one to two weeks once the notary has everything. For non-residents, the bank account can add a few more weeks.
Can I start a business in the Netherlands without living there?
Yes. You can own and run a Dutch BV from abroad, as long as you have a Dutch business address. If you’re non-EU and want to actually live in the Netherlands, you’ll need a residence permit as well.
What is the cheapest way to start a business in the Netherlands?
A sole proprietorship. No capital, no notary, just the €85.15 KvK fee. The downside is that you’re personally liable if the business runs into debt.
What is the small business scheme in the Netherlands?
It’s a VAT exemption for businesses turning over €20,000 a year or less. You stop charging VAT to customers, but you also lose the right to reclaim VAT on your own purchases.
Do I need a business license to open a business in the Netherlands?
Usually not. KvK registration covers most small businesses. Restaurants, bars, food sellers, transport companies, and financial service firms need extra permits.
How much money do I need to open a BV in the Netherlands?
Legally, €0.01 in share capital. In practice, budget for notary fees of roughly €500 to €1,500, plus the €85.15 KvK fee, a business address, and accounting.
Is the Netherlands a good place for small businesses?
It’s one of the easier places in Europe to start a small business. Registration is fast, costs are low, English is widely used, and the EU market is on your doorstep. That holds for overseas founders too.
