Register a Taxi Company in the Netherlands: Steps & Licenses

Are you a driven businessperson hoping to enter the thriving transportation industry in Europe? Are you considering the Netherlands as your base of operations? If so, you’re in the right place! The Netherlands, renowned for its advantageous location and business-friendly atmosphere, offers ample opportunities for taxi companies to thrive. In this guide, we’ll walk you through the process of registering a taxi company in the Netherlands, covering everything from legal requirements to tax considerations.

Why the Netherlands?

Before we delve into the nitty-gritty of registration, let’s explore the compelling reasons to establish your taxi company in the Netherlands:

• Thriving tourism industry: The Netherlands welcomes millions of visitors each year who are captivated by its dynamic towns, stunning scenery, and rich cultural heritage. The consistent influx results in a constant demand for trustworthy and efficient taxi services.
• Robust Infrastructure: With first-rate motorways, well-kept roads, and effective public transportation, the Netherlands has an exceptional transportation network. For your taxi business, this interconnection guarantees a seamless operating environment.
• Tech-Savvy Market: Dutch people are renowned for embracing technology early in life. This creates the perfect setting for incorporating cutting-edge solutions into your taxi company, such as cashless payment methods and ride-hailing applications.
• Government Assistance: The Dutch government aggressively promotes an atmosphere that is business-friendly. A favorable environment for entrepreneurship is facilitated by streamlined processes, clear regulations, and a competent workforce.

Step-by-Step Guide to Registering Your Taxi Company in the Netherlands

1. Choose a Business Name:

Select a memorable name for your taxi company that embodies your brand and appeals to your intended market. Our experts from OnDemand International can help you select and register the chosen name with the relevant authority.

2. Choose Your Company’s Structure:

Select the most appropriate business firm for your taxi company, considering factors such as liability protection, taxation, and administrative requirements.

3. Articles of Association:

For a BV structure, draft the Articles of Association, a legal document outlining the company’s structure, shareholder rights, and management procedures.

4. Deposit the necessary capital: 

Deposit the minimum share capital of €1,- with a notary public. This is a symbolic requirement for BVs.

5. Register with the Chamber of Commerce:

Complete the procedure for registering your firm with the Dutch Chamber of Commerce (KVK) by submitting the necessary documents and paying the registration fee.

6. Obtain a VAT Number:

If your company meets the criteria for VAT registration, submit an application to the Dutch Tax and Customs Administration (Belastingdienst) to obtain a VAT number.

What is the best structure for registering a taxi company in the Netherlands?

While several business structures are available, the Dutch BV (Limited Liability Company) is a popular choice for taxi companies due to its:

• Limited Liability: The personal assets of BV shareholders are protected from business debts due to their limited liability protection.
• Clear Corporate Structure: The BV structure clearly outlines the obligations and roles of shareholders.
• Scalability: The BV structure can easily adapt to company growth and future expansion plans.

Tax Considerations for Taxi Companies in the Netherlands

• Corporate Income Tax: Dutch BVs pay corporate income tax on their net profits, currently at a rate of 25.8%.
• VAT (Value Added Tax): Taxi services in the Netherlands are subject to the standard VAT rate of 21%.
• Payroll Taxes: Employers in the Netherlands are responsible for withholding and paying payroll taxes like social security contributions for their employees.

Licensing and Permits for Operating a Taxi Company in the Netherlands

In order to legally run a taxi company in the Netherlands, you must apply for and receive a number of licenses and permissions from the appropriate authorities.

These may include:

Taxi Operator License:

This license, which is issued by the Dutch Ministry of Infrastructure and Water Management, gives you the right to run a taxi business in the country. Strict rules pertaining to driver credentials, vehicle standards, and service quality must be followed.

Driver Permits:

All drivers employed by your taxi company must hold valid driver permits issued by the local authorities. These licenses guarantee that drivers fulfil the requirements and go through background checks before operating commercial vehicles.

Vehicle Licensing:

The Dutch Vehicle Authority (RDW) requires licenses and registrations for all vehicles used for taxi services. In order to maintain compliance, it is necessary to make sure the cars adhere to safety and pollution regulations and go through routine inspections.

Conclusion

Setting up a taxi company in the Netherlands offers promising opportunities for ambitious entrepreneurs seeking to establish a foothold in the European transportation industry. By understanding the legal requirements, following the step-by-step registration process, and addressing key considerations such as business structure, taxation, and licensing, you can lay the foundation for a successful venture.

If you’re considering launching your taxi business in the Netherlands, OnDemand International can provide invaluable assistance in navigating the complexities of company registration and business setup. From acquiring virtual office space to opening a bank account, our comprehensive services streamline the process and ensure a smooth transition into the Dutch market. Contact us right now to find out how we can support you in achieving your business goals in the Netherlands!