Starting a business in the Netherlands: Guide for Indian residents with requirements, fees, and opening business account

The Netherlands, with a strong economy, easy access to Europe and a supportive government, can be a good location to start a business- but only if you are already a residence permit holder. So if you are an Indian studying or working in the Netherlands already, plan to, or qualify for the Dutch startup or entrepreneur visa, read on to learn more about how to start a Dutch business and what to expect.

Table of contents

Can you register a company in the Netherlands from India? Different types of companies in Netherlands Requirements to start a company in the Netherlands from India What does it cost to run a Netherlands company Starting costs for setting up the company Taxes and Government Fees Starting a business account for Netherlands company Moving to Netherlands from India Entrepreneurs or the self-employed Residence permit for foreign startups Employee migrants

Can you register a company in the Netherlands from India?

Yes, you can start a business in the Netherlands while you live abroad - but you must have structural physical business activities in the Netherlands and you need to have a business address in Netherlands to do so. Here a checklist from the Dutch government about start a business from abroad.¹

If you are an existing business owner in India and want to operate in the Netherlands, you can do so even if you don’t live or work in the Netherlands. All foreign business structures are permitted to register with the Dutch Business Register at the Chamber of Commerce (KVK), except sole proprietorship that require a Dutch residence permit.

Here are the common ways to register your your existing business in Netherlands:

• Open a branch: if you open a branch you don’t need to register your business as a separate legal entity but you will be required to be listed in the Dutch Business Register at the Netherlands Chamber of Commerce (KVK). Your business is not considered a permanent establishment in the country.
• Open a retail outlet, shop, workshop or factory: This is considered a permanent establishment and is expected to operate as a self-sufficient business in the Netherlands.
• Foreign legal structure: Some foreign businesses can be registered as a foreign legal entity with commercial activities. If you are planning on living in the Netherlands, you will need to have the right immigration status and visa.

If you intend to do business in the Netherlands but don't have a permanent establishment, you may need to register with the Dutch Tax and Customs Administration as well.²

Students can also consider starting a business if they are already in the country.

Different types of companies in Netherlands

Business structures in the Netherlands are divided into two different categories- one is businesses without corporate (legal) personality and those with corporate (legal) personality.

Businesses without legal personality means that the owner or owners are personally responsible for the company’s liabilities and debts. Here are the types of structures that fall into this category:

• Sole proprietorship (eenmanszaak): A sole proprietorship is a business that is owned and operated by one person.
• General partnership (vennootschap onder firma or VOF): A general partnership is a business that is owned and operated by two or more people who have joint and several liability for the debts and liabilities of the company.
• Professional partnership (maatschap): This is a business that is owned and operated by two or more people who provide professional services, such as lawyers, accountants, and doctors.
• Limited partnership (commanditaire vennootschap or CV): A limited partnership is a business that has two types of partners: general partners and limited partners. General partners have joint and several liability for the debts and liabilities of the company, while limited partners have limited liability, meaning that they are only liable for their investment in the company.

Business structures with a legal personality are one where the owners are not responsible for the company’s debts from their own personal assets. Here are the types of structures, and keep in mind that these require a civil law notary to create the legal entity:

• Private limited company (besloten vennootschap or BV): A type of company that is owned by a small number of shareholders. The liability of the shareholders is limited to the amount of their investment in the company.
• Public limited company (naamloze vennootschap or NV): A public limited company is a type of company that can have an unlimited number of shareholders.
• Foundation (stichting): A foundation is a non-profit organization that is set up to achieve a specific charitable or social purpose.
• Cooperative (coöperatie): A cooperative is a business that is owned and operated by its members. The members of a cooperative share in the profits of the business.

Freelancers or the self-employed typically register as a sole proprietor or as a private limited company. If you’re not sure what type of structure to open, the Dutch government has a helpful tool online that can help you identify which suits you best.³

Requirements to start a company in the Netherlands from India

Registering a company with KVK from abroad is considered an exceptional case, and will require assessment whether you have a sufficient economic presence in the Netherlands. KVK may request supporting documentation to verify this. Review the official checklist on starting a business in Netherlands for more information 👉.

In general, to register a business in Netherlands, you must:

• Select a unique name for your business that is not already taken or sounds too close to an existing business in the country.
• Choose your business structure and register with the KVK, if required. You can prepare onlinefor the company registration with the KVK.
• Make a registration appointmentwith the KVK. Sole proprietorships or a partnership will have to visit a KVK office in-person. Make sure to bring your ID for this step.
• Pay the registration fee.
• Receive your VAT number and tax return form from the Tax Administration Office.
• Open a business account.

If you are looking to have employees, you will need to register as an employer with the Tax Administration. And if you need any licenses or permits, you will need to apply for those once your company is registered. ⁴

There may be a few more steps, depending on your type of business. The Dutch government business website has checklists for people looking to start their own business and guides on how to set up different types of businesses like an online shop, taxi or bed and breakfast.

What does it cost to run a Netherlands company

The cost to run a company in the Netherlands depends heavily on the type, size and industry of your business. Self-employed or freelancers may have less overhead costs but have to cover their own insurance costs, while larger companies can have expenses for multiple offices and staff.

Here are some common costs when running a business:

• Employee salaries and benefits: Often the largest cost for a company, employee salary and benefits- including your own- can vary depending on where they are located. Salaries tend to be higher in the big cities when compared to rural areas.
• Rent and utilities: This is the cost of renting or owning office or retail space, as well as the cost of utilities such as electricity, water, and internet. If your team is remote, you may need to pay for a co-working space or a work-from-home set up instead of rent.
• Equipment and supplies: The cost of purchasing or leasing items to run your business such as computers, furniture, and inventory. If you are importing or exporting from India, some of this cost may be incurred there.
• **Marketing, advertising and business development: **This cost can vary depending on whether you have a team or are doing it yourself. Keep money aside in your budget for this so you can grow your business.
• Taxes and insurance: The Dutch have specific taxes and contributions depending on your business. The section below covers what you can expect.

There may be additional costs to run your company. In order to prepare, create a financial plan and budget to see how much you may need to keep the business running until profitable.

Starting costs for setting up the company

One of the early costs for almost any business will be the registration fee at the Dutch Business Register. It is a one-time fee of €75 and is only applicable when you first register your business. It can be paid through an online payment page or a debit or credit card at the office. ⁵

Small business owners and the self-employed can see if they qualify for any Dutch subsidies or tax schemes. Most of the schemes require that you spend at least 1,225 hours per year on your business to qualify.

Taxes and Government Fees

There are a number of taxes that Dutch companies should be aware of:⁶

• Salaries tax.
• Social insurance contributions for employees.
• Corporation tax, for corporate structures.
• Dividend tax, for shareholders.
• Environmental taxes.

Not all taxes will be relevant, so work with a tax professional or accountant to ensure you are paying what is needed for your business.

Starting a business account for Netherlands company

Once you have registered your company in the Netherlands, you'll need to open a business bank account to make and receive payments. This can be done online or in person at a bank branch.⁷

A business bank account helps separate your personal expenses from that of the business. To open a business bank account, you will need to provide the bank with:⁸

• Your company's registration number from the Dutch Chamber of Commerce (KVK)
• A copy of your passport or other valid ID.
• You may be asked to show a Dutch address.

Some banks may also require you to provide additional information, such as a business plan or financial projections.

If you are an entrepreneur with a verified startup who is in the process of registering with the KVK and getting a residence permit, you can use the Quick Scan “Dutch Business Bank Account" to speed up the process of getting a business account.

🔍 Want to open a personal bank account? Read our guide to opening a bank account in the Netherlands.

If you are working between the Netherlands and India, having an account that can make transfers low cost and simple is important. This also applies for businesses with globally distributed teams, suppliers and clients. Get the business account made for going international, check out the Wise Business Account.

Meet Wise Business

Ready to take your business global? The Wise Business Account lets you transfer payments to globally and receive money in multiple currencies. So you can pay your suppliers wherever they are and your clients can send payments in the currency easiest for them.

The Wise Business Account has everything that a Wise account offers, which means low fees and the real mid-market exchange rate. No mark-ups here. On top of that, the Wise Business Account can integrate seamlessly into your existing QuickBooks or Xero software for easier accounting.

Our online process lets you open and verify your Netherlands business account from India. With our customer support available in English and our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

Business categories supported on Wise 👉

Moving to Netherlands from India

There are a few ways that Indians who want to start a business can get a residence permit to the Netherlands.

Entrepreneurs or the self-employed

Entrepreneurs or the self-employed from India are required to get a provisional residence permit (mvv) and a residence permit. You will need to show that you meet the requirements of practicing your business, generate sufficient income as an independent professional and you add value to the Dutch economy. You can apply for both permits at the Dutch embassy in India. ⁹

Residence permit for foreign startups

This startup visa is a residence permit for anyone looking to start an innovative business in the Netherlands. The permit is only for a maximum of one year and you are required to have guidance from an experienced facilitator who can support your business. You can apply by completing an application form or your facilitator can apply online. The application fee is € 350.¹⁰

Employee migrants

Highly skilled migrants who are employed by a Dutch company or a foreign company in the Netherlands and require residency can get a paid employment permit. This allows for working and living in the Netherlands, and employees can discuss with their employer if they can explore opening a business on the side.¹¹

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Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

This article is solely intended to provide a general idea of starting a business in the Netherlands and is not intended to be personal, financial, immigration or business advice. Since every individual and business is different, seek out professionals or advisors to help you with the process of setting up a business and moving to the Netherlands.

Sources used for this article:

1. Starting a business in the Netherlands from abroad
2. Foreign entities and branches
3. ​​Business structures in the Netherlands: overview
4. Registration at the Netherlands Chamber of Commerce KVK
5. Registration fee | KVK
6. Taxation and businesses | Government.nl
7. Do you need a business bank account? KVK
8. Opening a business account in The Netherlands
9. https://business.gov.nl/coming-to-the-netherlands/permits-and-visa/coming-to-the-netherlands-as-an-entrepreneur/country=india/staying=more-than-90-days/
10. Dutch residence permit for foreign startups | Business.gov.nl
11. Residence permit for living in the Netherlands | Business.gov.nl

Sources verified on 2 November 2023.

Cover photo by Jonathan Francisca on Unsplash.