Why start a business in the Netherlands - Expert opinions from the Global Entrepreneurship Summit
If, you're an entrepreneur you. Want to do business in the Netherlands you're welcome, we're, at a global entrepreneurship. Site a large. Event between. The United States and a knowledge. Encouraging. Business. Connecting. Business, innovation. And international. Business. So. Establishing. The company in the Netherlands is an amazing, opportunity for each entrepreneur, outside, of the Netherlands, the. Environment. Over here it's based on innovation, the, other one is the government supports you very very well with, the text and also, there, are a lot of funds European funds and also dutch-based, funds which can support your business if you are in the innovation, kind. Of businesses, as. Freelancer, it's quite easy to start in balance because you just have to go to the kavika and. Register. And you, can start right away for, me personally the, Netherlands turned, out to be a really great, place, to reprogram, my head and I. Believe, when building a business mindset. And attitude is, number. One. It's, very easy to start a business in the Netherlands, even compared, to other European, countries, the, orange carpet is there for you the, Chamber of Commerce supports, every. Entrepreneur, in the Netherlands his, tools advice. And personalized, products. Enabling. Them to start, a business but also to grow and to help innovate, in. The Netherlands you know there's a great, talent. Pool, to. Help entrepreneurs. Be. Successful, the Dutch government they. Want entrepreneurs, to be successful, the, business community here wants, entrepreneurs. To be successful, it. Was really good coming from an. Eastern European country. With much less opportunities. Coming. To this candy. Store of the country, and just. Exploring. All of this an. Eminence has something unique based, on my experience, the Dutch culture, is open, for innovation, and that's what distinguishes us from the other nations, around the world. The. Business climate is very very good there's. A lot of talented, people here, in the Netherlands but, also the, Netherlands is a gateway to Europe to. The Middle East to. Northern, parts of Africa. And. We've got. A good, infrastructure. Professional. And flexible. People a well-educated, workforce. Lots. Of the Dutch speak, English, we're outspoken. And you can rely, that we do what, we promised. I think. The most important, tip when you come is to prepare yourself very well use. Connections, ask. Help, and use, help from other entrepreneurs, yeah. Be ready to get knocked down you're. Gonna fail don't, expect, your first product, or your first. Presentation. Of that product, to the marketplace, to, propel. You to success, my, advice would be to go. To events and network, a lot to. Just be open-minded and, to, interact. With as many people as they can when they come well, just go for it and good because the environment. Is very supportive, in. The Netherlands you are more than welcome we all speak very well English also the government agency so get yourself connected with a government agency like, the video and I hope you will you will enjoy your staying in the Netherlands. Welcome. To the webinar starting. A business in the Netherlands, starting. A business in the Netherlands is an attractive, option for foreign, entrepreneurs, but. How, do you go about setting, up your business what. Do you need to know which, permits, do you need and what, taxes, can you expect to pay those.
Topics, Will be discussed by experts and experienced. Entrepreneurs, do. You have a question use, the live chat option, underneath the video screen to ask our specialists, they will reply directly. If. You are a foreign entrepreneurs Eve to start a company in the Netherlands then, you will need a residence, permits a work permit a citizen, service number, and of course accommodation. We're, going to discuss what you need to do and how to do it with, Willem toast from startup Delta and golden, Qiang kaya from the Dutch Immigration. And Naturalization Service. Is the I and, D. Welcome. To you both thank. You Willem. Your work for startup Delta and you help entrepreneurs. To, start their businesses, here how, many startups, do you help each year oh I see at least 200 start-ups every year coming from other countries and I'm looking to establish the business in the Netherlands and and. As a facilitator, as a fan mentor help them find their way in an Ellen's and to. Start the business and grow their business perfect. And, I'm, very curious you work for the IND how. Many permits does the IND provide. Every year well. I don't have the exact numbers but I can tell you that the Netherlands is number 4 on the, ranking list of the most competitive countries, so. Well, we grown thousands, of applications based, on labour purposes, so, that's really quite a larger that's a whole lot yeah well and it's also quite, complex, of course so I'd like to use an example to make things, a bit clearer let's. Say we have mr., Seng and he's, from India and he, is a software, developer, so he comes from outside, the EU and. He wants to start a company here so, how. Does that work for him which route should he take well. First of all I assume, that he's going to orientate, on a Dutch market so. He can go to the embassy to the Dutch embassy or, consulate to. Gain more information about, the. Opportunities. Labor. Opportunities, business. Opportunities, and he. Can also submit an application for, a business, visa or visa, a short stay so, he can travel to the Netherlands. With. His visa and if. He is in the Netherlands and he started, wants to start a business he. Can start, up or he can submit an application for, residence permit. The, most important, part of. The. Residence permit, procedure, is and this is the general procedure of the self-employed person. Procedure. That. It has an innovative, character, and it has to have value, for the Dutch economy, so. We'll request, the Netherlands Enterprise Agency. If. The. Business, has. Added. Value for the Dutch economy as, well an innovative, character, the, Netherlands Netherlands, Enterprise Agency, well although. There are three categories they, will look to the personal, experiences, of mr.singh, this, could be education, or work experience, if, mr. Singh has a master's, degree he. Will gain, more points instead. Of a bachelor degree the. Second, part is the business plan and, with. A very, good financial, plan. So the Netherlands enterprise, agency, will look to the continuity, and insolvency, of the. Product, or services, so. The. Third part is the added, value for the Dutch economy that. Means that, his. Service, or the business will. Create employment in the future as well. The innovative, character, of the. Service and activities, and, also. The investments, in the future, okay. So if, the Netherlands Enterprise Agency will give a positive advice, we, will proceed, the application, of his residence permit, direct and, how does it work if you want to start up scheme houses that exactly why well, with the startup scheme it is important, debts there, is an innovative idea and with. The guidance of a facilitator, that's, the important, part of the procedure, the. Facilitator, has to guide mr.. Singh to, make this innovative idea, into, a bloomin business a bloomin, company, so. Willem, knows a lot about the facilitating, part and. Also. The facilitator, helps, mr., Singh by. Making a step by step plan and, work. Out this innovative, idea it's only about innovative, ideas you were just talking about well most of it yes we were them can also talk about the facilitating.
Part Of cars I think an, investment, part yeah. So so once a once you're done with the whole permitting, process, in India Hague let's say. Then. Will be handed. Over to a player like start of Delta because, now I'm is the same as going to say how did it get access to markets how did it get access to to investors, how, do we get access to all the networks that are relevant for my business how. Do you get access to, two. Talents, module. They're already dealing with the startup phase I already, heard the story in The Hague now comes how, we're going to do business if I were to fight access to markets to talents to. Networks if. I could another kind of how going to do that so, we're connecting, we're facilitating that and the. Telling you where to go to start up the business in reality, so you're a big help for them really but, I want to go back a bit to to start up lies and because. Let's. See how you go about getting one of those for, example in Amsterdam, or you a startup from outside of Europe you, want to settle down an Amsterdam start. Doing business in the startup capital of Western Europe we present you the startup, visa the, greatest, way to get your boots on the ground and the most exciting, startup environment worldwide. The. Netherlands, has always been and still as a country, of entrepreneurs who. Formed the foundation for, innovation and job creation there. Are multiple criteria to, fulfill to qualify, for the startup visa. The. First requirement for obtaining a startup visa is working together with a facilitator, a facilitator. Is a business, mentor. Who. Will support your needs in operational, management marketing. Research, and investment acquisition, but. How does a facilitator, select you, show. Your MVP or prototype, and prove you are innovative, send. A business plan to the facilitator, including, your. Role in the startup the, idea behind the product or service. How, it is innovative how. To transform, the idea into a business. So, that the idea is already in progress to improve your chances. If. You get selected by the facilitator, you can start your adventure in Amsterdam, you should, register at the Dutch chamber of commerce your. Facilitator, will help you to get the paperwork done the. Final requirement includes sufficient, financial resources to, prove you can pay the expenses, of living in the Netherlands for one year the, minimum amount needed is 13,000, euros finally.
As A start-up entrepreneur or, an authorized, representative you, should apply for a residence permit, to the IND. The. Application, for a startup visa must be submitted to the Dutch embassy or consulate in, the country of residence. We. Advise getting professional juridical. Help to make sure the paperwork s correct the. Estimation, of processing, the startup visa application. Is seven weeks. And. Goten where do I apply for a startup visa, well. In the case of mr. Singh I will recommend him just, go, first to the Dutch embassy to, collect, a visa if he doesn't have a business, visa for example, or visa, short-stay, to, really orientate, the Dutch market know, what's, going on in, the Netherlands it's really important, and he will have a visa or he will he. Can collect a visa soon, if he tells. Them that it's, for, the business activities, or opportunities, so. That's no problem and. Well. As. Well he needs willem but first, of all yes sir enter the Netherlands and it's the please depart sorry also, he enters the Netherlands he. Can try to find a facilitator, and he can check the website of the Netherlands, Enterprise Agency there, are reliable. Guide. Very good facilitators. On their website probably. Can also. For. That so so, once they come to the to start Abdullah even go to find out okay where do you want to establish your business depending, in the part of the country you're going to operate if, you're in the hague there's it okay then we can recommend that organizations facilitate. You go to Amsterdam's another organisation, to operate as a facilitator, and then as a facilitator, we're, going to look at do, they qualify are. They somebody that, really, qualifies, for the, fur to start this season for instance is it this great little operation, if he's coming to the now this is an organization, that has a potential to become a major engine. For economic, growth a major engine, for creating high quality jobs, those, are the things that you're looking at as a facilitator, once, you once, you take all the boxes you hand over to the Hague and there they, they go on with the process of the of, the of, the permitting okay and who else can help you with immigration. Method. Well. Immigration, matters this is basically only IND, and, that's, the only place to go for true immigration, issues and that's. Not what a facilitator, that's a facilitator, looks more at the the, business aspect, of this, is innovative, it scalable this is a company.
That Will really serve and, contributing, to the to the Dutch economy then. You hand them back over to the IND and, once you take all the boxes ok so if you would start your business here, so, which Dutch organizations, do you need to approach. Well. There is multiple, for. Instance in most of the tech regions, in analysis you have big organizations. Like brain port inane to offer or innovation, quarter in The Hague they, are organizations that have that are very well connected not. Only was the government's also as a corporates was all of the networks that you need and, and, that's also why they are providing, those facilitated, surfaces because, they're all operating, as a spider in the web for, these companies that want to orientate, themselves about opportunities. In analysis and, you need to start at the embassy I think and there's like a sort of process where you have to go great and, after. That how does it work. Well. If we have, the application for the startup regulation. And, the residence permit of. Course he has to collect if. We talk about mr. Singh he, has got to die in front of us to collect his residence permit but before the residence permit he has to go to the front office for biometric Oh testing. And the. Pictures as well from, preparing. The residence card and, he. Has to go to the municipality, to register, himself in, the municipality, who is going to live yes of course. Afterwards. He has to go if he has his resident card he has to undergo. A TB, test because, he has an Indian nationality that. That, means that he he has to go to the Municipal. Health Service, okay. The, form is really on our website, so he can download the form on our website and, you of course need to go to the Chamber of Commerce, well to written the, his, business, in the Chamber of Commerce that's really a must and, probably the facilitator, will help him and guide him by, doing that. And you, go to a bank I presume sure. You, know you first start with it was a shame of course before you do that you need to figure out well, what's the legal form that we're going to form are we going to be a BV is as a single, operator, so. You need to make those choices ahead of time before you go to the, Chamber of Commerce you need to make all these choices ahead of time and, as an online process can be very quick and once. You make the disk election you go to the Chamber of Commerce then you get your registration with, that you can go to a bank EU open up a a business account so, that's the sequence of operations, at that end okay well. Let's say that mr. C he, has a family in India as well well, they also all, receive, a residency, permit when they come here no well mr. Singh is the sponsor, for his family, for his spouse or a partner or. Even the children so, he has to submit an application for, his family members, depends. Of the situation, if he's married we need a marriage certificate legalized. Translated. If he. Has children we need birth certificates. Mr.. Singh. Also need a birth certificate for the registration, in a municipality. If. He has a, partner, and married we need declarations. Of being, unmarried not, older than six months and if. He has a registered. Partnership. We, will need the declaration, or. That. He has a registered, partnership, you need a lot man is that the same it really depends of the situation. It is really if he's married we need a marriage certificate if, he's unmarried having, a partner, we, will need a declaration, of being unmarried for.
Those All the documents really have to be translated and legalized, ah so you can read it in Holden as well but how is it when you, come from the EU and not from India, well. For you you, memorize, it's really different because if, they have a, passport, or, ID. Card that there are you in citizen, it. They, can travel to the Netherlands and they, don't have to register themselves they, have to register themselves if, they want to live more than four months in an islands because, they need, citizen. Service number so, that means if they register themselves, in, the municipality, where they're going to live, they will automatically, get the citizens, number, so, that's very important, if you want to work, in the Netherlands as, a, citizen. Yeah because as soon as you have that so-called, what I call here to be as n number would, be as a number, you can also get your health insurance which is a mandatory deal in an island so you have different options but. As soon as you have you because n number then you can also enroll. For, a free medical insurance, for yourself or your family and negative stuff which is a mandatory deal. This. Is the whole other party we deal with whispers of funding in America in the talents and and that's an hello a tragic, trajectory. For for the business side of it yes how do they do that, well. As I said that's that's, what the role if it's a facilitator, so the facilitator, is going to tell them to identify if. They comes in analysis what's. The business you're you're you're aiming for what is your target market because. We can connect you with the right parties in this country we can target you with the places where you can find a tech talent we, can play we can connect you with governmental. Agencies or private funding. To, get your business off the ground so that's that's, the role of the off the facilitator. So the. Government just may need the older permanent site and a fiscal side the. Other players, in the facilitators. Connecting. All the players who are involved with getting here access to market access, to talent access, to funding, access. To networks, and how do you get, in contact with those investors, then train you well. Is. His. Role or her role is the. Person who is as a spy to know map between, all these organizations, so, there are multiple there, is literally, hundreds, of sources for funding in and that is just, in the private sphere then, you go to government for some whole bunch of wonderful tools to. Help startup companies was early-stage funding there's, innovation credits. There's all kind of extra. Credits. So. There's a wonderful tools and that's so. That the facilitator, connects all these parties so that's what I do as a mentor to they, tell people said okay I think that, your companies at this stage is you need to looking at early stage funding or, you need to go to innovation, credit or make.
Sure That you're going to apply for WOB, as Oh. Tax credits for for tech workers so. That's that's the role of the facilitator okay. And, there's, a point. Where you can do a quick scan as well in, the government, right yes, great. Yeah. They have an advising, part. In. This all and the procedure that's true and, that's a very quick way so it, looks, like there's a lot of work going on there but but, interesting. Enough most of the documents, not all of them but most of them are all in English so. When, you have for instance a company coming to you a your facilitator, for them and, you're going to help them we're saying well I think that this stage of your company you should get access, to that kind. Of funding from the government you, can do indeed your quick scanners RvR the netherlands enterprise agency, within, a week they'll. Tell you, well. We agree with mr. grouse i think you could you. Qualify, for early stage funding or, you should do something else so, it's a wonderful tool that you within a week they'll. Call you in person, and to let you know what, the options are and. What. If mr singh already works in the netherlands, and he wants to do. Some freelance gigs. As well it, is possible he, can hear, the notification. On his residence card that he can work. At the isle is called margined and a, self-employed. Person other, labor labor, is not allowed. Just, whatever work permit so, but. The most important part is that he always have to fulfill the conditions of the. Highest good migrant scheme so. If. It. Is all if he's, doing. That that's no problem he can work as a freelancer. Other. Activities. So perfect, well thank you so much in both of you for all this information. Very helpful, well. Common, theme for melons isn't complicated, if you know the way if, you're a highly, skilled migrant, your employer, can help you if, you're a self-employed, professional. You can acquire points, in a system and if. You want to launch a startup you can team up with a facilitator. If. You want to set up a business in the Netherlands as a foreigner, there, are several steps, you'll have to take, also. You, need to know about Dutch, market rules, for employers, and legal, forms with. Me are yo hon la France from the Netherlands Chamber of Commerce and. Israeli. Entrepreneur avi, shine Trabelsi, founder. And CEO of qui cargo, a business. He started in the Netherlands welcome. To you both gentlemen thank. You very good to have you here, when. You came. To the Netherlands, you've. Started qui cargo and what kind of business, is squeak ah go I moved. Here April. 2016. And quick cargo is a marketplace, it's a online platform that matching, empty. Trucks that running. Around the, roads to any business within, transportation, okay, I was. A gap in the market, for, filling empty trucks, for. Now we have about, 50%, of the trucks that you see on the roads are purely. Empty. Or even partly, empty Wow we are a lot of potential, to utilize, and to improve it, commercial. Wise but also it will improve a lot the congestion that we are having and they of course the co2. And greenhouse, gas how. Did you come up with this idea I was. Managing my family trucking company, in back in Israel and I, had the same problem we had a lot of empty, trucks and. We. Needed to and margin. Was very low so we needed to fill the trucks in order to get profit. Better. Margin, or the, operation. And, once I realize it's a big problem not only in the Israel I decided, to quit and start the. Global quick cargo mm-hmm. Wow. Very interesting thank, you and. If you want to start your business here what do you need to know and what do you need to take care of I will always start with myself and, do I have everything I need to be a successful, entrepreneur, do I have the right skills there the right drive the motivation, to make it a success, am I, willing to go all the way for it I think, that's always going to be the first thing second. Thing. Is. To decide if there's market so. You need to take a close look at, what's. The competition like, who. Are gonna be your clients, how many of those are there and will did eventually, end up in a successful, business.
I Think. That's that's gonna be step two, it. Might be something to take a look at if you need some sort of financing, is there money needed, to, set up but. If that's all taken care of the only thing that remains is registering, at the chamber of commerce and from that point on you're. Ready and set to go if. You've done that what do you need to do next, when. You did all that and you actually have a business it's, time to go out there and start. Doing the work and and start. Making money yeah I think that's it and do you need anything else like from the government, like, citizen. Service numbers, that's. A part in, indeed, that's. Also something that you need to take a look at of. Course you, need you need to have a tax number you need to have a vit number, in. Order to do so you need to be having. A. Personal. Unification, number BSN, number, yes. So there are a few things on the side that need to be taken care of as well. And. How did you prepare, to, enter. The, Dutch, marketplace. It. Started - not, stopping dreaming, about, wig are like. In the last three, years two. And a half years and then, once I took the decision and, I sold my house my car and I started to invest so the first point that you mentioned that if you're into in, order to actually, realize. It you need to invest at all tonight, related. To. That point the. Second thing is the market research is the most important, thing so before, we. Decided to move to the Netherland I traveled three months. Around the Europe after. Analyzing. And making research, at, home where. Are the potential. Market to start with and, I. Invested, a, lot of time by talking with hundreds, of companies experts. Logistics. Professors. In Germany. UK Poland, here. And, eventually. I just asked. The people, and the, companies I, offered. My proposition and then here. It was the fastest. The. Fastest reaction to start just, let's let's try it and let's see if it's working and then. Yeah. And this is how we started, a lot of manual, and a lot of cold phones but eventually from. The first client, it, started, to be well, we know who. Are your customers, we're. Targeting, mainly, a small, micro. Small businesses, that they're not, actually. Having their own logistic. Department, internally, or they're not having logistics. Third third, part logistics, and handling, all the logistics, loss and we, can actually help them to be much more flexible and also in commercial wise to be, more. In, the prices, they're saving transport, cost but also they have the, green. Impact, that is a small company it's not your first priority, to be green but, with our system you can actually do it with your right. Away without investment. Well. You started, a business with employees, but you can also start your business as a self-employed, person and. You have different legal, forms, and what. Are those four very options. Mostly. We. See a lot of people registering, either, sole proprietorship, or a general, partnership and, those are both, looked. At as, you as an individual as a person and it's, also possible to, to go for a legal form a legal entity in. The, Netherlands being a private. Limited company also, called a Beibei those. Are the, two. The. Two that that end up we end up with the most, some. People use. Words like freelancing. And set safety which is also a term very, widely. Used in, the Netherlands, those. Are no specific, legal forms when, you start as assets, at B or a freelance, you either end up with a sole proprietorship or a buffet, with you as being the director, Cheryl or something and, well, how do you choose the legal, form that suits you best that, depends, on the. Work. That you did up front. There. Are a few differences, one, has to do with taxes, being. A start-up business with a low profit expectation. That might benefit more from a, sole, proprietorship. On. The other hand there's issues, with liability if. You have an. Activity that in which you are highly, reliable high, risk. It. Could be to. Choose for the buffet, instead that has. Limited. Liability, mm-hmm, in which legal form did you choose, B, V and mostly. Because of our. Funding. Times. Externally, from investors, and once, the investing, in the markets, must have. In. Legal. Entities VV, well. Also this our investors get shares and my Posse's deter investors. Get shares in. Equity. In the business so, we're partners, and when your partner I think it's very important that it's, it's easy to share there I don't know even if you can do in partnership the, share, equity so that's that's one also, something, that you look at if there are shareholders, multiple. Shareholders, you need to go with a big company. Okay, and when, and how do you register your combi a company up there nettle is Chamber of Commerce, depends.
On The scenario if, you want to set up a private limited company you, go to a notary and they'll, take care of it also. With us so in, that case we don't see you at all, if. You go for a sole proprietorship or a general partnership you. Come to our office you set up an appointment fill out the paperwork and stop, by either. Alone or with all, partners if there's more than one good. Coffee. What's. The, right moment, to register is there a right moment I. Would. Say that, when. You start do doing, the business if you have clients if you have turnout for coming in that would be a point of registration. Doesn't. Work like that all the time at some point you might be a little sooner, than the, actually, starting point. In. My experience, don't be too soon. Taxes. Will start and you get a lot of paperwork which is useless if you if you didn't start already, but, if you need it for whatever reason or there, are clients, and nearby then you should help yourself register and. Of course your business needs, a trade name how, do you come, up with a good one I. Wish. I knew you. Need. To find something, and for. Some it comes naturally. For another it needs it's really work to get a name that that suits. What. It is that you're going to do just, keep, in mind that you need to be unique, it. Cannot be already, being. Used by someone else it cannot, be misleading, in any way so. It needs to be unique. You. Really, need to find one yourself, which. Is not confusing, as well which, is not confusing as well which becomes more and more difficult because, we have a lot of businesses, in the Netherlands it's it's in the millions now, so. Try. To find something that isn't already out there that that's, that's, gonna be a difficult process but, still you. Need to find one and if. It's not gonna work for just you and ask, your family your friends the, people, around you who, know who you are you, know what what, you're about to do and, that. Might end up with with some good ideas from other people, things. That also need to be considered, is if you want to have, let's say a website from your business it. Also needs to be a name that is, still available as a domain name oh yeah and also something.
To Check is whether your, trade. Name is already being registered somewhere, as a brand, name if that's the case you can not use it as well of course. I. Used. My network, and my friends family and creative, the most creative people I knew to, think. About three aspects, the first thing which needs to be easy, to pronounce. Called, you don't say a very difficult one the second thing it's need to be international, if it's your intention, it's, very important I see a lot of companies, with very domestic. A name then it's very difficult to brands and they absolutely need, to change the name, where they go global and we all go of course yes. And. The third thing is need to explain. The values that. You're trying to. To. Propose, to your audience so this, is how we came within a quick, cargo and, then it's quick and easy and. Very. Easy to to book a shipment. So. This is how we did and one comments here the company. Entity. The legal entity it, can be a different name than the brand name so, it's, important, to be, it's, more fit to give you more flexibility, okay, I'm, wondering, do you need any qualifications. Permits. Or certificates. To start a business in the Netherlands actually, they're starting itself starting. Itself is for, us to have, you come by and register. The business we're not gonna, ask you for any paperwork at that point but. There are some, specific areas in which we still need. Permits. Transport. For one is. Well. Known and also. If you want to start or. Establishment. There are also rules and regulations, there. But. It's not going to be something that we're gonna ask you for when you come for registration itself, but for certain areas certain, professions, there, are some, things. That you need to have, in order to be able to do, the activity itself okay. And you. Have employees do, you have Dutch employees, or foreign employees or both maybe, yeah we're international, team 80%, are a Dutch in. The rest are from. Israel, United, States Brazil we, relocate. People from whatever they in the world in order to realize. That we cargo and. Yeah. So the. National yes it's important, vibes Kim, well. Nice and can, you actually run a business from your home address, that. Depends on the activity some. You can and some you can't, if. It's just gonna be you at home at your laptop doing, some consulting that's. Fine to. Do from home if you, were to start and that's a very.
Bad Example but if you were to sell a fireworks. Storage, at home might not be to. Do so, in, the experience it depends, on the activity that you have in. Some cases it's allowed in other cases it's prohibited if you want to know for sure you, can check with the municipality. To find, out if there are any specific limitations. Okay and how, do you minimize risks. Be. Careful with what you do I think, that's the the first step and, changing. The legal form might help going from sole proprietorship, to a bathe a that could limit your risks and usually. But. Also think, of insurances. Terms. And conditions. Set. Up good agreements, between you and the. Entity that you work with that. Limits. Your risks, perfectly. I think maybe, pension, as well that's, if you want to have some sort of pension when you get old and then yeah you, should set up something for that as well same goes for insurance. Insurances, for sickness and health. If. You want to have something if you come become, work invalid, that. Might be wise to have something set up for that mm-hmm and how did you set up your network here, in the Netherlands, network. Started. To call. To. The phone with my, special. Accent, and try, to. Introduce. Myself and the business and where I'm coming from why, it's important, for me to realize you ting why I chose the Netherland, and after. A couple, of maybe, not hundreds, but tens of course I got the first client and from that moment it. Would go more and more now we have nearly. Thousands. Of businesses, already register so. Yeah. Did, you visit any event, so yeah. We, created. We. Created our, brand. We put the names in the even events, we also try, to find, the, most influenced people in our industry and we approach them a couple of times let's say, they. Agree to to hear us and I think what, we're trying to do is also important. For the environment and but also the commercials so it's win-win-win. A lot of, people. Including, the government, supporting. Such a project so it was easy for us to to. Promote a positive impact. And not something that early, business and, commercial think do.
You Have any tips for other entrepreneurs you won't just not that business. It's. Important, to. You. You even, you can your you have a lean budget it's, important, not to save in. Matter of all, this administration. Things and to know exactly what, are the rules you know they're not to me so we take a good lawyer good, accountant. To good make sure that you have the right insurance because, we're getting. A lot of information for, instance and privacy, and, things, that you need to make sure you. Can provide those services so don't. Don't try to do everything by yourself you focus, on your business and let, expert. And, maybe. People got all ocol, companies. At helping an expert. To, come here and and and to make. It more, easy and faster. And more safe very, good do, you have any additional tips, I think, he mentioned the. Most important, ones it. Get help whenever you need it so. Come to us come to the tax office hire an accountant, and try to get people close, by who can help you with certain, areas of expertise, that really, helps a lot and, get. Out there and talk to people and, and. Tell. Them that, you exist tell them what it is that you do and and, go. From there so. My. Experience from different countries, I think it's good for another. Tip. Here. My in my experience, the authorities, and the chambers. Of commerce but even, in the. RV. All different. Parties. Were. Very accessible, so it wasn't difficult to approach and ask questions, in, my perspective, in the past when you talk about governmental. Party, or it's, very difficult, it's not really accessible, so, there are ask, your questions, and put it on the table and sometimes, you'll be surprised you're gonna get quite efficient. Answer, so this is, important. To try because things the first thing government. No it's too difficult to approach but it's not apparently, not in, my experience at least so no, good, to know well thank you gentlemen. So much for all the information thank. You very much. Starting. A business requires, a number of steps and key, decisions, once. You have decided upon your business legal, form you can have your enterprise, registered, at the local, chamber of commerce whether. You offer services, or products, you, will do so at your own risk, expense. And with, full responsibility. Towards, third parties, preparing, well is the best way to start the. Dutch Chamber, of Commerce provide, information, on, starting a business you are definitely not, on your own, plenty. Of competent, assistance, is, to be found in the Netherlands business world. Everyone. Living working, or running a business in the Netherlands, has to pay taxes, what. Types of taxes do businesses, in the Netherlands have to deal with and can, entrepreneurs. Benefit, from FEX deductions, / allowances, I will. Be discussing this with Ian van Haren from, the Dutch tax and customs administration, and, weird, if alien, entrepreneur, Avishai, Trabelsi, founder. And CEO of qui, cargo, who, set up his company, in the Netherlands, welcome. To you both thank you good, to have you here well, Ian I would like to start with you, what. Kind. Of taxes do you have - well, keep in mind when you want to start up your company here in the Netherlands well. If you move to the Netherlands you will be dealing with. V80. Income. Tax corporate income tax wage Texas that, all depends on the classification, of your income and what, it is exactly that you do and. How, did you prepare, yourself for taxes Avishai when. The first thing I moved here and then I hired the accountant in, order to avoid any. Things. That I I don't, know it was for me it's a foreign country, and I needed to forget. Everything out so it's always easier, to do it with the government so it was quite easy but, the process itself was. Not. So difficult for us in the first stage. Because, you had your reckoning yeah you could afford one but not, everyone is that lucky so how. Does, it actually work with, wage taxes, here yeah. So the, wage Texas, if you have an, employees in, your business and you will have to keep a wage tax administration. And you have to withhold wage, Texas, and, well. Two things I want to mention about that is, of.
Course When you're when. You own five more than a fraction of the shares in your company, then. You also have to withhold wage taxes if you are working, for your own company and there's, a lot of importance or the customary. Wage tax rule. And. The other thing I want to mention is there the. 30% ruling, if you. If. You have any employees with special skills that come from outside the Netherlands, and they. Can deduct up to thirty percent of their income. To. Make up for the costs of relocation. That's. Well. Generally, considered, rather favorable, scheme. Hmm. And what do you think of that thirty percent yeah I think that's, one of the most. Important. For us to come and, also. For my employers now I have five people so came from Israel from Brazil, from America, four different areas, and, we all got including, me the thirty percent it's really helping us especially. With due to the fact, that we are lean startup, so the salaries is not very high so we. Get more in the net end. Of the mountain it's super important for us so good. Job in life, and. How's it work if you're a sole proprietary, business owner, yes. So the the one-man business is. A text, in income in income tax, as. Opposed to with you you. Know if you have a company then you're really dealing with corporate income tax and well. Generally. Depending. On your size it is usually, when you get any bigger than it's more then you probably will move more to the corporate income tax side but for, the the one-man business will always be taxed in the income tax. And you, will be taxed on your business profits so that is the know, your income, earned some - any expenses. Incurred for. Equipment. Travel. Expenses well the like. Okay. How does it work in the first year it's, a good question in the first year. You. Cannot file. Your income text returned. Digitally, so I usually, file it's a fight internet we. Get a logo login, code and you can. Fill. In your return but in the in first year that doesn't work yet so we, need to know some extra, stuff, few extra. Things with you and. Then. You get this paper form it's called the M form you can order, via the phone and you.
Have To fill it out. Exactly. So, and the other thing that's important, in the first year is that you get to choose whether you want to be, considered. A, resident. Tax pay for the entire year or not and that can be advantageous for things like mortgage. Interest deduction and, other deductions. So. You can you, can take advantage of them for the entire year. And how was your experience with that again. Thanks, to me I. Remember, those files. But it's it's again it's not so bad it's manually. But still it's. Reasonably. Fine in order to get to, get to know, they. Need to know us of course and all the history and when we came and all the especially. If you're if for, instance in Israel and we, are working together in Germany in matter of tax so now. I need to claim, that I moved here so, the process, we're still in the process but it's it's, okay so it's something that it's not new for the for, the authorities so I think it's already quite and. It's. It's ok so. You. Told us quite a lot already so how could you summarize how, do you calculate the amount, of taxes June this. Question so the, income taxes calculate on the business profits earned so, that's just the. Total, turnover. And minus any costs. Incurred for equipment expenses. Travel. Well, the Netherlands, allows, entrepreneurs, and number, of tax deductions and, such, as the entropy nurse deduction, how does that work well. If you meet the criteria to be considered, a real entrepreneur, then. You get some other favorable, deductions, which, can considerably, lower the amount of taxes you and the entha, okay. And how does it work in practice. Well. The. Most important. Criteria is that you're independent. And that, you run some real entrepreneurial, risk so and that you run the risk that your, customers. Customer. Stream will dry up and that you have the risk of non-paying, customers. So. If, you run those wrists and you're considered, a real entrepreneur and then you can apply for these deductions so. When I qualify. As an entrepreneur, now, which benefits, can I expect, so. If you meet the criteria we. Discussed. Firstly. There's, the. Profit. Exemption, of 40% for small and medium-sized enterprises it's. Called an exemption but you can just deduct 40%, of your of. Your profits, and. Then there's the investment, allowance that allows you to deduct up to 20% of your profits. For. Investments, you made. And. There's. Also a special, investment, allowance for environmentally-friendly. Assets, such as electric, cars if. You work for at, least twelve hundred and twenty five hours a year, in your business so at, least the twenty five hours a week, in. That case there are two extra. Allowances. Deductions. That can be made the. First is that, you can have, the, self-employment. Deduction. That's, a lot of big one is about seven, thousand, two hundred euros, a year, and. If you just start at your company you can deduct. Up to two, thousand one hundred zeros, very. Good very great. Amounts, to be able to deduct and, when. Do you actually qualify as, an entrepreneur, for the value-added. Tax purposes. Well. Interestingly, it's. Possible that you will not be considered, an entrepreneur, for income tax purposes but you will be considered.
An Entrepreneur for v80 purpose or the threshold is much lower for, d purposes. And. What is that trash hold so. Anywhere. You. Provide. Any goods or services, at the consideration. You. Are considered a v80 entrepreneur, and it's a lot of quickly. Yeah, okay. And how. Does that work in the Netherlands so. Vit. System is the, same as. The. One which is in place in order a new member states. Basically. If, you're an entrepreneur and you provide goods and services at a consideration, you are you. Should invoice vit. To. Your customers. Of. Course any, input. VI T so vit that you, that. You pay to other entrepreneurs. Is deductible, as long as it is attributable, to the. Taxable outputs. Yeah. And how what's, the rate in the letter so, we have three rates the 21 is the the base rate and there's a 6%, rate for our food products, sports, services, medicine, books and then there's a zero rate for any exports, so, if, you export goods then you, don't, have to charge any goods any vit. On the goods but you get to deduct all the input via T so that's sort of the best of both worlds. Perfect. Are there exceptions. Yeah. A number, of exemptions apply for, instance for educational. For, sure mostly, for services educational, medical cultural. When. You're in, service that you provide as an entrepreneur is exempt, any. Input. Texas input, vit that is attributable, to those. Two. Those goods and service is not deductible. You. Can find more, information, about, our, tariffs, on the, website business. Thought off Dalton, L on good. To know and. Well more practical, when, and how should you file your fat return yeah, so, vet. Returns are usually filed every quarter and there's some exceptions apply but you see so every quarter you find, also digitally, via the website of the of. The tax authorities, there. Is quite a simple, format, you have to fill out and what if you forget you don't file it or maybe a bit too late what happens then that's, a good question so the. The, vit system, is totally automated. So. The. Assessments, are handled. Digitally, and automated. So if you miss. A term, or don't, file anything then the. System automatically. Files. Any. Additional. Assessments, but also fines so, that can, be a bit of promise it's really important that you always, file. Your VA. TV turn all the time and and, also pay it within the, time that, is set, for it and, what does that mean for administration, what do, you need to do so it's important that you any, business should have a good, financial, administration, of, course you should, know if you have any profits or losses and. The same information is also used for, the, revenue service to, base your fe80, eternal, and also you income tax returns, I. Can. I can give, example, for instance in Israel I also paid at my own businesses, back then and, here it's more. I'm. Like, it's easy because we're using a software to to. Detect all the VAT, returns and, the VAT paper also and. We do it months to months because, for us it's also important, to get, the cash, flow in the same in the same way we are working so we can yeah it's quote we started quarterly, but since now we are growing so we made, it 10 months two months it's easier for us - ok great together but written both. Are the minimal, requirements. For a financial, administration. So. There are no really hard rules for, what a administration. Should contain it, should be tailored to the business, it's. You, know most important is that it is quickly accessible for the tax authorities, there. Is verifiably. Correct, and. That it is well, kept, for a long enough time so you have to keep. All documents. That are in generated, within the business, digitally. Or on paper for at least 7 years, any. Documents. That pertain to. Real. Estate should be kept for at least 10 years well, my, last question is are, you obliged to give a receipt. To your customers with every transaction you make yeah. No. Not, in some, you can see that is the case but the nanus you don't have to. Send. An invoice in every time only, a few invoice, to other, entrepreneurs. You you're obliged to have an an, invoice but, if you have. Some if your clients are a private person there's no need to give. An invoice with it's an of course if you do you. Send out an invoice to your two private persons you have to keep it in your administration. So. You know what you've done of course yeah. Well. Thank you very much for this talk I'm very interesting, and I think very helpful for everyone who's watching so. As, an entrepreneur you, can benefit, from different tax deductions, or allowances, keep, track of your records and your hours, right from the start that is the only way to benefit, from tax schemes, seeking.
Professional Advice, from an accountant. It's usually a good idea. If. You want to do business in Europe the Netherlands is a good starting, point it's, located, in the heart of mainland, Europe and, has. An excellent, infrastructure. Also. The, business, climate in the Netherlands is reliable. Strong, and, internationally. Focused, everyone. Speaks English all. In all a first-class. Country, to start your business, let's. Hear what foreign, entrepreneurs have, to say about the Netherlands and Dutch. People so. Setting up the business in the Netherlands or putting, it plays a company. In an inland is quite easy so there's no. Massive. Capital requirement. Corporate. Governance structure is quite flexible simple. So you can easily tailor, to, group structure to your needs, Antron. Oriole vibrant. Energizing. Get. Things done. Open-minded. In. Your face. Cosi. Gizella. Is actually the work talent. It's. About inclusivity. Cool. And progressive. Global. A global city. Well, connected. Welcome. Gentlemen, good to have you here good, to be here, I'm. Why. Did you start your business squeak, ah go here in the Netherlands, we're. A logistic, platform, and, logistic. Is I, can. Call the Netherland the heaven of logistic, because of the harbor you have the people. You know auto dumb van. Lowe is a logistic, peacock so it's very good for our business and the second thing is quite a small, ecosystem and. We can do, a smaller mistakes and, we can learn quite, fast from. Our performance. And, from our new, early, adaptors, clients. So it was very, smart. Decision. From, our side now I can see that can tell it after one half here and. This. Is the main reason so it's a good starting point because you, can test drive in, a way yes. Exactly, so in business, why's that our, logistics. Sector is very strong, and. Centralized. Point in the in Europe then, also the ecosystem, itself as. A business, perspective in, the middle of easy. To get feedback from the market right away this is the most important thing when. You start the business to, make sure that you're selling. Something that actually people needs and. Also that you want to expand to the rest of your report yeah okay. And our. William. You. Work for start-up Delta mmm-hmm and how does startup. Delta, help, startups. Well. When they come to the to the country here for instance like Avishai, that have worked with as a mentor, they. Come to the country and. Going. To establish himself trying to find out how. To take maximum, advantage of Holland, as the best place to start. And grow an international eyes your business so, we're not only looking at the piece of how, do you establish yourselves. Nationally. In looking. For funding looking, for Network partners putting, into. Contact, with his right, customers. But, also looking at going across the border so, officiais, company, quicker or is going to move come. With us next. Month to on over message Germany to start developing, the German market and so. We are you know looking at at holidays known country, we. Also looking at as we say as the best plot form in Europe to develop your business your your, only European scale and, so. That's another major major, purpose, of first out of Delta okay. And can you tell us something about the Dodge infrastructure. Well. That's infrastructure, is not not just the logistical, part of South Asia is talking about the Roadster, harbors and the kind of stuff that's particularly, very, important for his business if you're, pure tech startup. A very, important part is also the. Whole. Technological. Infrastructure, Amsterdam, is the largest Internet. Network. Point. Here in Western Europe and that's. Why I have billions, of dollars of data centers being built by big companies like Microsoft, and Google in and out and so that. Very very. Very. Good infrastructure, the technological, infrastructure, IT infrastructure. Is very important, as as. A tool to attract, foreign companies, in in the technological, fields okay, do you agree yeah. I absolutely agree, but also one thing that we, didn't. Discuss people like, if. Your. IT. Company, you need to hire. A high. Skill. Developers. And it's easy to, convince Brazilian. Developer. To join to to, come over to Amsterdam, yes, it's super. Nice. For them and so, it's well, branded, a, country. And city to come, and super important in the IT business because, there, is a big. Lack of. Developers. Anywhere, and. That's it's, a very important point well it's true is it something it's it's I see that every day and this is companies all over the world coming to this country young people they really are attracted by the quality of life in, Holland I Fisher is is experiencing.
That Not because they only speak Dutch it's the whole mentality, the culture it's also the creativity, that I have here the very international, orientation everybody. Fills themselves, home here very easily. Business, climate as well sure, international, forces. I mean is this, our tradition, and for, hundreds of years has been that outward, focus, and, so, what you see right now first, we had hundreds. Of of large. Multinationals. Choosing, Holland as a starting, point for operating, in Europe now. You see a sort, of a next wave in. The day of of the days of of technology, you see all these young tech companies, coming to countries, not, only because of the infrastructure, but also because of the quality of living that they find here and it is international orientation, because tech, business is a global business and Holland, is a very good spot. To, tap into the global business okay, and how would you describe, the Dutch people. Business. Perspective. I, was. Very happy. To see that they're really open minded to, innovation. Sustained, sustainability. So this is one of the main. Focus. We are. Targeting. And they're, actually willing, to try and, you don't need to come with a lot of flack for record, and it doesn't start up you don't have anything so it's just called yeah you're my first client you want to try and try, it in other countries so. So here apparently, yeah. It's, worked so that's very important, if you're starting, especially. If it's something that you do, the market. Why. What's. It like to do business yeah I think it's quite direct, so the negotiations all, the good, fun but I think Israelis. We also okay with that so I think it's good good, match, in matter of. Negotiations. And trading, and very. Open international, wise as well. English. Is very important, because sometimes you can lose things in in language and, you can cover it by with a good and. Language. You can we can have it you and. Once. You've done an agreement which, is not easy but once you've got one it's. Actually happening and it's not so obvious if, you do in other areas. In in the world you, can sign the contract but, the execution is totally different and surprising, really and this is very. But. We can focus on, our business because, actually. The ecosystem, and the business is also respecting. The. Deal. Yeah. Pay on time exactly, so all these things it's happening, and that's. Let. Us focus in on the innovation, or the growth. Instead of. Administration. And all these annoying, things that you need to do as. A small company so that's yeah. So, business-wise, it's nice to work them but how are they on a private basis. Purely. Honest its, yeah. So one, thing when I'm working, hard a lot of hours per. Week or even weekends, but. Once I got my, free. Time I don't. Like to plan I, just take like to do anything that they want now and, just, relax, and if I got some Dutch, friends, and I need to book one month in advance during, a coffee or beer yeah yeah. So, that's. That's one, thing that it's, I'm still catching up trying. To schedule, my, like, private. Agenda as well but, yeah, instead, of that it's very open and, I think. I know I'm Saddam and for me it's a very big. International. Community, so I have friends from all over the world it's quite easy and, I think it's not too, difficult, for the Dutch the local, community. To integrate. Because I think it's already many years and this. Combination so I think it's yeah, but. Do you speak Dutch. Every. Saturday I'm cancelling, unfortunately, my courses. But. Yeah. Everyone, speak. Perfect. English so it's very difficult in a negative, side it's difficult, for me to to.
Learn But. In the positive side it's easy communication, so. I'm still working, on it and fortunately. Practice. I hear that all the time and I hear from in Holland for like for two years then when are you finally going. I'll. Try to but as soon as I try to start speaking English to me I can never practice, yeah but anyways so the, other thing that afforded. To what Alicia is saying is Holland is a perfect place to start grow and international. Business, not, only do they learn, to operate in a very international, organization, of. Ironmen. But, they also as we actually go in to experience in Germany even the large German companies, love to work. Xuxa. And, so so, they love to work with that startup said because, they are so creative you, know the Germans well think it through too long before, something is going to materialize so. There's much much quicker on the feet and much more creative and and. So they learned that in all in as well in it because that has been the tradition, here creativity. Trying, our things it's a it's a merchant, mentality. To try things out rather than engineer, it to the end and never. Get anything accomplished. And so. This, whole environment, of being creative, quickly, your feet and. Trying to find new innovative ways of doing stuff is not only good for operating, well in Holland but you, can also use that capacity, to, go to France to go to Germany countries where there are more engineering. Organized, where they're very strict very regimental. And and, work, in a more open kind, of a thinking, way of operating, that's really, critical in the in the world of technology and, they speak French as well they're German, English French. Well. I used to but I can, push it up but if necessary, but sure it's. Very important, is one of the things that that people learn here too that yes. It's, all Europe but there's still very distinctive. Business climates, German Germany, has a very different business, climate, and France has you really need to adapt to it I think the Dutch are used to it because, you know 70 percent of what we produce is going across the border so everybody's, used to these different business climates there's also what you learn so if you have, an American company here, they really learn that's that it's, not so easy which, is what works in Holland is unnecessary work in Germany or in France so.
People Learn how to adapt to these different different climates business climates okay, and also it's very handy, that they're multilingual, sure. Yeah okay and, how. Easy, is, it to start, a business in the Netherlands compared, to other EU company. Way. Way, easier I, would, say the UK would be slightly. Easier but, it's also a way, of learning the your, way around here so, what, did you notice channel that's why the orange, carpet is so important because people in our network. Tell you how to do that not only help you what. Is the right that the right legal form from a business but also how I'm going to buy it about, it and, it's a because of a line it will help you with it and. So. The nose is actually when you put all the pieces together, and. When you use the the, orange carpet route you'll. Find out that it is surprisingly. Easy way. Quicker, than starting, a company in Germany are friends so a fish I did. The Netherlands really, rolled out the orange carpet for you, absolutely. It. Was. First. Of course it's very important, tip, let's say ask. Questions, and try to understand, the ecosystem before. You are starting, the, task. One, by one so try to understand, what you can get. From the parties. That involved, in the. Let's. Call it soft. Landing. In the, Netherland, and once you know who is doing what and. It's easy to to ask, like. South bootcamp Oh any other and accelerator, that available who, are the parties and once you know it will be very. It's. It's quite easy to get the information and, help them to, get the help to, to. Process and so yes it's. Good one one thing to improve is. The we. I didn't know about those parties. That involved, and only. After I asked questions so maybe you can do the marketing. Or, at, least II and to. Make it more accessible for, really. People are just coming and and starting, to ask the question, somehow. To, get it right, away and then it will save a lot of time for them an effort okay, well that's a good idea well. Thank you both for all, your information for being here, well. It's fair to conclude that, the Netherlands have a lot to offer to entrepreneurs, who want to start to roll out and expand, their business here the, Netherlands offers you a high quality work environment, and an, excellent. Infrastructure. With an internationally. Oriented, english-speaking. Population and. As. A, fish I mentioned, the Netherlands rolled out the orange co-op carpet for you as an entrepreneur good. Luck with your business. We. Have come to the end of this webinar do, you still have questions the. Live chat, will stay online for another 30 minutes so, don't hesitate to use it if. You want to watch the webinar again or share, it it will be available on, business, gov, dot NL starting, from tomorrow we hope. You'll take the time to complete the online evaluation, form, we, fell you your feedback, and will use your input for our next webinar, to. Complete the form please click the button below the video screen, for. More information please, visit business. Gov. Dot NL.