How To Enter The Dutch Market Successfully?
by Mony Shah Business Development 13 February 2024
The Netherlands is not the largest country in Europe, but it is certainly one of the most economically stable and successful. Thanks to its robust business market and technological incorporations, it is one of the best hubs for businesses around the world.
Entrepreneurs wanting to establish their roots in the European lands are attracted to the Netherlands like bees to succulent flowers. If you are one of the many contenders, you might be wondering how to start a Dutch business that benefits you in the long term. Well, to successfully set up a company in the Netherlands, there are several factors that you must know.
In this article, we’ll walk you through the route to enter the Dutch Market without a hitch. Follow closely to catch a good understanding as we move down.
Research Growth Sectors
The country is filled to the brim with potentially beneficial industries. If you want to pinpoint one industry that is truly booming in the business landscape of the Netherlands, it would be transport and logistics and then e-commerce.
Transport And Logistics
Transport and logistics are two of the country’s largest industries. For years and years, The Netherlands has been a key hub for international transport. Its long history of maritime trade and shipping is the foundation of this industry. The country ranks third in Europe for the volume of containers handled in its ports, preceded only by Spain and Germany.
The Netherlands is an essential destination not only for container ships but also for cruise ships. Among the European countries, the Netherlands also stands tall for domestic transportation of bicycles. This explains why the country has more bicycles than any of the other European countries.
E-Commerce
Second only to transport and logistics, e-commerce has made its way deep into the Netherlands’ business industry. With 99% of the total population associated with the internet, the E-commerce industry in the Netherlands shows no sign of slowing down. In 2016, the industry had seen a turnover take off from 16% to %18 of e-commerce transactions via mobile phones.
The strong Dutch interest in online shopping explains the continuous rise of the E-commerce industry and its increasingly swelling digital advertising. It might not be a bad option if you want to establish an e-commerce business in the Netherlands. However, there will be so much to adapt to.
Contrary to the rest of the UK, The Dutch and Flemish people don’t use credit cards as their primary source of payment. The commonly used tool in the nation is iDEAL. Almost 60% of the online transactions are done through this tool countrywide.
So, get yourself acquainted with Dutch culture and consumer preferences before deciding on your business structure.
Understand Legislation And Tax Policies
The Netherlands’ business market is inflated with two types of limited companies for which tax policies and legislation differ.
Dutch BV (Besloten Vennootschap)
Dutch BV is equivalent to a Private Limited Liability Company where the shareholders are not liable for company debts. This type of company can be established with a minimum capital of 1 €.
The company needs to be registered with the KVK and Netherlands Tax Administration. The common taxes inflicted upon a Dutch BV include VAT, Corporate income tax, Income tax on your business profit and more.
Consult with tax advisors to better understand the taxes and how to manage them skillfully to maintain a healthy financial flow.
Dutch NV (Naamloze Vennootschap)
A Dutch NV is similar to the Public Limited Liability Company. Unlike a Dutch BV, an NV needs a minimum capital of 45,000 € for establishment. Their shares can be listed contrary to the BV.
The company needs almost a similar process of registration, permits and licences. The same tax policies as BV are applied to NV.
Identify The Best City For A Dutch Company Establishment
The best cities for establishing a company in the Netherlands are none other than Amsterdam and Rotterdam.
Amsterdam
Amsterdam is popular for many types of business opportunities, and many entrepreneurs deem it to be the best location for starting a company. Amsterdam fosters a few famous industries like:
Fashion
Fintech
Food
Innovation Hubs
Financial services
Amsterdam might be the best choice if you want to establish a company based in listed industries.
Company establishment in Amsterdam is also straightforward, requiring registration, licences, permits, tax policy requirements, and bank account opening.
One of the best things about this city is the wide range of accommodation facilities and lifestyle amenities that make it easier for you to move to this city. Huis Huren in Amsterdam (rent house in Amsterdam) presents an opportunity for economical yet cosy houses and apartments for singles, couples and even families.
Rotterdam
Unlike Amsterdam, Rotterdam is more popular for entrepreneurs interested in trading and industrial developments. If you prefer to open a company close to one of the largest ports in Europe, Rotterdam will be your best option.
As a big city, it has a great startup ecosystem owing to its large expat communities. Set your company up in Rotterdam if you want to focus on transport or trade industries.
Avail Government Support
Several government agencies support you while starting your Dutch business and entering the competitive market:
KVK
The Netherlands Chamber of Commerce (KVK) provides you with thorough information on developing a business plan and conducting market research. They will provide you with telephone numbers and addresses of all local offices in the area to ease the registration and business establishment process.
Dutch Tax And Customs Administration
Like KVK, the Dutch tax and customs administration offers information about the taxes you must pay and how to keep your accounts up to date. You also can be an entity to special schemes.
Sum Up
Entering the Netherlands’ business market is indeed challenging but equally thrilling and promising. Before setting up your company, you need a comprehensive sketch of the Netherlands market and potentially growing sectors. Once you have the information up your sleeve, it’ll be a smooth sailing process to skim through tax policies, register your company in the best-fitting city and take the leap toward expanding your business endeavours.
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