Starting a Business in the Netherlands

Key Takeaways

• The Netherlands is consistently ranked among the easiest countries in the EU to start a business.
• You can register a sole proprietorship at the KVK in a single appointment. A BV requires a notary but can be set up in 1–2 weeks.
• Choosing the right legal structure (eenmanszaak, VOF, BV, or stichting) has major tax implications that affect your income for years.
• Corporate income tax (vennootschapsbelasting) applies to BVs. Sole traders and partnerships pay income tax (inkomstenbelasting) instead.
• If you run a BV, you must comply with DGA rules including a mandatory minimum salary.

Why Start a Business in the Netherlands?

The Netherlands offers a business-friendly environment with several advantages:

• Strategic location — Gateway to European markets with world-class logistics infrastructure (Schiphol, Port of Rotterdam).
• Highly educated workforce — One of the highest rates of English proficiency among non-native speakers.
• Stable legal system — Strong rule of law, transparent regulations, and reliable institutions.
• Tax incentives — The innovation box (innovatiebox) offers a reduced 9% rate on qualifying IP income. R&D tax credits (WBSO) reduce labor costs.
• Digital infrastructure — The Belastingdienst and KVK offer extensive digital services. Most administrative tasks can be handled online.

Choosing Your Legal Structure

The first and most important decision is choosing the right legal form for your business. The main options are:

Each structure is explained in detail in its own article. The most critical decision for most entrepreneurs is whether to start as an eenmanszaak or a BV.

The Registration Process

Eenmanszaak or VOF

1. Book an appointment at the KVK (Kamer van Koophandel / Chamber of Commerce)
2. Bring identification (passport or EU ID card) and your BSN
3. Register your business — takes about 30 minutes. Cost: €75
4. Receive your KVK number immediately
5. Receive your BTW number (VAT number) from the Belastingdienst within 2 weeks

BV

1. Draft articles of association (statuten) with a notary
2. Sign the deed of incorporation at the notary
3. Register at the KVK — the notary usually handles this
4. Open a business bank account and deposit share capital (minimum €0.01)
5. Receive your BTW and corporate tax numbers from the Belastingdienst

Tax Obligations by Structure

Your tax obligations depend heavily on your legal structure:

Sole Traders and Partnerships (Eenmanszaak / VOF)

• Income tax (inkomstenbelasting) — profits are taxed as Box 1 income at progressive rates (35.75%–49.50% in 2026)
• Entrepreneur deductions — zelfstandigenaftrek (€2,470), startersaftrek (€2,123 in your first 3 years), MKB-winstvrijstelling (14%)
• VAT (BTW) — quarterly VAT returns
• No corporate tax — you are not a separate legal entity

BV (Private Limited Company)

• Corporate income tax (vennootschapsbelasting) — 19% on the first €200,000 profit, 25.8% above that (2026 rates)
• Dividend tax — 26.9% Box 2 tax when distributing profits to shareholders
• DGA salary — If you are a director-major shareholder, you must pay yourself a minimum salary (gebruikelijk loon)
• VAT (BTW) — same obligations as sole traders
• No entrepreneur deductions — zelfstandigenaftrek, startersaftrek, and MKB-winstvrijstelling are not available to BV directors

What to Read Next

• Types of Business Entities — Detailed comparison of all legal forms
• When to Set Up a BV — Decision framework for choosing between eenmanszaak and BV
• Incorporation Process — Step-by-step guide to notary, KVK, and bank account
• Corporate Income Tax — VPB rates, rules, and deductions for BVs
• DGA Rules — What every director-major shareholder needs to know