21 Jumada I 1446 - 22 November 2024
    
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Eye of Riyadh
Business & Money | Thursday 18 July, 2024 10:01 am |
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The Netherlands Emerges as the Prime Destination for Foreign Entrepreneurs

Europe has become more popular for business investments and other forms of international investment. This article assesses foreign investment trends in the Netherlands, specifically by foreign entrepreneurs. The Netherlands is appealing not only for purely business reasons but also for personal reasons.

 

Why is the Netherlands a Prime Destination for Business Ventures?

 

First, let’s discover why the Netherlands has gained such popularity among foreign entrepreneurs. One major reason is the power of the economy;

  • In 2022, the Dutch economy was awarded the most connected economy globally.
  • The Netherlands placed second in the Digital Competitiveness Index in 2023.
  • Furthermore, the Netherlands’ GDP is 4th in the EU and 18th globally.

 

These statistics alone are enough to perk any entrepreneur’s interest.

 

If we look beyond the Netherlands' enticing economy, many other things make the Netherlands an increasingly attractive location for foreign entrepreneurs to invest in. One of these is political stability. With a political stability score of 0.72, the Netherlands ranks as the 17th most politically stable economy globally.

 

If these factors aren’t enough to convince foreign entrepreneurs, surely the highly educated workforce, international community, and international approach in the Netherlands would. With 93% of the Netherlands population having full English proficiency, it is seamless for foreign entrepreneurs to integrate into the Netherlands' business and lifestyle.

 

About the Dutch Startup Visa

 

The Dutch government aims to foster international investment in the country by establishing technologically advanced foreign companies. To this end, it has developed a program called the Dutch Startup Visa, specifically designed for foreign entrepreneurs with technological or innovative businesses.

  • This program allows foreign entrepreneurs to establish their startups in the Netherlands and work and live there for at least one year.
  • This Dutch startup visa can be considered an investment visa in a sense.

 

However, the application process is tedious, with requirements such as submitting a detailed business plan of the startup; many entrepreneurs choose to work with experts in the field to ensure compliance with all the Dutch business regulations, increasing their chances for a successful application process. Many foreign entrepreneurs have chosen to work with Unusual Companies. Offering a comprehensive scope of services, including company establishment, business plan writing, startup visa application consultation, and even the opportunity to rent an official business address, Unusual Companies, just like the Netherlands, stands out as the clear choice.

 

Understanding the Dutch Business Environment and Legal Requirements for Businesses

 

Once a foreign entrepreneur decides to invest in the Netherlands, it is time to establish the company. However, various legal requirements and regulations exist regarding establishing a company in the Netherlands. Four main steps must be followed when establishing our recommended structure- a Besloten Vennootschap (Private Limited Company);

 

  1. Firstly, the articles of association need to be drawn up in a notary deed; this is called the incorporation.
  2. Next, the starting capital (a minimum of € 0.01) needs to be invested.
  3. Then, two different types of company registrations must occur. First, the company must be registered in the Handelsregister (or Business Register) of the Netherlands Trade Registry, also known as the Kamer van Koophandel, or KvK for short. A notary must carry out this registration.
  4. At the final step, the company must be registered with the Netherlands Tax Administration, also known as the Belastingdienst. Once again, this registration needs to be authorized by a notary.

 

 

Maximizing Tax Benefits and Complying with Dutch Regulations

 

The various tax benefits the Netherlands offers are one of the reasons foreign entrepreneurs invest in the country. These Dutch tax benefits are not just for entrepreneurs and their businesses but also employees. The Dutch government especially offers great tax incentives to highly skilled migrants to drive an international and highly educated workforce to the Netherlands.

  • One of these tax incentives is the 30% ruling, which allows the employer to pay up to 30% of the employee's salary free of tax.
  • One of the tax incentives for companies, especially those with their eyes set on the Dutch startup visa, is the R&D incentive program. Under this program, companies conducting certain R&D activities receive a wage tax reduction.

 

Working with expert consultants like Unusual Companies is the best way for a foreign entrepreneur in the Netherlands to maximize the various incentives for themselves and their employees and ensure compliance with Dutch business regulations.

 

Expert Consulting Services for a Smooth Business Setup

 

One of the main benefits of choosing the Netherlands as the country for foreign entrepreneurs' investments is the comprehensive services offered by Unusual Companies. The team of specialists of Unusual Companies offers services covering all of the needs of foreigners wanting to invest in establishing a startup in the Netherlands, including;

 

Company establishment services, which include;

  1. The incorporation process of the company
  2. The company’s articles of association
  3. Registration of the shareholders and registration of the company at the Dutch Chamber of Commerce
  4. Registration of the company at the Dutch Tax Office

 

Dutch startup visa consultancy, which includes;

  1. Finding the best-suited facilitator for the entrepreneur’s startup
  2. Attending a meeting with the facilitator and startup entrepreneur in which the startup’s product/service idea is presented
  3. After the meeting, the Unusual Companies representative gives counselling about the next steps
  4. Unusual Companies also offers services covering the application process for the startup visa, as well as guidance in creating a business plan that complies with the startup visa application requirements.

 

For more information or to start the process of establishing a startup in the Netherlands as a foreigner, contact the Unusual Companies team today. 

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