Finances

When describing how to finance investments, a distinction is made between owner’s capital and borrowed capital:

Owner's capital — money which you introduce yourself such as savings, capital resources, contributions or subordinated loans.

Borrowed capital — money introduced by others including long-term capital (loan in excess of one year in duration, i.e. bank loan or mortgage) and short-term capital (loan less than one year in duration, i.e. to cover costs yet to be incurred).

You will need to have a comprehensive list of your financial requirements to start your business. You will be able to get advice on how to raise the necessary money from the Chamber of Commerce. At a later stage you will need an accountant. However, you are advised to appoint one at the start to assist you and to advise you on procedure, especially at the Inland Revenue Department (Belastingdienst).

There are financial schemes to encourage the first time entrepreneur. Ask the tax authorities about the Durfkapitaalregeling (formerly “Aunt Agatha scheme"). For information on venture capital, contact the following organisation:

The Chamber of Commerce can tell you about State guarantees for parts of bank loans; under some circumstances social security claimants can borrow money from their social security departments.

At the Belastingdienst all forms are in Dutch and must be answered in Dutch. In the case of small businesses, the Chamber of Commerce will want both Dutch and English replies. An appointment must be made to see the Belastingdienst, but your accountant should see to it.