General requirements

A few general requirements must be met before starting a business:

Residence permit

To start at the beginning, you must have entered the country legally and have a valid residence permit (not applicable to some European Union (EU) and European Economic Area (EEA) citizens).

Burgerservicenummer (BSN)

Everyone who is liable for income tax and who wants to do paid work or receive benefits in the Netherlands must have a Social Security number (Burgerservicenummer, formerly SOFI number). As of 26 November 2007 everyone registered in the Gemeentelijke Basisadministratie persoonsgegevens (GBA), or the Personal Records Database of the municipality, receives his own personal number.

Chamber of Commerce

Contact your local Chamber of Commerce (Kamer van Koophandel, or KvK) or visit the KvK website for information on starting your own business. Refer to subsequent pages for details on registering your business and other services offered by the KvK.

Evaluate your business idea

The most reliable way of judging the success of a business is the amount of profit it generates for you, the owner. Thus a good starting point is to do some “sums”. You cannot be certain the sums will be right in every case, but by doing your research and using a good dose of common sense you should be able to estimate all the figures you need to tell you whether there are real prospects for success. Only by calculating your sums will you get an indication of what the future holds. If you cannot make a profit on paper, the chances of succeeding are small and you may be better off keeping your savings until a better opportunity arises.

Prepare a business plan

Preparation of a business plan is the most important task to be undertaken. The component elements of your business plan should include details concerning the industry in which you operate, your product or service together with marketing, details of location, proposed recruitment and training of any employees, possible exports, use of new technology and any environmental or energy conservation benefits. All these details are important for access to finance, subsidies and grants.

This plan can be improved and expanded with advice and help from the Chamber of Commerce: advice on feasibility of the plan, advice on the legal, financial and financing matters, on doing business internationally (imports and exports), and the Chamber of Commerce can actively help the starter to improve his or her business plan.

Prepare the marketing plan

The marketing plan should be inclusive in the business plan and set out the commercial formula for your company and the market in which you are to operate. This plan may be drawn up on the basis of the five Ps:

• Place
• Product
• Price
• Promotion
• Personnel

Information about the market and the market sector is essential for you to assess the feasibility of your plans.

Choose the legal form of your business

As a non-Dutch person starting a business in the Netherlands, there are two types of business possibilities: starting a privately owned business from scratch or opening a business either as a branch of or relating to a foreign organisation.

Based on the type of business, choose the legal form (rechtsvorm) for your business. The Dutch legal system recognises several legal forms for a business, which impact the liability, tax and social security to which the business is subject. The forms most often used can be found on subsequent pages.

Choose a business name

Choosing a business name or a trade name for your company is subject to certain rules. The business name must not be confusing or misleading. This means you cannot choose a name already in use by someone else or something similar.

You may not represent yourself as anything other than what you really are. For example, you cannot use “BV” in your business name if your business in not a Besloten Vennootschap (private limited company).

Your business name or trade name may not conflict with existing trademarks.

If you register your business in the trade registry of the Chamber of Commerce, a general search will be done to check if there is already a business with that name. It is in your interest to pay for the Chamber of Commerce to conduct a nationwide business name search. This also includes a search of business names which sound similar but are spelled differently. The size of the registration fee depends on the legal form. For the eenmanszaak (sole proprietor) it is less than for a VOF (Partnership under common firm), which on its turn is less than for the BV (private limited company).

Please note that the Chamber of Commerce does not investigate whether your trade name conflicts with existing trademarks. The Benelux Office for Intellectual Property (BOIP) in The Hague is responsible for protecting trademarks. Ensure a thorough search is performed regarding whether your trade name infringes on already existing trade names. Your trade name is protected from the date your company is operative and becomes known to third parties.

Cash flow forecast

A cash flow forecast should be prepared three months in advance as well as for the whole year. This will help ensure that you will have enough money in the bank to pay wages and the suppliers when the payments become due.

To prepare your cash flow forecast, you will have to forecast both:

• your cash and cheques receivable for the next three months
• your forecast expenditures for the next three months

You can then see your expected balance in the bank in three month’s time, taking into account your present bank balance. Repeat this exercise over and over with all possible variables. Remember, at this stage it’s only on paper. If the bottom line is continually negative, you need to review your projections. You either need more sales or fewer expenses. If you do revise them, make sure they are realistic. Otherwise abandon the project and look for something else.

Be honest and realistic with your projections — if you are going to go broke, it is far better you do it on paper than in real life! Good luck and don’t forget that “happiness is a positive cash flow”!

Licence / Diploma

You may also need licences/qualifications to practice/pursue your line of business. Generally, you will have to satisfy requirements as to your entrepreneurial and basic business skills. The Chamber of Commerce implements these laws and issues the permits associated to them. For up-to-date information go to the website of the Chamber of Commerce.

General business skills

When you want to start a basisbedrijf you don’t need the Algemene Ondernemers Vaardigheden diploma (AOV, or General Business Skills diploma) anymore. This applies to all retail businesses, e.g. shops or hairdressers. The manager of the business, not the owner, must have the diploma. To obtain the AOV diploma, apply to the Instituut voor Midden en Kleinbedrijf (IMK). Refer to subsequent pages for advisory bodies.

Construction, Installation, Plumbing (and other building related fields), Health, Environment and Security

The aforementioned diplomas are still required. Check at the Chamber of Commerce or theMinistry of Economic Affairs. For transport and food businesses the AOV (General Business Skills diploma) as well as an Opleiding Bedrijfstechniek (a diploma relevant to the business) are needed. In the construction and installation business, certification has become very important. However, ISO and VCA are not legally required.