Published on and written by Cyril Jarnias
In recent years, the Netherlands has become a prime destination for entrepreneurs worldwide looking to launch their startups. With a dynamic ecosystem, cutting-edge infrastructure, and a favorable regulatory framework, the country offers fertile ground for sprouting and developing innovative projects. In this article, we will explore in detail the benefits of starting a business in the Netherlands, the most suitable legal structures, and the available funding options to support your growth.
The Netherlands: A Promised Land for Innovation-Seeking Startups
The Netherlands has established itself as one of Europe’s most attractive tech hubs, competing with London and Berlin. Several factors make the country a top choice for entrepreneurs:
A Thriving Startup Ecosystem
Amsterdam, Rotterdam, and Utrecht host dynamic entrepreneurial communities, with numerous coworking spaces, incubators, and accelerators. This vibrancy fosters exchanges and collaborations among startups.
A Highly Skilled Workforce
Dutch universities train thousands of talents each year in tech, design, and business fields. 93% of the population speaks fluent English, facilitating international recruitment.
Favorable Taxation
With a corporate tax rate of just 19% on profits up to €200,000, the Netherlands offers one of Europe’s most competitive tax regimes for young companies.
Privileged Access to the European Market
Located at the heart of Europe, the Netherlands serve as an ideal gateway to a market of 500 million consumers. The Port of Rotterdam and Schiphol Airport facilitate international trade.
A Regulatory Framework Favorable to Innovation
The Dutch government has implemented various measures to support entrepreneurship, such as the startup visa allowing non-European founders to settle easily in the country.
Good to Know:
The Netherlands ranks 4th globally for ease of doing business according to the World Bank’s Doing Business 2024 report, highlighting the country’s appeal to entrepreneurs.
Choosing the Right Legal Structure: Your Available Options
When starting your business in the Netherlands, selecting the legal structure is a crucial step. Here are the main options to consider:
The BV (Besloten Vennootschap): The Preferred Choice for Startups
The BV is the Dutch equivalent of a limited liability company. It’s the most popular legal form for startups in the Netherlands, offering numerous advantages:
- Limited liability for shareholders
- Minimum share capital of only €1
- Flexibility in share distribution
- Ability to issue different classes of shares
- Credibility with investors and partners
The Eenmanszaak: For Sole Proprietors
The eenmanszaak is equivalent to a sole proprietorship. It suits entrepreneurs looking to start alone with minimal formalities:
- Quick and inexpensive setup
- No minimum capital required
- Simplified management
However, note that the entrepreneur is personally liable for the business’s debts.
The VOF (Vennootschap onder firma): For Team Projects
The VOF is suitable for startups founded by multiple partners wishing to share responsibilities:
- No minimum capital required
- Flexibility in profit distribution
- Enhanced credibility compared to the eenmanszaak
Note: Partners are jointly and severally liable for the company’s debts.
Good to Know:
Setting up a BV in the Netherlands can be done entirely online in just 3 to 5 business days, thanks to the digitization of administrative procedures.
Funding Your Startup: Resources at Your Disposal
The Netherlands offers a diverse funding ecosystem to support startup growth at every stage of development:
Public Grants: A Boost to Get Started
The Dutch government provides several support schemes for innovative young companies:
- WBSO (Research and Development Promotion Act): R&D tax credit covering up to 40% of R&D costs
- Innovation Credit: Reduced-rate loan for financing high-risk innovative projects
- Seed Capital: Public-private co-investment in tech startups
Business Angels: Experienced Investors by Your Side
The Netherlands has an active network of business angels ready to invest in promising early-stage projects. Platforms like AngelList Netherlands or Leapfunder facilitate connections with these investors.
Venture Capital: To Accelerate Your Growth
Amsterdam has become a stronghold for venture capital in Europe, with numerous funds specializing in tech startup financing:
- Peak Capital
- Endeit Capital
- Newion Investments
- Prime Ventures
Crowdfunding: Mobilize Your Community
Crowdfunding platforms like Oneplanetcrowd or Symbid allow raising funds from the general public while validating market interest in your project.
A Major Advantage: The Netherlands has the most tax treaties worldwide (over 100), facilitating international investments in Dutch startups.
Good to Know:
In 2024, Dutch startups raised over €5 billion in funding, placing the country in the top 5 European ecosystems for funding.
Conclusion: The Netherlands, A Launchpad for Your Success
Starting a business in the Netherlands offers numerous advantages: a business-friendly environment, attractive taxation, a pool of international talent, and facilitated access to funding. The country provides fertile ground for sprouting and developing innovative projects on a European and global scale.
By choosing the legal structure that fits your project and leveraging the many available funding resources, you give yourself every chance to succeed in your entrepreneurial adventure in one of Europe’s most dynamic startup ecosystems.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
