Why You Should Expand Your Business in the Netherlands

Want to expand your business into a European country known for its scenic beauty and strong economy? Then the Netherlands is the right choice for you. You can read more about expanding a recruitment or logistic business in the Netherlands.

Hundreds of business owners and entrepreneurs have expanded their businesses to the Netherlands, which happens to be the sixth largest economy in Europe. The country has plenty to offer in terms of business opportunities and pro business laws. So, let’s examine some of the many reasons you should expand your business to the Netherlands.

  1. Central Location

The Netherlands sits roughly between Europe’s North and South portions. It is also situated on the shores of the Northern Sea. This means it is easy for the country to transport goods to different countries in mainland Europe. The country’s coastal position also means it serves as an important trading hub for commerce with the United Kingdom.

If you choose to set up your business in the Netherlands, you will benefit from the country’s geographical location. You will be able to ship goods to other European countries and also receive supply materials from other European countries quickly.

  1. Many Well-Developed Cities

The Netherlands has plenty of well-developed cities that are ripe for business. This includes:

Amsterdam

Amsterdam is the Netherlands’ biggest city, with a population of around 880,000 people. The city’s multicultural and diverse feel makes it a prime tourist spot, and it isn’t uncommon for tens of thousands of visitors to visit it each year.

This city is a prime place to expand a foreign business into. Many multinational companies such as Tesla Motors, Nike, and Adidas have headquarters in Amsterdam thanks to the city’s highly skilled workforce and close proximity to one of the biggest airports in Europe.

Rotterdam

Rotterdam is the Netherlands’ second-largest city and another major urban centre. This city is known for its modern architecture and its large seaport. In-fact, this seaport is the largest in Europe, with 14.5 million shipping containers passing through the port each year.

Rotterdam’s major industries are shipping, logistics, and trade. This is definitely the place to expand your business if you are interested in joining any of the aforementioned industries.

The Hague

The Haque is the Netherlands’ third-largest city. The region has plenty of historical architecture and is commonly referred to as the country’s administrative royal capital. Many international organisations such as the UN’s International Justice Court, The Dutch Parliament, and the International Criminal Court are situated in The Hague.

This city’s major industries include information technology (IT), creative studios, energy, and chemicals.

Eindhoven

Eindhoven may not be as big as the other cities we have mentioned. In fact, the city was a relatively small village in the early 20th century. However, its population skyrocketed after annexing five surrounding municipalities.

In recent years, Eindhoven has become a huge hub for start-ups and tech companies. This makes it a great place to expand your business if it is in the tech sector.

Utrecht

Utecht is one of the more overlooked Dutch cities. It is only 20 minutes away from Amsterdam so it is often lumped in with the major city. Many of the businesses in Utrecht focus on sustainable development and have contributed to the Netherlands becoming one of the European countries leading march in sustainability.

If your business also prioritises sustainable development, it will feel right at home in Utrecht.

  1. Access to a Highly Skilled Labour Pool

The Netherlands is known to have a labour pool that is highly educated, productive, and skilled. It has some of the best workers making great strides in the information technology, chemicals, life sciences, and electronics fields.

Much of this can be attributed to the European country’s world-class education system that produces tens of thousands of highly educated and skilled workers each year. This means you will have access to a large pool of workers to draw from to help run your business operations.

The Dutch are also known to be fluent in English, so you won’t have to worry about language barriers impeding your business if you choose to expand to this country.

  1. Easy Migrant Visas

Another great reason to consider expanding your business to the Netherlands is the ease with which the government issues work visas. Thousands of people come to the country and work under such visas each year. This includes businesses that have recently expanded to the Netherlands and wish to bring over staff to help run operations.

To apply for a work visa, all applicants need to provide is:

  • A valid passport
  • A police certificate demonstrating that their criminal record is clear
  • Documents backing up the information contained in their work visa application
  • Tuberculosis medical test results
  • Proof of employment in the Netherlands

All these requirements are easy for most workers to fulfil, so you shouldn’t have any problem bringing workers from your business in your home country over to the Netherlands.

  1. Stable Economy

The Netherlands is known to have a stable economy that has seen steady growth for many years in a row. The Dutch economy is categorised by remarkably low inflation and unemployment levels.

The country also has a well-developed transportation system. This means your business’s employees and products can get around easily with minimal issues. All this is thanks to the country’s stability and focus on continual development and innovation.

  1. Favourable Tax System

The Netherlands also has a tax system that is favourable to businesses. There is a 15% statutory corporate income tax rate on the first 395,000 Euros of profits and 25.8% on the next 395,000 Euros exceeding this amount.

The Dutch government has also made the country’s tax system attractive to foreign businesses by:

  • Being transparent about the tax consequences associated with making major investments in the country
  • Offering a 30% personal income tax advantage for skilled foreign workers
  • Maintaining dozens of bilateral tax treaties to avoid issues of double taxation on foreign businesses that have expanded to the country.

All these factors mean you can expect the tax system to favour you and business when you choose to expand to the Netherlands.

How to Expand Your Business to the Netherlands

Expanding your business to the Netherlands is a multi-step process. These steps are summarised below:

Step 1: Determine If You Can Legally Expand Your Business to the Netherlands 

The first step is to determine if you can legally expand your business to the Netherlands. If you are a European Union (EU) national, European Economic Area (EEA) member, or a Swiss national, you shouldn’t have any problem expanding your business to the Netherlands. However, if you don’t belong to any of the above categories, you may need to check with a professional to learn if you are eligible to expand your business to this country.

Step 2: Refine Your Business Plan

A business plan is critical when you are developing any business or expanding one to another country. You should create this plan after researching your target market, proposed sales activities, and forecasting your profits. You should also look into funding options at this stage.

Step 3: Choose Which Business Structure Your Business Should Take

Next, you will need to decide which legal form your business should take. There are four main types to choose from:

  • Sole proprietor or sole trader (eenmanszaak)
  • Professional or public partnership (maatschap)
  • General or commercial partnership (vennootschap onder firma)
  • Limited partnership (commanditaire vennootschap)

Each of these offers specific advantages and drawbacks so you research each one to determine which is right for your business expansion plan.

Step 4: Acquire the Necessary Licences and Permits

Next, you will need to acquire the necessary licences and permits to operate your business in the Netherlands. Some industries tend to be more heavily regulated than others, so you should ensure you have all the right licences and permits before attempting to operate your business.

This is also a good time to familiarise yourself with Dutch labour laws.

Step 5: Register the Business

Next, you must register the business with the Netherlands Chamber of Commerce. This organisation will then pass your details onto Dutch Tax and Administration.

Step 6: Start Hiring Staff

The final step is to start hiring staff for your business in the Netherlands. As mentioned earlier, you can get workers from your business in your home country to apply for work visas and have them work at the new branch in the Netherlands. You can also hire local workers from the country’s highly skilled labour pool.

Why Choose OpenAEuropeanCompany?

Expanding your business to the Netherlands can be a complicated task and you will need the guidance of experienced professionals to do it properly. Consider hiring OpenAEuropeanCompany to assist you through this process. We have helped many business owners expand their businesses to the Netherlands and are familiar with local business laws and regulations. Please contact us to start business expansion process as soon as possible or read more about company formation FAQs.