Netherlands: your strategic launchpad into the heart of European commerce
The Netherlands, with its robust economy, strategic location, and business-friendly environment, is a prime destination for companies entering European markets. The ease of doing business, access to a highly skilled workforce, and a thriving digital infrastructure make it an attractive business destination.
While the process of registering a company in the Netherlands may seem complicated, options like Employer of Record(EOR) can make it easier. Before we break down the steps it takes to register your company in the Netherlands and explore alternative solutions, let’s outline the key benefits of establishing your business here.
The business benefits of registering your company in the Netherlands
Registering a company in the Netherlands offers numerous strategic advantages:
- Access to the European Union market: Gain seamless access to one of the world’s largest consumer markets.
- Strategic location: Benefit from the Netherlands’ position as a logistical hub with excellent connectivity.
- Favorable tax regime: Leverage competitive corporate tax rates and extensive double taxation treaties.
- Business-friendly regulations: Operate within a transparent and efficient regulatory environment.
- Skilled workforce: Tap into a highly educated and multilingual talent pool.
- Innovation and technology: Thrive in a nation known for its technological advancements and entrepreneurial spirit.
- Robust infrastructure: Enjoy world-class infrastructure, including ports, airports, and digital networks.
- Government incentives: Access various government programs and incentives to support business growth.
Expanding internationally often involves navigating unfamiliar regulatory landscapes, which can impact how businesses establish their presence in new markets.
While government incentives can provide valuable support for growth, choosing the right expansion model—whether through standard company registration or an Employer of Record (EOR)—plays a crucial role in long-term success.
What is the difference between standard company registration and expanding through an EOR?
Standard company registration involves setting up a legal entity, making your business wholly responsible for operations and compliance. In contrast, partnering with an EOR enables you to bypass local entity formation. You can hire team members in the Netherlands without worrying about compliance, onboarding, payroll, or offboarding.
Aspect | Standard company registration | Employer of Record (EOR) |
Purpose | Legal entity establishment | Employee hiring & payroll |
Control | Full operational control | Shared control (HR/payroll) |
Cost | High setup and maintenance | Predictable, bundled fees |
Compliance | Full legal responsibility | EOR handles compliance |
Setup Time | Weeks to months | Days |
Scalability | Requires legal adjustments | Highly scalable |
EOR offers cost predictability and reduced administrative burden, simplifying your financial planning.
How EOR simplifies Netherlands company registration
EORs simplify market entry by managing hiring, compliance, and administrative tasks. Choosing an EOR can significantly reduce your financial risk and accelerate your growth in the Netherlands.
The key benefits of EORs include:
- Streamlined setup: Quickly onboard employees.
- Payroll and tax management: Ensure compliance with Dutch regulations.
- Compliance with local labor laws: Avoid legal pitfalls.
- Cost savings: Reduce expenses associated with entity setup.
- Workforce scalability: Easily adjust your team size.
- Talent acquisition: Access a wider talent pool.
- Risk mitigation: Minimize legal and financial risks.
A step-by-step guide to registering a company in the Netherlands
The registration process in the Netherlands usually involves several steps, including:
- Choosing a legal structure:
- Select the appropriate legal form (e.g., BV, NV).
- Consider liability and tax implications.
- Reserving a company name:
- Verify name availability with the KVK.
- Ensure compliance with naming regulations.
- Preparing documentation:
- Draft articles of association and shareholder agreements.
- Gather identification and proof of address.
- Registering with the KVK:
- Submit documents and pay registration fees.
- Obtain a registration certificate.
- Registering with tax authorities
- Obtain a VAT number.
- Register for corporate income tax.
Alternatively, you can bypass these administrative processes by partnering with a reputed EOR like Multiplier. It will reduce the liabilities and administrative burden on your HR teams while also saving you unnecessary setup costs.
The real cost of registering a business in the Netherlands
A long-term view of expenses is essential for financial planning. Here’s an overview of the typical costs associated with setting up and maintaining a business in the Netherlands:
Registration costs
- KVK (Chamber of Commerce) registration fees:
The cost for registering your business with the KVK ranges from €50 to €100, depending on the type of business structure and the services you require. - Notary fees for Articles of Association:
Notary fees for drafting and notarizing the articles of association typically range from €500 to €1,500, depending on the complexity of the structure and the notary you choose.
Legal services
- Fees for legal counsel:
Legal fees vary widely depending on the complexity of your business setup and the services required. Initial consultations may cost €100 to €300 per hour, while full legal support for incorporation can range from €1,000 to €5,000 or more.
Share capital
- Minimum share capital requirement:
For a BV (Besloten Vennootschap), the minimum share capital requirement is €0.01 (since the abolition of the €18,000 minimum in 2012). However, you may need to deposit sufficient capital to cover initial business expenses.
Annual maintenance
- Accounting and auditing fees:
Accounting services typically cost €1,000 to €5,000 per year, depending on the size and complexity of your business. Auditing fees (if required) can range from €2,000 to €10,000+ annually. - Tax filing:
Tax filing services generally cost €500 to €2,000 per year, depending on the complexity of your tax situation and the services provided.
Office space/registered address
- Rental or virtual office costs:
Renting office space in the Netherlands varies significantly by location. In major cities like Amsterdam, office rents can range from €20 to €50 per square meter per month.
Virtual office services (for a registered address and mail handling) typically cost €10 to €50 per month.
It’s important to note that costs may vary or change based on the latest regulations. Our team at Multiplier keeps up to date with the latest regulations across 150 countries. Talk to us about these costs and understand how an EOR can help you avoid this expenditure.
Cost comparison: Standard registration vs. EOR
When expanding into the Netherlands, it’s imperative to assess the financial implications of different market entry strategies.
Here is a breakdown of important cost factors:
Category | Standard registration | EOR |
Setup | High initial costs: | Minimal to no setup fees: |
KVK registration: €50–€100 | EORs typically charge no upfront setup fees. | |
Notary fees: €500–€1,500 | ||
Legal fees: €1,000–€5,000+ | ||
Compliance | Ongoing legal costs: | Included in EOR fees: |
Lawyers/consultants: €100–€300/hour | Compliance with Dutch labor laws, tax regulations, and employment contracts is handled. | |
Annual compliance costs: €1,000–€5,000+ | ||
Accounting | Dedicated resources: | Bundled services: |
In-house or external accountants: €1,000–€5,000/year | – Accounting and payroll services are included in the EOR’s monthly fee. | |
Tax filing: €500–€2,000/year | ||
Share capital | Required for certain structures: | Not required: |
BV (Private Limited Company): €0.01 minimum (but practical capital may be higher). | No need to deposit share capital. | |
Payroll | Software, personnel, and compliance management: | Included in EOR fees: |
Payroll software: €10–€50/month | Payroll processing, tax withholdings, and social security contributions are handled. | |
Personnel costs: €500–€2,000/month (depending on staff size). | ||
Compliance management: €1,000–€3,000/year. | ||
Office space/address | Rental or virtual office costs: | Included in EOR fees (when needed): |
Office rent: €20–€50/sq.m./month (in major cities). | – EORs often provide a registered address or virtual office as part of their services. | |
Virtual office: €10–€50/month. | ||
Total cost | €5500–€22,000 | Dependent on the EOR’s single fee. |
When planning their global expansion, many businesses don’t account for the ongoing administrative responsibilities and costs associated with company registration.
With flat fees covering compliance, payroll, and other operational needs, an EOR is ideal for businesses that need to quickly expand their operations or test the waters in the Netherlands. Let’s see how an EOR can make business growth here more risk-free and streamlined.
Take the stress out of your Netherlands expansion with Multiplier
Multiplier stands out as a top EOR choice with its comprehensive suite of solutions, transparent pricing, and dedicated support.
Here’s how Multiplier makes entry into the Dutch market easy:
- Ensures compliant employment contracts for smooth onboarding, so you hire top talent in the Netherlands without worrying about local labor laws.
- Processes payroll accurately, so you don’t need to deal with currency conversions or tax compliance.
- Provides you ready access to experts in local regulations, labor laws and tax policies.
- Ensures compliance, reducing your risk of penalties or legal disputes.
- Offers dedicated customer support and security certifications.
- Bundles all services into a single, predictable fee so you can plan finances with ease.
For swift and efficient entry into the Netherlands, Multiplier is your ideal EOR solution. We take care of the intricate details of hiring, payroll, compliance, and HR so you can focus on growth. Experience the ease of expanding with us by scheduling a demo today.
