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REGISTERING AND RUNNING A BUSINESS IN THE NETHERLANDS

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Presentation on theme: "REGISTERING AND RUNNING A BUSINESS IN THE NETHERLANDS"— Presentation transcript:

1 REGISTERING AND RUNNING A BUSINESS IN THE NETHERLANDS

2 EXAMPLES OF SELF-EMPLOYED ENTREPRENEUR
Sole trader An independent contractor Buying and selling of cars Electrician, mechanic, painter or plumber Selling of stock fish Internet blogger Connection services to Africa

3 WHEN TO REGISTER You must be active in your business for at least 1,225 hours per year for example for 50 weeks at 24.5 hours per week. For people unfit to do other types of work, the number of hours is 800. When there’s a revenue (income & profit). Entrepreneur allowance (ondernemersaftrek), deducted from profit so that the entrepreneur pays less tax. It consists of: In the past 5 years before the current one, you have not claimed the private business ownership allowance more than twice. In the past 5 years, you were not a business owner for at least one year.

4 HOW TO REGISTER 1. REGISTRATION REQUIREMENTS
Choose a legal form & register your business at the local chamber of commerce. Time: From 1 week before to 1 week after the start of business activities. Identity: The person registering the business should personally submit a proof of identity at the Chamber of Commerce. Accepted IDs include: a valid passport or European ID card a valid Dutch driving licence (non-Dutch driving licence not accepted); a residence permit issued by the IND; a Dutch refugee passport a Dutch aliens passport.

5 HOW TO REGISTER 2. REGISTRATION FORMS
The forms can be downloaded from the Chamber of Commerce website By law, all forms are in Dutch and have to be completed in Dutch. Translations in English of forms 6, 11 and 13 are available to help you while filling in the Dutch form. When you register a company you will pay a one time registration fee of 50 euro.

6 HOW TO REGISTER 3. TYPES OF LEGAL STRUCTURES
Business structures without corporate (legal) personality are: Sole proprietor or sole trader (eenmanszaak) General partnership (vof or vennootschap onder firma) Professional partnership (maatschap) Limited partnership (cv or commanditaire vennootschap) When the business gets to a higher level, you can change it to a business structures with corporate (legal) personality such as Private limited company (bv or besloten vennootschap).

7 RUNNING THE BUSINESS 1A. ADMINISTRATION: KEEPING RECORDS
Keep paper and/or electronical records. These include cashbook, receipts, sales and purchases ledgers, invoices sent and received, bank statements, contracts, software. Keep records of your income, expenses connected with business activities, private use of goods and services. Your invoices should be numbered in consecutive numbers. Your administration must show how much VAT you will pay or have paid to the Tax Administration. There are 3 VAT tariffs in the Netherlands: 0% 9% 21%

8 RUNNING THE BUSINESS 1B. ADMINISTRATION: KEEPING RECORDS
The invoices should state: date and number name and address of the supplier or customer (and the VAT identification number when trading with another EU country) description of the goods delivered or service provided prices excluding the VAT the VAT amounts, split into VAT rates

9

10 RUNNING THE BUSINESS 2. RESPONSIBILITY
Being self-employed radiates a pleasant sense of freedom and independence. However everything you do is at your own risk, expense and with full responsibility towards third parties. It entails some obligations, such as paying taxes and VAT and keeping records of your business activities. Preparing well is the best way to start. You are alone; there is a lot of competent assistance in the Netherlands’ business world.

11 TIME TO PRAY! Deeper Life Bible Church The Netherlands
…earnestly contend for the FAITH which was once delivered unto the SAINTS (Jude 3)


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