Last updated 01/15/2026
Why Start a Business in the Netherlands?
The Netherlands continues to be one of Europe’s most attractive destinations for entrepreneurs. With its strategic location, strong infrastructure, and business-friendly environment, it offers easy access to the EU market and beyond. Whether you’re a freelancer, a startup founder, or an international investor, the Dutch system provides clarity and efficiency—making it an ideal launchpad for growth.
Sole Proprietorship (Eenmanszaak)
The most common legal structure for independent contractors is the sole proprietorship (eenmanszaak). This business form is owned by one person, who is fully responsible for the company. It has no separate legal personality, meaning you and your business are legally the same entity.
Why is it so popular? Because it’s simple and inexpensive to set up. All you need to do is register with the Chamber of Commerce (KvK) and pay a one-time fee of €51.95. Once registered, you’ll automatically receive a VAT number. As a sole proprietor, you also benefit from several tax deductions, such as the zelfstandigenaftrek and startersaftrek, although these are gradually being reduced under current tax reforms.
Benefits of a Sole Proprietorship
- No obligation to have annual accounts approved by an accountant.
- You can file your own tax return.
- Hiring employees is allowed.
- Business profits are considered personal income, so only income tax applies.
- Investments can be offset against previous earnings, reducing risk.
The biggest drawback is unlimited liability. If your business incurs debts, your personal assets—including your home—are at risk. It’s wise to review your prenuptial agreement and consider insurance to protect yourself.
Can a Sole Proprietorship Employ Workers?
Yes. The term “sole proprietorship” refers to ownership, not the number of employees. However, hiring staff means you must pay payroll taxes and maintain proper HR administration. Many entrepreneurs start by collaborating with other freelancers before hiring permanent employees.
BV (Private Limited Company) vs Sole Proprietorship
If you expect higher profits or want to limit liability, consider a BV (Besloten Vennootschap). A BV offers limited liability, protecting your personal assets. It requires notarial incorporation and slightly higher setup and maintenance costs, but corporate tax rates can be more favorable for profits above €75,000. In 2026, the corporate tax rates remain 19% on profits up to €200,000 and 25.8% above that.
Step-by-Step Guide to Starting Your Sole Proprietorship
1. Register with the Chamber of Commerce
Register online via the KvK website, select your legal form, and schedule an appointment. Bring valid ID and pay €51.95 by PIN (cash not accepted). Once registered, you’ll receive your KvK number and VAT number.
2. Open a Business Bank Account
While not mandatory, it’s highly recommended. A separate account simplifies bookkeeping and tax compliance. Traditional banks like ING, Rabobank, and ABN AMRO offer quick setup, while digital banks such as Bunq, Qonto, and Revolut provide flexible online solutions.
3. Understand Your Liabilities
As a sole proprietor, you are personally liable for business debts. Consider liability insurance and review your prenuptial agreement to protect personal assets.
4. Tax in the Netherlands
You’ll deal with income tax and VAT (btw). If your annual turnover is below €20,000, you can opt for the Small Business Scheme (KOR), which exempts you from charging VAT—but also prevents you from reclaiming it. Most businesses file VAT quarterly.
5. Obtain Business Insurance
Entrepreneurs are not covered by state benefits for illness or disability. Common policies include:
- Disability insurance
- Liability insurance
- Legal expenses insurance
6. Keep Your Administration in Order
Accurate bookkeeping is essential. Use accounting software or online tools to simplify invoicing and VAT returns. Digital solutions make compliance easier and reduce errors.
7. Pension
Entrepreneurs must arrange their own retirement savings. Options include annuity insurance or private pension plans. Start early to avoid gaps in your financial security.
8. Find Clients and Partnerships
Marketing is key. Use social media platforms like LinkedIn and Instagram and consider professional advice before investing heavily in ads. Networking events and industry associations can also help build connections.
9. Hiring Staff
You can hire employees as a sole proprietor but weigh the costs and obligations carefully. Often, working with freelancers first is a smart move.
Additional Considerations
Visa for Non-EU Entrepreneurs
If you’re not from the EU, EEA, or Switzerland, you’ll need a self-employment visa. The Dutch Immigration Service (IND) uses a points-based system to assess your business plan, experience, and economic value. There’s also a Startup Visa for innovative businesses, valid for one year while you work with an approved facilitator.
VAT Filing
Most businesses file VAT returns quarterly, though monthly or annual filings are possible under certain conditions. Always file on time to avoid penalties.
Income Tax
Business profits are subject to income tax. Entrepreneurs may qualify for deductions such as the SME profit exemption and entrepreneur allowance, though these are being phased down over time.
Conclusion
For entrepreneurs looking to establish a presence in the Netherlands, starting a small business offers an unbeatable mix of opportunity, flexibility, and access to the European market. Instead of navigating uncertainty and complex regulations alone, the Dutch system provides a clear framework for registration, taxation, and compliance.
At Bolder Launch, we specialize in guiding businesses through every step of starting and growing in the Netherlands—whether it’s choosing the right legal structure, handling registrations, or managing ongoing compliance. From initial setup to strategic growth, we make Dutch business expansion simple, reliable, and secure.
Please contact us at launch@bolderlaunch.com / corporate@bolderlaunch.com or +31 76 230 0011 to learn more about how we can help expand your business in the Netherlands. We are more than happy to assist with guidance!
The publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No presentation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Bolder Business Services (Netherlands) B.V., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in reliance on the information contained in this publication or for any decision based on it.
