Step 1: Choose Your Business Structure

Before you begin, decide which type of business structure best suits your needs. The most common options in the Netherlands are:

• Sole Proprietorship (Eenmanszaak): Ideal for freelancers and small businesses where you are the sole owner.
• Private Limited Company (BV): Suitable for businesses with multiple owners or if you want to limit personal liability. A BV provides more flexibility and protection, as the company’s finances are separate from personal assets.
• General Partnership (VOF): If you’re starting a business with one or more partners.

Each structure has different tax implications and legal requirements, so it’s essential to choose the one that best aligns with your business goals.

Step 2: Obtain a DigiD (for Sole Proprietorships and General Partnerships)

A DigiD is a digital identification system in the Netherlands, used for secure online authentication. It is required for sole proprietors (Eenmanszaak) and general partnerships (VOF) to interact with various government platforms, including the Dutch Tax Authority (Belastingdienst), the Social Security Administration (SVB), and other relevant online portals.

• What is DigiD used for?
  • Signing up for government services (e.g., tax filings).
  • Submitting business-related forms and applications.
  • Accessing your personal and business tax records.
  • Registering for the Small Business Scheme (KOR) and other tax exemptions.
• How to apply for DigiD?
  • Visit the official DigiD website.
  • Complete the registration form and verify your identity using your passport or Dutch ID card.
  • Once your application is approved, you will receive your DigiD credentials (username and password).

Step 3: Register with the Dutch Chamber of Commerce (KvK)

Once you’ve decided on your business structure, the next step is to register with the Dutch Chamber of Commerce (Kamer van Koophandel – KvK). This is a necessary step for all businesses in the Netherlands.

• Prepare your business details: You will need to provide details about your business activities, address, and ownership structure in your online application.
• Get your KvK number: After registration, you will schedule an appointment to finalise your registration and receive your official KvK number.

For a BV, the notary handles the process of creating the shareholder agreement, determining the ownership structure, issuing shares, and appointing directors. The BV will also need a registered office in the Netherlands. These steps are handled by the notary, and the KvK will register your business once the notary has completed the legal documents.

If you need assistance with setting up a BV, we can assist with find you a notary service, a notary will incorporate your BV and registration at KvK.

This registration process is relatively straightforward for Sole proprietorship and general partnerships and can only be done in person at the KvK office after the online filling in the online application form. If you live outside EEA without DigiD, you can contact the KvK at 088-585 15 85 to schedule an appointment.

Step 4: Obtain E-Herkenning (for BV’s)

For BV’s (Private Limited Companies), E-Herkenning is required instead of DigiD. This is a digital identification system specifically for businesses to interact securely with government services. You’ll need E-Herkenning for tasks like submitting tax filings, registering for VAT, and accessing business-related services.

• What is E-Herkenning used for?
  • Signing up for business-related government services.
  • Submitting business tax returns.
  • Registering for the Small Business Scheme (KOR) if applicable.
  • Accessing business-related government portals securely.
• How to apply for E-Herkenning?
  • You can apply for E-Herkenning through an accredited provider. The application process involves identity verification, and it may take a few days to receive your credentials.

Step 5: Open a Business Bank Account

After registering your business with the KvK, you will need to open a business bank account. This account will be used to manage your business finances, including paying taxes, receiving payments, and managing business-related expenses.

Step 6: Register for VAT (if applicable)

If you’re expecting your turnover to exceed the VAT threshold or if you wish to claim back VAT on business purchases, you will be automatically registered for VAT with the Dutch Tax Authority. You can file VAT online using your DigiD (for sole proprietorships and general partnerships) or E-Herkenning (for BVs) through the official Mijn Belastingdienst Zakelijk portal.

• As a VAT-registered business, you will charge VAT on your sales and submit VAT returns.
• If your turnover is below the threshold, you may be eligible for the Small Business Scheme (KOR), which simplifies VAT reporting.

Step 7: Handle Insurance and Employee Requirements

Depending on the type of business you’re starting, you may need to arrange for various types of insurance (e.g., liability, health, or disability insurance). Additionally, if you plan to hire employees, you will need to register with the Dutch Employee Insurance Agency (UWV) and comply with Dutch labor laws.

Step 8: Stay Compliant with Dutch Business Regulations

Finally, ensure that you stay compliant with Dutch business laws. This includes:

• Filing annual financial statements with the KvK.
• Submitting your taxes on time.
• Keeping accurate records of your business expenses and income.

How DigiD and E-Herkenning Play Key Roles in Your Business

DigiD (for sole proprietors and general partnerships) and E-Herkenning (for BVs) are essential for any entrepreneur in the Netherlands. Whether you’re managing your taxes, applying for the Small Business Scheme (KOR), or interacting with government services, these digital identification systems serve as your gateway to secure access to all essential platforms.

Once you have the appropriate credentials, you can:

• Submit and sign your tax filings electronically, including income and VAT returns.
• Access your business’s tax information online via Mijn Belastingdienst Zakelijk.
• Apply for government schemes and benefits that require digital identification.