You have been walking around with an idea for a while, you want to work for yourself after years as an employee, or you are looking for a fresh start while receiving a benefit. Starting your own business raises the same questions in each of those situations: what needs to be arranged, what is mandatory and what does it cost? Ondernemersplein, the Dutch government website for entrepreneurs, lists the most important general steps. Those steps are the basis of this article.
Below you can read how to begin, which steps Ondernemersplein marks as mandatory, which costs to expect and what to watch out for if you start while receiving a benefit from UWV (the Dutch Employee Insurance Agency). After that: the records, taxes and insurance after the start, and the business account.
Key points:
- If you want to start your own business, you can follow the Ondernemersplein step plan. Six steps are marked as mandatory there, such as a business name, a legal form and registration with the KVK (Dutch Chamber of Commerce).
- Registering with the KVK costs a one-off €85.15. The KVK then passes your details on to the Belastingdienst (Dutch Tax Administration) automatically.
- Receiving a benefit? According to UWV, always discuss your plans with your labour expert (arbeidsdeskundige) or a work adviser first, before you start.
- Extra rules can apply per sector, profession and municipality, for example for a permit or your business premises.
How do you start your own business?
According to Ondernemersplein, starting your own business in the Netherlands involves a lot: you choose a legal form, for example, keep records and comply with laws and rules. The step plan on that site is a general guideline. Extra rules can apply per sector, profession and municipality, so the exact list differs per business. That is why Ondernemersplein also offers step plans for common starting situations, and you can create an action list there by answering a few questions about your plans. A bicycle repairer with a workshop at home may get different points than a copywriter working from the kitchen table.
The order is logical: first the plan and the numbers, then the name and the legal form, then the registration and the bookkeeping. Some steps are mandatory, others mainly sensible. If you already know what you want, you can also take steps side by side, for example coming up with a business name while you are still working on the financial plan.
Starting your own business: the step plan
The Ondernemersplein step plan for your own business has thirteen steps, and six of them are marked as mandatory on the site. The first ten are below, summarised in our own words; finding customers, pension and security risks come back in the steps after the start.
Not mandatory, but sensible: the plan shows what your plans cost and how much profit you need to make a living. You can also present it to investors.
Research whether your plans are feasible, for example by analysing your competition, and decide on your strategy. The KVK Marktscan shows how many businesses in your sector are active in your region.
List how much money you need and whether you need financing. With the KVK Verdiencheck you estimate whether your business will be profitable.
Mandatory: you need a name for the KVK registration. Check with the Naamchecker of the KVK and BOIP whether the name already exists.
Mandatory: the legal form determines your liability, which taxes you pay and whether you can use tax benefits.
Mandatory if you meet the KVK’s entrepreneur criteria. Registration costs a one-off €85.15, and the KVK passes your details on to the Belastingdienst.
Required by law: you set up records that meet the requirements of the Belastingdienst. With staff, you also keep payroll records.
Also mandatory: you file an income tax return. If the Belastingdienst decides you are an entrepreneur for VAT, you receive a VAT tax number and a VAT ID.
General terms and conditions are not mandatory, but often sensible. You can insure yourself against many risks, for example if you fall ill or in case of an accident in your business.
Mandatory: which rules apply depends on the activities of your business and your sector, such as professional requirements or a permit.
| Step | According to Ondernemersplein | Tool or cost |
|---|---|---|
| Business plan | Not marked as mandatory, but sensible | KVK Krachtmeting for your entrepreneurial skills |
| Market research | Not marked as mandatory | KVK Marktscan |
| Financial plan | Not marked as mandatory | KVK Verdiencheck |
| Business name | Mandatory | Naamchecker of the KVK and BOIP |
| Legal form | Mandatory | Decision aid on Ondernemersplein |
| KVK registration | Mandatory | One-off €85.15 |
| Records | Mandatory | Goede Start from the Belastingdienst, Geldboek from the KVK |
| Tax returns | Mandatory | VAT ID and VAT tax number, if the Belastingdienst considers you a VAT entrepreneur |
| Terms and insurance | Not marked as mandatory | General terms and conditions are often sensible |
| Legal requirements | Mandatory | Your municipality can help with the rules |
A step without the mandatory label can also pay off. According to Ondernemersplein, a financial plan shows how much money you need and whether you need financing, and you can insure yourself against many risks, such as illness or an accident in your business. The mandatory steps are mainly the moments when your business officially comes into existence: the name, the legal form and the registration.
Ideas for your own business: from idea to plan
Many starters have several ideas for starting their own business, or exactly one idea they still have doubts about. According to Ondernemersplein, a good start begins with a good plan. Writing a business plan is not mandatory, but it is sensible: you gain insight into what your plans cost and how much profit you need to make a living, and you can present the plan to investors. With the KVK Krachtmeting you test your entrepreneurial skills. That way you see what you are good at and which skills you can still develop.
Market research gives insight into the feasibility of your plans. For example, you analyse your competition and how you bring your product or service to market. The KVK Marktscan shows how many businesses in your sector are active in your region and what the population there looks like. If you have two ideas, you can compare them this way: for which idea is there room in your region, and where are there already many businesses?
Business name and legal form
You need a business name to register with the KVK. According to Ondernemersplein, a good name is recognisable, memorable and unique. So first check with the Naamchecker of the KVK and the Benelux Office for Intellectual Property (BOIP) whether the name already exists, and check whether it meets the rules for business names. If you want to prevent someone else from running off with your name, you can register it as a trademark with BOIP. Secure your domain name straight away as well.
The legal form is the legal structure of your business. It determines your liability, which taxes you pay and whether you can use tax benefits. Without a legal form you cannot register your business in the Business Register (Handelsregister). The decision aid on Ondernemersplein shows which legal form suits your situation. If you set up a bv (private limited company), you need a notarial deed and you pay notary costs.
Rules per sector and location
Which rules apply to you depends, according to Ondernemersplein, on the activities of your business and the sector you start in. If you are going to make or sell food, the rules for hospitality, recreation and catering apply. Products you make or sell must meet the European product safety requirements. Sometimes you also have to meet professional requirements.
Your business premises can come with requirements too, for example with a business at home. Check whether your plans fit the municipality’s environment plan (omgevingsplan) and whether you need to apply for an environmental permit or another permit. Your municipality can help you work out the rules. If you hire staff, legal requirements apply, for example for employment contracts and hiring minors. If you want to stay informed about new rules, Ondernemersplein points to the Nieuwe Wetten App.
What does starting your own business cost?
How much starting your own business costs depends on your plans, but a few items come back for many starters. For the costs of starting a business, Ondernemersplein names, among others:
How much money you need in total is what you list in a financial plan. According to Ondernemersplein, it also shows whether you need financing, gives you insight into the financial situation of your business and helps you assess risks. The KVK Verdiencheck helps you estimate whether the business will be profitable.
If you want to start a business without money, count at least on the registration fee of €85.15. You can keep other costs low, for example by working from home instead of renting business premises. If you do need money, for example for an investment, you can present your business plan to investors. On its page about starting from a benefit, UWV names Qredits, an independent foundation for entrepreneurs, for extra advice and financing. You may also be able to use tax benefits later: according to Ondernemersplein, you can for example deduct business costs from your turnover, so that your profit is lower and you pay less income tax. Whether that applies to you depends on your situation.
In short: for most starters, the KVK registration of €85.15 is the first fixed cost; a financial plan and the KVK Verdiencheck show how much money you need in total.
Starting your own business on a benefit
Starting your own business while on a benefit is possible, but according to UWV it affects your benefit. What you need to take into account depends, according to UWV, on your situation and on your benefit. UWV is clear about it: always discuss your plans to start as a self-employed person with your labour expert or a work adviser, and do so before you begin your own business. If you later stop the business again, you may be able to get your old benefit back, according to UWV.
UWV can support you with the start, for example with a research period (onderzoeksperiode). UWV also names a start-up loan (starterskrediet) if you have a permanent illness or disability, and a start period (startperiode) if you have a WW benefit. If you receive a WW (unemployment) benefit, the start period is the scheme UWV names for that. One point applies to all three schemes: if you want to use the research period, the start-up loan or the start period, wait with activities for your business until UWV gives permission. So wait, for example, with looking for customers or employees. For extra advice and financing, UWV refers to Qredits.
Once you are ready for the official start, you usually have to register your business with the KVK, according to UWV. You do not need permission from UWV for that. After registration your business is automatically registered with the Belastingdienst. It wants to know what you earn with your own business, because you will pay tax on that. If you receive a Wajong or WIA benefit, the same UWV advice applies: discuss your plans with your labour expert or a work adviser first, before you start.
After the start: records, tax and insurance
Starting a business is one thing; after that, the real entrepreneurship begins, and a few fixed obligations come with it. You are legally required to set up and keep records (an administratie). Those records are the basis for your tax return, so make sure they meet the requirements of the Belastingdienst. If you hire staff, you also keep payroll records. On Goede Start, the Belastingdienst explains what starting a business involves, with tips for more structure in your records. The KVK also has a free Geldboek for entrepreneurs with practical tips about your finances.
If the Belastingdienst decides that you are an entrepreneur for VAT, you receive a VAT tax number and a VAT identification number (VAT ID). You also file an income tax return. If the Belastingdienst considers you an entrepreneur for income tax, you report your income as profit from business (winst uit onderneming). You may then be able to use tax benefits and deductions, and starter schemes apply to starters. Also watch out for false self-employment (schijnzelfstandigheid): according to Ondernemersplein, a situation in which you accept an assignment as an entrepreneur while under the rules you are actually employed. This is also called disguised employment (verkapt dienstverband), and you have to avoid it.
Because you do not work for an employer, you are responsible yourself for the financial consequences if, for example, you fall ill or an accident happens in your business. You can insure yourself against many risks. Ondernemersplein names, among others, business liability insurance, professional liability insurance and disability insurance; the last one may become mandatory in the future. You also arrange your pension yourself: according to Ondernemersplein, outside employment you do not build up a pension automatically. Ondernemersplein also points to security risks, such as fraud and crime.
After that you can really get going. According to Ondernemersplein, the next step is finding customers, for example with a business website or by offering your services on an online marketplace.
Good to know: after your registration, the KVK passes your details on to the Belastingdienst automatically. You do not need to register your business there separately.
A business account at the start
For many entrepreneurs, starting your own company also means a separate account. According to Ondernemersplein a business account is not mandatory, but it can be useful, for example to separate business spending from your private bookkeeping. According to Ondernemersplein, banks’ terms usually also state that you may not use your private account for your business. An eenmanszaak (sole proprietorship) opens the account in the owner’s own name, a bv in the company’s name. With Vivid you arrange the business account fully online:
Vivid in short: a business account for an eenmanszaak and a bv with a Dutch IBAN, applied for online, from €0 a month for the plan; individual services can come with costs.
Your business is set up, now the account
Open a business account with a Dutch IBAN online for your eenmanszaak or bv.
Frequently asked questions
How do you start your own business?
Follow the Ondernemersplein step plan: a plan and market research, a financial plan, a business name and legal form, registration with the KVK, your records, tax returns, terms and insurance, and the legal requirements for your sector. If you want to start your own business, you can also create an action list for your own situation on Ondernemersplein.
Which steps are mandatory?
Ondernemersplein marks six steps as mandatory: a business name, a legal form, registration with the KVK, your records, tax returns and the legal requirements for your business.
What does starting your own business cost?
Registering with the KVK costs a one-off €85.15. For a bv, notary costs come on top. Ondernemersplein also names, among others, costs for accounting software, a workspace, transport, website and marketing, and insurance.
Can I start my own business while on a benefit?
Yes, but according to UWV it affects your benefit. Always discuss your plans with your labour expert or a work adviser first, before you start.
Do I have to register with the Belastingdienst?
Not separately: according to Ondernemersplein, after your registration the KVK passes your details on to the Belastingdienst automatically.
Do you need a business plan?
It is not mandatory, but according to Ondernemersplein it is sensible. You see what your plans cost and how much profit you need, and you can present the plan to investors.
Which insurance do you need?
That depends on your business. Ondernemersplein names, among others, business liability insurance, professional liability insurance and disability insurance; the last one may become mandatory in the future.
This article provides general information and is not legal or tax advice. The steps, rules and amounts mentioned are as published by Ondernemersplein and UWV, and may change. If you receive a benefit, discuss your plans with UWV before you start. Vivid’s payment services are provided by Vivid Money S.A., an electronic money institution authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg; its Dutch branch is registered with De Nederlandsche Bank (DNB) as an electronic money institution.
