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Increasing number of Dutch start-ups

Written by: Bridgewest

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The number of new one man businesses in the Netherlandincreased this year for the third year in a row. Most of these start-ups are a type of business that is run by a single individual and they generally activate in business sectors like construction, management consultancy, financial consultancy and generally almost any type of consulting service in the Netherlands that can be operated by a professional in the respective field.

The number of close-downs has reduced

 
The first half of 2014 has been good for Dutch one-man businesses. Fewer of these closed down and those who did had no employed personnel other than the individual conducting the business. Most of the start-ups in the Netherlands, both the successful ones and the ones who have reported bankruptcy, can be found in the construction and management consultancy sectors. The number of start-ups that closed down in the retail sector was reduced by more than 17 percent during this year.
 
The number of newly opened businesses increased during the first half of the year, compared to the same period of time from last year. This was facilitated by the improved situation in the Dutch real estate market and by the fact that the self-employed benefited from reduced VAT rates for residential repairs and renovation projects.
 

The one man company in the Netherlands

 
Foreign and local investors in the Netherlands have various options when it comes to choosing the right form of business entity. The sole proprietorship has a number of advantages, however, it is only suited for small scale businesses. The one man company has almost no rules for functioning and no taxes on the overall profit. The business owner has to pay personal income tax and is liable for all the debts and obligations of the company. Alternatively, two Dutch investors can form a partnership which is a slightly more secure business structure but the partners are still jointly liable for the company’s activities.
 
For more information about the types of structures in the Netherlands and how business owners can benefit from opening a company here, please contact our Dutch law firm.