Starting the business by implementing the startup ideas as a novice in the market is quite tough in the market as there are lots of factors to be considered. Moreover, entrepreneurs who want their own mark as a brand in the market surely have to sustain the heavy competition of the market and improvise a lot in their strategies. However, getting started with a business needs to get registered and this needs some considerable requirements as a company to have a hassle-free space to implement any idea in the market.
Tips for Registration of small business in the Netherlands
If you are all clear with your startup idea being an entrepreneur then these 5 tips are quite essential to set up a company in Netherlands.
Choosing the structure of the business: –
Before going on for estimating the targeted customers it is quite essential to be clarified upon the type of business structure that suits your requirement from all aspects. There are basically four types of business structures that get registered and being a novice one should consider the liability limitations, tax savings, and volume of paper works needed and control over the business, etc.
- Trust of Non-profit Organization: – This business structure of an organization runs for the welfare of benefits of the society and can have one or more owners too.
- Sole Trader: – In this business structure, the whole control of the business is possessed by a single person who is responsible for every legal aspect of the company.
- C-Corp: – In this structure of business an organization operates separately with many shareholders those who get profits based on their investments.
- Partnership: – This business structure is run by a group of individuals those who will have a specific or limited control over their company.
Among all these business structures, sole trader or sole proprietorship is one that doesn’t need any registration for the company if it possesses the real name of the owner. However, benefits like credibility, tax benefits, and liability protection are some of the advantages of getting registered.
Selection of a specific brand name: –
Soon after the structure of the business is fixed, now you have to choose a specific name for your company that will represent your product or service as a brand name. A brand name just represents of identifies your offered products and services to your customers which is why one should be very particular on choosing a name that is going to remain forever.
However, there are a few sets of guidelines that should be followed while naming the company which not only makes the identification easy but also make it attractive.
- A unique name should be selected which doesn’t match the name of any other company in the market.
- After the name, you should add Corp, Ltd or Inc based on the business structure you have chosen.
- There are certain specific names that shouldn’t be used which should be gone through in the guidelines of the website of state agency.
- An easy to pronounce name should be preferred such as short names and alphabets with numbers.
Filling the Article of Incorporation
After the business structure and the name of the business are finalized, now you can go for registration by filling the Article of Incorporation. There are several requirements which should be fulfilled if you want to complete the documentation without any inconveniences. Some crucial requirements of this document are
- A clear and direct mention of the sole purpose of the business.
- The details of the registered agent of the state if you are new to the state of the Netherlands.
- The stock which will be authorized by the company should also be mentioned as an outline in the Article of Incorporation.
- The details of the person who is at present managing all the company’s affairs.
Obtaining the EIN ( Employer’s Identification Number): –
EIN is nothing but a number for tax administration which is essential for having a bank account in the name of the company which is also called a tax identification number. It can be obtained simply by applying on the website of Internal Revenue Service. All you have to do is follow the instructed steps on the website and answer the form and you can get your number mailed into your account.
5. Opening a Business Bank Account: –
Having a separate Bank Account for the company is extremely helpful in maintaining a clear cut track of the inflow and outflow of the business over a certain period of time. On the other hand, further investments in the development of the company and the salaries for employees working in it are provided by only these bank accounts.
However, a business bank account has a somewhat lengthier procedure than a normal savings account and there are a few requirements that should be fulfilled by the company. Normally the application form in any bank has these common yet essential requirements such as
- Details of the owner as well as the partners of the company if not the sole trader business structure.
- The details or DBA documents of a company in case you are working under a company and having a separate name other than it. Proper documents of that company under which your company started should be submitted.
- Employee Identification Number or Tax Identification number is the most essential requirement for a bank account. The number should also be attached with the name of your company.
- Article of Incorporation which is filled by the company and validated should be submitted to get the bank account.
There are a few other minor things to be considered besides all those extremely essential requirements in order to register your business without any obstacles. Following the step by step procedure of the above-mentioned tips will ensure your registration with no extra stress or inconvenience caused by any departments in Netherlands even if you are a beginner.