Proposal for 'The
Backgammon Hostel'
Contents
1.0 The Executive Summery
2.0 Tourism Statistics
2.1 Netherlands Tourism
Statistics
2.2 General Business
Information Concerning the Netherlands
3.0 Definition, of a Hostel
as opposed to a hotel
4.0 Position to Date -
Steps to Acquire the Business [Phase 1]
5.0 Mission Statement
6.0 Short Term Objectives
7.0 Long Term Objectives
8.0 Key Personnel
9.0 Legal Structure
10.0 Professional Advisors
11.0 Our Service
12.0 Unique Selling Point
13.0 Sales Materials and
Special Offers
14.0 Suppliers
15.0 The Market and
Competition
16.0 Market Positioning
17.0 Marketing
18.0 The Competition
19.0 Competition Price
Comparison
20.0 Guest Support
21.0 Insurance
22.0 Property Requirements
Phase One
22.1 Property Requirements
Phase Two
23.0 Interior Needs of the
Hostel
Appendix One -- Employees
Appendix Two -- Contacts in
Amsterdam (Phase One)
Appendix Three -- Dutch Taxation, Information and Contacts
Appendix Four -- Legalities
of Dutch Residency/Business
Appendix Five -- Business
Start Up Guide from the Chamber of Commerce (Phase One)
Appendix Six --
Housing/Location
Appendix Seven -- Permanency
Appendix Eight -- Tourism
Statistics for Phase One (Holland)
Appendix Nine -- Statistics
for Phase Two if Eventually Located Outside Holland (partially completed)
1.0 The Executive Summery
The Backgammon Hostel is a
business providing economical dormitory accommodation in a homely atmosphere in
the suburban area of a popular city frequented by tourists and short-term
students.
The
Backgammon Hostel will fill a niche in providing a homely atmosphere for longer
term guests, with a well equipped kitchen for self-catering, auxiliary sales of
food sundries, ice-cream etc. Guests are attracted by a combination of
advertising, flyer exchange and Internet booking.
To remain within initial funding limits, the project
will has two phases. An initial basic version of the hostel, with only the
essential requirements, will be commenced in Amsterdam, a popular tourist
destination with a shortage of clean, affordable dormitory accommodation. The
property will be a converted apartment with two ten bed dormitories, one mixed
and one female, with two shower toilers and a combined common room/reception
and two shower/toilets.
The second phase, commenced after three years of
operation, will be to acquire a suitable house for conversion to a forty bed
capacity, in a location to be decided when the funding is available.
2.0 Tourism Statistics
(Source: The World Travel and Tourism Council)
In 2004, worldwide tourism increased by 3.9%. In
Western Europe, 12.9% of the population are directly and indirectly employed in tourism, in Eastern Europe this
figure is 8.9% Tourism accounts for 11.5% of Western Europe's GDP, and 10.1% in
Eastern Europe. Projected figures for the next ten years are a 3.8% increase in
tourism in Western Europe, and 6.3% in Eastern Europe respectively.)
2.1 Netherlands Tourism Statistics (Source: As above)
Travel & Tourism in Netherlands in 2005 is
expected to generate USD96.2billion of economic activity (Total Demand).
Netherlands’s Travel & Tourism Economy (direct and indirect impact) in 2005
is expected to account for 9.5% of GDP and 654,920jobs (9.2% of total
employment), and is expected to grow 3.2% in 2005 and by 3.8% per annum, in
real terms, between 2006 and 2015.
WORLD RANKING
The Netherlands Travel
& Tourism economy is ranked number:
· 12 in Absolute Size worldwide
· 97 in Relative Contribution to national economies
· 31 in Long-term (10-year) Growth. (174 countries are
estimated by WTTC / OEF)
2.2 General Business Information Concerning the Netherlands
The Netherlands
• 16 million inhabitants
• Stable and neutral
• Strategic location in
Europe
• No. 8 direct investor in
the world*
• No. 4 recipient of FDI in
the world*
• No 1 for openness of
national culture in the European Union*
*Source: World
Competitiveness Yearbook, IMD, 2003
AMSTERDAM AREA
Amsterdam Airport Schiphol
• Schiphol - 4th in Europe
for cargo and passenger traffic
• Business travellers’
favourite airport
• 237 direct connections in
87 countries
• 15 min train ride to city
centre
Amsterdam Ports
• 4th in NW Europe
• Highly accessible
• Value-added logistics
Smart + Multilingual
Workforce
• Amsterdam population: 35%
educated at college or university level
• Stable labour relations
• Among EU countries with
lowest no. of days lost to strikes
• Multilingual: no 1 in
Europe
Multilingual skills
-Percentage of Total Population
Source: Ernst &
Young 2002
Netherlands 91%
Sweden 82%
Belgium 64%
Germany 49%
France 41%
Ireland 28%
UK 19%
The best country in the eurozone to do
business is … the Netherlands. In the list of the best ten countries in which
to do business drawn up every five years by the Economist Intelligence Unit
(EIU), the Netherlands is in sixth place, higher than any other country in the
eurozone.
10 best countries for doing
business:
1. Denmark
2. Canada
3. United States
4. Singapore
5. Hongkong
6. The Netherlands
7. Finland
8. United Kingdom
9. Switzerland
10. Ireland
Source: Economist
Intelligence Unit
The Netherlands ranks as the world's fourth most
global nation according to the fourth annual A.T. Kearney/FOREIGN POLICY
Magazine Globalization Index™. The country climbs from fifth place despite a
slight reduction in the overall index score. The rise of the Netherlands
coheres with the relative strong decent of the competing countries.
The best cities to locate a
business today
London
Paris
Frankfurt
Brussels
Amsterdam
Barcelona
Madrid
Munich
Berlin
Zürich
Source: Cushman &
Wakefield Healey & Baker, European Cities Monitor 2004
3.0 Definition, of a Hostel
as opposed to a hotel
A hotel is a large, purpose-built building offering
self-contained rooms for short-term accommodation for the middle/upper ends of
the tourist and business market. The accommodation is private. Sometimes
there's an attached bar restaurant and reception area with common seating.
A hostel offers large rooms with a number of beds,
usually between four and twelve per room, which are sold individually. All the
facilities are common, i.e. shared by the guests.
Hostels generally fit into four categories:
Official Youth Hostel Association
The YHA is a registered charity promoting affordable
travel for young people, cultural exchange and involving guests in
environmental schemes locally. There are 4000 hostels in 80 countries. These
hostels are usually large, purpose built buildings run by salaried managers.
They have a cheap restaurant and sometimes a bar. People of any age can stay
there, though some are put off by the institutional feel, various rules such as
a daily curfew, early closing of the door, and the large amount of school groups
they attract.
Party Hostels
'Party' hostels are either converted hotels or large
houses. They are always central and always have a bar -- where life generally
centres. There is usually some minimal shared kitchen with rentable utensils,
and a laundry room.
They attract youngish people traveling for a short
time who enjoy the lack of rules, and that the party usually spills out into
the dormitories. There is often a TV and video machines, and overall they have
an energetic, boisterous atmosphere.
Location Hostels
A location hostel is usually a large, converted
building offering no facilities other than a bed, which is commonly fairly
expensive. These types of hostel are located in the city centre, within walking
distance of the main sites that a tourist wants to see. They thus attract
people visiting a place for less than a week.
Homely hostels
A 'homely' hostel is always a converted house,
sometimes central, or ten minute walk away from the centre, sometimes they are
out in the suburbs but close to a metro station or public transport link. They
attract a wide range of guests who are staying for a slightly longer time, and
prefer to live away from the city centre, in a homely atmosphere.
They usually have a well-equipped kitchen with
utensils provided, enabling the guests to make a range of food. There's a
common seating area and main sitting room
which is attractively decorated with TV, free library, and has tourist
information, a local map displayed etc. Many of the nicer homely establishments
have a garden or patio with common seating and a barbecue which is lit for a
fee.
The Backgammon Hostel will initially be a basic niche
location hostel, not close to the centre, but attracting guests who prefer a
clean accommodation in a more suburban area.
After three years of operation, when viability is
demonstrated and viability demonstrated, credit shall be obtained and a
separate property acquired, which will operate as a homely type hostel.
4.0 Position to Date -
Steps to Acquire the Business [Phase 1]
1 -- Open a Dutch bank
account and move the finance.
2 -- Locate, view and
decide on property.
3 -- Renovation and
redecoration of property.
4 -- Print flyers, business
cards and receipt books.
5 -- Furnish property.
6 -- Connect utilities and
phone/Internet.
7 -- House, contents and
public liability insurance.
8 -- Locksmith.
9 -- Advertising.
10 -- Create website.
17 -- Register for tax, for
business plus employees.
18 -- Online booking
registration.
5.0 Mission Statement
The Backgammon Hostel
will provide quality accommodation for people on budget, and will be
specifically set up with an emphasis on people meeting each other, making new
friends and feeling at home.
Three members of staff will be acquired and the
hostel will fund and fully support them in training towards recognised
qualifications in travel and tourism.
Also, information and promotion of the charities The
Red Cross and Lepra will be actively undertaken, and a percentage of all
profits donated to these causes.
6.0 Short Term Objectives
The short term objective is to launch the business
with the minimum required furnishing and expenditure with a twenty bed
capacity, and achieve a weekend occupancy of 100%, initially by means of
Internet bookings. Each month, new acquisitions will increase the furnishings
and equipment.
7.0 Long Term Objectives
Long term objectives are to prove the viability of
the business, and then obtain credit for the purchase of a house for conversion
to a forty bed capacity.
8.0 Key Personnel
At the starting point, a single receptionist on a
twelve hour day shift and a three hour cleaner shall be employed. Upon
achieving profitability, a further staff member shall do a twelve hour night
shift. This person will be permitted to sleep between 11 and 8, to be woken by
a bell should there be a night check-in. This is standard practice in a hostel.
(See appendix)
9.0 Legal Structure
The business shall operate as the equivalant of a
sole trader.
10.0 Professional Advisors
For the first tax year, a book keeper will be
employed. Thereafter, the accounts will be kept and submitted for taxation by
myself, which the staff will also be trained to do as part of their education.
11.0 Our Service
For a daily rent, customers purchase the right to a
bed in a dormitory and access to a common area. In phase two, the rent also
purchased the use of a fully equipped kitchen and attractive garden.
Also in phase two, and for additional fees, the
Internet and washing machine can be used, and small food sundries purchased.
12.0 Unique Selling Point
Our guests are able to stay in a suburban place that
truly feels like home, while still being close to a busy city via public
transport.
In phase two, kitchen is particularly well equiped
with things not usually found in a hostel, like ice-making machine, juicer,
toaster etc.
13.0 Sales Materials and
Special Offers
An A5 folded leaflet will be produced. Also, various
promotional items, like key fobs, pens, etc. are presented as free gifts at
check-in. These will remind the guests of their stay after they leave and
continue travelling, and increase the chance of 'word of mouth'
recommendations. More expensive items, like mugs, teeshirts etc. will be for
sale.
14.0 Suppliers
Main suppliers are for
stationary and edible consumables, which will be obtained locally.
15.0 The Market and
Competition
The type of guest whom are
attracted to such a hostel are:
Longer term
young travellers
Usually exploring a
city for around two weeks and preferring a quiet atmosphere.
Older travellers
Who are averse to the
rules of institutional hostels, and the atmosphere of the party places.
Foreign students
Sometimes of language, who pay a monthly rate. This
type of guest is non-seasonal and can help maintain occupancy during the
winter. The most popular type of
courses with travelers the world over are language courses. According to
research published by ISTC (International Student Travel Confederation), nearly
30% of young travelers learn a language during their trip.
Price purchase parity customers
Many hostels attract guests, both tourist and
businesspeople, from countries like Russia and China who are fairly affluent in
their own countries, but find the cost of hotel rooms in Western, or even
Eastern, Europe very expensive.
Solo travellers
Many people, even though they can easily afford hotel
accommodation, specifically choose hostels because, due to the common nature of
the living, sleeping, cooking and relaxing together, they are places where
people make new friendships and often travel on together.
NGO/Voluntary workers
Again preferring a homely atmosphere, and again
non-seasonal guests.
16.0 Market Positioning
We consider ourselves to be at the low price, longer
staying sector of the market.
17.0 Marketing
A new business obviously needs to let potential
customers know of its existence, location, facilities and attract bookings.
This will be accomplished in a number of ways.
Advertising
A fairly expensive option that might be useful in the
beginning.
The main travelers' magazine is TNT, with a London edition. It's a free weekly, with
very good articles on travel, various advertisements for accomodation and
people seeking travel partners etc. It's distributed freely in hostels and
places of tourist interest. A 1/8 colour insertion is 420 Sterling. But leaflet
inserts are 45 Sterling per 1000.
A lineage ad that links to a website is a viable
long-term option.
Flyer exchange
Almost all hostels have an information centre. It
might just be a large notice board with maps and leaflets advertising local
restaurants, museums and literature from the tourist board. Sometimes the
flyers are put into a rack for guests to take as required, other times there's
a dedicated table full of free information to take.
Because the people who stay in hostels are almost
always completing an overland trip, then each hostel is only competing with
surrounding hostels in the same city. Thus it's common practice for hostels to
advertise each other on a reciprocal basis.
Upon opening, envelopes of flyers for Backgammon
Hostel will be sent to numerous hostels in Europe, with an SAE for the return
of their own leaflets.
Also, local educational institutions will be pleased
to reciprocally display the hostel's leaflet for their potential long-term,
non-seasonal guests, as people at the hostel not studying language might
consider taking a short course.
Hostel World
The website www.hostelworld.com is an online hostel
booking service. To join takes only 48 hours. Customers can read the
descriptions of the hostels, see photographs, instantly book and have a
confirmed reservation. The fee to Hostel World is 2 American dollars booking
fee from the customer and 10% of the first night from the hostel.
It's a very popular way to book, especially in areas
where there is intense pressure on the lower end of the market, because the
'low availability grid' lets the customers see immediately where there are
vacancies, and this saves a lot of phoning and walking upon arrival.
Web Site
www.backgammonhostel.com will contain full details of
all facilities, location map and many
pictures, this will complement lineage ads in TNT. The owner already has full
web design skills and the site shall be established almost immediately.
18.0 The Competition
The competition in
cities in Western Europe is generally of a high standard, and slightly less
developed in Eastern Europe.
Having chosen a popular location that lacks a
suburban, homely hostel for longer term travellers and students will ensure a
fair market share.
19.0 Competition Price
Comparison
The price for the accommodation will be very close to
that of the competition, as it's already the cheaper end of the market.
20.0 Guest Support
Myself and/or a staff member will be constantly
available, to check people in, give tourist information and general assistance
required.
21.0 Insurance
Contents and public liability shall be obtained
locally. In phase two, building insurance shall also be purchased.
22.0 Property Requirements
Phase One
22.1 Property Requirements Phase Two
23.0 Interior Needs of the
Hostel
** = Essential on
opening, phase 1
Reception
Kitchen (probably not
included in phase one, though monthly, some items will be purchased)
Bedrooms
Common Area
Laundry/Storage
Room (possibly not applicable during phase one)
Exterior (probably not
applicable during phase one)
Bathrooms
Generally
Appendix One -- Employees
Duties of the Staff
JOB DESCRIPTION
JOB TITLE: Hostel Assistant
Manager
REPORTS TO: The Owner
RESPONSIBLE FOR: Self and
cleaning staff.
SCOPE OF THE JOB: As
follows
P1 = Phase one
P2 = Phase two
EMPLOYEE SPECIFICATION
Personality: Friendly,
outgoing, interested in foreign cultures, open minded.
Circumstances: Youngish.
Willing to sleep over or work extra hours.
Physique, health,
appearance: Generally fit.
Education: Computer
literate, though not necessarily qualified.
General Intelligence:
Bright, with a degree of initiative.
Experience: Having
travelled is a plus, but full training given.
Past Record: Reasonably
stable.
Motivation: Happy to take
responsibility and be able to work alone for periods.
Special Aptitudes:
Languages an advantage, English essential.
Interests: Interested in
travel/world culture would be a bonus.
APPLICATION FORM
Please return the form to:
Name:
Address:
Education:
Last three jobs (if
applicable);
Company:
Position held:
Address:
Employment from: To:
Salary on leaving:
Reason for leaving:
Describe what the job involved and any particular
achievements:
What are your hobbies and
interests:
When could you be available
to start work
Are you registered disabled
Have you had any major
medical problems in the past five years:
Give details of two
referees. Both should be from previous employers. They will only be contacted
after a job offer has been made, unless we obtain your permission first.
Name Company/address Business
relationship.
I confirm that the
information I have given on this form is true and complete to the best of my
knowledge. I understand that if the information is subsequently found to be
false, my application may be rejected, or in the case of my appointment, I may
be dismissed.
Signature: Date:
ADVERTISEMENT
Hostel worker
E ****** pa
To work in a lively new
backpacker establishment in _______. Duties involve general reception duties,
light cleaning, checking people in and out, some translation for the expatriate
owner. The successful applicant will be friendly, honest and enjoy meeting
people from different cultures. For an application form please contact
___________.
EMPLOYMENT INDUCTION
CHECKLIST
Name:
Job title:
Start date:
Mission Statement:
Organisation chart:
Emergency contact:
Tax number:
Basic Pay
Overtime:
Ringing in sick:
Holiday Pay and
entitlement:
Lateness:
Health and safety:
First aid:
Accident prevention:
Accident procedure:
Fire evacuation:
Exits and alarms:
Assembly area:
Fire equipment:
Smoking policy:
Personal hygiene:
Training policy:
Disciplinary procedure:
Grievance procedure:
Personal problems:
Site tour:
One week review:
Two week review:
One month review:
EMPLOYMENT RECORD
Name:
Address:
Date of birth:
Telephone number:
Marital status:
Number of children:
Emergency contact address
and number/s:
Tax number:
Bank address+a/c number +
sorting code:
Holiday entitlement:
Sickness entitlement:
Starting date:
Position:
Starting salary:
SAMPLE EMPLOYEE ABSENSCE
RECORD
Name:
Positon:
Date: _______ Reason for
absence: ______________________
Date: _______ Reason for
absence: ______________________
Date: _______ Reason for
absence: ______________________
Appendix Two -- Contacts in
Amsterdam (Phase One)
1.0 ACCESS
Access is a not for profit
organisation that helps anyone from anywhere settle in the Netherlands with
ease.
http://access-nl.org/
+31 (0) 20 4 23 32 17
Office Hours:
10am - 4pm
Amsterdam Office
Herengracht 472 2nd Flr,
1017 CA
Postal address:
P.O. Box 17374, 1001 JJ
Amsterdam, The Netherlands
ACCESS is a not-for-profit organisation established
in 1986 to bridge the gap between the international community and
English-speaking services available in The Netherlands. We supply free
information from our extensive database; offer publications, courses, events,
and a professional counselling referral service. About 150 volunteers,
Management Team, and a Board of Directors staff ACCESS
The goals of ACCESS
include:
To remain the primary
source of free information in English for the international community in The
Netherlands through the maintenance of a comprehensive database of information
communicated by means of a telephone helpline, by e-mail and personal
interviews. To offer free counselling
referrals.
To provide educational
seminars and workshops designed to meet the needs of the international
community.
To research and produce
various publications
on topics relevant to life
in The Netherlands.
1.1 HOME ABROAD
Services: Relocation
Home Abroad offers
pay-as-you-go services as well as fixed-price packages customized to fill the
needs and requirements of our clients.
Kathryn Wentzel, Director
Relocation Consultants
in the Netherlands
For more information or an
appointment:
Phone: +31 (0)20 6255195
FAX: +31 (0)20 6247902
Email: [email protected]
Mailing Address: Home
Abroad
Weteringschans 28hs
1017 SG Amsterdam
The Netherlands
Offices located across from
the Rijksmuseum.
Help with arranging
living accommodations/rental contracts/utilities
moving company and acting as liaison with customs
bank account/insurance policies
schooling for the kids
car ownership, leasing, vehicle inspection and registration
driver's license exchange
language schools, adult education/enrollment of children
recreation, clubs, sports facilities, adult education, etc.
1.2 Partners in Relocation
P.O.Box 33
4140 AA Leerdam
the Netherlands
Visit:
Loosdorp 4
4143 LT Leerdam
the Netherlands
T 0345 - 580 381
F 0345 - 580 816
1.3 PAS BMS Relocation
Services v.o.f.
Rivi relaan 1
4731 CS Oudenbosch
Netherlands
Country: The Netherlands
Contact: Christine
Schrage-Hartmann
Phone: + 31 165 51 82 68
Fax: + 31 165 51 82 78
Email: [email protected]
PAS BMS provides all
services required integrating a foreign employee including a unique 24-hour
HELP Service such as
Relocation Services: * Work
and Residence permits; * Housing assistance; * School search and registration;
* Banking/Insurance; * Removal Services; * Repatriation assistance.
INTERNATIONAL HR SERVICES:
* Interim HR Assistance; * Restructuring services; * Legal/Tax/Social security;
* Dual Career Programs; * Cultural Training Programs; * HR Due Diligence
program and execution.
1.3 Relocation Services B.V.
P O Box 95953
De Ruyterstraat 94 A
2509 CZ Den Haag
Netherlands
Country: The Netherlands
Contact: Helen
Rietveld-Seitz
Phone: + 31 70 387 1715
Fax: + 31 70 387 7741
Email:
[email protected]
www.relocation-holland.nl
1.4 T & A Relocation
Torenlaan 31
Laren (Nr Amsterdam)
P O Box 73
1250AB Laren
Netherlands
Country: The Netherlands
Contact: Jolanda Tetteroo
Phone: + 31 35 533 0478
Fax: + 31 35 533 0479
Email:
[email protected] <mailto:[email protected]>
Membership: Full
www.t-and-a-relocation.nl
T & A Relocation offers
traditional relocation services to companies and individuals, as well as
providing the increasingly popular property management services and
administrative support, including the application of work permits and ex-pat income
tax benefits. Relocation packages are compiled based on the requirements of
both the companies and the relocating families in an exclusive arrangement.
1.5 Mailing Address/Temp Office
Euro Business Centers
Keizersgracht 62/64
1015 CS Amsterdam
T: +31 (0)20 520 7500
F: +31 (0)20 520 7510
Appendix Three -- Dutch Taxation, Information and Contacts
1.0 Registering for Tax
Step one, obtain "Opgaaf gegevens startende
ondernemers" form (Statement of information by a new business) from the
Starters' Desk of the tax office. The tax office will make a provisional
assessment of the business and decides which taxes have to be paid and will
provide the necessary registration numbers (for example a VAT number).
1.1 Income tax
Entrepreneurs who pay
turnover tax are not always liable to pay income tax. When deciding if an
entrepreneur has to pay income tax, the tax office will look at the following:
· the extent of the work
performed;
· the level of turnover and
profit;
· the time spent in the
business;
· the presentation to the
market;
· the number of clients (a
minimum of three clients is often required);
· the presence of debtors' risk.
To be sure a VAR
declaration states exactly.
If the entrepreneur is
liable to pay income tax, there are a number of tax allowances. Declaration and
payment (plus employees wages tax) is
usually done on a quarterly basis.
Central Tax Office (+31)
0800 0543
2.1 Expatax
Pater van den Elsenstraat 6
5056 ES Berkel-Enschot
(near Tilburg)
Tel. 013- 540 02 55
Fax: 013-540 02 56
Expatax can assist with
tax advice and all Dutch tax returns
the application for the 30% ruling
setting up a business or opening a branch in the Netherlands
the administration of your company
payroll services for contractors and (international) companies
a US tax return
Expatax is only working for
expats which guarantees that the necessary experience is available.
Together with advisors who
are specialized in assisting expats Expatax can also offer the following
services:
arranging a mortgage
investment planning
retirement planning
insurance advice
relocation services
legal advice
Tax advice € 65 - € 85 per hour + 19% VAT
An M form is a more
complicated tax return. This form is needed when somebody has immigrated to or
emigrated from the Netherlands during the tax year. An M form requires specific
information and knowledge. The minimum fee for an M form will therefore be
higher.
Time spent for anything
else than a tax return will be separately charged at our hourly rate. This
includes filing a letter of objection if the tax office has made a mistake,
providing tax advice, answering specific questions etc. and also answering
emails and phonecalls depending on the length and number of emails and
phonecalls. We will not charge a single short email, but if we have an email
conversation we may charge our time. .
Tax return individual Minimum € 100,00, maximum € 200,00 depending
on information
+ 19% VAT
Tax return M form Minimum €
150,00, maximum € 200,00 depending on information + 19% VAT
Tax return plus tax return
partner Minimum € 125,00, maximum € 225,00 depending on information. + 19% VAT
Tax return for freelancer,
business owner (excluding administration) € 150,00 - € 200,00
+ 19% VAT
Request provisional refund
€ 50,00 + 19% VAT
US tax return Minimum €
350,00, average € 400,00 / € 500,00 depending on information
+ 19% VAT
The application for the 30%
ruling has a separate fee. The fee depends on the work which needs to be done
by us and the documents which need to be supplied.
Application 30% ruling from
€ 150,00 for just checking the application you made yourself up to € 300,00 for
the whole application with an average fee of € 200,00 + 19% VAT
Extra costs (above normal
fees)
Personal visit € 50,00 +
19% VAT
Urgency (within 5 days) €
50,00 + 19% VAT
Administration
The fees mentioned below are
just estimates. The final fee depends on the quality of the given information.
The more we have to find out ourselves, the higher the fee will be at the end.
Guidelines:
Small administrations €
600,00 per year (€ 50 per month)
Bigger (middle) administrations
€ 1.200,00 per year (€ 100 per month)
For small administrations
you can think of self employed business owners without employees and not too
much invoices and bills. If you have a partnership or if you have many invoices
and bills you are treated as a business owner with a bigger administration.
Prices don't include 19% VAT and extra costs. Be aware that these fees are
(mostly) deductible as business costs and that the VAT can be claimed back.
The fees include:
- VAT returns
- business administration
- year end accounts
- estimates for the tax
office throughout the year
- income tax return
Payroll administration
Appendix Four -- Legalities
of Dutch Residency/Business
1.0 Living Legalities
1.1 Exchanging a foreign driver’s license
As a rule, residents of the
Netherlands are required to have a Dutch driver’s license. There are a number
of exceptions, however, to this rule. If you have a license issued by one of
the member states of the European Union, you may use this license for up to one
year after registering in the Netherlands. If you have a license from a country
outside of the European Union, you may drive on your foreign license for 6
months from when you register as a resident of the Netherlands. After this
period you will either have to pass a Dutch driving test or exchange your
license.
Exchanging your license,
how does it work
When you are entitled to
the 30% tax ruling, you or your family member(s) may exchange your foreign
driver's license. At the city hall -gemeentehuis- you can request the forms for
exchanging your license. Apart from the request forms you'll need the following
documents:
A letter from the tax
office in Heerlen saying you are entitled to the 30% ruling benefits.
Your original, valid
driver’s license.
A copy of your registration
with the city hall.
A statement of capability.
Two identical, recent
passport photos.
1.2 City Hall registration
When you move to the Netherlands with the intention
to settle, you are required by law to register in person with your local City
Hall -gemeentehuis, afd.burgerzaken- within three days upon arrival. As per may
2004 the IND, Department of immigration services, have taken over the Alien
Police registration tasks. IND and City Hall have combined the registration
process in one. In effect this means that you apply for the resident permit at
City Hall.
Upon registration the
following details are required:
copy valid passport;
color passport photo;
employment certificate;
work permit
-tewerkstellingsvergunning- (if needed);
health insurance;
marriage certificate
(legalized & translated);
birth certificate
(legalized & translated);
divorce certificate (if
applicable);
copy rental contract home.
Upon payment of the
registration fees you will receive your resident permit, with your photograph,
signature and the purpose of your stay (work, study, unification partner).
A resident permit for members of the European
Community is valid for five years. A resident permit for Non EU citizen who is
employed the permit can be valid for three years. The accompanying spouse will
have a resident permit valid for only one year. A renewal is required every
year. To renew your resident permit you need to submit an employment
certificate, pay slips of the past three months, a health insurance and a work
permit. As of December 2003 the extension and renewal process of the
residential permit can be done per mail.
2.0 Business Legalities
2.1 Insurance
Will be purchased locally.
Personal insurance (such as
health insurance and household contents insurance)
Business insurance (such as
insurance of inventory and stock).
Insurance companies make a
distinction in this respect. For example, the third party liability insurance
which you have as a private individual does not apply in the context of your
business activities.
available.
Appendix Five -- Business
Start Up Guide from the Chamber of Commerce (Phase One)
http://www.kvk.nl/
The Chamber of Commerce is
the prime meeting place for business people in the Netherlands, whether you
have just started up in business or have been operating for many years.
What requirements do I have
to satisfy in order to start a business in the Netherlands What legal forms are
there,
what taxes do I have to
pay, and do I require a licence or diploma How do I set up a branch office for
my business
In this section we focus on
the most important aspects related to successfully setting up a business in the
Netherlands
Setting up your own business: Insurance
Anyone starting up a new
business takes risks. To some extent, you can insure against these risks. Think
about which risks you wish to run and which insurances you wish to take out. In
the case of small risks it may be more cost-efficient to put some money aside
than take out an expensive insurance policy.
As an entrepreneur you will
be dealing with two kinds of insurance:
Personal insurance (such as
health insurance and household contents insurance)
Business insurance (such as
insurance of inventory and stock).
Insurance companies make a
distinction in this respect. For example, the third party liability insurance
which you have as a private individual does not apply in the context of your
business activities.
Insurance: Business insurance
Insurance of your business
assets
Buildings, machinery,
furniture and fittings, stock and means of transport are all business assets.
Fire or theft could halt your production. These risks are covered by the
following insurance policies:
Cargo policies
Machinery and equipment
policies
Business premises policies
Business interruption
and/or machinery breakdown policies
Computer policies
Liability insurance
If the product or services
you supply cause personal injury or material damage, you could be held liable
as an entrepreneur. There are two types of policy for this:
Liability insurance
policies for companies
Professional liability
insurance
Goods-in-transit insurance
The insurance covers damage
during the transport of goods, whether you transport the goods yourself or use
a professional transport company.
Legal assistance insurance
If you have any legal
problems with customers, suppliers and staff, the policy will cover such things
as the costs of lawyers, bailiffs and the court.
Credit insurance
If you deliver goods on
account, you run a debtor's risk. In other words, the risk that your client
cannot or will not pay. The credit insurance policy covers this risk.
Choosing a business name or a trade name for your company is subject
to certain rules.
Your business name must not
be confusing or misleading. That means that you cannot choose a name which is
already being used by someone else or which is similar to it.
You may not represent
yourself as anything other than what you really are. So, for example, you
cannot use 'BV' in your business name if your business is not a BV (private
limited company).
Your business name or trade
name may not conflict with existing trademarks. Please note that the Chamber of
Commerce does not investigate whether this is the case when you register your
business. The Benelux-Merkenbureau (Benelux Trademark Agency) in The Hague is
responsible for protecting trademarks.
If you register your
business in the trade register of the Chamber of Commerce, a general search
will be done to check if there is already a business with that name. It is in
your interest to pay for the Chamber of Commerce to conduct a nationwide
business name search. This also includes a search of business names which sound
similar but are spelled differently.
Your trade name is
protected from the date that your company is operative and becomes known to
third parties
Tax affairs
As a self-employed
entrepreneur you are responsible for your own tax affairs. It is important to
know which taxes you will be required to pay and what options for deductions
and exemptions may apply to your company.
Contacting the Inland
Revenue
You should notify the
Inland Revenue as soon as you know when your company plans to start business.
The relevant form 'Opgaaf Gegevens startende onderneming' (Statement of
information for starting up a business) is available from the Inland Revenue.
It is to your advantage to
provide this information at an early stage: new companies which have made
investments in their business often receive money back following their first
VAT return (Value Added Tax). This is because a new business often pays more
VAT in the beginning than it has actually charged.
Start-up businesses are
regularly visited by an inspector from the Inland Revenue who checks whether
the business administration meets the required standards. You can also make an
appointment yourself for an 'introductory visit'.
What kinds of taxes do you
have to deal with
Businesses may have to deal
with four kinds of taxes:
Value added tax(VAT)
It is almost always
compulsory for businesses to charge clients VAT (BTW).
Income tax
If the Inland Revenue
considers you as an entrepreneur, you can benefit from a number of tax
allowances. You will then pay less income tax.
Wages and salaries tax
If you employ staff, you
will be liable to pay wage tax.
Corporation tax
If you have a private
company with limited liability, you will be liable to pay corporation tax.
Tax allowances and
exemptions
You can take advantage of
tax allowances and exemptions in respect of two taxes:
Value added tax
For businesses which have
to pay very little VAT, the Kleine ondernemersregeling (small businesses
provision) applies. This means you pay less VAT or no VAT at all
Conditions:
You would normally be
liable to pay a maximum annual amount of € 1,883.
You have an eenmanszaak
(sole proprietor), Vennootschap onder firma :VOF (partnership) or Commanditaire
Vennootschap: CV (limited partnership).
You meet the administrative
requirements with regard to VAT, such as the issuing and filing of invoices.
Income tax
For businesses paying
income tax, the following tax allowances apply:
Self-employed persons
allowance
Conditions:
You run the business on
your own account;
You are aged between 18 and
65;
There is no provision to
prevent double taxation on profits (for example, if you have paid tax on a
proportion of the profit in another country);
You work a minimum of 1,225
hours in your business during the year 2003. The hours you put in before the
business was actually up and running can also be included, so keep a record of
these.
Start-up business allowance
For the year 2003 the following
conditions apply:
In this year you are
entitled to the self-employed persons allowance;
Between 1998 and 2002
inclusive you used the self-employed persons allowance on no more than two
occasions. Furthermore, any period in which you did not run a business between
these dates was no longer than one year.
Housing allowance
If your business is based
in your own home, the housing costs can be deducted under certain conditions.
For more information, please contact the tax office.
Investment allowance
You often have to make
investments before starting a business, in particular for capital assets. If
you have invested a minimum of € 2,000 and a maximum of € 279,000 in particular
sorts of capital assets during 2003, you will be entitled to an investment
allowance. The amount involved depends on the level of the investment.
Special tax allowance for
the self-employed
You can set aside amounts
for later. This is the special tax allowance. As long as you continue in
business, you are not liable to pay tax on these amounts.
Random depreciation
provision
Sometimes as a new business
you can depart from the normal method of tax allowances. You can then decide
for yourself how much you deduct per year. There are two conditions:
You are a sole proprietor,
partnership (VOF) or other partnership; and
You are entitled to the
start-up business allowance and self employed persons allowance
Tax affairs: Value added tax
Businesses are nearly
always liable to charge value added tax to their clients. The rate is 6% or 19%
depending on the type of product or service.
The VAT which you receive
from your client must be paid to the Inland Revenue. The VAT which you have
paid out yourself to your suppliers can be offset against this.
Value added tax is paid
either monthly or quarterly, depending on the type of business you have and the
level of turnover.
Tax affairs: Income tax
Entrepreneurs who pay
turnover tax are not always liable to pay income tax. When deciding if an
entrepreneur has to pay income tax, the Inland Revenue will look at the
following:
the extent of the work
performed;
the level of turnover and
profit;
the time spent in the
business;
the presentation to the
market;
the number of clients;
the presence of debtors'
risk.
If the entrepreneur is
liable to pay income tax, he can take advantage of a number of tax allowances.
If you are an employer, you
have to make wage deductions and pay these to the Inland Revenue. Declaration
and payment is usually done on a quarterly basis.
Tax affairs: Income tax
Entrepreneurs who pay
turnover tax are not always liable to pay income tax. When deciding if an
entrepreneur has to pay income tax, the Inland Revenue will look at the
following:
the extent of the work performed;
the level of turnover and
profit;
the time spent in the
business;
the presentation to the
market;
the number of clients;
the presence of debtors'
risk.
If the entrepreneur is
liable to pay income tax, he can take advantage of a number of tax allowances.
If you are an employer, you
have to make wage deductions and pay these to the Inland Revenue. Declaration
and payment is usually done on a quarterly basis.
Tax affairs: Corporation tax
If you have chosen a
private limited company (BV) as the legal form for your business, you will have
to pay corporation tax and dividend tax
Administration
You are obliged by law to
record anything with financial implications for your business in a systematic
administration. It is important for yourself to keep a proper financial
administration. It gives you a wealth of business information and insight into
how your company is progressing.
Keep for seven years
Books and documents which
are important for corporation tax, turnover tax and income tax purposes have to
be kept for seven years, as laid down in the Dutch Civil Code (Algemene Wet
inzake Rijksbelastingen).
What to keep
What documents are
important for your business administration All information which you record on
paper or electronically such as: cashbook administration and receipts; sales
and purchases book; invoices received and copies of invoices sent; bank
statements; contracts, agreements and other such documents; software and databases.
BTW (turnover tax)
Your administration must
show how much turnover tax you have to pay to the tax authorities. You need to
keep a record of:
invoices which you issue;
invoices which you have to
pay;
expenses;
income;
private use of goods and
services.
Invoices
Your invoices should be
numbered progressively and in a series. The invoices should state:
invoice date and number;
name and address of the
supplier or customer (and the turnover tax identification number when trading
with another EU country);
description of the goods
delivered or service provided;
prices exclusive of
turnover tax;
the turnover tax amounts,
split into turnover tax rates.
Permits and diplomas
In most cases you do not
need a diploma and/or permit to register your new business in the trade
register. However, you may have to consider a number of local council
regulations and permits (such as environmental permits) when you start your
company.
Make sure to organize your
permits well in advance. It can often take a long time before you have all the
necessary papers and you will be subject to strict controls. Certain branches
require you to meet the standards set by the branch association or certification
bodies.
If you start a business in
the catering sector, you need to obtain a an [drink and catering] permit from
the local council. The council can also use the catering act to stipulate that
the manager must have a record of exemplary behaviour, must be at least 21 and
in possession of a Social Hygiene certificate (how to deal with aggression,
drugs and alcohol).
Zoning plan
Building permit
Environmental permit
Establishment requirement
Every entrepreneur has to consider the zoning plan relating to a
building or piece of land.
No matter where you start
your business - in your own home, in rented premises or a building in which a
similar sort of company existed - you always have to take account of the zoning
plan. Every local council in the Netherlands sets out in the zoning plan the
functions it allows for a building or a piece of land.
Business in your own home
If you want to start your
business in your own home, you will need permission from the local council to
turn a living area into a business area. Most residential houses are sold as
residential space in which it is not allowed to establish a business.
Nonetheless councils will sometimes tolerate a business in your home. For
example:
if the business is purely
office-based
if no clients visit the
house
if the business can cause
no disturbance
if it is only a small part
of the house will be used for business activities.
The council and your
neighbours would probably object to a business such as a shop, hairdressing
salon or engineering workplace.
Renting business space
If you want to rent
business space, don't forget to ask permission to run a business there from the
landlord.
Building in which a
business already existed
If a similar sort of
business existed in the building, check whether the zoning plan is still valid.
Permits and diplomas:
Establishment requirement
In certain sectors you need
to obtain permits and diplomas before you can start a business.
In certain sectors you need
to obtain permits and diplomas before you can start a business.
Establishment requirements
(formerly level C)
The Bedrijfstechniek
business diploma is required for more complex businesses which place extra
demands on the entrepreneur. Examples are:
Food products (bakers and
confectioners, butchers, fishmongers and poulterers)
Construction (building
contractors, civil and utility construction, masons, demolition companies,
carpenters, civil, soil and hydraulic engineering)
Installation sector
(electromechanical installation businesses, gas and water fitters, plumbers,
central heating, air-conditioning and cooling companies, greenhouse heating)
Automobile sector (car
dealers, garage and body work businesses, agricultural machinery, motorcycle
dealers and panel beaters)
Do I need a professional
diploma
Under the Vestigingswet
(Establishment of Businesses Act), you do not need any specific knowledge of
the field in which you exercise your profession. The Act assumes that the entrepreneurs
have or will obtain the necessary professional knowledge and expertise in order
to guarantee the quality of their products or services. Banks do often set
conditions related to professional knowledge when giving loans.
There is one exception to
the above list: bakers, butchers and electromechanical installation businesses
have to obtain a Vaktechniek professional diploma as well as the
Bedrijfstechniek business diploma
Knowledge of the
professional discipline is essential for entrepreneurs if they wish to be
recognized as professionals by their colleagues. Branch organizations run a
number of courses.
Permits and diplomas:
Environmental permit
If your business represents
a burden on the environment, you will need an environmental permit.
You need this if your
company's products or operations form a burden for the environment. The permit
is issued based on factors such as the production process, the storage of
goods, and the raw materials and equipment to be used.
Duty of notification instead
of a permit
Certain types of business,
such as catering and the retail trade, are subject to general environmental
regulations. If you meet the requirements, all you have to do is to notify the
Council about your business. In other words you have a duty of notification but
do not need to obtain a permit.
Do you need an
environmental permit and a building permit
You may need a building
permit alongside an environmental permit. If you are planning any building
works, apply for the environmental permit before you apply for the building
permit. You cannot obtain a building permit before a decision has been made on
your application for an environmental permit. In addition, environmental
requirements may affect the building work. Check with the environmental department
of your local council or the Chamber of Commerce
Taking on staff: Drawing up
employment contracts
The law states that the
employment contracts which you agree with your employees have to be put in
writing. A number of sectors use a CAO (Collective Labour Agreement) specific
to the sector.
These state the agreed
conditions of employment. An individual employment contract must not contravene
the conditions of the CAO. More information on CAOs is available from
employers' organizations and the Arbeidsinspecties (Dutch Labour
Inspectorates).
What information is in an
employment contract
Job description
Type of employment
agreement (permanent, temporary, on-call, zero hours)
Length of the employment
(definite or indefinite period)
Length of the trial period
Working hours
Notice period
Number of holidays
Salary
Sickness rules
Working conditions
Identification requirements
Any pension schemes
Any competition clauses
Registering with the
Chamber of Commerce
Nearly every business has
to register with the trade register of the Chamber of Commerce. The trade
register is a source of information that is open to everyone.
Registering with the
Chamber of Commerce: Who has to register
Nearly every business has
to register in the trade register. Exceptions are:
sole traders in the
agriculture and fishing sectors;
partnerships;
liberal professions (for
example doctors, civil notaries, artists);
businesses related to a
public body (for example, local government, hospital, school);
businesses where the only
form of trading is street trading in the form of barrow trading.
More information
For more information,
contact your Chamber of Commerce
Registering with the
Chamber of Commerce: Registration and amendments
You can register your
company in the trade register from one week before your start date. The Chamber
of Commerce will check if your home address is correct. Therefore you will need
valid personal identification, a copy of a recent bank statement (which is not
older then 30 days) or an excerpt of the register of births, deaths and
marriages.
Also, for example, if you
start your business in rented premises, you may be asked to show the rental
contract in order to confirm the establishment address. Once you have
registered, you are given a unique eight-figure registration number. You must
print this number on all your outgoing post.
Click here to download the
registration form (in Dutch) or contact your regional Chamber of Commerce.
Ask for a print-out
straightaway to prove that you have registered. The tax authorities, bank and
suppliers will regularly ask for proof of registration.
Registered entrepreneurs
pay a contribution to the Chamber of Commerce every year. The level of the
contribution will mainly depend on the legal form of your business. Ask your
local Chamber of Commerce to check the exact amount charged in your region.
Once you have registered,
it is your responsibility to ensure that the information is up to date and
correct. Only the following persons are allowed to register a business or
communicate changes to the register information: the owner, a partner, a
manager or a proxy with a general power of attorney.
Registration and amendments
to information relating to NVs and BVs (public and private limited companies)
are published in the Staatscourant at the company's expense (in Dutch).
Registering with the
Chamber of Commerce: What information does the trade register contain
The trading name
The place of establishment
The legal form
A brief description of the
business
The names and addresses of
the owners, managers, supervisory board members or partners
The capital invested in the
business
The number of
employees
Registering with the
Chamber of Commerce: The trade register as a source of information
Everyone has the right to
consult the information in the trade register. For example, you can check in
the trade register to see who owns a company, who is authorized to sign
contracts and who is responsible for financial matters. This gives you more
certainty about the legal basis for doing business.
Many companies use
information from the trade register for market research, sales or debtor
management. To consult the trade register online contact your local Chamber of
Commerce
Legal forms
The legal form of your
company determines the financial risks you will run in case of debts or
obligations. It also determines the type of tax you will have to pay.
In all cases you pay tax on
your profits. For sole traders, VOF partnerships and CV partnerships, the
profit is taxed as income tax. If you have a BV, profit is taxed as corporation
tax.
Liability of the different legal forms
Sole trader
Limited partnership
Partnership under common firm (VOF)
The partnership
Private limited liability company (BV)
Foundation
Association
Diagram of legal forms
Legal forms: Liability of the different legal forms
Do you want a large or
small financial risk
There are two types of
legal form:
Legal forms which do not
involve a legal person. Your entire personal assets are liable for obligations.
Sole trader
Vennootschap Onder Firma
(VOF) or general partnership
Commanditaire Vennootschap
(CV) for limited partnership
Partnership
Legal forms which do
involve a legal person: you are liable for the amounts that you have invested.
Like an individual, a legal form with a legal person has independent rights and
obligations.
Besloten Vennootschap (BV)
or limited liability private company
Vereniging or association
Stichting or foundation
The freelancer occupies a
special position. It should also be noted that the Naamloze Vennootschap (NV)
or public limited company form is rarely taken by start-up companies.
Legal forms: Sole trader
There may be several people
working in your company, but you are the only owner. As the owner you are
entitled to the profits your company makes.
Taxes
You pay income tax on the
profits. In certain circumstances you are entitled to the self-employed tax
allowance. Ask the tax authorities for more information.
Liability
There is no distinction
between your business and personal assets. If you have business obligations,
your creditors can demand that you pay these from your personal assets. If you
have personal obligations, your creditors can make a claim on your business
assets.
If you are married on the
basis of communal estate, creditors can also make claims on your partner´s
assets. If you are married on the basis of a marriage contract, the personal
assets of your partner fall partially or completely outside the area of
business liability. If you are married on the basis of communal estate, you can
still arrange a marriage contract. Ask the civil notary for details.
Legal forms: Limited partnership
The limited partnership
(CV) is a special form of the General partnership (VOF). There are two sorts of
partners:
active partners
limited or sleeping
partners.
The active partner is
active as an entrepreneur. The sleeping partner stays in the background and
tends to finance the business. He has much less authority and bears less risk.
He is not allowed to act as active partner and his name cannot be used in the
name of the partnership.
A limited partnership tends
to develop from a sole trader or general partnership when a sleeping partner
enters the business to provide extra finance for growth.
A partnership agreement is
not compulsory, but is in fact essential. The agreement states the length of
the limited partnership, the contribution, authority, profit share and the
arrangements for resignation of the two sorts of partners. You can either ask a
civil notary to draw up the contract or do it yourself using a model contract.
Taxes
Generally the tax
authorities consider active partners to be self-employed entrepreneurs. Active
partners can therefore benefit from tax allowances for the self-employed, the
fiscal retirement reserve, the working partner's allowance and termination
allowance. Each active partner pays income tax over his or her share of the
profits.
If the sleeping partner
only provides capital for the business without any liability towards the
business creditors, the new tax system does not consider the sleeping partner
to be an entrepreneur. It considers him or her to have joint entitlement.
The entrepreneur is the
taxpayer on whose account the business is run and who directly commits the
business to obligations.
Liability
The active partner is
jointly and severally liable for the obligations of the business. The sleeping
partner has no liability to third parties. His only risk is losing the money he
has invested.
If you are married on the
basis of communal estate, creditors can also make claims on your partner's
assets. If you are married on the basis of a marriage contract, the personal
assets of your partner fall partially or completely outside the area of
business liability.
If you are married on the
basis of communal estate, you can still arrange a marriage contract. Ask the
civil notary for details.
Legal forms: Partnership under common firm (VOF)
You run a business with one
or more other persons. This makes you partners. Each partner brings money,
goods and/or manpower into the business. A partnership contract is not
compulsory, but is in fact essential.
The agreement states the
length of the limited partnership, the contribution, authority, profits share
and the arrangements for resignation of the partners. Profits are allocated in
line with a formula set out in the partnership contract. You can either ask a
civil notary to draw up the contract or do it yourself using a model contract.
Taxes
Generally the tax
authorities consider each partner to be a self-employed entrepreneur. Each
partner can therefore benefit from tax allowances for the self-employed. Each
partner pays income tax over his or her share of the profits. Visit the tax
authority for more information.
Liability
The partners are each
jointly and severally liable for the obligations of the VOF. If the assets of
the partnership are insufficient, creditors can make a claim on the personal
assets of the partners in the VOF.
If you are married on the
basis of community of goods, creditors can also make claims to your partner's
assets. If you are married on the basis of a marriage settlement, the personal
assets of your partner fall partially or completely outside the area of
business liability.
If you are married on the
basis of community of goods, you can still arrange a marriage settlement. Ask
the civil notary for details.
The husband-wife business
Two people who are married,
living together or are registered partners who start a business can enter into
a VOF with each other, the so-called husband-wife business. If they both want
to claim tax allowances for the self-employed, they have to perform equal tasks
within the business.
The disadvantage of the
husband-wife construction is that they are both jointly and severally liable,
even if they are married on the basis of a marriage settlement.
Legal forms: Private limited liability company (BV)
The private limited
liability company is a legal person. This limits the risks of joint and several
liability. When it is established, a BV must have a capital of € 18,000 in
money or goods.
The capital is divided into
shares which cannot be freely transferred. The shares are registered by name
and you cannot simply trade them. When you establish a BV, a civil notary has
to draw up the Articles of Association.
You also have to obtain a
proof of good conduct from the Ministry of Justice. The Ministry checks whether
the person(s) establishing the company has/have been involved with bankruptcy
or fraud cases.
Taxes
You are not entitled to tax
allowances for the self-employed. Corporation tax is charged on the profit;
income tax is charged on the managers' salaries.
If you own more than 5% of
the shares in a BV, you are considered to own a substantial interest in the company.
The new income tax system taxes income from a substantial interest (such as
dividend payments and profits from the sale of shares) in box 2 at a rate of
25%.
Liability
The BV is a legal person.
In principle creditors can only make claims on the assets of the BV and not on
the assets of the director(s) or shareholder(s). The liability of shareholders
is limited to the amount invested.
Legal forms: Foundation
A foundation is a legal
person without members which is established with a certain amount of capital to
achieve a goal which is stated in the Articles of Association. Foundations tend
to have idealistic or social objectives. A foundation is allowed to make
profits, but there are restrictions on how the profits can be allocated. This
is why the foundation and the association are not the ideal legal form in which
to start a business.
Taxes
If a foundation does run a
business, it has to pay corporation tax on the profits. Deciding whether or not
turnover tax (BTW) has to be paid can be quite complex. It is advisable to
consult an expert, for example the tax authorities for businesses.
Liability
In principle the managers
of a foundation are not liable for obligations. However, if the foundation runs
a business, the managers may be held liable under certain circumstances.
Legal forms: Association
An association is a
partnership between two or more people (members) who wish to realize a certain
objective. An association is allowed to make a profit, but the profit must be
used for the common goal. The objective must not be to disturb law and order or
to challenge public morality. Profits may not be divided amongst the members.
There are two sorts of
association:
Associations with complete
authority under the law: the association is established with articles of
association drawn up by a civil notary. The association has to be registered in
the Chamber of Commerce trade register.
Associations with limited
authority under the law: the articles of association are not drawn up by a
notary. The associations can register in the trade register but this is not
compulsory.
Taxes
An association that runs a
business pays corporation tax on the profits. Deciding whether or not turnover
tax (BTW) has to be paid can be quite complex. It is advisable to consult an
expert, for example the tax authorities for businesses.
Liability
Once an association with
complete authority has been registered in the trade register, the executives
and members are not liable for obligations. Once an association with limited
authority has been registered in the trade register, the executives and the
association are jointly and severally liable for the agreements entered into by
the executives. If the association is not registered, the executives are
jointly and severally liable.
Legal form Liability of
legal form
Taxes
Sole trader
One owner No legal form
Owner is liable
Income tax
Turnover tax
General Partnership (VOF)
One business with two or
more people (partners). No legal form
Each partner is liable for
obligations
Income tax on each person's share of the profit
Turnover tax
Limited partnership (CV)
Two sorts of partner:
Active partners (active in
the business)
Silent partners (only
contribute funds)
No legal form
Active partners are liable
for obligations
Silent partners are liable
for the amount they invested
Income tax
Active partners:
on their share of the
profits
Silent partners:
on remuneration received
Turnover tax
Partnership
Entrepreneurs working
together to exercise a liberal profession
No legal form
Each partner is liable for
the obligations of the partnership but not for the individual obligations of
the partners.
Income tax on each person's share of the profit
Turnover tax
Private limited liability
company (BV)
Capital NLG 40,000 or Euro
18,152 on establishment Legal form
The BV is liable for
obligations of the business
Wealth tax on the capital
Corporation tax on the
profit
Turnover tax
Association or Foundation
An association or
foundation runs a business
Legal form
The association or
foundation is liable for obligations
Corporation tax on the profit
Turnover tax
Contracts and agreements:
Partnership contracts
For a General Partnership
(VOF), partnership, or Limited Partnership (CV) it is advisable to draw up a
partnership agreement.
For a limited liability
company (BV) a civil notary has to draw up the Articles of Association.
If you start a business
with someone else, the legal form of the business is usually a General
Partnership (VOF), partnership, Limited Partnership (CV) or private limited
liability company (BV).
It is not compulsory to
draw up a contract or agreement to set up a VOF, partnership or CV. But we do
recommend that you set out in writing the agreements you make with your
partners.
You can do this yourself.
The Chamber of Commerce keeps standard contracts for these legal forms. You can
adjust the contract to your own situation. We would advise you to also consult
a lawyer. You can also ask a civil notary to draw up a contract.
To set up a BV, you always
have to ask a civil notary to draw up the Articles of Association.
For more information,
contact your regional Chamber of Commerce.
Contracts and agreements:
Lease contracts
A lease is an agreement.
The Chamber of Commerce has examples of standard lease contracts.
A lease is an agreement.
The lessor agrees to make a property available for use by the lessee. The
lessee agrees to pay the lease price.
The Chamber of Commerce has
examples of standard contracts for leasing shop and office premises.
For more information,
contact your regional Chamber of Commerce.
De Ruijterkade 5
1013AA Amsterdam
Tel. +31 20 531 4000
Fax. +31 20 531 4799
http://www.amsterdam.kvk.nl
Appendix Six --
Housing/Location
1.0 Locations
CENTRE
Elegant mansions stand
along Herengracht, Prinsengracht and Keizergracht. In the course of the
centuries these houses have been made over to meet changing tastes. During a
walk along these canals you will see beautiful examples of this. Quite a few
houses are in Louis style; a style which was extremely popular in the 18th
century.We recommend to make a tour Parking is a hazard in Amsterdam,
especially in the centre.
SOUTH
At the end of the 19th
century the Museum Quarter was established on the spot which was previously
known as Brouwersplein (Brewers' Square). Museum Quarter, however, is a much
more fitting name for this center of arts and culture. Amsterdam's main museums
and galleries are all located at close proximity to each other in this quarter.
The Museum Quarter borders on De Pijp district. Make no mistake, however, the
two areas are worlds apart. One a dynamic working-class district, the other the
place where the upper classes of Amsterdam feel at home. The Museum Quarter is
one of Amsterdam's most stylish districts. The houses are beautiful and the
inhabitants are classy. The quarter also has great cultural facilities and
places of interest. The renowned Concertgebouw is located in Van Baerlestraat.
Around 1800 a group of local, well-to-do lovers of music decided that the city
should have a proper concert building. They organized a competition which was
won by architect A.L. van Gendt. The Concertgebouw is home to the Concertgebouw
Orchestra.
PIJP
De Pijp is a district in
which a wide range of people feels at home. Ladies of the night, writers,
artists and squatters . . . they have all found a home here. This district, a
melting pot of many cultures, offers its visitors a warm welcome. De Pijp has developed
into a multicultural estate. The Sarphati Park is a pleasant place to relax in.
Holland's best-known market, the Albert Cuyp, and its 20,000 (!) daily visitors
contribute to the hustle and bustle of the district. The area boasts pleasant
pubs and ample cultural facilities and people truly like living here. De Pijp
district is still the Quartier Latin of Amsterdam.
JORDAAN
The Jordaan area is one of
the most attractive districts of Amsterdam. People who live here never want to
live anywhere else. In this, one of the most sung-about districts of Holland,
everyone feels at home. The Jordaan district is a maze of alleyways and narrow
canals. Most of the canals have been filled up. The district was established in
the 17th century, as Amsterdam sorely needed to expand. The district was
constructed along the pattern of the paths and ditches already there. This did
not prove a good move, as it isolated the area from the rest of the city. No
major roads ran through this area. Not until 1924 did an electric tram provide
a regular connection with the city center.
SOUTH EAST
The Plantage district has a
lot to offer. Places of interest include beautiful Wertheim Park and the
Netherlands Maritime Museum Amsterdam. A visit to the Hollandsche Schouwburg
will no doubt leave a lasting impression because of its sad history. Opposite
the Hortus Botanicus lies Wertheim Park. This park was a present to the city of
Amsterdam from Napoleon. The short general was not as generous as it seemed;
the city had to pay for all the costs involved.
EAST
KNSM Island lies in the
eastern dock area of Amsterdam. Until the 1980s the area was in use as a
harbor. Gone are those days. Lots and lots of new buildings were erected
instead. The former harbor has been urbanized. If you like modern architecture,
we warmly recommend you visit this island. KNSM Island is an artificial
peninsula. From 1902 the area has been exploited by KNSM - the Royal Dutch
Steamship Company. Passenger and cargo ships sailed to and from this island.
Until the 1960s the Steamship Company did well, after which it had to downscale
its activities. The curtain fell for KNSM in 1977.
OLD WEST
Just west of the
Leidseplein area, but close to Leidseplein. Also close to the Vondelpark and
not far from the Museumplein area.
2.0 Grand Relocation (Leasing)
Herengracht 572
1017 CH Amsterdam
Conradstraat 164 A
1018 NN Amsterdam
The Netherlands
Email
[email protected]
Fax +31(0)20 320 5831
(reservation confirmations)
Phone +31(0)6-5024 7940
(Mon-Fri 10-17h and Sat 12-17h)
Amsterdam Apartments
Grand Relocation acts as an
intermediary in the leasing & letting of (un)furnished properties in the
city of Amsterdam.
Expertise of the Amsterdam
property market and property law aside, Grand Relocation offers extra service
to ex-pats and newcomers to Amsterdam alike.
Contract setup and
finalising
Intake & long term
relation
Advertise on the internet,
joint ventures, magazines and newspapers
Website presentation
Intake report/ inventory
list
Screening and matching of
tenants and lessor
Payment control and
arrangements (1 month or 2 months deposit + 1st month rent)
Intermediate in
corresponding with tenant and lessor
Transparent fees
Direct mail with all real
estate agents
Ownership check-up
possibility for lessee
check-up
Reduced tariffs of leasing
/ buying art
Advice on residence permits
All relocation information
Lessee costs
NO CURE NO PAY
* Contract of 1-6 months:
50% of one month's rent. Plus 19% VAT Included in the above are check-in and
check-out costs.
* Contract of 7 months or
more: 100% of one month's rent Plus 19% VAT Included in the above are check-in
and check-out costs.
Lessor costs
8% over and above the
rental price. The work of Grand Relocation is only done once you are satisfied.
We operate on transparent fees based on the final rental price.
Grand relocation rating
district
Appendix Seven --
Permanency
If you feel you may be
entitled to a Dutch passport and want to apply you should make an appointment
for an interview at the Burgerzaken department of your local council
('gemeente').
During the interview you
will find out if you qualify for naturalisation to Dutch citizenship and
whether you will be required to give up your present nationality. You are
required to bring proof of identity to the interview and fees are charged for
the naturalisation process.
There is a standard set of
conditions for naturalisation and also a a quite separate 'fast track' optional
procedure (see next NL FAQ question, "Who qualifies for automatic
naturalisation").
Here are the standard
conditions for naturalisation. You may apply only if you meet ALL of these
conditions:
You are of age
You have lived in the
Netherlands, the Dutch Antilles or Aruba for an uninterrupted period of 5 years
with a valid residence permit. This also means you have always extended your
residence permit on time
You are sufficiently
integrated in Dutch society and are able to read, write, speak and understand
Dutch. You must prove this by taking a naturalisation test. If you successfully
complete an integration course (at NT2-level 2) or attain another diploma you
will be eligible for an exemption
In the last four years you
have not been given any custodial sentence, training order, community service
order or high monetary penalty
You are prepared to give up
your current nationality. If you do not give up your current nationality even
though you are supposed to, your Dutch nationality may be revoked. There are a
number of exceptions to this rule
You have a residence permit
for a non-temporary objective, such as family reunification
Appendix Eight -- Tourism
Statistics for Phase One (Holland)
Phase One -- The
Netherlands
2004
258,215/3.6% of population
directly employed in tourism.
654,920/9.2% of population
indirectly employed in tourism.
17.4bnEuros/3.6% direct
Gross Domestic Product from tourism.
45.5bnEuros/9.5% indirect
Gross Domestic Product from tourism.
6.4bnEuros/6.6% Capital
Investment in tourism.
2.7bnEuros/2.2% of
Government spending in tourism.
Projections to 2014
3.8% Raise in demand.
2.1% Raise in percentage to
GDP.
0.0% Raise in employment in
tourism.
3.1% Raise in capital investment
in tourism.
1.6% Raise in government
spending in tourism.
Appendix Nine -- Statistics
for Phase Two if Eventually Located Outside Holland (partially completed)
Bosnia and Herzeguvina
2004
13,309/1.1% of population
directly employed in tourism.
68,658/5.8% of population
indirectly employed in tourism.
105.8 USDmn./1.4% direct
Growth Domestic Product from tourism.
538.3 USDmn./7.1% indirect
Growth Domestic Product from tourism.
201.4 USDmn/13.7% Capital
Investment in tourism.
29.9/1.1% USDmn of Government
spending in tourism.
Projections to 2014
5.4% Raise in demand.
4.0% Raise in percentage to
GDP.
0.1% Raise in employment in
tourism.
5.3% Raise in capital
investment in tourism.
4.3% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living =
Average Wages =
Visa & Immigration
Taxation
Contacts
Hungry
237,737/6.0% of population
directly employed in tourism.
385,652/9.8% of population
indirectly employed in tourism.
4623.3 USDmn./4.7% of
direct Growth Domestic Product from tourism.
9822.1 USDmn./10.1% of
inirect Growth Domestic Product from tourism.
1775.7 USDmn./7.2% Capital
Investment in tourism.
499.5 USDmn/5.2% of
Government spending in tourism.
Projections to 2014
6.6% Raise in demand.
6.3% Raise in percentage to
GDP.
1.2% Raise in employment in
tourism.
6.5% Raise in capital
investment in tourism.
2.2% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living = Budapest,
Hungry. 88th in world (from 97 in 2003). Cost of living index = 70 (New York
=110) Source: Economist Intelligence unit.
Minimum Wage (monthly
Euros) = 232 (Source: The Federation
of European Employers 2005)
Visa & Immigration
Taxation
Contacts
Croatia
150,881/13.8% of population
directly employed in tourism.
317443/28.9% of population
indirectly employed in tourism.
29,709 USDmn./11.5% of
direct Growth Domestic Product from tourism.
6250.7 USDmn./24.2% of
indirect Growth Domestic Product from tourism.
670.0 USDmn.Capital
Investment in tourism.
70.0 USDmn of Government
spending in tourism.
Projections to 2014
6.4% Raise in demand.
6.6% Raise in percentage to
GDP.
3.2% Raise in employment in
tourism.
5.5% Raise in capital
investment in tourism.
3.5% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living =
Minimum Wage (monthly
Euros) = 254 (Source: The Federation
of European Employers 2005)
Visa & Immigration
Taxation
Contacts
Bulgaria
153.561/4.3% of population
directly employed in tourism.
508.357/14.4% of population
indirectly employed in tourism.
1,184.6 USDmn/5.0% of
direct Growth Domestic Product from tourism.
3951.4/16.8% of indirect
Growth Domestic Product from tourism.
675.1 USDmn/14.1% Capital
Investment in tourism.
117.0 USDmn./3.1% of
Government spending in tourism.
Projections to 2014
4.6% Raise in demand.
3.8% Raise in percentage to
GDP.
-0.4% Raise in employment
in tourism.
4.0% Raise in capital
investment in tourism.
4.4% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living =
Minimum Wage (monthly
Euros) = 77 (Source: The Federation
of European Employers 2005)
Visa & Immigration
Taxation
Contacts
Romania
117.829/1.2%of population
directly employed in tourism.
490,607/5.0% of population
indirectly employed in tourism.
822.7 USDmn/1.4% of direct
Growth Domestic Product from tourism.
3469 USDmn./5.9% of
indirect Growth Domestic Product from tourism.
1011 USDmn. Capital
Investment in tourism.
106.9 USDmn./3.2 of
Government spending in tourism.
Projections to 2014
5.4% Raise in demand.
5.5% Raise in percentage to
GDP.
1.1% Raise in employment in
tourism.
4.9% Raise in capital
investment in tourism.
3.9% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living = Bucharest,
Romania. 113rd in world (from 116 in 2003). Cost of living index = 57 (New York
=110) Source: Economist Intelligence unit.
Minimum Wage (monthly
Euros) = 80 (Source: The Federation
of European Employers 2005)
Visa & Immigration
Taxation
Contacts
Spain
1,475,300/8.7% of
population directly employed in tourism.
3,762,760/22% of population
indirectly employed in tourism.
59.8 mn. Euros/7.7 of
direct Growth Domestic Product from tourism.
154.9 mn. Euros/19.9 of
indirect Growth Domestic Product from tourism.
33.8 bn. Euros/18.2%
Capital Investment in tourism.
9.3 mn. Euros of Government
spending in tourism.
Projections to 2014
4.1% Raise in demand.
3.4% Raise in percentage to
GDP.
2.2% Raise in employment in
tourism.
2.5% Raise in capital
investment in tourism.
2.0% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living = Madrid,
Spain. 33rd in world (from 47th in 2003), Cost of living index = 96 (New York =
100) Source: Economist Intelligence unit.
Minimum Wage (monthly
Euros) = 513 (Source: The Federation
of European Employers 2005)
Visa & Immigration
Taxation
Contacts
Eastern Europe as a Region
3,230,000/2.25% of
population directly employed in tourism.
12,995,000/8.9% of
population indirectly employed in tourism.
31.9 USDbn./2.6% of direct
Growth Domestic Product from tourism.
126 USDbn/10.1% of indirect
Growth Domestic Product from tourism.
33.2 USDbn/11.9%Capital
Investment in tourism.
3.6 USDbn./3.0% of
Government spending in tourism.
Projections to 2014
6.3% Raise in demand.
5.6% Raise in percentage to
GDP.
1.2% Raise in employment in
tourism.
8.7% Raise in capital
investment in tourism.
3.3% Raise in government
spending in tourism.
Average property price (for
suitable) =
Average rent on suitable
property =
Cost of living =
Average Wages =
Visa & Immigration
Taxation
Contacts
Western Europe as a Region
8,079,600/4.8% of
population directly employed in tourism.
21,457,000/12.9%of
population indirectly employed in tourism.
513.4 USDmn/4.3% of direct
Growth Domestic Product from tourism.
1,422.2 USDmn/11.5& of
indirect Growth Domestic Product from tourism.
222.2 USDmn/9.5%Capital
Investment in tourism.
83.5 USDmn/3.2% of
Government spending in tourism.
Projections to 2014
3.8% Raise in demand.
2.4% Raise in percentage to
GDP.
1.2% Raise in employment in
tourism.
3.2% Raise in capital
investment in tourism.
1.9% Raise in government
spending in tourism.
Overall world growth in
tourism = 3.9%
Source: The World Travel
& Tourism Council
Sources
Worldwide Cost of
Living, the bi-annual Economist Intelligence Unit survey, compares prices and
products in over 130 cities around the world. Its purpose is to provide
companies with an unbiased and independent guide from which allowances can be
calculated for executives and their families being sent overseas. The Economist
Intelligence Unit can calculate indices based on any one of the cities. The
data quoted here used New York as a base index of 100 for comparisons.