How long does it take to set up a business in the Netherlands?

With its strategic location, excellent infrastructure, and business-friendly environment, the Netherlands is one of Europe’s most attractive destinations for international expansion. From logistics and finance to tech and creative industries, Dutch cities offer easy access to European markets and a highly skilled, English-speaking workforce.

But if you’re planning to set up a business in the Netherlands, it’s important to understand how long the process will actually take. Whether you’re launching a local office, hiring employees, or testing a new market, timing can significantly affect your expansion strategy.

In this guide, we’ll walk you through each step of setting up a Dutch company—from legal formation and tax registration to onboarding your first employee. We’ll also highlight how a Dutch Employer of Record can help you bypass setup delays if you need to hire quickly without opening a local entity.

Step 1: Choosing a legal structure and preparing documentation

The first step in starting a company in the Netherlands is choosing your legal structure. The most common option for international businesses is the Besloten Vennootschap (BV), which is a Dutch private limited company. Other options include the Naamloze Vennootschap (NV) for publicly traded companies, or a branch office if your parent company is already registered elsewhere.

To register a BV, you’ll need to prepare several key documents:

• Articles of association
• Proof of identity for directors and shareholders
• A notarial deed executed by a Dutch civil-law notary

This stage can be completed in 3 to 7 business days if all documentation is complete and correct. However, delays are common if documents are incomplete, need to be translated, or require apostille certification.

Step 2: Company registration with the Dutch Chamber of Commerce (KvK)

Once your legal structure is ready, you must register with the Dutch Chamber of Commerce (Kamer van Koophandel or KvK). This step is mandatory for all legal entities operating in the Netherlands.

The KvK assigns a company number (KvK number) and enters your business into the Dutch Business Register. You’ll need this number to proceed with tax registration, open a bank account, and legally hire staff.

The registration process typically takes 1 to 3 business days, assuming your documentation is in order and no further questions arise from KvK.

Step 3: Tax registration with the Dutch Tax Authority (Belastingdienst)

Next, you’ll need to register with the Belastingdienst, the Dutch tax authority. This includes registering for:

• Corporate income tax
• Value Added Tax (VAT), depending on your business activities
• Wage tax, if you plan to hire employees

While corporate income tax registration is usually processed quickly, VAT registration can take longer, especially if additional checks are required. Businesses can expect this phase to take 1 to 2 weeks, though VAT approval can extend the timeline if extra verification is needed.

Read also:

• 5 problems when registering in the Netherlands as a company
• Understanding Dutch income tax: what expats need to know
• 30% tax ruling changes in the Netherlands: what to expect in the coming years?

Step 4: Opening a corporate bank account

You’ll need a Dutch corporate bank account to deposit share capital, pay taxes, and manage payroll. This step can be one of the most unpredictable in terms of timing.

Banks in the Netherlands must conduct thorough Know Your Customer (KYC) checks and comply with anti-money laundering regulations. If your company has non-resident directors or shareholders, the bank may request additional documentation or interviews, which can delay the process.

On average, it takes 1 to 4 weeks to open a bank account. Some banks may move faster if your documents are complete and your company structure is simple. Others may take longer, especially if risk reviews are needed.

Step 5: Onboarding your first employee

Once your company is registered and operational, you can begin hiring. However, before onboarding your first employee, you must:

• Draft a compliant Dutch employment contract
• Register for wage tax and social security
• Set up payroll administration
• Ensure adherence to relevant collective labour agreements (CAOs)

Hiring an employee in the Netherlands also means offering statutory benefits like holiday pay, pension contributions, and sick leave. If your company setup is complete, onboarding your first hire typically takes 1 to 2 weeks, but delays in earlier steps can push this timeline further.

Total timeline: How long does it really take?

In a best-case scenario, a well-prepared company with the right documentation can complete the entire Dutch setup process and hire an employee within 4 to 6 weeks.

However, a more typical timeline is closer to 8 to 12 weeks, especially if:

• There are delays with document verification or translations
• VAT registration or bank account approval takes longer
• You’re unfamiliar with Dutch employment law or CAOs

Bank account setup and tax registration are the two most common bottlenecks. That’s why companies planning expansion should allow for flexibility and account for potential delays when building their hiring or operational timelines.

How a Dutch Employer of Record can simplify your expansion and hiring

If your main goal is to hire in the Netherlands quickly, setting up a local entity may not be the most efficient route, especially if you’re only testing the market or hiring a small team.

A Dutch Employer of Record (EOR) acts as the legal employer on your behalf. This means you can onboard local talent in just a few days without going through company formation, tax registration, or opening a bank account.

What the EOR handles for you:

• Employment contracts compliant with Dutch labour law
• Payroll setup, tax deductions, and social security contributions
• Holiday pay, pension enrolment, and statutory benefits
• Onboarding and offboarding, plus ongoing HR support

You manage the employee’s day-to-day work, while the EOR handles the legal, tax, and HR requirements in full compliance with Dutch regulations.

For example, a UK-based e-commerce company wanted to expand into the Dutch market by hiring a local marketing specialist. However, setting up a Dutch entity, registering for taxes, and learning employment law felt too time-consuming for just one hire.

Instead, the company partnered with a Dutch Employer of Record. Within days, the EOR onboarded the new employee under a compliant local contract, managed payroll and tax filings, and ensured all statutory benefits were provided. This allowed the UK company to hire quickly and compliantly, without dealing with complex Dutch bureaucracy or delaying their market entry.

Why companies choose an EOR

Using an Employer of Record is ideal for:

• Testing the Dutch market before committing to a full entity
• Hiring remote employees or small in-country teams
• Avoiding administrative delays related to registration or banking
• Staying compliant without needing in-house Dutch legal expertise

With an EOR, you get speed, simplicity, and legal peace of mind, allowing you to focus on growing your business, not managing bureaucracy.

Set up business in Netherlands

Setting up a business in the Netherlands involves multiple steps – from selecting a legal structure and registering with KvK, opening a bank account and onboarding staff. While the process can be completed in just over a month under ideal conditions, it often takes longer due to regulatory checks and documentation delays.

If your priority is to hire quickly and compliantly, a Dutch Employer of Record offers a fast-track solution. You can start building your local team within days, without waiting for full company registration or dealing with administrative hurdles.

Want to expand into the Netherlands without delay? Contact us to learn how our Dutch EOR services can help you hire, pay, and manage employees compliantly, without setting up a local entity.