Attention: it's advisable to seek professional advice, such as from an accountant or business advisor, to ensure you comply with all legal and tax requirements when setting up your sole proprietorship as a contractor in the Netherlands.
In the Netherlands, you are not allowed to operate as individuals to be a contractor. You will need to register a legal entity. This legal entity could be a sole proprietorship, business or organisation.
To set up a sole proprietorship (eenmanszaak) in the Netherlands to operate as a contractor, you'll need to follow these general steps:
Register with the Chamber of Commerce (Kamer van Koophandel - KvK): You need to register your business with the KvK. You can do this online or by visiting one of their offices. You'll need to provide personal identification, such as your passport, and details about your business.
Tax Identification Number (TIN): You'll need to obtain a Tax Identification Number (burgerservicenummer - BSN) from the Dutch Tax and Customs Administration (Belastingdienst). This number serves as your personal identification number for tax purposes.
Value Added Tax (VAT): If your annual turnover is expected to exceed certain thresholds (currently €20,000), you must register for VAT with the Tax and Customs Administration. This allows you to charge and collect VAT on your services.
Business Bank Account: Open a separate business bank account for your sole proprietorship. This will help you keep your personal and business finances separate, which is important for accounting and tax purposes.
Comply with Regulations: Ensure you understand and comply with any specific regulations or licenses required for your type of contracting work. This might include permits, certifications, or industry-specific regulations.
Remember that as a sole proprietorship, you are personally liable for the debts and obligations of your business. Make sure you understand the risks and responsibilities associated with this business structure.