Step-by-step plan: Starting a business as a student
Are you starting a business alongside your studies? Then you need to register with the Netherlands Chamber of Commerce KVK and pay taxes to the Netherlands Tax Administration. This step-by-step plan will help you quickly find out what you need to arrange. There are also rules you need to follow.
The Dutch government encourages initiatives that ensure that students are able to combine their studies with building a successful business. In general, the rules, regulations, and subsidies are often the same as for other entrepreneurs.
Foreign students in the Netherlands can start a business alongside their studies. This is true if you are an EU-citizen, or if you are a non-EU citizen with a valid student visa or residence permit. You do not need additional documents or visa from the IND. Nor do you need a work permit (TWV, tewerkstellingsvergunning) from the Employee Insurance Agency UWV. You only need a TWV if you work in paid employment. There is no legal limit to the number of hours you spend on your business.
Do you have a hobby or a business? Sometimes this is difficult to determine. Do you meet the 3 conditions that KVK describes? Then you can register in the Business Register. The Tax Administration will then assess whether you are also an entrepreneur for VAT and income tax purposes.
When you start your own business, you need a legal structure.
The legal structure determines, among other things:
- whether you are responsible for damages and debts: your liability
- which taxes you have to pay
- any tax advantages
Use the decision tool to determine which legal structure suits your situation. Also, watch the video Choose a legal structure.
Please note that freelancer or zzp’er (zelfstandige zonder personeel) are not legal structures. If you want to work as a sole trader, you choose the legal structure sole proprietorship.
For your registration at the KVK, you need a company name. A good company name is recognisable, sticks and makes it clear what you have to offer.
Do not use names of others
Do not use brand names of others or existing trade names. Check whether your name already exists with the Name Check of KVK and Benelux Office for Intellectual Property (BOIP).
In the Netherlands, minors (younger than 18 years of age) who own a business need permission from their parents for legal actions. Do you want to run your company and make your own decissions? Then you can apply to the subdistrict court for limited legal capacity (handlichting). You have to be at least 16 or 17 years old to do so.
Before starting a business from home, you should check whether it is allowed. For example, whether you comply with the municipality's rules. Do you rent (student) accommodation? Check your rental agreement to see if you are allowed to run a business from home.
Starting a business in your parents' house
Do you want to start a business in your parents' house? Ask them to check their purchase or rental agreement. Check what your parents need to consider. For example, who is liable for debts of your business.
Register in the Business Register of KVK. This costs a one-off registration fee. Are you a minor? When registering, bring proof of limited legal capacity (step 5). Or bring your parent or guardian with you.
KVK passes on your details to the Netherlands Tax Administration. You do not have to register separately with the Tax Administration. The Tax Administration then determines whether you are also an entrepreneur for VAT and income tax purposes. If theTax Administration records you as an entrepreneur for VAT purposes, you will automatically receive your VAT tax number and your VAT identification number.
Watch the KVK video: Register your business at KVK
Shielding visiting address of a sole proprietorship
Have you opted for the legal structure of a sole proprietorship? Then you can shield your visiting address in the KVK Business Register. For example, because you have registered your business at your home address and do not want everyone to be able to look it up. You will then have to register another postal address.
Read more about shielding your address details on KVK.nl.
As an entrepreneur, you need to set up and keep business records. Make sure your records meet the requirements. For example, you should clearly show how much tax you have to pay or how much VAT you get back or have to pay. You can participate in the small businesses scheme (KOR).
Watch the KVK video: Manage your business records and learn about taxes
If you start a business and make money, you have to file tax returns and pay tax to the Tax Administration:
If you make a profit, you have to pay tax on it. You must file your own income tax return.
Minor: your tax return affects that of your parents
Not yet 18 years old? Then your tax return may affect that of your parents. Your parents must add your assets to their assets in box 3 in their tax return (in Dutch). Think, for example, of money or shares.
You will receive an assessment for the Income-related Healthcare Insurance Act contribution from the Tax Administration. This is a contribution you pay for health insurance. It is separate from the premium you pay directly to your health insurer.
You have to pay turnover tax (VAT) on most products and services. The Tax Administration checks whether you have to file a VAT return. If so, you have to charge VAT to your customers. You then pay this VAT to the Tax Administration. You may deduct VAT that you have paid yourself.
Do you have less than € 20,000 turnover per year? You may be able to participate in the small businesses scheme (KOR). You will then probably not have to file a VAT return. After your registration with KVK, you will automatically receive a turnover tax number and your VAT identification number (VAT ID) from the Tax Administration. Use these for your VAT return.
Use general terms and conditions. Then you make it immediately clear what rights and obligations you and your customers both have. You protect yourself and avoid unclarity afterwards. For example, about payment terms and liability.
Do not copy general terms and conditions
Do not simply use general terms and conditions of others. They may be protected with copyright. Or the general terms and conditions may not suit your business.
Watch the KVK video: Arrange general terms and conditions and insurances
You may have to deal with business risks. Such as damage caused by fire or theft. You can cover such risks with insurance. For example, with business interruption insurance, goods insurance, or inventory insurance. It is also wise to take out a business liability insurance and disability insurance.
Do you need money to start your business? There are several ways to get financing for your business:
- Apply for a loan from the bank or family.
Making a financial plan will help you find out if you need funding.
Income from your business will not affect your student loans (in Dutch). You can earn an unlimited additional income. It does not matter whether you do mbo, hbo, or university.
Do you rent independent accommodation (in Dutch)? You may receive rent allowance (huurtoeslag, in Dutch). The income you earn from your business affects the amount of your rent allowance.
You may receive health are benefit (zorgtoeslag, in Dutch) from the age of 18. The amount of your income and assets affect the amount of your health care benefit. Check the conditions (in Dutch) of the Tax Administration for your situation.
- Do you live with your parents? Check whether your income may affect the amount of your parents' allowances, taxes or benefits.
- Are you a minor? In this situation, find out what consequences, if any, your parents' child benefits, allowances and allowances receive.
How do you acquire customers? Answer the questions on KVK.nl and get tips that fit your situation.
Do not forget your pension and retirement. Because you do not work for an employer, you do not automatically build up a pension. You need to arrange for your retirement yourself. Read more about building up a pension.
The following organisations promote the interests of student entrepreneurs. You can contact them for more information. Please note: these websites are all in Dutch.
- Jong & Ondernemer (Facebook community)
Chat with the Tax Administration
Every day between 09:00 and 16:00 it is possible for starters and SMEs to chat with the Tax Administration. Go to https://goedestartbelastingdienst.nl/ to start a chat. You can also make an appointment for a video call with one of their advisors to ask them your tax questions.
Do an internship at your own company
Did you know that it is also possible to do an internship at your own company. There are educational institutions that encourage student entrepreneurs with a Top Entrepreneurs scheme (Topondernemersregeling, TOR). Ask your educational institution about the options.
See also
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK