Starting a business as a minor

Check that your commercial activities qualify as a business

Do you supply goods or services and make a profit from them? For example, you create websites and charge money for them. Then you are probably an entrepreneur and must register in the Business Register of the Chamber of Commerce KVK. Unless your customers are friends and family and you do not make a profit. Then you probably have a hobby. Read which 3 entrepreneurial criteria you have to meet to register with the KVK.

Do you doubt whether you are an entrepreneur or not? Then contact the KVK Advice Team via 088-5852222.

Under 18? Ask for permission

Are you under 18? Then you are a minor and may only do some things with the permission of your parents or guardian. For example, taking out a telephone or internet subscription, or making large purchases for your business. Have you concluded a contract or subscription but without permission from your parents or guardian? Your parents or guardian can reverse your contracts (in Dutch) if they do not agree. This can be done up to 3 years back.

Do you cause debts or damage? Then your parents are responsible (liable) as long as you are under 18.

16 or 17? Apply for limited legal capacity

Are you 16 or 17 and do not want to ask your parents' permission every time you want to do something for your business? Then you can apply for limited legal capacity (handlichting) to the court. The judge will then give you permission to make certain decisions yourself.

Then you are no longer without legal capacity to act (handelsonbekwaam). This means that you are personally responsible for what you do and decide within your business. Limited legal capacity automatically expires when you reach the age of 18.

You can only apply for legal assistance if you are 16 or 17 years old. Not younger. You need permission from your parents or guardian. You cannot ask someone else for permission.

Are you turning 18? Then you can decide everything yourself and the law no longer considers you without legal capacity to act. Your parents usually do not have to act. Unless they have signed a power of attorney with the Chamber of Commerce KVK and want to stop it. A power of attorney is proof that someone else may decide for you within your business or perform tasks. You can revoke a power of attorney (in Dutch) online at KVK.nl. Your parents will not receive automatic notification about this from KVK.

Register your business with KVK

Even as a minor entrepreneur, you need to register with KVK. You need a company name and a legal structure. A legal structure is a form you choose for your business. Among other things, it determines (private) liability for debts and tax obligations. Use this tool to choose a legal structure that suits your situation. KVK automatically passes on your details to the Netherlands Tax Administration. You do not need to register your business separately with the Netherlands Tax Administration.

KVK will ask your parents or guardian for approval when you register in the Business Register. This can be done in several ways:

• Bring your parent or guardian along with you to the appointment at KVK and have them sign your registration.
• Take proof of your limited legal capacity with you to KVK.
• Ask your parent or guardian to fill in a declaration of agreement, sign it and take it with you to KVK.

You have to pay taxes

If you make a profit, you have to pay tax on it. You must file your own income tax return.

Your tax return affects your parents' tax return

Your tax return may affect your parents' tax return. The assets you have, for example money or shares, must be added to your parents' assets in their tax return (in Dutch) in box 3.

In addition, you will receive a tax assessment (belastingaanslag) for the Income-related Healthcare Insurance Act contribution. This is a contribution you pay for health insurance as an entrepreneur. This is separate from the premium to your health insurer.

You have to pay turnover tax, also known as VAT return, on most products your sell and/or services you provide. The Tax Administration checks whether you have to file a VAT return. If so, you must charge VAT to your customers. You then pay this VAT to the Tax Administration. You can deduct VAT you have paid yourself.

Do you have less than € 20,000 turnover per year? Then you may be able to use the small businesses scheme (KOR). You will probably then 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 Netherlands Tax Administration. Use these for your VAT return.

Consequences for allowances and benefits

Your income may affect the allowances you or your parents receive. Do you receive student grants? Or do your parents receive child benefit or rent allowance? Check how these amounts may be affected:

• Child benefit (kinderbijslag): what you earn does not affect the child benefit. You may earn as much as you want.
• Student loans (in Dutch): what you earn does not affect the student loans (studiefinanciering) you receive. You may earn an unlimited amount of additional income.
• Rent allowance (in Dutch): your parents or guardian do not have to include the first € 5,970 of your income in the calculation for rent allowance. This exemption applies up to and including the year you turn 23. This does not apply if you receive rent allowance yourself. Your parents must add your assets to their assets.
• Social assistance benefit (in Dutch): the municipality does not deduct your income from your parents' social assistance benefit. However, the amount may change. As soon as you start making a profit from your business, the municipality will offset this against your social assistance benefit.
• Child budget (kindegebonden budget in Dutch): your income is not taken into account when calculating your parents' child budget. Your assets do.