Registering a Recruitment Agency to work in Holland

[alexbyrne1986]

Hello,

 

I'm new here, and was wondering if you could provide some advice.

 

I run a tech recruitment agency based in the UK. We're researching some new markets to expand and the dutch market seems really interesting.

 

I'm curious, as a UK business what exactly that will entail end to end from a legal, financial and tax perspective.

 

We intend to set up as a company with a satelite office, but working from the UK. We'd potentially look at opening an office in a year to 18 months but as it stands, we'd need to try and establish a market first. 

 

Does anyone know what I need to do ?

 

Thanks

Alex

[Ron van der Kolk]

Welcome to Higherlevel.

 

1 uur terug, alexbyrne1986 zei:

I'm curious, as a UK business what exactly that will entail end to end from a legal, financial and tax perspective.

That is a very big question to ask. From the rules of this forum:

 

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Show what you have already done yourself

Entrepreneurs can be expected to show a good portion of their own initiative. So when asking your question, show what you have already done to find the answer and where you get stuck.

 

 

[Jeroen Kisters RPLU ARe]

Hi Alex,

 

Welcome to HL.

 

If I may give you a suggestion. Start with the potential legal risks by reading the info published on the site of the Company House regarding hiring out or provision of workers in the Netherlands. If you're just a recruitment agency i.e., headhunter this is what you need to bear in mind to avoid being seen as a secondment company and if that's what you're in fact are doing the info gives you a hint what you need to do.

 

Good luck with your research and as Ron correctly pointed out if you get stuck there are members willing to help.

[alexbyrne1986]

Thanks for the help Jeroen Kisters RPLU ARe & Ron van der Kolk

 

So this is where I'm confused. We're a recruitment agency, but not a temp one. Temp one's should register but it doesn't site of permanent ones do. We charge a one off fee for a permanent candidate placement. so we're in the blurred lines of no permanent establishment.

 

We'd therefore be VAT exempt. To be on the safe side, it says to register. But I wonder if that now means I'll be required to file accounts in Dutch?

 

Any further help welcome

 

[shoptillyoudrop]

6 minuten geleden, alexbyrne1986 zei:

We charge a one off fee for a permanent candidate placement. so we're in the blurred lines of no permanent establishment.

 

I think you got this wrong.

 

Whatever you charge (and why) is not applicable  here (to my understanding).

 

What's applicable in this case (again: to my meanig):

What kind of services do you provide? (Reqruitment sound a bit vage... are people employed when you found them? or just renedering some services themselfs towards third parties...)

To whom? B2B, I guess...

Whare are you when rendering these servicess? (in UK? NL?)

Where are your customers located and where are your 'candidates' actually (physically) placed?

 

Among other...

 

 

 

 

[Jeroen Kisters RPLU ARe]

Hi Alex,

 

So, if I read your feedback correctly you don't in any way employ people your company is than providing i.e., posting on a temporary or permanent basis to Dutch companies? If yes, than you're "just" a HR consultant in my view and not a temporary employment agency or secondment company and doesn't the specific law called Waadi i.r.o. hiring and provision of workers apply to you. So, be aware if a client suggests to (first temporarily) employ a candidate you found. Don't go there!

 

You also mention you intend to set up as a company with a satellite office, but working from the UK, and potentially opening an office in a year or 18 months. Isn't that a bit old school looking at your profession?

From a financial (e.g. hiring local office space or maybe even local native speaking staff) and tax perspective (e.g., VAT & CIP) the Netherlands isn't the place to be to enter the EU market if your target isn't to establish a network of local branch offices or even legal entities including local staff.

I would look at Estonia which especially digital nomads and non-EEA consultants use. Have a look for example at a company call Xolo which has some front running digital solutions if you're a sole proprietor in the UK.

And if you need a place i.e., office to meet a candidate locally why not use for example Regus? A client you can and would want to meet at their office also to get an impression.

[alexbyrne1986]

Thanks again for the answers Jeroen Kisters RPLU ARe and shoptillyoudrop

 

To clarify your points Shoptillyoudrop. We'll be UK based: the Companies will be in Netherlands, and the candidates will also be in NL.

 

We're a service provide and find talent. Essentially a candidates CV and introduce them to a Dutch Company. The candidates then interview and hopefully join that company and work for them in a permanent contract. Our service is purely as an "introducer" so we offer no payroll or employment contracts direct with my company/hyperloop.

 

The Dutch market works as it's in the best timezone and language. and for tech is bouyant.

 

With the above in mind, I only need to register with KVK. Which leads me to my last question. Are you then liable to file taxes?

13 maart 2023 aangepast door alexbyrne1986

[Jeroen Kisters RPLU ARe]

Hi Alex,

 

In the link you'll find your answer when and how to register your foreign company with the Dutch Company House i.e., 'KVK'.

 

Normally when you register at the Dutch Company House they'll also notify the Dutch IRS but I would ask them to confirm that just to be on the safe side. And yes when you register you'll also be liable to file taxes.

[alexbyrne1986]

Thanks again Jeroen Kisters RPLU ARe

 

It appears this form can't be edited online. Am i right in saying this can only be sent back via the post?

 

There's no address to return it too of so

 

Alex

[Jeroen Kisters RPLU ARe]

Hi Alex,

 

Do you currently have a permanent establishment in NL as a foreign entity? If not, than maybe you have to register i.r.o VAT but please do read in detail if you need i.e., that you qualify to register or that you're maybe exempt from registering.

[Maxn]

4 uur geleden, alexbyrne1986 zei:

It appears this form can't be edited online. Am i right in saying this can only be sent back via the post?

 

You'll typically need to visit one of their offices, as they like to see your ID, proof that you are allowed to use the Dutch business address you specified on the form (e.g. rental contract), and perhaps some other documents.

 

(last time I registered a Dutch branch of a Ltd they also wanted the company's articles of association, certificate of incorporation and a certificate of good standing from companies house that includes your director details. But that was long ago, and prior to Brexit. Requirements may have changed, so double check with them before you travel.)

 

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We'd potentially look at opening an office in a year to 18 months

 

If you plan to do any actual work there, and do not have EU citizenship, you may also want to check if you need a work permit...

14 maart 2023 aangepast door Maxn