Law Nike – Page 10 – Contains about law reviews

Becoming A Self-employed Entrepreneur The Netherlands

blogger September 21, 2018

Registration in the Dutch trade register is compulsory for every company and every legal entity, including ‘freelance’ and ‘zzp’ (‘zelfstandige zonder personeel’ or self-employed without staff).

When you have decided to start your own business a new world is opening up, with a wide variety of possibilities. You could open a shop or start your own consultancy firm; become a full-time or a part-time entrepreneur. Clients may wish to hire you for advice or construction work.
Before plucking up which is planted, there is a time to plant. In other words: you will have to be prepared to tackle challenges as well – either as a provider of services or products, as a self-employed entrepreneur, a sole trader, an independent contractor, or as a freelancer or so-called “ZZP-er”.

The risky side of freedom and independence

Whether you offer services or products: you will do so at your own risk, expense and with full responsibility towards third parties. As well as this, being self-employed entails certain obligations, such as paying taxes and VAT and keeping records of your business activities. Preparing well is the best way to start. You are definitely not on your own; the Dutch business world offers plenty of competent assistance.

Starting point

Before you visit the Chamber of Commerce to register your enterprise, you should have considered the following:

* a permit to start a business in the Netherlands
* a business plan
* legal form and trade name of your enterprise
* taxation and necessary insurance
* business location, commercial lease
* a VAR’-statement from the Tax Administration, declaring you as a self-employed entrepreneur

Starting your own business

If you do not have the Dutch nationality, and want to start a business in the Netherlands, you will have to comply with particular IND (Immigratie en Naturalisatie Dienst, the Dutch immigration authorities) formalities. Even if you are not obliged to register with the IND (for almost all EU nationals) please do so all the same, as it may come in quite handy for other purposes.

The Dutch Chambers of Commerce are incorporated under public law and, as such, target their services at Dutch businesses across all sectors.

Dutch immigration authorities

The legal form of your enterprise makes no difference to the applicability of the rules by the Dutch immigration authorities: whether it is a one-man business, a Dutch private limited (BV), or a branch-office of a foreign company. The rules do not differ either whether you start an enterprise shortly after arriving in the Netherlands, or after having been employed in the Netherlands for some time. However, rules and formalities do differ broadly speaking for EU nationals and non-EU nationals. Please check also the IND Residence Wizard

EU, EEA and Swiss nationals

Nationals of one of the EU Member States, the EEA (European Economic Area), or a Swiss citizen, are free to live and work on a self-employed basis in the Netherlands and do not need an entry visa or a residence permit.

Even if you are not obliged to register with the IND, do so all the same, as it may come in handy in the future. For instance, when asked for proof of registration on taking out Dutch public healthcare insurance, a healthcare, housing or childcare allowance, a mortgage, or a phone subscription. Registration is free of charge. If you intend to stay over four months, you are always required to register at your local municipality. The expatdesk will help you out here.

Working on a self-employed basis when a EU, EEA and Swiss national

There are no specific IND formalities that have to be fulfilled for nationals of these states.

Different rules apply for citizens of Bulgaria or Romania as long as restrictions on the Dutch labour market remain in force. Nationals of these countries are advised to apply for a residence permit, which will be useful in a number of situations. The procedure is called “Application for assessment under the EU community law (proof of lawful residence)”.

Nationals of non-EU and non-EEA countries

If you are not a national of an EU or EEA country and not Swiss, you will need to apply for a residence permit in case you stay longer than three months in the Netherlands. A residence permit can be obtained from the IND.

If you are a national of a country subject to the Dutch visa requirement for more than three months’ stay, you will have to apply for a special visa: a provisional residence permit, an MVV (Machtiging Voorlopig Verblijf).

Working on a self-employed basis as national of non-EU / non-EEA country and non-Swiss
In this case you will have to meet several economic criteria before starting an enterprise in the Netherlands:

* You are qualified to run the business in question.
* You have a business plan.
* Your business serves an essential Dutch interest, i.e. “added value” for the Netherlands.

The IND does not weigh these criteria itself; the Ministry of Economic Affairs is requested to review your situation and to decide whether the business you intend to run will be economically interesting. If this turns out not to be the case, you cannot start your own business in the Netherlands.

Review of economic added value

Starting your own business

The Dutch Chambers of Commerce are incorporated under public law and, as such, target their services at Dutch businesses across all sectors.

Dutch immigration authorities

EU, EEA and Swiss nationals

Working on a self-employed basis when a EU, EEA and Swiss national

There are no specific IND formalities that have to be fulfilled for nationals of these states.

Nationals of non-EU and non-EEA countries

Working on a self-employed basis as national of non-EU / non-EEA country and non-Swiss
In this case you will have to meet several economic criteria before starting an enterprise in the Netherlands:

* You are qualified to run the business in question.
* You have a business plan.
* Your business serves an essential Dutch interest, i.e. “added value” for the Netherlands.

Review of economic added value
The Ministry of Economic Affairs awards points for each criterion. You will need a minimum of 30 points for each criterion (total number for all criteria: 300).

The scoring system consists of three parts:

a) Personal experience (education, experience as a self-employed person, working experience);
b) Business plan (market analysis, product/service, price, organisation, financing);
c) Material economic purpose for the Netherlands (innovative, job creation, investments).

You should always contact the IND to find out about the procedure involved in testing the economic interest of the enterprise you intend to start. For nationals of some countries, for example Turkey, special rules apply on the basis of treaties between the EU and these countries. And when you are from the United States of America, it is important to know there is the so-called Nederland-Amerikaans’ vriendschapsverdrag’.

Taking your business from abroad

The Dutch comparative companies Act recognises all foreign legal entities except businesses owned by one man or one woman. If you run a one-person business in your country of origin and you can prove this, for example by submitting a copy of registration in a commercial register in that country, you can bring this enterprise to the Netherlands and have it registered at the Chamber of Commerce as a Dutch one-man or -woman business.

Other legal foreign entities or foreign business forms are simply registered as a foreign legal entity with commercial activities.

Please note that you will still have to comply with the IND residency rules

Starting a branch office in the Netherlands

There is a question of a branch when long-lasting business operations, which form part of the foreign enterprise, are (being) conducted in the Netherlands. A branch can be: a sales office or a production company, but also a representative office. It does not have an independent legal form, but is a part of the foreign enterprise.

Dutch law recognises foreign legal entities. In other words: the foreign legal entity wishing to start activities in the Netherlands needs not be converted into a Dutch legal form.

A business plan is essential

No matter small or big the business is, a business plan will help you identify areas of strengths and weaknesses.

Banks require a business plan when you take out a loan. Even if you do not need the latter, and financing your enterprise is not a problem, a business plan will definitely help you understand the impact of starting a business. Submitting a business plan is also one of the criteria set for non-EU and non-EEA nationals to be allowed to start their own enterprise in the Netherlands.

Get started: Write the plan yourself

Crucial questions you should ask are:

* Which legal form will best suit the enterprise?
* Which products or services will you offer?
* Who will be your clients?
* Promotional activities to get contracts?
* How to optimize visibility to your target group?
* Which prices and fees?
* Financial plan (available budgets, expected turnover, investments)?
* Which insurances do you need?
* Permits and/or licences required?
* Administrational organisation, which form?
* What should be included in your General Terms and Conditions if applicable?

Formats

Business plan formats can be obtained from various private parties that specialise in supporting starters. Just surf the internet. Small business planner at http://www.sba.gov/ is a useful site.

Employment law issue: employed or self-employed?

If you go freelance, you should pay extra attention to your situation, because the term ‘freelancer’ is not a definition recognized by law. Freelancers operate somewhere in between being self-employed and being in paid employment.

As an independent entrepreneur you pay taxes and contributions yourself, and you are not entitled to rights employers are: minimum wage, paid holidays, a holiday allowance, statutory safeguards against dismissal and a statutory notice period.

In order to designate the employment relationship while starting your business, it is important to consider different contracts and apply for a Verklaring Arbeidsrelatie (VAR) at the Tax Administration.

Employment on the basis of a contract and implied employment

Regardless of the title chosen for the contract with your client, it is considered an employment contract if the following criteria are met:

* your remuneration for the work performed can be seen as wages;
* there is an obligation to do the work yourself: you cannot send someone else to do the job for you. Having to be available for specific work, e.g. on-call service, will also be considered as work performed in employment;
* a relationship of authority: the employer can determine where, when and how the work should be carried out. This relation also exists if the work you do is an essential element in the employer’s business operations or if the employer’s profitability is at risk without you.

If the working relation does not show all characteristics of a “proper” employment relation, it may still be seen as one. This is called a notional employment relationship: although the employment relation has not been established explicitly, there is an implicit employer-employee relation. Consequently, the fee you charge is seen as wage, so, the employer will have to deduct taxes from your wages and pay national insurance and employee insurance contributions.

A notional employment relation exists if:

* you work for a client project for at least at two days a week;
* you earn more than 40% of the minimum wages for the project a week;
* the relation with the client lasts more than 30 days; a new contract within one month after the termination of the first contract is seen as continuation of the previous contract.

A notional employment does not exist if actual and practical independence can be proven, for which a VAR can be instrumental.

Commercial contracts

As a self-employed entrepreneur you or your client can initiate to formalise the contractor-client relation by entering into a commercial contract. Parties should always insist on putting down the arrangements agreed upon.
There are two types of commercial contracts:
1. Service agreement – Under this type of contract you are obliged to perform to the best of your ability, committing yourself to do your client’s work without being employed by him. The work is usually classified as services’.
2. Contractor agreement – Under this type of contract you have a specific target obligation. You commit yourself to produce a concrete, tangible object at a certain price.

Criteria for legal independence: Actual circumstances are decisive here. An official statement signed by client and yourself that the contract is a commercial one is helpful proof. Criteria are:

* the degree of independence and absence of supervision/authority;
* permanence;
* pursuit of profit;
* clientele.

Not just these criteria, but their interconnection especially plays a decisive role.

De Verklaring Arbeidsrelatie (VAR)

In order to designate the employment relationship you can apply for a Verklaring Arbeidsrelatie (VAR) at the Tax Administration. The VAR is an official statement. Based upon the applicant’s information the Tax Administration will define income as:

* Income earned in employment: the freelancer will have a VAR income.
* Income earned from other proceedings: the freelancer will have a VAR-row.
* Profit from enterprise: the freelancer will have a VAR-wuo.
* Partnership’s own risk and account: the freelancer will have a VAR-dga.

VAR-income and -row: employed or not?

With a view to the VAR-income and row, the employer will have to define and check whether he should pay income tax and employees insurance premiums, based upon the existence of an employment contract or otherwise. Explanatory assistance but no definite answer! – can be found at the website of the Ministry of Finance. The Tax Administration may conclude differently.

VAR-wuo and dga: certainty in advance

Only VAR-wuo or -dga supply the employer beforehand with complete financial certainty provided he meets the following conditions:

* The freelancer’s activities should be similar to the VAR’s description. So, the freelancer is not entitled to carry out IT work if the VAR denotes carpentry.
* The freelancer is on the job during the validity of the VAR (1 calendar year).
* The VAR should be the authentic original.
* The employer should determine the freelancer’s identity on the basis of a valid proof of identity (not driver’s licence). Copies of the VAR and proof of identity should be kept in the administration for seven years.

Having acted this way, the employer has a solid defence in case the Tax Administration or UWV may reach another verdict afterwards. So, it may be wise for both freelancers and employers to object against a VAR-income or -row.

VAR application

Bearing in mind the utmost importance of the VAR-outcome, it is obviously important to carefully fill out the VAR-form. Only the freelancer him/herself is allowed to apply for a Verklaring Arbeidsrelatie (VAR); the employer is not entitled to do this. A directeur-groot aandeelhouder (DGA) should apply for a VAR in case of external consultancy.

The Tax Administration provides a digital VAR application form; to which you will get a reply within 8 weeks. If additional information is needed, the Tax Administration will contact the applicant.

Please note the following when filling out the form: The Tax Administration considers request as a total, coherently, and takes the activities into account. If not all answers are favourable it does not necessarily mean that no VAR-wuo will be given. For example: an interim manager with two or more employers can still be entitled to a VAR-wuo.

The freelancer should write down reasonable expectations. If, however, the actual situation afterwards turns out to have been differently, this will not have any consequences as long as the deviation is within normal risk of enterprise limits. For example, the freelancer expected to have 3 or more employers, but due to a recession this turned out differently.

The freelancer has to fill out the form to the best of his knowledge and should not deliberately misrepresent the state of affairs. If this should afterwards be proven to have been the case, the Tax Administration will recover the indebted taxes and premiums from the freelancer.

Some of the questions need a yes’ or no’ only; choose the nearest suitable.

Relation employer/former employer

As a part-time independent entrepreneur / part-time employee you could get involved in a conflict of interest with your (former) employer. If you intend to provide services, comparable to the ones he provides, you better ask his permission/advice to run your own business.

Starting a business as a full-time independent entrepreneur you should be aware of a possible conflict of interests as well. You probably signed a non-competition clause within your employment contract that remains valid after termination of employment. In any case it is wise to contact/consult your (former) employer of your intentions.

Legal forms and registration of an enterprise

The Chambers of Commerce can answer your questions about the legal environment of your business. Seminars and other regular services are available.

The majority of starting entrepreneurs either choose a one-man business or a general partnership as the legal form for their business, according to their preference on doing business by themselves or in cooperation with others.

In order to accommodate the starting entrepreneur or professional, Dutch law recognizes various legal forms, such as a one-man business, a private limited company (BV), a partnership or a limited partnership. The main issues at stake are the matter of liability if your enterprise should run up debts, and which tax regime applies.

One-person business

One-person business (lit. one-man in Dutch: eenmanzak) is also referred to as sole trader or sole proprietorship or independent contractor.

If you start a one-person business you will be the fully independent founder and owner. More than one person may work in a one-person business, but there can only be one owner. A one-person business can also employ personnel.

Setting up

You can establish a one-person business without a notarial deed. Registration in the Trade Register is mandatory. As a private individual you can only register one one-man business. However, you can have more than one trade name and carry out various business activities under different trade names. These activities can be carried out at the same or at another address, as a branch office of the one-man business.

Liability

As the owner of a one-person business you are responsible for everything concerning your enterprise; for every legal act and all its assets and liabilities. No distinction is made between private and business property. Thus, business creditors can seek recovery from your private property and private creditors from your business property. If your one-man business goes bankrupt, you yourself go bankrupt as well.

If the owner of a one-person business should be married in a community of property regime, the creditors may also lay claim to the partner’s property. Partner liability can be avoided by a prenuptial or a postnuptial agreement drafted by a civil-law notary. However, since partners are usually requested to co-sign when taking a loan, the agreement may not offer the protection expected. A civil-law notary can provide more information.

Taxes and social security

The profit made in a one-person business is taxed in box 1 income tax. If the Tax Administration fully considers you an entrepreneur, you are entitled to tax allowances such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance.

The owner of a one-person business cannot claim social benefits under the Sickness Benefits Act, the Work and Income Act and the Unemployment Insurance Act. Therefore, it is advisable to take out insurances to cover these risks. You will qualify for the following national insurance schemes:

* General Old Age Pensions Act
* -Surviving Dependants Act
* Exceptional Medical Expenses Act
* General Child Benefit Act

Continuation of the business activities and business succession

With a one-man business no distinction is made between private and business. If you die, both business and private property will fall into your heirs’ estate. You will need to make provisions to guarantee your business’ continuity. A tax consultant could provide more details.

B. General partnership, the “VOF”

A general partnership is a form of cooperation in which you run a business with one or more business partners. You and your partner(s) are the associates or members of the general partnership. One of the characteristics of this legal form is that each partner contributes something to the business: capital, goods, efforts (work) and/or goodwill.

Setting up

A partnership contract is not a statutory requirement for the formation of a general partnership, but it is, of course, advisable to put down in writing what you and your business partner(s) have agreed upon. A partnership contract could arrange the following matters:

* name of the general partnership;
* objective;
* contributions by partners in capital, knowhow, goodwill, assets and efforts (work);
* distribution of profits and offset of loss;
* allocation of powers;
* arrangements in case of illness;
* arrangements for a partner’s days off/ holiday.

Liability

An important characteristic of the general partnership is the joint and separate liability of the partners. Each partner can be held fully liable – including private property – if the general partnership fails to meet its obligations, even if these obligations were entered into by another, authorised partner. Creditors of the partnership may seek recovery from your business property and your private property and the property of the other partner(s). Restrictions agreed upon in the partners’ authority have to be officially registered in order to gain legal effectiveness towards third parties.

The general partnership usually has separate capital’, i.e. the business capital contributed by the partners, which is kept apart from their private property and capital. This capital is to be solely used for business purposes. Should one or more creditors seek recovery from the partnership – for instance in the case of bankruptcy – they could do so from the separate capital. If this should be inadequate to pay the partnership’s debts, creditors may seek full recovery from the partners’ private property. If so, you could hold the other partner(s) liable for having failed to meet their obligations, but only after the creditors have been paid. In private matters creditors of partners cannot seek recovery from the partnership’s business assets or the private property of the other partner(s).

Because of this partners’ broad liability it is advisable to have a prenuptial or postnuptial agreement drafted if you are married under a community of property regime. A civil-law notary could provide you with more information.

Taxes and social security

Each partner will pay their own income tax on his profit share. If the Tax Administration sees the individual partner as an entrepreneur, they are entitled to all kinds of tax allowances, such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance.

As far as social security is concerned, the same rules apply for the entrepreneur partner as for the owner of a one-person business.

Continuation of the business activities and business succession

Under Dutch law the general partnership ends when one of the partners resigns or dies. In order to secure the continuation of the general partnership, the partners can include a clause in the partnership contract arranging for the other partners to continue the general partnership with or without a new partner or to terminate it.

C. Limited partnership, the “CV”

A limited partnership, the “CV”, is a special type of general partnership (VOF). The difference is that the CV has two types of business partners: general, and limited or sleeping partners. The latter are only financially involved; they cannot act on behalf of the partnership. Besides, the name of a limited partner cannot be used in the trade name of the limited partnership.

Setting up

A partnership contract is no statutory requirement for a limited partnership, but, again, partners better put down the agreements. Apart from the matters mentioned in the VOF, the contract should arrange the distribution of profit between general and limited partners. When registering a limited partnership in the Trade Register, the personal details of the general partners are listed; the details concerning the limited partners are restricted to total number and their contributions in the partnership.

Liability

General partners can be held fully liable if the partnership fails to meet its obligations. Bankruptcy of the limited partnership will automatically lead to the general partners’ bankruptcy (not applicable to limited partners). A limited partner can only be held liable to the maximum sum contributed to the partnership. However, should the limited partner act on behalf of the partnership, he will be seen as a general partner and fully liable, in which case creditors of the partnership can lay claim on his private property as well. Restrictions agreed upon in the partners’ authority have to be officially registered in order to gain legal force towards third parties.

The general partners’ liability in a limited partnership is quite broad, so, if partners are married under a community of property regime they are advised to have a prenuptial or postnuptial agreement drafted. A civil-law notary could provide more information.

Taxes and social security

General partners pay income tax on their share in the profit. If the Tax Administration sees the individual partner as an entrepreneur, they are entitled to various tax allowances, such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance. As far as social security is concerned, the same rules apply to the entrepreneur partner as to the owner of a one-person business. Limited partners, who cannot be held personally liable for the enterprise’s debts, are not seen as entrepreneurs by the Tax Administration.

Continuation of the business activities and business succession

Under Dutch law the limited partnership ends when one of the partners resigns or dies. In order to secure the continuation of the limited partnership, the partners can include a clause in the contract arranging for the other partners to continue the partnership with or without a new partner or to terminate it.

D. Professional partnership, the maatschap’

The partnership referred to as maatschap’ under Dutch law differs from the general partnership and the limited partnership in that it is a form of cooperation established by professionals such as doctors, dentist, lawyers, accountants, physiotherapists etc., rather than a cooperation established for the purpose of doing business. The partners are referred to as maten’ instead of partners’. Each maat’ contributes personal efforts, capital and/or assets. The purpose is to share the income earned on the one hand and the expenses incurred on the other.
Setting up a professional partnership

A partnership contract is no statutory requirement for the formation of a professional partnership, but partners better lay down their agreements with the other professionals in a partnership contract. This partnership contract could arrange the following matters:

* contributions made by the partners;
* distribution of profits, pro rata each partner’s contribution – distributing all profit to one partner is not allowed;
* allocation of powers – each partner is entitled to perform management acts, unless agreed upon otherwise; as of 1 July 2008 the professional partnership has to register in the Trade Register. This does not apply to partnerships that only act internally, such as a partnership in which costs are pooled.

Liability

Each authorised partner can enter into a contract, thus binding the partnership: all partners. Each partner can be held liable for an equal part. If a partner should act beyond his authorization, the other partners will in principle not be held liable: the partner in question is the only partner that has bound himself. A professional partnership has no separate capital’ from the private assets of the partners. Creditors having a claim on the partnership can only seek recovery for equal parts from the individual partners; these creditors do not rank above creditors who have a claim on the private assets of a partner. To a married partner the same reservations apply as to the general partners in general partnerships and limited partnerships. They are advised to have a prenuptial or postnuptial agreement drafted. A civil-law notary could provide more information.

Taxes and social security
Each partner pays income tax on his profit share. If the Tax Administration sees the individual partner as an entrepreneur, he is entitled to various tax allowances, such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance. Regarding social security the same rules apply to the entrepreneur partner as to the owner of a one-man business

Continuation of the business activities and business succession

Under Dutch law the professional partnership ends when one of the partners resigns or dies. In order to secure the continuation of the partnership, the partners can include a clause in the contract arranging for the other partners to continue the partnership with or without a new partner or to terminate it.

E. Private company with limited liability, BV’

In contrast to the legal forms described above – enterprises run by natural persons – the private limited is a legal person: a person having rights and obligations, just like a natural person. The natural person who has incorporated the private limited cannot be held liable, in principle, for the debts incurred by the private limited. The BV itself is seen as the entrepreneur, whereas the natural person who is appointed director merely acts on behalf of the BV and cannot be held personally liable for his acts. A private limited company can be incorporated by one person a sole shareholder BV or by more persons. The capital of a private limited is divided in shares.

Incorporating

This involves a number of statutory requirements, most important of which:
Incorporation takes place through a notarial deed. This should include the articles of association of the company. The civil-law notary will check the legal contents of the articles.
A certificate of no-objection from the Ministry of Justice must be submitted before the incorporation can be effected. The Ministry checks whether the person incorporating the company has ever been involved in bankruptcy proceedings or fraud cases.

The incorporation of a BV requires a minimum capital of EUR 18,000 (cash or in kind) in the private limited.

Liability

The shareholder’s liability is limited to the total sum of his participation. Since the BV is a legal person, having its own independent rights and obligations, the persons involved – directors and supervisors – cannot be held liable for the debt of the company. In other words: the company’s creditors can never seek recovery from the private assets of these officers. However, a company director or officer may be held liable as a private person if he has acted negligently or culpably. If they are responsible for the company’s bankruptcy because of wrongful or fraudulent behaviour in the company’s policy, creditors of the company may file a claim against them.

In the formation phase of the company, a director may be liable for the company’s acts. This liability ends as soon as the legal person is incorporated and the acts are confirmed by the company. As long as the company has not been registered in the Trade Register, directors’ and officers’ liability continues. In practice, limited liability often does not apply because banks require the director and principal shareholder of the company to co-sign for loans taken out on behalf of the BV.

Taxes and social security

The private limited pays corporation tax also referred to as company income tax on the profits earned. The BV’s director and shareholder are employed by the BV His eligibility for social security under the Dutch social security laws depends on the relation of authority between himself and the private limited. A relation of authority is considered not to exist if:

* the director, possibly with his or her spouse, can cast more than 50% of the votes in the shareholders’ meeting;
* two thirds or more of the shares are held by the director and/or close relatives up to the third degree;
* the director cannot be dismissed against their will.

Without a relation of authority, the director and shareholder cannot rely on the social security insurances. He will have to take out his own insurances; to him the same rules apply as to the owner of a one-person business.

Continuation of the business activities and business succession

Continuation of the company is secured by the fact that the BV is a legal person that exists independently from the persons having incorporated or managing the private limited. When the director dies, the continuation of the enterprise is not at risk, viz. the enterprise is run by the BV and a new director will have to be appointed.

A private limited can be sold in two different ways:

* BV’s shares are sold;
* BV’s enterprise (machines, inventory, stocks, etc.) is sold.

If the shares are sold, the proceeds are subject to income tax (box 2) if the shareholder has a substantial interest (holder of a minimum of 5% of the shares).

If the enterprise is sold, the BV will have to pay corporation tax on the profit or book profit on the sale. If the shareholder of the BV selling the enterprise is a BV itself, the structure is referred to as a holding – advantage of which: the holding will in principle have to pay taxes on the proceeds.

Registration of your enterprise

Before you are allowed to start your business operations, you have to register your enterprise in the Dutch Trade Register, which is administered by the Chambers of Commerce. Registrations in the Trade Register are public; everyone can check whether a particular person is authorised to act on behalf of an enterprise and which legal form it has: a one-man business, a partnership or a private or public limited.

The Chamber of Commerce could run a trade name investigation for you to make sure that the selected trade name does not infringe the rights of other enterprises. This trade name investigation is not free of charge.

Holland Gateway (the cooperation of the Netherlands Chambers of Commerce, Ministry of Economic Affairs and other official institutions) is located at Amsterdam Schiphol Airport. This bureau promotes the ease of doing business in the Netherlands.

How to register your enterprise

Registration requirements

Once you have decided upon your business’ legal form, you can have your enterprise registered at the local Chamber of Commerce. Registration should take place within a period of one week preceding, and one week following the actual commencement of business activities.

Without registration in the GBA, you will need to submit authenticated proof of your residential address abroad. The person registering the business has to submit a valid proof of identity, which document has to be personally submitted at the Chamber of Commerce. The following documents are accepted as valid IDs:

* a valid travel document (passport or European ID card);
* a valid Dutch driving licence (non-Dutch driving licence not accepted);
* a residence permit issued by the IND;
* a Dutch refugee passport
* a Dutch aliens passport

If you do not start your business at your home address but at a location you have e.g. rented, you will also be requested to show the lease to confirm the business address.

Once the registration has been completed, you will be given a unique eight-figure registration number. This KvK number should be referred to on all your outgoing mail. Free of charge, you will receive an extract of your registration, a KvK-uittreksel'(excerpt).

Who can register the enterprise

When an enterprise is registered at the Chamber of Commerce, it is of the utmost importance that the registration forms which are submitted have been signed by the right person. Depending on the legal form of the enterprise, the forms can be registered in the Trade Register by:

* the owner of the one-man business (registration of a one-man business),
* the partners (registration of a general partnership, VOF, and a professional partnership, maatschap’)
* or the general partners (registration of a limited partnership, CV’)
* If the enterprise is a legal person, a BV, the civil-law notary will usually see to the registration formalities.

The persons who should register the enterprise and sign the registration forms can also be held responsible in the event an enterprise is not registered.

In special circumstances other persons may be authorized and/or obliged to see to the registration of an enterprise. The Chamber of Commerce can advise you on these circumstances.

Registration forms

The registration forms can be downloaded from the Chamber of Commerce website. As a statutory requirement, all forms are in Dutch and have to be completed in Dutch. Translations in English of forms 6, 11 and 13 are available to assist you while filling in the Dutch form to be handed in.
Registration is not free of charge. When you register a business, a fee will be due for the calendar year the enterprise is registered in. After that initial year, an annual fee will be charged in the first quarter of each year. The total sum of this contribution depends on the legal form.

After registration

Once the enterprise has been registered, it is the owner or partner’s responsibility to keep the information up-to-date. With a BV the manager authorised to act on behalf of the BV is responsible.

Permits and Licences

Most business activities can be performed without any permits or licences, but for some activities, like catering business, transport or taxi firm, you do need a licence. And an environmental permit may be required if your products or business operations negatively affect the environment. Permits and licences can be applied for at the municipality or at the provincial authorities.

Check how you can use your degree or diploma for your business in the Netherlands. International Credential Evaluation: http://www.idw.nl/international-credential-evaluation.html

Some sectors require registration with an industry board or a product board. Registration is a statutory requirement, based on the Act on Business Organisations. An industry board is a kind of interest group for a specific sector. The same applies to a product board, which includes all enterprises in a production chain, from producers of raw material to manufacturers of end products.

Termination / dissolution of the enterprise

When transferring or selling your company, you will have to comply with a number of rules and regulations. You should also enter information about the sale into the Trade Register and reach a settlement with the Tax and Customs Administration. A business transfer within the family involves several other tax aspects.

Expatica will publish Becoming a self-employed entrepreneur the Netherlands (part 1) on Sunday 27 February.

Chambers of Commerce
The Dutch Chambers of Commerce provide information on starting a business, legal forms, registration in the trade register, international trade etc. We have accumulated knowledge, contacts and partnerships, which makes it the essential reference point for every firm doing or seeking to do business.

Drop by for specific information
Apart from general information, the Chambers of Commerce will be glad to provide you with further details regarding your specific position: either at the start of your business or while running it.

If you are located and/or interested in the Region Amsterdam:
Do call 020-5314684 for a consultation with one of our specialists of the Bedrijfsvoorlichting department.

How to Find a Good Lawyer

blogger September 14, 2018

If you’re considering lawful motion, your own very first big choice is probably which lawyer fits your needs. How do you find a good attorney?

Talk to family and friends. Chances are good that somebody you realize has utilized an attorney or even understands someone who has. Ask people around you who they used and about their own encounter. Were they satisfied with the actual support they were provided? Request specifics about why they do — or even do not- feel their own attorney supplied good support. Determine whether the actual attorney returned phone calls or email messages in a timely manner, whether the situation had been pursued as well as carried out a reasonable time, if the lawyer paid attention to demands and concerns, whether the individual had been held knowledgeable concerning the status associated with his / her situation, whether fees billed were reasonable and bills comprehensive sufficient to know what lawful work was finished involved.

Referral Services. There are a number of recommendation providers in Texas. The State Bar of Texas supplies a listing of referral providers round the condition. Referral services require lawyers to join up and usually need lawyer members to carry negligence insurance. In the Austin and central Texas area, get in touch with the actual Lawyer Recommendation Support of Main Texas. Recommendation services frequently also set a limit about the fee billed for an preliminary discussion. The actual Attorney Referral Service associated with Main Tx requires its fellow member attorneys to provide a Thirty minute discussion for $20.

Courthouse. Go watch lawyers in action. In family law issues, divorce, child visitation rights, child support, etc., you can find proceedings going on in the Travis Region Civil Courthouse upon Monday, Wednesday, Thurs as well as Friday. Except in rare conditions, courtroom proceedings tend to be available to the general public. Locate a hearing to view by asking at the info table or even look into the listing associated with courtrooms as well as investigate until you find a listening to to view. You may key in and leave the courtroom whilst procedures are ongoing, but remember to become sincere as well as peaceful. Switch off cell phones and pagers and do not bring meals or beverages to the court docket. Additionally , it advisable not to bring your kids. A few of the problems in these instances might not be right for kids, who most likely ought to be in school in any event, and youngsters may have a difficult period sitting still as well as quiet during procedures.

Once you discover the listening to to view, exactly what do you look for? Actual life legal proceedings are almost never as thrilling as well as suspenseful as they are tv, but you can collect important information about an attorney by watching him or her in court. May be the attorney doing him or her or himself inside an expert manner? Keep in mind that your own attorney is going to be an extension individuals – symbolizing you and your interests. We publish that an expert, respectful and zealous recommend is more effective compared to one that is rude and less than professional. May be the attorney ready? Each and every lawyer includes a various method to conduct hearings, however notice regardless of whether he or she appears to possess paperwork organized, requires good questions as well as has a plan. Observe the lawyer’s style to determine whether it persuasive to you and compatible with your personality as well as wishes. Watch of sufficient length to obtain a feeling about the lawyers and move to an additional listening to. If you discover a lawyer you would like to speak with, request his or her contact information during a break or get the exact title and phone later on.

Interview possible lawyers. Numerous lawyers provide an initial consultation free or a small charge. You may have only Half an hour to have an preliminary consultation so put together prior to going. In the event that there are any purchases in position, bring those with you to definitely the discussion. Be prepared to open the consultation with a concise description of your scenario and outcome a person seek. Make a list of queries and issues which means you don’t forget to raise them throughout the meeting.

Ask about hips — does the attorney charge on an hourly basis or even provide providers for any flat rate? Will you need to provide a good upfront retainer or deposit. If that’s the case, just how much? What goes on to that particular retainer or even down payment at the conclusion of the situation? Could it be delivered to you? How frequently will you be charged? What types of costs will you be billed for? Will the lawyer accept charge cards or even provide a repayment plan? What goes on if you get behind on your bill?

Enquire about lawyer ease of access as well as marketing communications — does the actual lawyer possess a plan concerning the period of time it requires to come back phone calls or react to email messages? Will the attorney use email in the or the woman’s practice whatsoever? Will you be in a position to get to the attorney by way of mobile phone? How will the actual lawyer keep you informed about the standing of the case? I give my personal customer’s my cell phone number to be used during company hours and make each and every effort to return phone calls or answer email messages 24 hour, or the following day. Occasionally which means I call customers at 7pm or even react to an email from 10pm however I have never were built with a customer unhappy to become contacted after hours.

Enquire about the process as well as time – depending on your circumstances, exactly what does the attorney advise be done and what is the process? Just how long will it consider. You should possess a practical understanding of how long the procedure will require. Regrettably, legal proceedings sometimes consider several weeks, or lengthier, to solve with respect to the problems.

Ask about encounter as well as skills — does the lawyer possess experience with your type of situation? Just how long has the attorney been practicing? Will the lawyer possess any specialized instruction or even certification?

Do not feel pressured to employ the attorney throughout the initial discussion. Take a couple of days to think about the actual conference, as well as interview additional attorneys. When you decide on an attorney you will set up an additional visit to sign a rendering contract and take care of any kind of retainer or even deposit needs. The rendering contract may be the agreement in between both you and your lawyer. See clearly carefully and get the actual lawyer to describe whatever you don’t realize.

Read more about Arizona Bankruptcy Lawyer and other related topics on our Article Directory

Learn Why Workers Should Think About Hiring An Employment Lawyer

blogger September 12, 2018

There are many individuals who have wrongly lost their work. Some employees even complain concerning an unhealthy working place with discrimination and harassment everywhere. Lawful actions must be taken by workers if they are aware that their rights were disregarded. You don’t have to back down since it is easy to win the fight if an experienced nyc employment attorney is there to give assistance and counsel.

Each employee is protected by the employment law, which is also known as labor law. this isn’t a one-sided law as the rights of the employers are also protected. There are legal requirements and recommendations comprising employment law. A person who experienced abuse and unjust treatment at work have better chances of obtaining justice by seeking the help of an experienced lawyer. Due to their knowledge of employment laws, New York employment attorneys can help employees in building a strong case.

When dealing with legal matters, employing a lawyer is important. These lawyers can help clients in overcoming employment-related problems like workplace discrimination, unjust dismissal, and the likes. Companies are mindful that they’re at risks for legal issues that is why they also hire a team of legal experts that could assist them sort out any problem with the law.

Additionally, the employment lawyer NYC will make sure that their client will come prepared in front of the court. You can set up a good fight against your last employer, regardless of how powerful and big they may be by having the best legal professional with you.

There’s a number of employment attorneys NYC that have helped a lot of people over the years. With their experience, they are fully aware regarding the newest updates in the employment laws. With them, you could still have the opportunity of keeping your job, and paid out justly if your company is treating your unfairly. Almost all NYC employment lawyer will hear out your story first, and the legal issues you are experiencing. They will analyse the fact in order to determine if the case has any merit.

Through the help of NYC employment attorneys, a plaintiff can assure that he’s getting proper legal representation. In case you are engage in a court trial, rest assured your lawyer will handle everything with confidence.

One benefit of obtaining the services of new york employment attorney is that they can guarantee you that you will acquire just payment from the damages that the other party have caused you. With this well-informed and expert employment lawyer working with you, rest assured that you and your loved ones will never be suffering from the troubles brought on by your employer or co-worker. People who don’t have a background on the legal system will surely find this matter confusing. So if you want the very best chance at winning your case, don’t hesitate to hire a professional and experienced employment lawyer.

Residential Tenancies Mental Health Problems A duty to accommodate and a tenant’s right to remain

blogger September 8, 2018

RESIDENTIAL TENANCIES: Mental Health Problems, a Duty to Accommodate, and a Tenant’s Right to Remain in their Home

The legislation governing most residential landlord and tenant relationships in Ontario is the Residential Tenancies Act S.O. 2006, c.17. (RTA). While the residential lease, written, oral, or implied, executed by the parties may inform the rights and responsibilities between the parties, the lease agreement may only establish those rights subject to the over-riding provisions of the RTA. In Ontario, the RTA applies to rental units in residential complexes despite any other Act and despite any agreement or waiver to the contrary. Further, where a provision in a tenancy agreement/ lease is inconsistent with the RTA or its regulations, that provision is void, and where the provision of another Act conflicts with the RTA the RTA takes precedence. In this regard, the freedom to contract is restricted; even prevented by the RTA, and appellate judicial pronoucement confirms that the RTA is effectively a complete code removing even the jurisdiction of the Superior Court in dealing with the relationship between landlord and tenant outside of the regime established by the RTA.

A recognized and statutorily mandated exception to the foregoing is the application of the Ontario Human Rights Code, the provisions of which take precedence over the provisions of the RTA. It is with respect to this exception that this paper is concerned, in the context of discussing recurring and difficult cases arising at the Landlord and Tenant Board, and how the Human Rights Code is helping tenants suffering from disabilities that cause behaviours which otherwise or normally would justify termination of their tenancies and eviction.

In practice before the Landlord and Tenant Board of Ontario, it has become increasingly apparent that a great number of tenants who are called upon to defend themselves and consequently their tenancies are suffering from some form of mental illness. In many instances, the mental illness is undiagnosed, but nevertheless is apparent to the observant onlooker. These tenants, but for the litigation support offered through Legal Aid Ontario, Community Legal Clinics, and generous lawyers, are left without the protections that one expects a Court to afford parties under disability. The Landlord and Tenant Board will allow proceedings to continue against a tenant, who by any reasonable measure would appear to be a party under disability, with the usual caveat being that they speak to duty counsel (who can not represent during the proceeding) prior to hearing.

Whether justice is wrought in these circumstances is a hard question; however, I believe it is fair to say that under these circumstances, the chance for injustice is greatly elevated. How then, and where, is the protection for parties under disability, for the mentally ill and infirm?

The starting point to deal with mental illness in residential landlord and tenant matters lies in the Ontario Human Rights Code R.S.O. 1990, c. H 19.. The code provides that -every person has a right to equal treatment with respect to the occupancy of accommodation, without discrimination because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, marital status, family status, disability or the receipt of public assistance-. A disability is defined to include a condition of mental impairment or a mental disorder.

In the recent Supreme Court of Canada decision in Werbeski v. Ontario (Director of Disability Support Program, Ministry of Community & Social Services), 2006 SCC 14 (S.C.C.) , the Court held that a provincially created statutory tribunal was obligated to follow the provincial human rights legislation when rendering its decision. The Court stated that statutory tribunals, which were empowered to decide questions of law, are presumed to look beyond the enabling statute, to apply the whole law to a matter properly before them.

The OHRC is a fundamental law. The Ontario legislature affirmed the primacy of the OHRC in the law itself, which is applicable both to private citizens and public bodies. Further, the adjudication of OHRC issues is no longer confined to the exclusive domain of the Ontario Human Rights Commission: OHRC, Section 34. The legislature has clearly contemplated that this fundamental law could be applied by the Court and other administrative bodies and has amended the OHRC accordingly.

In Werbeski , supra, the Supreme Court of Canada found that an administrative tribunal should apply the provisions of the OHRC when interpreting statutes because:

(i) The Ontario Human Rights Code states that it has primacy over other legislative enactments;

(ii) The recent amendments to the OHRC have removed the exclusive jurisdiction over interpretation and the application of the Code, from the Human Rights Commission.

In addition, the provisions of Section 11(2) and Section 17(2) and (3) of the OHRC specifically state that “a Court, as well as the Tribunal or the Commission, could apply these provisions of the OHRC when deciding if the needs of a person with a disability can be accommodated without undue hardship.” Section 47(2) of the OHRC states that the OHRC is paramount over other legislation. The Supreme Court of Canada has also held that the Human Rights Code takes precedence over agreements and contracts: Syndicat Northcrest c. Amselem, [2004] 2 S.C.R. 551 (S.C.C.).

APPLICATION TO LANDLORD AND TENANT BOARD PROCEEDINGS

The Divisional Court in Walmer Developments v. Wolch, on a appeal from a decision of the Ontario Rental Housing Tribunal (predecessor to the Landlord and Tenant Board), dealt with a situation where the tenant was diagnosed with schizophrenia. As a consequence of this condition, the tenant exhibited behaviours that included frequent screaming, throwing garbage loose in the halls, shouting profanity in the elevator, putting her property, such as her TV, out in the hall, and leaving food cooking on the stove unattended and hence filling the hall with smoke.

The Ontario Rental Housing Tribunal did not apply the Ontario Human Rights Code, and failed to give consideration to the implications of section 2 of the OHRC to the eviction proceedings before it. This was ultimately held to be in error as Section 17 of the Code provides:

17(1) A right of a person under this Act is not infringed for the reason only that the person is incapable of performing or fulfilling the essential duties or requirements attending the exercise of the right because of disability.

(2) The Commission, the board of inquiry or a court shall not find a person incapable unless it is satisfied that the needs of the person cannot be accommodated without undue hardship on the person responsible for accommodating those needs, considering the cost, outside sources of funding, if any, and health and safety requirements, if any.

After some discussion of issues pertaining to the Ontario Rental Housing Tribunal’s ability to require accommodation (since ameliorated by statutory amendments), the Court held that a tenant suffering a disability has the protections of the OHRC, and most importantly that the question of accommodation shall be considered in the Tribunal’s/Board’s determination of whether to relieve from eviction under the discretionary provisions of the Tenant Protection Act/Residential Tenancies Act.

In Walmer, the appeal was allowed because it was ultimately demonstrated that the landlord could accommodate the tenant by notifying the tenant’s family of problems as they arose and that the tenant’s family could intervene. It was found that the tenant, when on her medication was controlled and her behaviour was then not objectionable.

Walmer, then, stands for the proposition that a landlord has a duty to accommodate a tenant who exhibits behaviours as a result of a disability, that otherwise would warrant termination and eviction, and where the accommodation does not amount to undue hardship, to actually take steps to assist the tenant in maintaining their tenancy by finding reasonable solutions to the problems alleged. Further, where a landlord fails to provide such accommodation, the Landlord and Tenant Board is directed to consider what may be a reasonable accommodation and where available, refuse termination and eviction to the landlord.

SINCE WALMER The Walmer decision has had the practical impact of sensitizing the Landlord and Tenant Board to the fact that many of the persons who appear before the Board are suffering from disabilities. While sensitized to the issue, it continues to be the case that the burden of establishing the existence of the disability; and further establishing what the reasonable accommodation may be; remains with the tenant. Where tenants do not have representation and/or do not have a support network the accommodation potential (and hence retention of the rental unit) offered by Walmer , is not pursued and hence is lost. Very clearly, in the Landlord and Tenant Board context, a human right is only a right if it is pursued and the Board will not, on an institutional basis assure that a mentally ill party is represented and that his/her human rights are asserted.

The Walmer decision has had a dramatic real life impact for many tenants. In particular, tenants suffering from schizophrenia, paranoid delusional disorder, dementia, alzheimers, hoarding instincts, and a host of other mental illnesses that from time to time cause behaviours that otherwise would warrant termination and eviction; now, are retaining their housing, with the landlord being required to take a little extra care for them. The Walmer development has been a positive change in that it has very clearly prevented homelessness of persons with mental illness who are able to be treated and who will function normally with the right support, understanding, and accommodation.

This is significant as the number of aging renters increases. Aging seniors, who haven’t had an issue with their landlords since the commencement of their tenancy are increasingly finding themselves before the Landlord and Tenant Board facing allegations of anti-social behaviours. Often these behaviours are age related as aging sometimes brings on mental illnesses or medical conditions that cause a person to exhibit anti-social behaviours. Often, these can be medically treated or ameliorated by additional care and support. These -mentally ill- tenants are often just regular folks whose entire life is subject to being turned upside down through eviction because they got sick. Through eviction they lose the stability that having a place to live gives, it robs them of peace, their routines, and likely exacerbates any medical condition or mental illness through the stress caused by the eviction.

While Walmer has been a tremendous help to many tenants by forcing the Landlord and Tenant Board to recognize -disabilities- and to impose accommodation of those disabilities where reasonable; the procedures of the Landlord and Tenant Board in adjudicating cases dealing with the mentally ill continue to disregard the fact that in many instances these tenants are not only mentally ill but incompetent as well. From the perspective of the Landlord and Tenant Board it never has a party before it that can be a -person under disability- as in the sense of the Rules of Civil Procedure. Query whether this is just.

CONCLUSION The issue that this paper started with remains unresolved. Persons suffering with mental illness still face procedural disadvantage at the Landlord and Tenant Board. The Landlord and Tenant Board can make a person homeless. Hopefully, the law will eventually recognize that the mentally ill and incompetent deserve procedural protection and it seems fair to suggest that one avenue to such protection is through the ideas expressed by the Court in Walmer.

TANNAN’S BANKING LAW AND PRACTICE IN INDIA

blogger September 2, 2018

TANNAN’S BANKING LAW AND PRACTICE IN INDIA- is a classic legal Treatise and most comprehensive, authentic, authoritative, widely acclaimed,appreciated, recognised and recommended masterwork on the Banking Law and Practice in India since decades, to be precise since 84 years of thefirst edition of this most prestigious book in 1926.

TANNAN’S BANKING is undoubtedly one of the best in the Banking Law field. Every edition of this book has sold like proverbial hot cakes, pointingclearly to its scholastic wealth on the subject, its deft handling by the authors its usefulness, utility and eventually the popularity of the book in the field.

TANNAN’S BANKING in its every edition is eagerly awaited and widely welcomed by the people in the Banking Law field. Present edition is nowreleased with the pride and glory of the previous editions. It is a unique and authentic publication of its kind, authored by a renowned personality, having tremendous knowledge and authority over the subject. New edition is completely revised and updated. The present Revised and Enlarged edition contains 76 Chapters covering entire spectrum of Banking Law and Practice. It contains most upto-date Statute Laws, Case Laws and RBI Master Circulars, Guidelines and Directions and other related matters annotated under appropriate discussions.

TANNAN’S BANKING has always been prescribed and recommended by Indian Institute of Banking and Finance (IIBF), Promotion Tests, Internal andother Exams and is cited and quoted by Hon’ble Supreme Court, High Courts and Tribunals in various judgments.

This most authoritative Treatise is an indispensable guide and reference work for the Banks and Financial Institutions (FIs), Legal Officers, BankingExperts, Branch Managers, Bankers for Promotion Tests, Internal exams, exams conducted by the Indian Institute of Banking and Finance (IIBS), other Universities and Management Institutes, Staff Training Colleges, Law Colleges, Commerce Colleges, Professors of Banking, Academicians, Chartered Accountants, Practitioners, Advocates, Lawyers, Hon’ble Courts, Judges, Bench and the Bar.