When do you have a business?

  • Willeke Leensma
  • The basis
  • 2 August 2021
  • Edited 5 December 2024
  • 4 min
  • Starting

If you are an entrepreneur, you must register with the Netherlands Chamber of Commerce KVK. But it is not always clear if you are an entrepreneur. You must meet a number of rules, the entrepreneurial criteria. In short, you must independently provide products or services to others for a commercial fee. Find out whether or not you need to register with KVK.

Entrepreneurial criteria

To register with KVK, you must meet these 3 criteria:

  • You independently sell a product or provide a service. Or you are preparing for this. For example, you have already purchased products.
  • You charge a price or hourly rate for these products, from which you earn money. Think of making a profit or saving costs. 
    Note: this is therefore not a hobby that only costs money and does not make a profit. See example 1 in this article.
  • You regularly provide goods and services to people other than just your family, relatives or friends.

Do you meet these 3 entrepreneurial criteria? Then you can register with KVK.

Four questions

Do not all 3 entrepreneurial criteria apply to you? You may still be an entrepreneur. Answer these 4 extra questions to find out if you are an entrepreneur:

  1. Are you investing money and/or time in starting your business and/or hiring staff?
  2. Do you work in your own business regularly and for an extended period of time? You also need to register large one-off activities such as Christmas tree sales.
  3. Do you have several clients or customers? Or are you looking for multiple clients? If you work for the same client all year, then it looks more like you are salaried.
  4. Do you decide how, where and when you do your work? Even if a client hires you, as an entrepreneur you decide how you do your work.

If you answer all 4 questions with yes, then you can register with KVK. Did you reply no to 1 or more questions? Or are you still not sure? Check out the following examples, or contact the KVK Advice Team to discuss your personal circumstances.

Please note: KVK entrepreneurial criteria are different from the criteria the Tax Administration uses to determine if you are an entrepreneur. After your registration, KVK automatically passes on your details to the Tax Administration. You will be contacted by the Tax Administration within 2 weeks.

Examples

Here are some examples of situations and why people choose to register, or not:

Mehmet builds websites for friends

Mehmet works as a developer in a paid job. In his spare time, Mehmet builds websites for friends and acquaintances. He charges a small fee, based on his expenses. He would like to be able to send an invoice for his work, and wonders whether he should register. Does Mehmet meet the criteria to register as an entrepreneur with KVK?

  1. Yes: he builds a website, so he provides a service.
  2. No: he does not charge a commercial fee, only expenses.
  3. No: he only does business with friends and acquaintances.

Mehmet does not meet KVK’s 3 criteria, and does not need to register with KVK. His activities are a hobby, not a business. Mehmet cannot send invoices, but he can send a receipt (a kwitantie in Dutch) without charging VAT.

Webinar: Do I have a hobby or a business?

Yildiz wants to start delivering meals

Yildiz wants to start delivering meals. She has registered as a delivery person via the app of delivery service ‘Quick bite’, and now wants to register as a self-employed person without staff (zzp’er). Does Yildiz meet the criteria to register as an entrepreneur with KVK?

  1. Yes: she provides a service or product.
  2. Yes: she charges a commercial fee, but she does not set her own rate.
  3. Yes: she works for people besides her friends and family, she works for ‘Quick bite’.

Her replies to the additional questions are:

  1. No: she does not invest. She uses her own bicycle, and does not have to buy anything. She is given a Quick bite outfit and saddlebags.
  2. Yes: this is not a one-off job. She will work a couple of days a week.
  3. No: Quick bite is her only client.
  4. No: she decides on which days she will deliver meals, but she has to abide by the rules set by Quick bite.

Based on the 3 KVK criteria, Yildiz can register with KVK. But the additional questions show that she makes no investments, only has 1 client, and cannot decide for herself how she organises her work. These are typical elements of an employment situation. So even if she registers with KVK, the Tax Administration may decide she is not an entrepreneur. Deciding whether or not you are an entrepreneur can be difficult. Does your situation resemble that of Yildiz? Then call to discuss your personal situation with the KVK Advice Team.

Jeroen is hired as a trainer

Jeroen is employed as a policy advisor by a municipality and works 4 days a week. A training agency asks him to provide trainings as a self-employed trainer for 4 days a year. The training agency is his only client and has asked him to register with KVK because the agency has asked him to do so. Does Jeroen meet the criteria to register as an entrepreneur with KVK?

  1. Yes: he provides a service to the training agency.
  2. Yes: he charges a commercial fee.
  3. No: even though he does not do business with just friends or family, he does not try to be competitive, as the scope of his activities is limited.

Jeroen does not need to register with KVK. He can accept the assignment and what he earns he must declare in his income tax return. Jeroen may well be an entrepreneur for VAT purposes (in Dutch).

Do you accept an assignment on an incidental basis, and are you unsure whether you should register? Contact the KVK Advice Team.

Fleur bakes cakes to order

Fleur bakes cakes in her spare time, in her home. Her creations are popular. Other people besides friends and family order her cakes. She advertises on Facebook and Instagram, and is looking for a business location. Does Fleur meet the criteria to register as an entrepreneur with KVK?

  1. Yes: she provides a service or product.
  2. Yes: she charges a commercial price.
  3. Yes: she does business with others besides friends and family.

Her replies to the 4 questions about her personal situation are:

  1. Yes: she has invested in new bakery equipment.
  2. Yes: she bakes cakes to order every week.
  3. Yes: she works for several private consumers, so she has an array of customers.
  4. Yes: Fleur decides how and when she bakes herself.

Fleur replies ‘yes’ to all questions. She is going to register with KVK.

Frequently asked questions

You register your business via KVK.nl/registration. Click on the 'Start your registration' button, choose the legal structure, and then follow the on-screen steps. You must fill in the (online) forms completely. Then make an appointment at a KVK office to complete the registration. Registering can be done at any KVK office in the Netherlands.

You make an appointment online by logging in with DigiD. You choose the date, time, and location. You can make an appointment up to 8 weeks in the future. You will receive confirmation by email. Please read and keep this confirmation.  

To register a new enterprise or organisation, you must pay a registration fee. If you want to purchase a certified KVK Extract from the Business Register when you register, you can do this directly. 

Choosing a legal form depends on various economic and personal reasons. For example, with which form do you pay the lowest amount of tax? With how many people are you starting your business? Or, which form provides the best protection against risks? Use the ‘Which legal structure suits your company?’ tool to make a choice based on your situation. Or read more about the different legal forms and key points to consider.

Register your business 1 week before or after the start of business activities. Prepare your registration online. Then make an appointment for the identification check and the completion of your registration. You will then immediately receive your KVK number. Registering is possible at any KVK office in the Netherlands.

You can also visit us earlier for the check of your pre-completed details and proof of identity. This is possible up to a maximum of 3 months before your start date. In this case, you will receive your KVK number by post in the week prior to your start date. You can schedule an appointment up to 8 weeks in advance.

Do you teach once a year, or make snacks for a party of friends, for example? And you get paid for it? You cannot register with KVK. Do you still want to issue a receipt? That is also possible without a KVK number.

Check with the Tax Administration whether you have to charge VAT for your activities. You can possibly make use of the small businesses scheme (KOR). 

You report your earnings for income tax purposes as income from other activities.

You do not need to register separately with the Netherlands Tax Administration. You submit information when preparing your registration, which the KVK forwards in digital form to the Tax Administration. You will receive a letter of confirmation for your registration with the Tax Administration. After around 10 working days, you will receive a notification from the Tax Administration.

For this, the Tax Administration applies a number of criteria including independence, entrepreneurial risk, continuity and size of your business.

Do the Tax Administration's entrepreneur check (in Dutch) to be sure.

Are you not registered with KVK number but have a VAT number? Then you can send an invoice. An invoice must meet certain conditions.

Do you not have a VAT number? Then you can make a receipt as proof of payment. The receipt states your name and that of your client, what goods or services you provided, the date of delivery, and the amount paid. You sign the receipt to declare that the business paid. You report your income for tax purposes as resultaat overige werkzaamheden (income from other activities, link in Dutch).

False self-employment is a situation where you take on an assignment as an entrepreneur, but are actually an employee. For example, if you only have one client and do not plan to work for more. The client is then in fact your employer, which does not fulfil its obligations towards both you and the Tax Administration. For example, they do not pay income tax and contributions for you. The Employment Relationships Deregulation Act (wet DBA) provides clarity about your working relationship with your clients. By getting clarity in advance about your working relationship with your client, you can prevent false self-employment.

You and your client can use the Tax Administration's 'Salaried Employment or Non-employment' check (in Dutch) to check whether you are employed. If you are not an employee, you do not have to do anything else. You can then simply carry out the assignment as an entrepreneur. The outcome may also be that you are an employee by law. In that case, your client must deduct payroll taxes. Contact the Tax Administration about this.

If you perform an assignment or work and receive payment for it, you have to report it to the Dutch Tax Administration (Belastingdienst). 

The options are: income from other activities or business profit. You always have to pay taxes. If you do not report your income to the Belastingdienst correctly, this is called 'zwart werken' in Dutch. It is not allowed. 

No, it is not. You have to list all your additional income in your income tax return (in Dutch). It makes no difference whether or not you are an entrepreneur. 

For example: you received money because you helped someone with their administration. Or you made something for friends or neighbours. Additional income (in Dutch) you receive in cash, by bank transfer, or Tikkie is added to your other income for tax purposes. You may deduct any expenses you incur for the additional earnings from this amount.

Exception

Do you have no other income? Then you may not have to pay tax on your additional income, thanks to tax credits (in Dutch). Tax credits reduce the amount of income tax and national insurance contributions you have to pay. The amount you can earn without exceeding your tax credit threshold depends on your personal situation.

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