Starting a Business in the Netherlands – Part 4

Starting a Business in the Netherlands – Part 4


An independent entrepreneur assumes much more risk than an employee, especially when considering income loss due to illness or accidents. An employee’s income is guaranteed even during periods of sickness or accidents. Additionally, entrepreneurs can be held liable for damages and their business premises can be affected by any unwanted events. Before starting your business, assess the areas where you face the highest risks and ensure coverage for them. Seeking advice from an insurance consultant can be helpful, as they can provide valuable information.

Personal Insurance

Health Insurance

Every Dutch citizen is required to pay insurance premiums to the chosen insurance company. In addition to this basic insurance, various additional insurances may be necessary depending on different events.

The following optional insurances may be recommended according to your personal needs. (For more information, consult an insurance advisor):

Voluntary sickness insurance

Accident insurance

Private pension fund

Other insurance funds

Property and Liability Insurances

As a business owner, you need to consider various risks when running your business. Customers can hold you responsible for faulty products/services, and if the products were indeed defective or the work was poorly done, resulting in financial or personal damage, it can lead to high compensation costs. Anyone engaged in business activities carries several other risks, so it may be important to take out the following insurances depending on your business activities:


Entrepreneur’s liability insurance


Insurance covering legal expenses (if, for example, you have a legal case, the insurance covers legal advisory/solicitor fees)

Insurance for tools, machinery, equipment, products, business premises

Business interruption insurance (if you have to temporarily cease your business activities due to an unexpected event, this insurance covers your losses)

Business partner insurance (if your business partner is unable to work for some reason, this insurance covers potential lost income)

Computer insurance (including data loss)

Transportation insurance

Credit insurance


Business Plan


Without a business plan, you cannot apply for loans from banks, so in that case, you will definitely need to create one. Even if the financing of your business is feasible without a business plan, it is still advisable to prepare one, as it can be very useful in the long run.


By creating a business plan, you will have a better understanding of your company’s goals, both short-term and long-term, as well as your current and future clients.

Important elements of a business plan include:

  • Which legal form is most suitable for your business?
  • What services/products does your business provide/sell?
  • Who will be your customers?
  • Promotional activities for acquiring customers
  • How can the accessibility of your company be optimized for customers?
  • Financial planning (budget, expected income, investments)
  • What insurance is necessary?
  • What permits are required?
  • Administrative activities, handling official matters
  • General Terms and Conditions


You can easily find the formal requirements for writing a business plan online, with numerous examples, templates, and samples available for novice entrepreneurs.


General Terms and Conditions


It is advisable to establish general terms and conditions before accepting a job, as this can prevent conflicts and unpleasant situations between you and your business partners, as the rights and obligations of both parties will be documented in an official document. The following points are worth including in the general terms and conditions:


Quotation – when an offer is considered official

Delivery – whose responsibility is the delivery, insurance, payment of customs duties, settlement

Warranty – who provides guarantees for what in the contract

Liabilities – who is responsible for various arising liabilities

Definition of fulfillment – when a transaction is considered completed

Resolution of disputes – legal settlement of disputes

Transfer of ownership – when does the ownership of the goods legally transfer to the buyer


General terms and conditions should not be overly strict, as it can make cooperation between the parties difficult. Before entering into a business agreement with your partner, make sure to inform them of the general terms and conditions. If your business partner also has such conditions, you need to agree on which ones to follow.

Distance Selling

If you sell products or services online, through a webshop, and deliver them by mail or other means, it is important to provide proper information about the products, services, as well as the rights and obligations of the buyers. You can find further important information at the following link.