European Commission
Enterprise Directorate-General
Euro Info Centre Network
Guide
Crafts and Micro-Enterprises
in
Netherlands
Market Access
Working Group
I - INTRODUCTION
The European Commission adopted a definition of SMEs in 1996. For a description of this
definition we refer to the Appendix of this guide. Micro-enterprises are also SMEs, but they
have a few other characteristics. In this guide micro enterprises are defined as:
•
a business unit with 1-9 employees, or
•
a self-employed individual: a person engaged in business in his or her own right, not
employing anyone.
Craft workers are defined variously across Europe, depending on the cultural associations
of particular manual tasks or creative skills. The term craft always implies a certain level of
skill in the worker or employee, but the status conferred on such a worker by the national
culture varies across the European Union.
In this series of national reports, therefore, the structure of the craft sector in each country
is analysed in a unique manner to reflect the cultural differences in the approach, whether it
be legal, vocational or industrial.
In order to provide general information on the craft sector, and links to helpful sources of
information and funding, the reports take a broader view, wherever deemed necessary by
local researchers, of the micro-enterprise sector within which craft workers operate.
Exclusion from coverage
It is necessary to limit the coverage of the reports in terms of business activities, with a
view to concentrating on the craft sector, however defined in each country. The following
economic activity sectors are usually excluded from the main coverage:
•
retailing, unless associated directly with crafts (eg shops selling handicraft products
made on the premises)
•
catering and all food preparation activities (NB the HORECA sector is an important
micro employer in Europe)
•
financial services (eg self employed agents and advisors for insurance companies)
•
professions (lawyers or architects) who may be obliged by law to operate as selfemployed individuals
•
transport, where taxi drivers are frequently classified as self-employed
•
building trades, except some skilled workers.
Definitions in The Netherlands
The Netherlands does not have an official definition of micro enterprises. The SME
definition of the European Commission is the only definition used. When talking about
small companies, only companies with less than 100 employees are taken into account.
This does not have an official status but if often used for statistical reasons.
There is also no official definition for craft businesses in The Netherlands. Instead, a more
or less official description of craft has been adopted:
'Mostly independent companies, belonging to the SME sector, that produce, install, repair,
and provide services, with the objective to provide means to satisfy the needs of individual
nature'
Within the craft businesses, 48 different branches are identified. For practical reasons
these 48 sectors are grouped into 6 sectors. These are:
•
food and other production crafts
•
metal and furniture
•
building
•
installation
•
trade and repairs
•
services
II. EMPLOYMENT STRUCTURE AND THE PLACE IN THE ECONOMY
About 90% of all companies in the Netherlands belong to the group of micro enterprise,
which means that these companies have less than 10 employees. There are a bit more
than 491.000 micro enterprises in The Netherlands. Only 45.000 of these companies have
more than 10 employees.
The number of micro-enterprises is growing rapidly. On a daily basis there are about 100
start ups every day, which on a yearly basis means about 40.000 new businesses. Most of
these businesses are micro enterprises.
The craft sector accounts for 130.000 companies with a joint turnover of 42 billion Euro.
About 3,7% of this turn-over is export. The 130.000 craft companies employ about 392.000
labour years.
The craft companies account for about 7% of the total turn over of all private businesses.
This is in terms of production 6%. Craft businesses are even more important for
employment. 10% of all employment is in craft businesses in The Netherlands. Of all oneman businesses in The Netherlands, 37% has a craft business.
Description
Volume
Share in private business in %
Number of companies (x1000)
132
29
Turn-over (billion Euro)
• of which exported (billion Euro)
42
1,35
3
0,45
Employment:
• employment years (x1000)
• of which self employed (x 1000)
392
173
Source: Jaarboek Ambacht, Hoofdbedrijfschap Ambacht ‘98-‘99.
10
37
III. REGULATION
In the Netherlands a micro-enterprise will usually manifest itself in a so-called one-man
business, a private business (BV), a partnership (VOF) or a limited partnership (CV). All
these forms have to be registered in the Commercial Register of the Chambers of
Commerce in the Netherlands (http://www.kvk.nl)
Legal Forms
In the Netherlands the following legal forms exist: one-man business, private company
(BV), public company (NV), partnership (VOF), partnership under civil law, limited
partnership (CV), association, co-operative society and foundation. The choice of the legal
form decides the risks and the extent of the risks run with private capital and what taxes
are levied.
For the purpose of this guide only the one-man business, the private company (BV), the
partnership (VOF) and the limited partnership (CV) will be dealt with as these are the forms
in which a micro enterprise will exist.
One-Man Business (Eenmanszaak)
The owner of a one-man business is fully self-employed and takes decisions and acts as
he (or she) wishes. In other words, the business is completely run by a single natural
person who has complete control. Of course the owner can decide to employ staff. The
employment of staff has no direct implications for the legal form.
In the Netherlands no law or rules exist which deal with the establishment of a one-man
business. It is however obligated to register the business in the Commercial Register.
The owner is liable for all acts and debts of the business with his full property (also his
private property).
The profit from a one-man business is liable to income tax.
Every resident of the Netherlands is covered by the national insurances: the General
Disablement Benefits Act (AAW), the Old Age Pension Act (AOW), the General Widow's
and Orphan's Benefits Act (AWW) and the Exceptional Medical Expenses (Compensation)
Act (AWBZ).
The owner of a one-man business is however not covered by the employee insurances.
Private insurance companies can cover these risks at the request of the business man.
If the owner of a one-man business should die, the one-man business will also die as the
entrepreneur and the enterprise are the same. It is therefore advisable that the
entrepreneur will be thinking about how to regulate the continuity of his business.
Private Company (Besloten Vennootschap - BV)
In the Dutch Civil Code (article 2:175) a private company (BV) is defined as a legal entity
with an authorised capital which is divided into shares. The entrepeneur(s) take a share in
the authorised capital. It is also possible that later other persons take one of more shares in
the capital. The company itself is the entrepreneur and the executive director is also the
employee of the company. He therefore acts on behalf of the company.
The shares in a BV are registered in a register containing the names and addresses of all
shareholders which are kept by the BV.
There are a lot of rules prescribed by law for the incorporation of a BV which are to be
found in the Dutch Civil Code. One of them is that the BV should be registered in the
Commercial Register of the Chambers of Commerce.
In principle the BV Is liaible for its own debts. The liability of the shareholders is limited to
the amount which they have subscribed to the company. However, there is private liability if
the BV is not registered in the Commercial Register.
A BV must pay corporate tax on profits from the business.
As the executive director(s) work for the company as an employee, one should think he is
covered by the social insurance legislation. However, this depends on whether he is a
subordinate. If he is not, the executive director is not covered by the employee insurances
and should insure himself privately.
The existence of the BV is independent of the persons who have incorporated the legal
entity or who manage it which means that it can continue its activities even when one of the
executive directors dies.
Partnership (Vennootschap Onder Firma - VOF)
The partnership (VOF) is defined by article 16 of the Dutch Commerce Code as a
partnership between two or more people, who practise a business under a joint name.
The establishment of a VOF is in fact not subject to any rules. It is wise however to put the
agreements made between the partners in writing. Also a VOF must be registered in the
Commercial Register.
The joint liability of the partners is very important. Each partner is to the full extent of his
private assets liable if the partnership fails to perform its obligations even when its the fault
of the oher partner(s).
The capital of a VOF is separated from the private capital of the partners. The business
capital is only for the carrying on of the business. Private debts cannot be taken from the
business capital of the VOF or from the private capital of the other partners.
Income tax has to be paid by each partner separately. Each partner can therefore claim the
facilities available to entrepreneurs.
A partner is not covered by the employee insurances as he is not an employee. Therefore
he has to insure himself.
A VOF comes to an end when one of the partners leaves the partnership or dies.
Arrangements can be made to ensure the continuity of the VOF.
Limited Partnership (Commanditaire Vennootschap - CV)
A limited partnership (CV) is more or less a sort of VOF. It is a partnership between one or
more general partners and one or more lenders (the limited partners). The difference
between a VOF and a CV is therefore that there are two types of partners one of which is a
general partner in the way described above by the VOF and one of which is only financially
involved and is not allowed to represent the CV in dealings with third parties.
The establishment of a CV is not subject to any rules. It is however very advisable to write
down the agreements between the partners. A CV must be registered in the Commercial
Register.
The general partners are privately liable for the full amount if the company fails to perform
its obligations. The limited partners are only liaible for the amount of their contribution to
the CV.
The general partners are in principle regarded as self-employed entrepreneurs and pay
income tax on their part of the profits.
A general partner is not insured under the employee insurances as he is not an employee.
Naturally a limited partner is not an employee of the CV and therefore he is not insured.
If one of the general partners retires from the partnership or dies, the partnership ends. The
existence of the business can be regulated in an agreement.
Source: website http://www.kvk.nl
The Commercial Register
All commercial organisations in the Netherlands, with the exception of some small
businesses, must register in the Commercial Register (Handelsregister) which is kept by
the several Chambers of Commerce. This Register registers some particulars of the
commercial organisation in question like name, address, place of establishment, business
activities, legal form (private or public company) and management (members of the
management board, authorised representatives).
The goal of the Commercial Register is to promote legal security in doing business. Around
one million organisations are registered in the register.
The Commercial Register is public. Everybody can inquire after particulars about a
commercial organisation. It gives legal security by giving this essential information.
Registration is a legal obligation to all companies and legal persons. Legal persons are
amongst others associations, corporations, private companies (B.V.) and public companies
(N.V.). See the paragraph about legal forms and article 2:3 of the Dutch Civil Code.
Registration has to take place at least one week before the start of a business and at one
week after the start of a business by the owner, partner or director.
IV. TRAINING
Most of the craft sectors in The Netherlands have organised their own education and
training programmes. Many of these education and training institutes provide education
according to the apprenticeship system. Apprenticeship is mainly aimed at 16 -17 year-olds
but officially open to 27 year-olds. One day of theoretical education and four days practical
education in a business. The apprenticeship system is of particular relevance to craft
trades. Most of the apprenticeship schemes are Foundations, managed by employers and
employees organisations. The courses are aimed at obtaining different levels of skills.
Furthermore there are other ways to become a skilled worker in the craft sector. There are
a large number of schools for young people the age of about 16, allowing them to develop
skills and acquire qualifications within a full time educational system. There are a
numerous type of secondary vocational training (full time, mostly three years) and higher
vocational training (full time and mostly four years) aiming at specific craft sectors.
Education for the craft sector is not only focussing on young people. At this moment there
is a need for skilled workers in the craft sector, which has resulted in setting up various
training programmes and schemes for adults and long term unemployed people. These
programmes are often financed by both the government and the sector for which people
are trained.
V. FINANCE
The Netherlands does not have any specific incentives for micro enterprises. As mentioned
in the introduction we do not have an official definition of micro enterprises and do not treat
them different than any other (small or medium sized) company.
We do of course have a large number of financial schemes aiming at the support and
stimulation of private business. Most of these schemes are focussing on SMEs. They apply
to businesses with less than 250 employees (they EU definition of SMEs)
However, there are a number of interesting incentives issued by the government, that apply
to all SMEs but are of particular interesting to micro enterprises.
There is one incentive that does only apply to staff training and three schemes aiming at a
better access to finance for (small) companies.
Fiscale Scholingsmaatregel (Fiscal training scheme).
This general 'fiscal training measure', allows companies to deduct 20% of their training
costs from their profit. This results in a tax benefit. The scheme came into force by 1
January 1998.
Borgstellingsregeling (Guaranty scheme)
This scheme provides guarantees to banks, up to 50% of the loans they give to SMEs. This
scheme must stimulate banks to make finance more accessible to smaller companies. In
this scheme the banks support business with government assistance and individual
companies are not directly involved in this. This scheme can be compared with some of the
schemes of the European Investment Fund.
Fiscale regeling starters (Fiscal scheme for business start-ups)
This measure applies for business start ups during their first years. It only applies to oneman businesses and not to the other legal forms of businesses. In that respect it is a
measure that applies directly to micro enterprises.
Tante Agaath regeling (Aunt Agaath scheme)
This is a specific measure developed in order to make it more attractive for individuals that
have access to large funds, to invest in new businesses. It is a tax incentive for the
investor.
The Netherlands does not have any schemes in the field of interest subsidies.
KONINKLIJKE VERENIGING MKB-NEDERLAND
(ROYAL ASSOCIATION OF SMES IN THE NETHERLANDS)
Description :
Looks after the interests of entrepreneurs and gives service aimed at the creation
of an entrepreneur climate in which small and medium sized enterprises make
enough profit to act satisfactorily.
The association has 140.000 member entrepreneurs, joined by 125 branch
organisations and 600 local entrepreneurs’ organisations.
Address :
Brassersplein 1
Postbus 5096
2600 GB Delft
Tel. : +31.15.2191212
Fax : +31.15.2191414
KLEIN BEDRIJF NEDERLAND (KBN)
(SMALL BUSINESSES THE NETHERLANDS)
Description :
Looks after the interests and supports, guides and advises the small businesses in
the Netherlands.
KBN has 3000 members.
Address :
Dr. J.M. den Uylstraat 1
Postbus 608
4200 AP Gorinchem
Tel. : +31.183.625912
E-mail :
[email protected]
Web Address :
http:// www.kbn.nl
Fax : +31.183.626090
HOOFDBEDRIJFSCHAP AMBACHEN (HBA)
(TRADES COUNCIL OF CRAFTS)
De scription :
Looks after the interests of the member branches according to the Law on the
Business Organisation (“Wet op de Bedrijfsorganisatie”).
The branches of industry for which the HBA is established are:
the business of patisserie
the business of embroidery
the business of knitting
the business of consumer-ice-making
the business of roofers
the business of repairing bicycles
the business of fine ceramics
the business of glass treating
the business of stained-glass artists
the business of window-cleaning
the business of make-up artists
the business of gold- and silver smithery
the business of hairdressing
the business of clothes repairing
the business of making corsets
the business of leather goods
the business of made-to-measure shirts
the business of made-to-measure shoes
the business of fashion designers
the business of makers of musical instruments
the business of sewing machines
the business of opticians
the business of makers of orthopaedic footwear
the business of making roll-down shutters and canopies
the business of repairing shoes
the business of beauty care
the business of chimney sweeping
the business of butchers
the business of dental laboratories
the business of repairing carpets
the business of cleaning textile
the business of textile refinement
the business of stage make-up men
the business of clock makers
the business of foot-care
the business of weaving and hand-woven carpets
the business of saddle makers
the business of plugging sacks
Address :
Niewe Havenstraat 2
Postbus 940, 2270 AX Voorburg
Tel. : +31.70.33771111
E-mail :
[email protected]
Web Address :
http:// www.hba.nl
Fax : +31.70.3863439
RAAD VOOR HET MIDDEN- EN KLEINBEDRIJF (RMK)
(COUNCIL FOR SMALL AND MEDIUM ENTERPRISES)
Description :
Advises on issues concerning the SME’s.
Address :
Badhuisweg 72
Postbus 84272
2508 AG Den Haag
Tel. : +31.70.3540200
E-mail :
Fax : +31.70.351263
[email protected]
HOOFDBEDRIJFSCHAP DETAILHANDEL (HBD)
(TRADES COUNCIL OF RETAIL TRADE)
Description :
HBD is a public co-operation of all central entrepreneurs- and trades unions in the
retail trade. These are: MKB-Nederland, Raad NDH, CVAH, FNV Bondgenoten en
Dienstenbond CNV. HBD looks after the interests of the retail trade and supports
this branch of trade with various activities. The main activities are:
advising the government, politics, other organisations e.d.
preparing sector policy with regard to retail trade
conducting research with regard to retail trade
functioning as a source of information by means of e.g. “Detailhandel
Magazine”, leaflets and brochures
setting up and carrying out projects with regard to e.g. environment, shop
delinquency and the image of working in a shop
offering a platform for consultation between national organisation, the
government and others
providing financial support to institutions which are important for the retail trade
(the EIM, the IMK-Nederland bv, the OVD-Groep and the RMK)
Furthermore the HBD executes the establishing laws of the retail trade and has a
ordering task with regard to the levying regulations and the “Verordening
Arbeidsvoorwaarden Detailhandel (VAD)” (Regulation regarding the labour
circumstances in the retail trade.
Address :
Nieuwe Parklaan 72-74
Postbus 90703
2509 LS Den Haag
Tel. : +31.70.3385600
Fax : +31.70.3385711
Branch organisations
The craft sectors in The Netherlands all have their own branch organisation. Often these
organisations only cover one type of profession, or a small sector. This makes them very specialised
by also small. There are more than 100 branch organisation, which makes it too detailed to mention
them all in this report.