BUSINESS IN THENETHERLANDSYOUR GUIDE TO SUCCESSFUL BUSINESS IN THE DUTCH MARKETPLACE

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED WITHIN THE TIMES

FEBRUARY 5 2007

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES2

Foreword by Jochum Haakma Managing Director of the NetherlandsForeign Investment Agency.

well-known Anglo-Dutch joint ventures, suchas Shell and Unilever, that have been operatingin harmony for decades already.

It is not surprising that many British compa-nies use the Netherlands as their base forexpansion on the European continent. TheNetherlands has an excellent infrastructureand offers a highly qualified and multilingualworkforce, with English almost being consid-ered as a second mother tongue. The Dutch fis-

cal system is competitive within Europe andthe tax administration understands how vital itcan be for investors to have clarity about theirtax situation. Last but not least the Dutch arevery open minded, which stimulates creativethinking and innovation.

A warm welcomeWe embrace any foreign company that settlesin the Netherlands as our own, and figuresshow that one in ten employees in the Dutchmarket works at a company of foreign origin.Foreign companies generate economic growth,reinforce the strength of innovation, keepDutch business competitive and connect ourcountry to international business networks.

This brings me to the role of the NetherlandsForeign Investment Agency (NFIA) for foreigninvestors. We assist foreign companies inter-ested in setting up or expanding their pan-European operations in the Netherlands. Basedon a company’s needs, we can providedetailed, tailor-made information and assis-tance, as well as arrange introductions withrelevant parties in the Netherlands. Among ourworldwide office network, we have an office inLondon that covers the United Kingdom andIreland (www.nfia.co.uk).

As Managing Director of the NFIA I alwaystell my people to be curious and amazed atwhat happens around us. I hope the supplementon the Netherlands distributed in The Timeswill raise the curiosity of the reader to visit theNetherlands, so he or she can become enticed atwhat our country can offer their businesses.

CONTENTS

Trading partners through the ages 4

Going from strength to strength 5

Tax break helps key employees relocate 6

Dutch mergers pay dividends 7

Dutch business: Direct and devolved 7

Netherlands business locations 8

Dutch recruitment market shows

signs of heating up 9

A region for the future 9

Flexibility the key to Dutch workers 10

Reduced business tax 11

Legal considerations 12

Ask the panel of experts 13

Dutch labour laws 14

Utrecht, in the centre of The Netherlands14

BUSINESS IN THE NETHERLANDS A TITLE FROM MEDIAPLANET

Project Manager JurgenKlooster (pictured left),Production Editor UlrikaFalleniusEditor Sean Hargrave,Design/Production Jez MacBeanPrint News International

For more information about supplements in the daily press,please contact Carl-Philip Thunström 020 7563 8877

www.mediaplanetgroup.co.uk

www.mediaplanetonline.com

Dutch payroll services Dutch tax services

+31 (0)30 - 2468536 www.expatax.nl

� Jochum Haakma Managing Director of theNetherlands Foreign Investment Agency

I t gives me great pleasure to introduce thisspecial supplement on business in The

Netherlands.The Netherlands and the United Kingdom

have a long trading history, spanning manycenturies. But also on the investment side thetwo countries have close ties, the Netherlandsbeing the third largest investor in the UK andthe UK doing even better in the Netherlandswith a second place. Next to that there are

Welcome to Business in The Netherlands

Mediaplanet is the leading European publisher in provid-ing high quality and in-depth analysis on topical industryand market issues, in print, online and broadcast.

160 DIRECT DAILY FLIGHTSTO AMSTERDAM

Cork Dublin www.aerlingus.com

Birmingham Cardiff

Nottingham East Midlands www.bmibaby.com

London Gatwick London Heathrow www.ba.com

AberdeenLondon Heathrowwww.fl ybmi.com

Belfast Bristol Edinburgh Liverpool London Gatwick London Luton London Stansted www.easyjet.com

ExeterNorwich

Southampton www.fl ybe.com

BlackpoolLeeds / Bradford

Manchester Newcastle www.jet2.com

Aberdeen Birmingham Bristol Cardiff

Durham Tees Valley Edinburgh Glasgow Humberside

Leeds / Bradford London City London Heathrow Manchester Newcastle Norwich www.klm.com

Southampton www.scotairways.com

Bournemouth Coventry

Doncaster / Sheffi eld www.thomsonfl y.com

Glasgow Prestwick www.transavia.com

London City www.fl yvlm.com

www.schiphol.com

Amsterdam SchipholBest Airport in Europe

Connect to more than 250 destinations worldwide

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES4

Few people realise that the Span-ish Armada was wrecked in

1588 on its way to the, then, Span-ish Netherlands to pick up troopsto invade England and that whenthe English Pilgrim Fathers set offto colonise America and enjoyreligious freedom, in the first halfof the 1600s, they did so via theNetherlands and were joined bythe Dutch.

Hence, the island of Manhattanwas actually bought by the Dutchfrom Indian chiefs in the first half ofthe seventeenth century to buildNew Amsterdam, a name that lasteduntil 1664 when Charles II’s brother,the Duke of York, sent a British fleetin his name to capture the city andrename it New York.

The Dutch kingIndeed much of the 1650s-1670swas spent with the Dutch and Britishfighting for naval, and hence, tradesupremacy but a curious result wasCharles II marrying his niece toWilliam of Orange as part of a peacedeal in 1677. Just eleven years laterWilliam landed in England andousted his father in law without ashot being fired. The protestant kingwas welcomed as an alternative toCatholic rule and the Anglo Dutchwars came to an end as Britain andthe Netherlands joined forces tocounter the growing importance ofFrance.

It is worth noting that even at theheight of hostilities the Dutch andBritish would trade during lulls infighting. In fact, the saying ‘Dutchcourage’ comes from the fact theDutch were the only sailors braveenough to sail far down the Thamesand supply London during the

plague in the middle of the 1660s –albeit after a few drinks from theship’s captain to help them forgetthe risk of catching the killer disease.

These close trade links have lastedto this day and wherever there istrade in Britain one sees the charac-teristic three stories town housesfirst built first by the Dutch to allowmerchants to have the most space inthe best areas where land was at apremium.

To this day strong trade links havebeen maintained and the UK is sec-ond only to the USA in terms of for-eign investment in the Netherlands.

Trading partnersthrough the agesSeparated by just a small stretch of sea, it is perhapsunsurprising that the two sea-faring, trading nationsof Britain and the Netherlands would have historiesthat intertwine.

LOOKING FOR THE PERFECT PARTNER?

• Perfect Housing is a leading provider of housing and relocation services in The Netherlands

• Offices in Amsterdam and The Hague

• Large portfolio of over 1200 furnished and unfurnished, individually screened properties

• Flexible viewings to fit tight schedules

• Service desk for problems and questions

PERFECT HOUSING HOUSING AND RELOCATION SERVICES

Perfect Housing is part of the Perfect Group of companies. The Perfect Group of companies provides services for global business professionals on assignment in The Netherlands.

PERFECT GROUP: WWW.PERFECTGROUP.NL

PERFECT VISIT: (SHORT STAY OPPORTUNITIES) WWW.PERFECTVISIT.NL

PERFECT FINANCIALS: (INSURANCE, MORTAGES) WWW.PERFECTFINANCIALS.NL

PERFECT REAL ESTATE: (BUYING AND SELLING PROPERTIES) WWW.PERFECTREALESTATE.NL

W

THAT SINKING FEELINGOne of the great reasons for settingup a business in the Netherlands isthe simple fact that the vast majorityof the Dutch speak English very well.

Be prepared for the occasional mis-understanding, however, because theDutch are not a nation that goes in forsubtlety and so they do not alwaysunderstand what the British are tryingto imply.

Take a British businessman who hadjust had a long train journey to a func-

tion at the Dutch embassy in London. After asking the polite question, onarrival, of where he might be able to ‘wash his hands’, the host had greatdelight in showing him to the kitchen sink.

FLAG WAVINGShould you ever be on business in the Netherlands or passing the embassyin London and find there is an orange pennant above the national flag,wonder no more. The Dutch fly the pennant on royal birthdays and cele-brations and, should you come across the flag outside a house with aschool bag attached at the top of the pole, it is a sign a member of thefamily has just graduated from college or university.

Should you ever need to describe the colours of the flag the officialterms are bright vermilion and cobalt blue. Originally the red stripe wasOrange, after William of Orange, but it eventually became replaced byred, or rather bright vermilion.

REASONS TO INVESTAsk a host of tax and business experts why the Netherlands is so popularas a base to launch European expansion and several reasons are consis-tently mentioned:

• Tax efficiency: A Corporate Income Tax rate of 25.5 per cent and divi-dend tax as low as 5 per cent and reduction in tax on profits frompatented goods to 10 per cent are appealing

• Communications: Schiphol Airport, the ports of Rotterdam and Amster-dam, extensive canals and a motorway network which provides fastlinks to its neighbours makes the country a great logistics centre

• 30 per cent ruling: Key, skilled and experienced staff are rewarded formoving to the Netherlands with a 30 per cent tax discount, meaning thefirst 30 per cent of their income is not taxed

• Languages: The Dutch are second to none in Europe with their linguis-tics. It is very common for people to speak English and German fluentlyand often French too.

• Education: The majority of the work force are university educated,although it does not always show in official figures which only countmasters degrees, gained after four years, and not bachelor degrees,gained after three

• Property: There is a Dutch property boom at the moment as UK investorshave realised that it could be potentially under-priced and, with theright legal and tax advice, some interest repayments can be written offagainst personal income tax

Key to discoveryKnowledge clusterThe Leiden Bio Science Park is the largest dedicated life sciences park in the Netherlands, with over

40 companies from start-ups to multinationals like Centocor.

For more information: + 31 (0)71 524 75 55 www.leidenbiosciencepark.nl

Join: BaseClear • Centocor • Crucell • Danisco Genencor • Galapagos • Pharming • PROXY Laboratories • Xendo

at the largest life sciences cluster in the Netherlands

• Complete cluster of dedicated life science companies

Research, discovery, development, manufacturing companies, service-oriented businesses

and training institutions.

• Centre of excellence

World class biomedical and genetic research at the Leiden University, Leiden University

Medical Centre, TNO.

• Incubator facilities

Flexible office and laboratory space for start-ups within an incubator environment.

• Educational and training facilities

Academic and professional education in life sciences and training in management skills.

• Local, regional and international cooperation

• Attractive location to live and work

Historic town, rich cultural life and beautiful surroundings at 15 minutes from

the Amsterdam airport.

• Building sites available and fl exible space for rent

Why choose the Leiden Bio Science Park for your European headquarters?

LEIDEN BIO SCIENCE PARK

At a little over 16 million, theDutch population could not be

expected to compete head to headagainst the UK and other largercountries in GDP and hence, in fig-ures provided by the World Bankand International Monetary fundthe country ranks in 23rd and 22ndposition alongside the likes ofPoland and Indonesia. In compari-son, the UK is placed sixth.

However, when this GDP isworked out per capita by the Inter-national Monetary Fund, theNetherlands leaps to 15th place,leapfrogging Japan, Germany andthe UK who lie in 16th, 17th and18th place respectively.

Figures compiled by Eurostat forthe EU also show that apart frombeing better off than many of theirneighbours, the Dutch work force ismore productive than Germany andthe UKs’ and, at 1.5 per cent, it hasan inflation rate that can only bebeaten in the EU by Sweden’s 0.8per cent.

It is perhaps, unsurprising, thenthat the Dutch government believesit may post a slight surplus in 2007and expects that less than half ofGDP will be accounted for by gov-ernment debt (in the ‘90s, itaccounted for more than 80 percent). This optimistic outlook isbased on an improving economicclimate in the Netherlands revealedby the country’s official statisticsbody, the CBS, announce the econo-my grew by 2.7 per cent in the lastquarter of 2006 alone, double thegrowth experienced in the samequarter two years ago.

UK and USAInwards investment is vital to thesuccess of the Netherlands. Thecountry has long been convinced itssize, both geographic and demo-graphic, means it has to attract for-eign companies.

Strong links with the UK mean that,although the Netherlands trades morewith its immediate neighbours, Ger-

many and Belgium, the top investorsin the country are the USA and UKwith an 18.5 per cent and 14 per centshare of overall inward investment.

Tax incentives were improved atthe start of the year to encourageforeign companies to set up in Hol-land but, as Pieter van Gulik, Execu-tive Director at the Netherlands For-eign Investment Agency for the UKand Ireland, points out, this is notthe only reason for setting up a busi-ness in the Netherlands.

“The Netherlands has alwaysknown it’s a small country so itworks hard on foreign investment,making it easy and attractive for

foreign businesses to set up in Hol-land,” he says.

“The major point, though, is thecountry has an excellent logisticssystem. Transport is excellent so Ialways advise companies that theyshouldn’t set up in the Netherlandsto sell just to the Dutch, they shouldsee the country as a springboardwith excellent communications withthe rest of Europe and, via Schipholairport, the world.”

As one would imagine, for a com-paratively small country, the servicesector accounts for more than half ofthe country’s GDP with industry, ledby strong mining, metal workingand chemical sectors, equating toaround 20 per cent of the country’swealth. More surprisingly, agricul-ture and fishing only accounts for 2per cent of national GDP, despite astrong public perception of thecountry behind Edam and Goudahaving a strong farming tradition.

Netherlands economy goingfrom strength to strengthIt may have a population less than a third of the size ofthe UK’s, but tight fiscal policies appear to be working,enabling the Netherlands to punch above its weight.

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES 5

WORLD BANK LISTINGS (05)

Country $ million1 USA 12,409,4652 China 8,572,6683 Japan 3,943,7544 India 3,815,5535 Germany 2,417,5376 UK 1,962,8097 France 1,829,55922 Netherlands 537,67528 Belgium 337,11032 Sweden 280,30550 Ireland 169,931

Eurostat Productivity figuresThe EU’s statisticians work outproductivity as contribution toGDP per worker hour against anEU average base rate of 100.Hence a figure above 100 is aboveaverage and vice versa.

Country ProductivityLuxembourg 155.6Belgium 129.7Ireland 118.7Netherlands 117.1France 115.8USA 113.8Germany 108.3EU Average 100UK 98.4Spain 87.4Japan 80.8Poland 45

PER CAPITA GDP (2005)

Country $1 Luxembourg 69,8002 Norway 42,3643 USA 41,3994 Ireland 40,6105 Iceland 35,11512 Belgium 31,24415 Netherlands 30,86216 Japan 30,61517 Germany 30,57918 UK 30,46319 Sweden 29,92620 France 29,187

One of the country’s big strengths,particularly in the current climate, isits wealth of natural gas reserves. Itaccounts for nearly a third of all EUgas production and only consumestwo thirds of its output, exportingthe other third. As such it is theworld’s fifth largest natural gasexporter.

GDP (PPP)The figures in the tables have beenadjusted for Purchasing Power Pari-ty and so take in to account the rela-tive cost of living and inflation lev-els. The World Bank figures showoverall GDP and the IMF give a percapita level.

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES6

Hence the Netherlands governmenthas made at least one part of the

decision of moving to Holland a littleeasier for highly skilled overseasworkers. Should a company relocateto the Netherlands, or set up a Dutchsister business, high earners with use-ful experience moving to Holland will

not be taxed on the first 30 per cent oftheir income. A person earning 100euros, for example, would only haveto pay tax on 70 euros.

Who qualifies?Although it is a tempting offer, notall staff can expect to receive the tax

discount, warns Bart van Meijl, Part-ner at tax consultancy Expatax.

“Staff need to be working abroadand then be relocated to the Nether-lands, they can’t just turn up in Hol-land, look for a job and then get a 30per cent ruling,” he warns.

“They also need to offer specialskills and have at least two and ahalf years experience in their field,so it’s mainly for people earning40,000 euros a year and beyond.There is no list of jobs or qualifica-tions but if you explain your resumeto a tax consultant and detail specialskills you have, they can give you agood idea of how likely you are toget a 30 per cent ruling. In the end,though, it’s up to a special divisionof the tax office.”

If a person is given a 30 per centruling by the tax office it can last amaximum of ten years. After that, aperson is taxed on their whole salaryand precluded from applying foranother 30 per cent ruling unless

they spend at least ten years work-ing away from the Netherlands andare then moved back to the countryagain.

Social paymentsThe ruling is also needed becausealthough the Dutch can claim a lowlevel of income tax on earnings upto 31,122 euros (nearly £21,000),when total deductions aretaken into account, namelycompulsory social securi-ty payments, employeeslose more than 40 percent of their salary intax above 17,320euros (£11,600) anda third of earningsfor all earningsbelow that level.

Whilst thismay seem tosuggest peopleworking in theNetherlands pay ahigher proportionof tax than those inthe UK, tax expertswarn it is dangerous todirectly compare taxregimes. The Dutchhave a system whereit is possible to

claim back against tax interest pay-ments made on a mortgage for yourprimary residence. It is a systemwhich tax lawyers insist makes thecountry no more expensive, andpossibly more cost effective, for UKemployees who settle in the Nether-lands and take out a mortgage tobuy a property.

Tax break helps keyemployees relocateIt follows that if you want to attract businesses to acountry the government needs to ensure that a company’s talent pool is happy to consider relocatingto the new office.

DUTCH PERSONAL INCOME TAX RATES (2007)

EUROS TAX TAX AND SOCIAL SECURITY

0 – 17,319 2.5 per cent 33.65 per cent17,320 to 31,122 10.25 per cent 41.4 per cent31,223 to 53,063 42 per cent 42 per centAbove 53,604 52 per cent 52 per cent

THE NETHERLANDS IN NUMBERS

16.4m population750,000 population of Amsterdam41,526 square km of land2 independent colonies Netherlands Antilles and Aruba83 per cent of people in the Netherlands are Dutch79 is the average life expectancy 1957 founder member of EU12 provinces make up the country40 per cent of the Netherlands lies under sea level1648 Netherlands obtains independence from Spain18.4 per cent of the country’s area is water1,023 people inhabit each square mile 1980 Queen Beatrix accedes to the throne+31 its international dialling code

Hence, Ferdinand Mason, Head ofCorporate M&A at law firm

Boekel de Neree, reveals that a largeproportion of European mergers andacquisitions take place either in, orvia, the Netherlands.

“There are very clear, well knowntax advantages to owning a Dutchholding company,” he points out.

“So it is not at all unusual for us tobe working for a British companybuying a French company by creat-ing a holding company in theNetherlands. Corporate income taxrates are important but also the lowrate of tax on dividends from Dutchcompanies is well received, as arethe treaties the Dutch have withcountries around the world to makesure dividends are only taxed once.”

Culture keyThe other main reasons why Mason, aBriton based in the Netherlands, car-ries out so much work between thecountries is their geographic close-ness as well as cultural similaritiesthat are helped by the vast majority

of the Dutch speaking English well.Activity is currently spread acrossmultiple sectors but the main newarea of interest is real estate becauseMason reveals the Dutch tax systemcan be advantageous to foreign

companies and individuals buyingland in a country where, comparedto the UK, it would appear to beattractively priced.

The main advice he would pass onto any British company seeking tobuy or merge with a Dutch organisa-tion is to expect the Dutch to be veryfrank, to the point of what a Britonmay perceive to be rudeness.

“So many deals fail becauseBritons don’t realise the way theDutch do business,” he points out.

“The Dutch are excellent negotia-tors so the British have to be readyfor this and when the Dutch guysopposite them bang the table andstand up, they have to realise it’s allpart of the negotiation. What we seeas rudeness, the Dutch see asdemanding a better price.”

Dutch mergerspay dividendsFavourable tax regulations mean that Dutch holdingcompanies are widely recognised as a cost effectivemeans of conducting business across the EU.

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES 7

CRITICAL INFORMATION FOR UK ENTREPRENEURSDOING BUSINESS IN THE NETHERLANDS Doing business in the Netherlands requires the assistance of an experiencedaccountant / tax adviser. Orange Tax Services provides these services and has spe-cialised its business in assisting foreign companies with their Dutch operations.Orange Tax Services can assist foreign companies with the choice between incor-porating a Dutch BV company or registering a foreign limited liability company.Orange Tax Services can also assist with the financial administration and obtain-ing Dutch tax benefits such as the 30per cent per cent ruling for foreignand domestic limited liability compa-nies which can save a substantialamount of money. Through the con-tact form at www.orangetax.nl com-panies can ask tax questions that willbe answered free of charge.

Arnold Waal of Orange Tax Services �

Whereas so much of how a com-pany in the UK runs relies on

people picking up subtle requests,the Dutch are far more direct. Ratherthan drop hints along the lines of ‘itwould be awfully nice if you could’or ‘would it be a problem for you to’,the Dutch prefer directness.

As one business person with muchexperience of working in both coun-tries points out: “In the Netherlands,you have to say what you mean andmean what you say.”

Group decisionsIt may seem quite ironic, then, thatthe other major difference mostBritish and American companiesfind in the Netherlands are the ‘end-less’ conversations and meetingsneeded for a decision to be made. Itis a constant gripe for British busi-nessmen to go to a meeting and besurprised to find themselves present-ing to five or six people who thenneed to go off and ask another fiveor six people what they think beforea decision is made.

“We have comparatively flat com-pany structures over here,” pointsout Arjan Enneman, an Anglo Dutchtax expert at Expatax.

“ Rather than drophints along the lines of‘it would be awfully niceif you could’ or ‘would itbe a problem for you to’,the Dutch prefer directness ”“The tradition in Holland is thatnobody wants anyone on their teamto have hurt feelings, so everybodyis consulted. It can mean decisionscan take a bit longer than Britonsand American are used to but theDutch are aware of the problem andwe’re now increasingly findingthey’re trying to become quicker atmaking decisions.

“Companies setting up in theNetherlands need to remember,though, that traditionally Holland isrenowned in business as the countryof negotiation. The plus side is thatpeople feel involved with how acompany is moving forward and wedon’t get the strikes that you mightexpect in France or the UK.

Frustrating“The down side is it can be very frus-trating for business people to cometo the Netherlands and find thatalthough they’re in front of the sev-eral people they need to get a deci-sion, those people will feel dutybound to consult with their col-leagues as well.”

Final wordIn a way, it is perhaps not surprisingthat decisions take time in theNetherlands as the country is, by itsown confession, no stranger tobureaucracy. As any business willdiscover from the first steps of regis-tering itself, the process requires theintervention of government min-istries and officials as well as localChamber of Commerce representa-tives before the letter head can evenbe sent to the printers.

Conversely, however, the Dutchare quick to point out they find itsurprising how easy it is to set up acompany in the UK without a signi-

ficant probe in to the directors to seeif they are fit to hold responsiblepositions.

So too, they would point out thatwhilst decisions take longer in Hol-land, they are kept to. A constant

gripe among Dutch business peoplecrossing the North Sea is that anexecutive at a British company willmake an agreement he or she has toalter when colleagues are subse-quently asked for their input.

Dutch business: Direct and devolvedOne of the first differences between the Dutch andBritish that any business person moving to the countrywill immediately come to realise is summed up suc-cinctly in the neat phrase that the British are too politeto be honest and the Dutch are too honest to be polite.

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES8

NetherlandsbusinesslocationsAMSTERDAM AREA

Amsterdam needs no introduction. As the capi-tal of the Netherlands (although the govern-ment is based in The Hague) it is similar to Lon-don as a major business centre with deepstrengths in the financial and creative industries.Unlike London, however, whose West End is one ofthe most expensive locations to rent an office inEurope, Amsterdam is the 46th most expensiveEuropean location, way behind the likes of Paris,Barcelona, Stockholm and Madrid.The area also has the world’s busiest internetexchange and so offers world leading telecom-munications. Physical communications are amajor advantagefor the area too. Itsport is the secondbusiest in NorthWest Europe (sec-ond only to Rotterdam) and theworld’s fourth busiest airport,Schiphol, is just a fifteen minutetrain ride from the city centre.Hence the city and its sur-rounding area is home tothe European offices ofmany global companies,such as Hitachi, Dell,Cisco, Starbucks andmany more. In fact,the popularity ofthe area gives itthe secondlargest Japan-ese ex patcommunity inEurope.

FLEVOLAND

Named after the Flevo marine lake from which much of the140,000 hectare land area was reclaimed, this region to

the east of Schiphol Airport and Amsterdam offers theselling points of proximity to the capital and internation-

al travel as well as affordable land prices.The area is home to around 380,000 people and has onlybeen reclaimed over the past 50 years. Hence there is an

abundance of space for companies to build on and thelocal authorities have ensured people do not feel they

are part of an entirely man-made area by plantingextensive forests.

Although it is only 40 minutes from Schiphol Air-port by train, land prices are much lower than

the Amsterdam area. The region’s airport atLelystad (Flevoland’s municipal capital) is

owned by Schiphol Airport and is due to haveits runway doubled in length by 2010 so itcan move on from small business flights to

handle large international flights. Mitsubishi, Yanmar, Pioneer and McCain

have already set up bases in Flevoland andthe area is also famous for its abundance of

windmills and sea clay soil which is amongthe most fertile in Europe.

www.omfl.nl

UTRECHT

With 281,000 inhabitants, Utrecht is the fourth largest city of The Netherlands. Located in the heart of Holland,Utrecht has a historic city centre and is market leader in

one day congresses. The city’s role as the meetingplace is supported by its location at the intersectionof national and international infrastructure. At thehub of the national railroad network, Utrecht is 29

minutes from Schiphol International Airport .Head offices of many national companies, mainly

in the business and financial services sector, aresituated in Utrecht. 15% of all foreign compa-

nies in The Netherlands are based in Utrechtregion e.g. HP, DaimlerChrysler and Capgemini.

Utrecht has a young and highly qualifiedlabour force and a well developed knowledgeand service economy. The city has the largest

and best university of the Netherlands ,ranked 40th of the 500 best universities in

the world. New business and investmentopportunities are numerous, with two

major area development projects underconstruction. It is rated in Shanghai Jiao

Tong University (China) list of Best Uni-versities of the World (2003) ranked as

the best Dutch university and number 40of the best 500 universities in the world.

WEST-HOLLAND

Stretching to Leiden in the North, taking in the famous citiesof The Hague (home to many diplomatic organisations) and

Delft (famed for its porcelain), West-Holland’s big selling point isnot just its close proximity to Schiphol Airport, which is just 25km

to the North East of Leiden (famed for its university and Bio SciencePark). The region’s big selling point is that the area around The Hague is

home to many international companies and EU and UN organisations (as well asthe Dutch civil service) and has huge, multiple ex pat communities and a wide choice

of high quality international schools. Hence the area is not just home to thousands of diplomats but alsoexecutives from Shell, BP, Siemens and KPN, among many others. The area is particularly well known for its chemical, oil

and gas industries and has excellent access to Rotterdam, Europe’s biggest port, as well as Amsterdam.

With reach and focusDo you want to communicate your products or services to a UK or pan-European market?

Mediaplanet is the leading European specialist in creating high qualityand in-depth publications on key industry and market issues in print,online and broadcast.

Please contact Carl-Philip Thunström on 020 7563 8877, e-mail philip.thunstrom@mediaplanetgroup.co.uk or visit our website www.mediaplanetgroup.co.uk

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES 9

As inward investment createsmore and more highly skilled

jobs, Dutch employees are startingto be able to be more selective abouttheir working environment andcompanies with vacancies that onlya select few can fill are starting tooffer extra perks to make theirrecruitment adverts stand out. Asthe Dutch economy continues tostrengthen, the competition for thebest talent is only set to get morefierce.

“ We are starting tosee a little friction in the market for skilled jobs,such as in IT, engineeringand financial serviceswhere some companiesare offering two carsrather than one ”

“Unemployment is around 5.2 percent but that’s come down 1 per centin 2006 and it’s mainly urban, bluecollar workers, particularly in non-Dutch speaking communities,”Leentjes explains.

“We are starting to see a littlefriction in the market for skilledjobs, such as in IT, engineering andfinancial services where some com-

panies are offering two cars ratherthan one. The shortages are notleading to major wage rises yet butI wouldn’t be surprised if we seemore companies offering improvedperks and then we see wages riselater in 2007.”

Local knowledgeIt is not only potential shortages inhighly skilled staff that Leentjesbelieves should prompt foreigncompanies to consider using aDutch recruitment agency but alsothe local knowledge an agency canprovide.

“British and American companiescoming to the Netherlands are sur-prised at the difference in the HRmarket,” he points out.

“Over here it is a lot more difficultto dismiss someone, so we offer theflexibility of short term contractsand we also allow companies to hirestaff who are contracted to us, ratherthan them. This doesn’t tend to applyto the most senior jobs, though,

Dutch recruitment marketshows signs of heating upSigns that the Dutch recruitment market is heating upare already clearly evident, according to Hans Leentjes,General Manager for Manpower in the Netherlands.

� Hans Leentjes, General Manager forManpower in the Netherlands

because if a company can get theright candidate they generally wantto go straight in and employ them sothey have the security of knowingthey have that person on board.”

ExperienceDespite the clamour for staff withthe best experience, companiescoming to the Netherlands still haveto get used to a longer recruitmentprocess. Due to strong employeeprotection laws, Dutch businessesare used to spending six to eightweeks on two or three interviewsand assessment tests to ensure theyhave the right person.

Hence, as with many other aspectsof setting up a business in theNetherlands, Leentjes would advisecompany heads they need to allow alittle more time than they wouldexpect to set aside back home.

DIFFERENT HOLIDAYS

The Dutch may expect a fewmore days holiday each yearbut, despite the close culturallinks between the two coun-tries, there are several differ-ences in national holidays ordays of national celebration.

To begin with the last day ofthe year is ‘Old Year’s Eve’ not‘New Year’s Eve’ and Good Fri-day does not get much atten-tion in comparison to EasterSunday and Monday which areobserved far more widely asholidays.

Also, to make sure her sub-jects have a happy day off onher birthday, Queen Beatrixmoved the national holidayfor her birthday to her moth-er’s on April 30th (April 29thif the 30th is a Sunday) whenthe weather is expected to bebetter.

May 5th celebrates libera-tion from German forces in1945 and, rather surprisingly,the Dutch precursor to SantaClaus, called Sinterklaas handsout presents on December 5th.

A region for the futureLelystad is the young and dynamic capital of thetwelfth province of the Netherlands. It’s less than 40miles from Amsterdam. Almost 40 years ago the firstinhabitants opened the front door of their new houses,built on reclaimed land. Nowadays it is a modern citywith more than 70,000 people. By Jeroen Beuken.

Lelystad, a city on the waterfront,is dynamic, fast growing and

looking to expand. For those lookingbeyond, Lelystad offers opportuni-ties. The city is capable of offeringquality in space: space to work, spaceto live and space to recreate. Lelystadis a city that offers entrepreneurs (andtheir personnel) what they need.

The well organised city offers highquality services to her civilians andbusiness community, like spaciousparcels against favourable prices.Moreover, investments in Lelystadare rewarded with a 20 per centincentive to a maximum of one mil-lion Euros. You can contact the for-eign investment agency atwww.omfl.nl for details on how tobe eligible for this incentive.

Mayor of Lelystad is MargreetHorselenberg: “Lelystad is on the wayto a population of 85,000. That meansthat we give the opportunity to build

houses, villas, yacht-harbours andnew industrial plants. Important fac-tories such as McCain Foods, Marti-nair Catering Services, Giant Europe,Schaap Shipcare (which built the twosuccessful ABN AMRO Volvo OceanRace boats), and Getronics ComputerControl Services are involved in ourdevelopment. Another example ofour creativity is Batavia Stad OutletVillage, the first outlet center in our

country, with more than 1.5 millionvisitors every year. The coming yearswill bring us an airport for Europeanbusiness flights. Lelystad Airport ispart of Schiphol Amsterdam Airport.On the border of the former Zuiderzeewe built up a new city and a newsociety with plenty of space for hous-ing, living, working and recreation.That’s the reason that we can say thefuture is ours.”

SOME FACTS

• Capital of province Flevoland with more than 70,000 inhabitants• Centre of the province considering the presence of a/o. a hospital, the

chamber of commerce, court of justice, life science research institute,etc.

• More than 3600 companies with in total more than 25.000 employees• Spacious parcels situated along the high way A6 to Amsterdam• Car distances to Amsterdam Zuid Oost (32 miles), Schiphol (38 miles)

en Utrecht (38 miles). Also well disclosed road accesses to the eastNetherlands and the northern part of the Netherlands

• Rail connections with Amsterdam Central (35 minutes) en AmsterdamAirport Schiphol (45 minutes).

• Business Airport Lelystad for business flights to more than 1,500 Euro-pean destinations

• www.lelystad.nl www.omfl.nl

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES10

For Greet Brosens the major differ-ences between the Dutch and the

English are the Dutch consider theirjobs to be long term and they expectto be able to work with flexibility.

“The Dutch take working for acompany far more seriously than theBritish,” she says. “While in the UKyou might take a job and then bothsides see how things work out, in theNetherlands employers are far morecareful about making sure they getthe right staff in, they take a lotlonger over the hiring process. Inturn, employees then tend to consid-er they have a long term future withthe company.”

Work life balanceThis future will only turn out to belong term, however, so long as theemployer gives the Dutch employeewhat they crave most, flexibility.

“ The Dutch takeworking for a companyfar more seriously thanthe British”

“There’s a lot of talk of the lifework balance in the UK but in theNetherlands they really act on it, it’ssomething very important to them,”she points out.

“People will always put in theirfull effort over the week and put inthe hours but they expect to beallowed to do this by working flexi-ble hours to make sure they can helplook after the family. It’s very com-

mon, for instance, for a wife andhusband to work four days per week,each routinely taking off a differentday in the week, to ensure there aretwo days where one of them is athome for the family.”

This importance of getting thework life balance right means thatDutch employees expect more daysannual leave per year than theirBritish counterparts. Whereas anemployee in the UK might be happywith something approaching late20s or 30 days off per year, theirDutch counterparts will expect atleast 30 and more than 40 is notunheard of.

“They may not end up taking offall those days and using up theirentitlement,” Brosens points out.“It’s important to a Dutch worker toknow they are there though if theyneed to take time out for their fami-ly. The work life balance really isthat important to them.”

Greet Brosens is well placed to note the difference betweenemploying staff in the UK and the Netherlands. The Belgianborn and bred director at recruitment agency Robert HalfInternational lives in London but commutes to The Netherlands each week for work.

Flexibility, the key toDutch workers

Gustav Mahlerplein 2 1082 MA Amsterdam

the Netherlands www.boekeldeneree.nl

Boekel De Nerée is a leading Dutch business law firm based in Amsterdam and acts for large Dutch and international clients with an emphasis on high-end corporate, commercial and real estate transactions. The firm has a total staff of 350 and employs 160 lawyers consisting of Advocaten and Civil Law Notaries.

Contact: Ferdinand Mason Tel. (31.20) 795 31 93 E-mail: ferdinand.mason@bdn.nl

Your law firm in

the Netherlands

60.0758 Adv_YLF 264x165.indd 1 16-01-2007 11:43:52

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES

The headline figure has been areduction in Corporate Income

Tax, or Corporation Tax as Britishcompanies would better know it,from 29 per cent to 25.5 per cent. Justa couple of years ago the rate hadstood at 35 per cent but today atnearly 10 per cent less, Lovells taxlawyer Pepijn Mutsaerts, points outthe country has done much to makeitself competitive.

“The Netherlands wants foreignbusinesses to set up here and it realis-es it has some very stiff competitionon tax from Ireland and the countriesthat have just joined the EU,” hepoints out.

“So Corporate Income Tax hasbeen reduced to a level where itbecomes more attractive to foreigncompanies.”

R&D bonusThe Netherlands’ government hasalso brought in a new way of boost-ing investment in research and devel-opment by reducing tax on profitsfrom patented goods to just 10 percent.

This low rate of Corporate IncomeTax does not apply to all profit fromintellectual property but rather fourtimes the original investment. Putsimply; if a company invested 100euros in, say, a software programmeor a new widget protected by apatent, it would only be taxed at 10per cent on the first 400 euros profitfrom licensing or selling the technol-ogy. Profits after the first 400 euroswould be taxed at the normal rate(since January 1st this year) of 25.5per cent.

Again, this move has beendesigned to make the country com-petitive against European countries,such as France and Hungary, whohave brought in low tax rates for cor-porate income earned through intel-lectual property.

Cheaper loansNew offices in new countries have tobe financed and so to encourage for-eign businesses to set up in theNetherlands, income from loansmade by the Dutch company’s groupparent are now taxed at 5 per cent.

“ Corporate IncomeTax has been reduced to alevel where it becomesmore attractive to foreign companies ”The rate is designed to appeal tomultinational groups who can findthat loaning a subsidiary set up fundscan leave that fledgling companypaying a high rate of tax because themoney is regarded as income.

Another tax ruling to help compa-nies setting up businesses in theNetherlands, or even relocating to thecountry, is the tax on dividends, orwithholding tax as it is often called.

Like many Western Europeancountries, the Netherlands has taxdeals with many countries aroundthe globe to ensure that if tax is paidon dividends in the Netherlands, thenet figure is not taxed again in theholding company’s country.

Also, the rate of tax on dividendshas recently been slashed to just 15per cent for foreign companies own-ing 5 per cent or more of a Dutchcompany and to just 5 per cent forbusinesses that own more than aquarter of a Dutch subsidiary.

Inspector callsAnother difference in corporate tax,that most tax experts from the Nether-lands would draw a foreign compa-ny’s attention to, is that the Dutch taxoffice has an ‘open door’ policy. Thismeans it is possible, and indeed com-mon, to call up the tax office and gothrough business decisions you arefacing to discuss the tax liability fromeach course of action so planning acompany’s growth can be carried out,hopefully, without any unexpectedtax burdens.

Hence, it is quite common for com-panies setting up in the Netherlands,from abroad, to actually go out oftheir way to chat with their local taxoffice in advance rather than carry onfor a year and then wonder what thetax bill will be like at the end of it.

Reduced business taxAfter celebrating the night before, New Year’s Day cannormally be a little subdued, but this year businessleaders had cause for a double celebration as the government of the Netherlands introduced reducedbusiness tax levels.

LIFE SCIENCE PARK SETS SIGHTS ON TOP SPOT

Just a short drive or train ride away from Schiphol airport Dutch scientists andlocal government officials are building what they hope will become the world’slargest bioscience park. The decision was taken to build the Leiden Bio SciencePark in the 1980s as the Dutch government realised, like many Western Europeancountries, its long term future would lie in the age of the knowledge economy.Hence, not only would the country need to manufacture physical goods, it wouldalso need to become a world leader in the factories of the future, where cells inPetri dishes are harnessed to grow new drugs and vaccines.

The city of Leiden realised it could utilise its proximity to Amsterdam andSchiphol airport (just a ten minute drive away) and combine forces with the wellregarded University of Leiden to form a bioscience park that would set up the areafor a prosperous future in the era of the knowledge economy.

“Our aim is to be the top bioscience park in the world and we’re at about num-ber five at the moment,” reveals Nettie Buitelaar, who heads up the Leiden – LifeMeets Science team which has been set up to manage the park and attract newcompanies to it. “We’ve got a 120 hectare site and the majority of it is still unde-veloped so we have plenty of space if companies want to come to us to build afacility. We are also very open to people who just want to rent a small office orjust desk space, we are open to approaches from companies of all sizes.”

Big namesThe largest of the park’s 50 companies is Centocor which has 1,300 staff. It wasone of the world’s first biopharmaceutical companies and is now a part of Johnsonand Johnson. It is famed, most recently, for developing drugs to combat rheuma-tism. Arguably the park’s most well known product, though, has been Herman, theworld’s first transgenic bull, the Netherlands’ answer to Dolly the Sheep.

A third company, Crucell, is also making a big name for itself around the globe,developing vaccines for ebola and West Nile Disease at the same time as develop-ing single injection paediatric vaccines that make it easier to inoculate children bydoing away with multiple injections and repeat visits to health clinics.

Global name aimFor Buitelaar and her team, the big push now is to get a huge name in the bio-pharmaceutical world to move to the area.

“We’re obviously happy to talk to companies of all size but a big aim for us is toget one or more of the world’s giants to set up in the park,” she reveals.

“We are at a tipping point now with the park where it’s big enough to attract ahuge company, so we think it will only be a matter of time. Other than its location,which is second to none for international flights as well as European road and raillinks, we now have a huge pool of labour talent in and around the park as well assupport services that have grown up around it. So we’ve got the space and canprovide the support a global giant would need.”

� Lovells tax lawyer Pepijn Mutsaerts

11

Courtesy of Amsterdam Airport Area

“That is our motto,” points out Rose-Marie Johnson, Managing Director ofRMS relocation management services.

“We reflect our com-mitment toward

the client’sneeds”.

Should your com-pany choose torelocate to The

Netherlands andtransfer your employ-

ees likewise, they

may well need the services of RMS. “We offer profes-sional assistance with finding suitable office space orhelp settling-in your employees and their families”.

Legal and tax related applications or related docu-ments assistance is available. RMS arranges timely reg-istration of corporate clients and private persons,according to Dutch legal and social rules.

“To help you find the most profitable Dutch tax ben-efits within your specific situation is our goal. Yourexpatriates and their families will be taken care of in amost personal and caring matter: finding the righthomes in the right area, schools, medical services, childbenefits, renting or purchasing a property, the most fit-ting mortgage, opening bank accounts etc.”

It may prove to be an invaluable asset to find a trust-worthy helping hand, a partner with the proper expert-ise, to make your transfer to the Netherlands a smoothone!

To welcome you heartily to a warm temporary home:Holland!

Your People, Our Care

� Rose-Marie Johnson, Managing Director of RMS relocationmanagement services

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES12

These are vitally important pointsthat Wood warns companies

must get right when doing businessin the Netherlands because of thelegal differences between the twocountries.

“It is quite easy for the British togive what the Dutch consider to be acontract but which the British mightconsider to be the basis of a futurecontract,” he points out.

“The Dutch tend to consideragreements reached in conversa-tions to be contractual whereas theBritish look on everything as discus-sions up until the moment a writtencontract is formally signed.

“So British companies need to treadcarefully and be completely openwith their Dutch contacts and make itclear when they consider the contractis a legally enforceable contract andthat any signed statement of intent isjust that, and not a contract.”

As ever when companies in twocountries do business together thereis a pressing need for both parties toagree under which country’s legalsystem the contract will be liable.

“If there is a dispute a lot of costsin terms of a lawyer’s time is spentworking out whose law applies,Dutch or English,” reveals Wood.

“Although there are internationalrules, normally it comes down to com-mon sense. A contract covering goodsdelivered to the Netherlands butcharged in Euros would normally besubject to Dutch law and vice versa ifthe currency is sterling and the goodsspend most of their time in the UK.”

Another important factor is tocheck whose terms and conditionsapply. Every Dutch business has tobe registered with its local Chamberof Commerce and, under this regis-tration, it is normal for it to lodge itsterms and conditions. Hence, whendrawing up a contract it is advisableto check these terms and conditionsto see if they differ from your own.

Even if they are similar, the bestadvice is to make it clear in any con-tract whose terms and conditionsapply, and what those terms andconditions are, so there is no confu-sion further down the line.

In the event of a dispute, the partythat believes it has been mistreatedis likely to try to enforce the contractthrough Dutch law because a courtin the Netherlands has wider powersto freeze a business’s assets, situatedin the Netherlands, earlier on in adispute than a British court.

Another difference between legalstructures in Britain and the Nether-lands is that companies take longer toset up in Holland, and much of thework cannot be done by a lawyer.“You can register a business in the UK,in theory, in just a matter of hours butin the Netherlands the process is morestringent,” says Wood.

“The Ministry of Justice has to vetdirectors of a proposed new compa-ny and it must also be registered withthe local Chamber of Commercewhich can take considerably longerthan in the UK and much of this workhas to be carried out by a notary,rather than the lawyer you may usefor other legal work. The process hasbeen speeded up and often notarieswill be based in the same offices as afirm of lawyers but setting up a busi-ness is not something that happensovernight, as it can in the UK.”

One change that is about to be intro-duced is the relaxation of the rulesrequiring a new Dutch private compa-ny to have on incorporation a mini-mum amount of paid up share capital.

Legal considerationsIn the experience of Andrew Wood, a principal at Steeles (law) and expert in business law in the UK andthe Netherlands, there are two factors that companiesconsidering doing business in Holland have to bear inmind – when do discussions actually constitute a contract and under whose law and terms and condi-tions is a contract subject to?

The Company Loyalty Program

Treat your biz to a bonus.

Enroll at klm.com

and earn free flights with BlueBiz.

� The International Court of Justice inThe Hague

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES 13

� Eric Vermeulen, partner and taxadviser, Mazars

What recent developments in yourfield should they be aware of?

The maximum Dutch CorporateIncome Tax rate has recently beenreduced to 25,5 per cent (34,5 percent in 2004). Dutch withholdingtax on dividends has been reducedto 15 per cent, but can be reducedeven further to 0 per cent if theinvestment is properly structured.

The Dutch government evenintroduced a Special Tax Regime forGroup Financing Companies: as of 1January 2007, there is an optionalbox for interest income. A speciallow effective tax rate of just 5 percent will apply to the difference oninterest received on group companyloans and interest paid. This box isoptional, which allows companiesthat have more inter-companyinterest costs than income to contin-ue deducting their interest costs atthe general tax rate.

The reduced tax rates, the intro-duction of the special regime forgroup financing companies, theabsence of stamp duty and capitaltax and the absence of withholdingtax on interest and royalties, makesthe Netherlands an ideal location forinternational companies.

If you had one tip to offer, whatwould it be?

The Dutch tonnage tax regime offersshipping companies the possibilityto pay Corporate Income Tax basedon the net tonnage of each ship,despite the actual profit. I would rec-ommend that shipping companiescompare the actual tax paid with thetax that would be payable if thisregime was applicable.

� Ruud Bergh, Managing Director,Schiphol Area Development Company

What does the Netherlands have tooffer British companies, as a main-land base?

The Netherlands is centrally situatedin Western Europe, reaching maincustomer markets such as Germany,France and the UK. Access to com-mercial and industrial centres inthese markets such as London, Paris,Brussels, Frankfurt and Hamburg,along with Germany's Ruhr Valley,is easy.

There are more than 50 flightsbetween Schiphol and London on adaily basis and approximately 350million customers can be reachedwithin a 800-mile radius. In addi-tion, the Netherlands has ideal pre-conditions to optimise Europeanlogistics activities, such as a skilled,flexible and multilingual labourforce, logistics expertise andfavourable procedures on customsand taxation.

Combined with the low overallsupply chain costs involved, theNetherlands is an ideal gateway toEurope.

What recent developments in yourfield should they be aware of?

As for the area around AmsterdamAirport Schiphol, plans exist todevelop hundreds of hectares of newbusiness parks, further improvingthe Netherlands as the ideal logisticsgateway for mainland Europe.

Further developments includeplans to turn this area into a multi-modal hub, providing faster andmore efficient access to air, rail, roadand water links. Infrastructure devel-opments include the Noord-Zuidlijn,a new subway line connecting Am-sterdam North, Central Station (bypassing under the river IJ), the citycentre and the South station.

In addition, one should be awareof the language skills of the Dutchworkforce: almost everybody speaksEnglish fluently and in addition asecond language such as German orFrench.

What differences, in general busi-ness, should they be prepared for?

Direct approach: what you see iswhat you get.

� Polo van der Putt, lawyer, Lovells,Amsterdam

What does the Netherlands have tooffer British companies, as a main-land base?

Being a small country with little nat-ural resources, the Netherlands havealways focused on internationaltrade. The Netherlands has an attrac-tive tax regime for foreign compa-nies. Besides that, many commercialcontracts are concluded in the Eng-lish language. Dutch companies areused to the way British companies dobusiness. This international attituderesults in contracts which satisfy theexpectations of both parties.

What recent developments in yourfield should they be aware of?

British companies should be awarethat in the Netherlands the share-holder does not always have the ulti-mate control. The very recent Courtdecision Centaurus & Paulson vStork shows that the interests of aDutch company, its employees andits business partners for long termprofits and stability may prevail overthe short term interest of the share-holders for profit. Therefore Britishcompanies should be careful whenconsidering investments in Dutchcompanies for short term profits.

What differences, in general busi-ness, should they be prepared for?

To British businessmen, the Dutchmay seem to be less eloquent andpolite. The Dutch tend to make theirpoint straightaway. The Dutch areprepared to conclude contracts onthe main terms, without having alldetails completed. For British com-panies, where compliance and pro-cedures seem to play a more impor-tant role, the Dutch may thereforeseem to be a little too careless. Fur-thermore, British companies shouldbe aware that liability can arise forbreaking off negotiations, even ifthere is no signed contract.

If you had one tip to offer, whatwould it be?

Although the Dutch culture mayseem internationally minded, it’simportant to anticipate on locallegal peculiarities in an early stage.For instance the acquisition of aDutch company may require thepositive advice of the Works Coun-cil. If the Works Council is given tooless attention, the Works Councilmay delay an acquisition or evencause an acquisition to be aborted.Therefore local legal advice shouldbe obtained in an early stage, toavoid unpleasant surprises later on.

Ask the panel of experts

Achieving business results is a challenge in itself at the best

of times, but doing so whilst setting up a completely new

operation in a foreign country can be daunting.

Enlisting the assistance of a professional organisation that is well

acquainted in the target market can be a very useful way to quickly get

a foothold and start up the business side of the venture. One such com-

pany that is active throughout Europe, with their base in Amsterdam

in the Netherlands, is Sistenza. Over the past five years, Sistenza has

assisted companies from a variety of countries and industries to estab-

lish their business either in one or many European countries.

Sistenza are experienced international business developers who

assist in building businesses in the information technology, com-

munications and financial sectors. The core of the company consists

of experienced entrepreneurs and business developers with solid

backgrounds from large European, U.S. and Japanese corporations

as well as smaller highly successful niche companies. Sistenza prides

itself with a thorough knowledge of many different languages (such

as Dutch, Italian, Swedish and German) and different business

cultures, together with a geographically dispersed network of pro-

fessionals in the areas of marketing, business management and

commercial support.

Sistenza has built a convincing track record, assisting different

companies with business challenges, including market development,

creation and management of extensive pan-European distribution

channels. In one such case, a European third party sales and distribu-

tion system was set up for a U.S. based computer hardware company.

This involved the complete process of establishing a ‘bridgehead’

organisation in Amsterdam and to manage the European expansion

process. Another client, from Sweden, needed assistance in building a

virtual European sales organisation for their internet software and

services.

Should your business plans include expansion into Europe then

do not hesitate to contact Sistenza to see if they might be able to

assist you in quickly achieving your business goals.

Sistenza B.V. P.O.Box 103 NL-2170 AC Sassenheim The Netherlands

Telephone:+31 252 233 007Email:management@sistenza.com Web:www.sistenza.com

Establishing a business abroad means addressing a number of challenges – not only legal, fiscal, facilities, logistics, and human resources, but also the most important of all – to get thebusiness up and running.

Addressing the challenges of establishing a business abroad

AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET ABOUT BUSINESS IN THE NETHERLANDS,DISTRIBUTED IN THE TIMES14

In the Netherlands employees arefar more protected against the

sack or redundancy than their coun-terparts in America and Britain (thetwo biggest foreign investors in thecountry).

Whereas in the UK it is standardpractice to make somebody redun-dant, the process is only now start-ing to happen in the Netherlands ina process through which employerseffectively buy out an employee’scontract.

Strong rights“Companies have to be aware thatit is very difficult to sack anyonein the Netherlands, worker rightsare far stronger than in the UK,”warns Greet Brosens, Director atRobert Half International recruit-ment consultants.

“Dutch employees know that theyare well protected and will go to

court at the drop of a hat becausethey know they will nearly alwayswin. For this reason, companies arestarting to come to agreements withstaff that are a little like redundancypackages. The norm is they will offeran employee a month and a half, orso, for every year they’ve workedthere and if the employee still isn’thappy this can sometimes rise to twoor three months for every year. Theyeffectively buy back the contract.”

Companies considering this areadvised to pull together a detaileddossier of what lengths they havegone to train the person concernedto perform their job in the mannerexpected of them. If the discussionsthen end up in court, the employerhas some documentation to showhow they tried to help the employee.Without such documentation, acourt is likely to take a dim view ofthe employer.

Pay deals Another difference been the UK andthe Netherlands is the Dutch tradi-tion of collective pay agreements inmost industries. The deals arereached between unions and indus-try bodies and effect across an entiresector. As such, the country could beconsidered to be heavily unionisedbut, at the same time, consensus isnearly always reached and strikesare incredibly rare.

“It can seem a little strange forcompanies coming to the Nether-lands,” notes Hans Leentjes, theGeneral Manager of the Manpowerrecruitment agency in the Nether-lands.

“Most industries will have a col-lective agreement, even the tempo-rary secretaries we have on ourbooks will have an agreement. It’snot a problem, it’s simply a mini-mum, if you want to reward top staffwith a better pay rise, there’s noth-ing stopping you.”

Dutch labour laws and collective agreementsThere is a very good reason why British companiesmoving to the Netherlands can be surprised at howlong it takes for their people on the ground to put theright team in place.

� Dutch employees are far better pro-tected against the sack or redundancythan their counterparts in America andBritain

Utrecht is one of the most innova-tive and creative cities in The

Netherlands. In addition, Utrecht hasa qualitative and diverse offering ofhigh-end office spaces. These areexactly the reasons why a lot ofcompanies in ICT and business andfinancial services have chosen thecity as their place of business.

Excellent accessibilityThe combination of its central loca-tion, excellent accessibility and thefacilities in place has made Utrechtthe meeting point of The Nether-lands. The city has a charming his-toric centre with perfect places fororganising meetings, courses andcongresses. The quality of Utrecht asa place of business was underscoredby an article in the reputable Dutchmagazine Elsevier. This magazineplaces business park Papendorp inUtrecht as the business location thatcontributes most to the Dutch econo-my. Besides the existing office spacesin the region two new office projectswill be built, one of which will incor-porate 720,000 m2 of office space.

Joined forcesTo support companies that are inter-ested in doing business in Utrechtthe province and municipality ofUtrecht have joined forces with sixrealtors. Together they have foundedthe UIA (Utrecht InvestmentAgency). The agency enables facilitymanagers of companies to fullyfocus on their core activities whenthey start surveying possible officefacilities. “The agency is taking careof the information and services thatreal estate organisations usually are

not providing or can not provide,”said Menno de la Vienne, ManagingDirector of this initiative. “UIA sup-plies a custom-made analysis of themarket and/or competitors in thearea. We help a company, as a neu-tral partner and free of costs,throughout the selection process ofan establishment based on the wish-es and requirements of a company.After an organisation has found thissuitable location, the UIA can helpgetting the legal wheels in motion.This process can be swift and effi-cient as the UIA has its direct links toboth the province and the city ofUtrecht and also to the regionalentrepreneurs that can be of help inthe process. “The agency takes pridein an extensive network, consistingof law and accountancy firms, HRMagencies and marketing and adver-tising agencies. New organisationscan benefit of this network.”Utrecht, in the centre

of The Netherlands,open for new businessWith 280.000 inhabitants Utrecht is the fourth biggest Dutch city and the fastestgrowing of these four cities. With its location in the centre of The Netherlands andas the main junction of railway and highway traffic it is an interesting place forcompanies of all kinds. Behind the intimate character lies a limitless ambition.BY TOON VAN OVERBRUGGEN

� Menno de la Vienne, Managing Direc-tor of the Utrecht Investment Agency

Situated in one of Amsterdam’s prime business spots on the banks of the river IJ, the brand new Mövenpick Hotel Amsterdam

City Centre offers 408 elegant and spacious rooms with spectacular views over both harbour and city centre. In the best tradition

of Swiss hospitality the hotel meets today’s business traveller s high demands with 5-star services such as free wireless internet,

24 hour room service and a fully equipped health club. Silk Road Restaurant overlooking the old harbour offers a wide choice of

international cuisine with an Asian flavour. Rather uniquely the hotel adheres to a 100% non-smoking policy.

Please call +31 (20) 519 1234 for more information or check out www.moevenpick-amsterdam.com.

Welcome Home to Amsterdam.

Mövenpick Hotel Amsterdam City CentrePiet Heinkade 11, 1019 BR Amsterdam, The NetherlandsPhone +31 20 51912 00, Fax +31 20 51912 39hotel.amsterdam@moevenpick.com

www.roberthalf.nlJust finance, banking & accounting jobs

Div

isio

ns

of

Rober

t H

alf

Inte

rnat

ional

Inc.

5 offices in the Netherlands

Amsterdam � Den Haag � Eindhoven � Rotterdam � Utrecht