The Netherlands is a country with a rich equestrian culture, making it an attractive location for individuals interested in starting an equine business. If you are considering starting an equine business in the Netherlands, there are several legal considerations that you should keep in mind.
Permits
Depending on the location of your horse stable and the type of business activities you plan to conduct, you may need to obtain a permit from the local municipality. Here are some examples of permits that you may need:
- building permit: if you plan to build new structures or renovate existing structures on your property or buid or renovate stables for your horses, you will most probably need to obtain a building permit from the local municipality.
- environmental permit: for example, if your horse stable is located near protected natural areas (“Natura 2000 areas”), you may need to obtain an environmental permit (“Wnb permit”) to ensure that your activities do not harm the environment.
- fire safety permit: depending on the size and type of your horse stable, you may need to obtain a fire safety permit to ensure that your facility meets fire safety standards.
It is important to note that the permit requirements can vary per location, and it is always advisable to consult with our firm to ensure that your equine business is in compliance with all applicable regulations and permit requirements. For example, if you are purchasing a farm that you want to renovate to a horse stable, it is also important to check the zoning plan (“bestemmingsplan”) of the location to see if it is allowed to perform equine business activities in that area.
Legal structure of your business
In the Netherlands, there are several legal structures available for businesses, including:
- sole proprietorship (“eenmanszaak”) a sole proprietorship is the simplest legal form for starting a business in the Netherlands. It is a business owned and run by a single individual who is personally liable for the debts and obligations of the business.
- private limited liability company (“Besloten Vennootschap” or “BV”): a private limited liability company is a legal entity that is owned by one or more shareholders. The liability of the shareholders is limited to the amount of capital that they have invested in the company. The main advantage of a BV is that it offers limited liability, which means that the shareholders’ personal assets are protected from the debts and obligations of the company. However, a BV requires more legal formalities to set up and operate, and may have higher operating costs compared to other legal structures.
- general partnership (“Vennootschap Onder Firma” or “VOF”): a general partnership is a business owned and run by two or more individuals who share profits and losses. Each partner is personally liable for the debts and obligations of the business.
When choosing a legal structure for an equine business in the Netherlands, the main considerations are liability, tax implications, and administrative requirements. It is important to consult with our firm to determine the most appropriate legal structure for your specific business needs and goals.
Value Added Tax (VAT)
If you run a business in the Netherlands, you may need to charge Value Added Tax (VAT) on your goods or services. New equine businesses frequently encounter a situation where the Dutch Tax Authority requires them to demonstrate that their activities are not merely hobbies but also qualify as economic activities, so that they are eligible to charge VAT on their goods and services and can file a tax return. It’s important to note that failure to meet the requirements of the Dutch Tax Authorities or to comply with VAT regulations can result in penalties and fines. Therefore, it’s essential to ensure that your business, performs economic activities, is registered for VAT, understands the applicable VAT rates, issues correct VAT invoices, and submits timely tax returns to the Dutch Tax Authorities.
Business registration
To establish an equine business in the Netherlands, you will need to register your business with the Chamber of Commerce (“Kamer van Koophandel”). This involves choosing a business name, legal structure and completing the registration process.
Insurance
As an equine business owner, it is important to have liability insurance to protect yourself in case of accidents or injuries. We can help you with determining the appropriate type and amount of liability insurance that your business should carry. If you own the immovable property of the business, it is very important that you have an insurance for the property and the company assets (inventory etc.).
Animal welfare rules
Equine businesses in the Netherlands must comply with animal welfare laws and regulations. These laws cover areas such as the housing, feeding, and care of horses. It is important to ensure that your equine business is in compliance with all applicable laws and regulations. Besides these rules, there are also rules with regard to the identification and registration of horses you might have to comply with.
Contracts
Starting an equine business in the Netherlands can be a rewarding venture, but it also involves a variety of legal considerations. Working with an experienced Dutch attorney can help you navigate the legal landscape and ensure that your business is in compliance with all applicable laws and regulations.
Contact us today to learn how we can help you start and grow your equine business in the Netherlands.
