(On screen text: Business.gov.nl How to start and register a business in the Netherlands Nadia-Jane Bristoll:) [OPENING TUNE] NADIA-JANE BRISTOLL: If you want to set up a business as a foreigner there are several steps you will have to take. Also you need to know about the Dutch market rules for employers and legal forms. With me are Johan Laffra from the Netherlands Chamber of Commerce and Israeli entrepreneur Avishai Trabelsi founder and CEO of Quicargo a business he started in the Netherlands. Welcome to you both, gentlemen. AVISHAI TRABELSI: Thank you. NADIA-JANE BRISTOLL: Good to have you here. When you came to the Netherlands you started Quicargo. What kind of business is Quicargo? AVISHAI TRABELSI: I moved here April 2016. Quicargo is a market place. It is an online platform. It matches empty trucks that are running around the roads to any business that needs transportation. NADIA-JANE BRISTOLL: Was there a gap in the market for filling empty trucks? AVISHAI TRABELSI: Now about 50% of the trucks you see on the roads are completely empty or partly empty. So we have a lot of potential to utilize and improve it commercially but also it is going to improve a lot of the congestion we are having and of course the CO2 and the greenhouse gas. NADIA-JANE BRISTOLL: How did you come up with this idea? AVISHAI TRABELSI: I was managing my family trucking company back in Israel and I had the same problem. We had a lot of empty trucks and the margin was very low. So we needed to fill the trucks to get a better margin on the operation. Once I realized it is a big problem, not only in Israel I decided to quit and start the global Quicargo. NADIA-JANE BRISTOLL: Wow, very interesting. AVISHAI TRABELSI: Thank you. NADIA-JANE BRISTOLL: If you want to start your business here what do you need to know and what do you need to take care of? JOHAN LAFFRA: I would always start with myself. Do I have everything I need to be a successful entrepreneur. Do I have the right skills, the right drive, the motivation to make it a success. Am I willing to go all the way for it. I think that is always going to be the first thing. The second thing is to decide if there is a market. So you need to take a closer look at what is the competition like who are going to be your clients, how many of those are there and will this eventually end up in a successful business. I think that is going to be step two. There might be something to take a look at if you need some sort of financing. Is there money needed to set up? But if that is all taken care of the only thing that remains is registering at the Chamber of Commerce. And from that point on you are ready and set to go. NADIA-JANE BRISTOLL: And if you have done that what do you need to do next? JOHAN LAFFRA: When you did all that and you actually have a business it is time to go out there, start doing the work and start making money. Yes, I think that is it. NADIA-JANE BRISTOLL: And do you need anything else like from the government, like citizen service numbers? JOHAN LAFFRA: That is a part indeed. That is also something you need to take a look at. Of course you need to have a tax number. You need to have a VAT-number. In order to do so you need a personal identification number, a BSN-number. So, there are a few things on the side that need to be taken care of as well. Those are the two important ones. NADIA-JANE BRISTOLL: How did you prepare to enter the Dutch market place? AVISHAI TRABELSI: It started with not stopping to dream about Quicargo like in the last three or two and a half years. Then, once I took the decision, I sold my house, my car and started to invest. The first point you mentioned is to realize that you need to invest a lot in it. That is related to your point. The second thing is that market research is the most important thing. Before we decided to move to the Netherlands I travelled three months around Europe after analysing and research on potential markets to start with. I invested a lot of time in talking to hundreds of companies, experts and logistics professors in Germany, UK, Poland and here. Eventually I just asked the people in the companies. I offered my proposition and here was the fastest reaction to start. Just let's try it and see if it is working. This is how we started. It was a lot of man hours and a lot of phone calls but eventually from the first client it started to be where we are now. NADIA-JANE BRISTOLL: Perfect. And who are your customers? AVISHAI TRABELSI: We are targeting mainly micro small businesses. They actually don't have their own logistic department internally or they don't have a third party that is handling all the logistic flow. We can actually help them to be much more flexible and also commercially in terms of prices. They are saving transport costs but they also have the green impact. As a small company it is not your first priority to be green. But with our system you can actually do it right away without investment. NADIA-JANE BRISTOLL: Perfect. You started the business with employees but you can also start your business as a self-employed person. JOHAN LAFFRA: That is true. NADIA-JANE BRISTOLL: You have different legal forms. What are those forms? What are the options? JOHAN LAFFRA: Mostly we see a lot of people registering either a sole proprietorship or a general partnership. (Tabulation: One-man business(eenmanszaak) Establishment: Free Capital required: None Liability: Personally 100% Governance: Owner) (Tabulation: General partnership(VOF) Establishment: Free Capital required: None Liability: All partners personaly 100% Governance: Partners) Both of those look at you as an individual, as a person. (Tabulation: Private limited company(BV) Establishment: Via notary Capital required: E0,01 Liability: Board Members not personally liable, unless negligent Governance: Executive board) It is also possible to go for a legal form, a legal entity in the Netherlands being a private limited company, also called a BV. Those are the two that we end up with the most. Some people use words like freelancing and zzp which is also a term very widely used in the Netherlands. Those are not specific legal forms. When you start as a zzp or a freelance you either end up with a sole proprietorship or with a BV with you as being the director shareholder. NADIA-JANE BRISTOLL: How do you choose the legal form that suits you best? JOHAN LAFFRA: That depends on your work upfront. There are a few differences. One has to do with taxes. Being a start-up business with a low profit expectation might benefit more from a sole proprietorship. On the other hand there are issues with liability. If you have an activity in which you are highly liable, high risk it could be better to choose for the BV instead that has a limited liability. NADIA-JANE BRISTOLL: Which legal form did you choose and why? AVISHAI TRABELSI: We are a BV and mostly because of our funding terms externally from investors. Once they are investing you must have a legal entity, a BV. JOHAN LAFFRA: Did your investors get shares in your business? AVISHAI TRABELSI: Yes, they have equity in the business. So we are partners. When you are a partner I think it is very important to share equity easily. I don't even know if you can do a partnership without sharing equity. JOHAN LAFFRA: That is also something to look at. With multiple shareholders you need to go with a BV company. The other one isn't option. NADIA-JANE BRISTOLL: When and how do you register your company at the Netherlands Chamber of Commerce? JOHAN LAFFRA: That depends on the scenario. If you want to set up a private limited company you go to a notary and they will take care of it, also with us. So in that case we don't see you at all. If you go for a sole proprietorship or a general partnership you come to our office. You set up an appointment and fill out the paperwork and stop by, either alone or with all partners if there is more than one. AVISHAI TRABELSI: They have good coffee. NADIA-JANE BRISTOLL: Yes? You recommend it? [LAUGHING] NADIA-JANE BRISTOLL: What is the right moment to register? Is there a right moment? JOHAN LAFFRA: I would say when you start doing the business. If you have clients, if you have turnover coming in that would be a point of registration. It does not work like that all the time. At some point you might be a little sooner than the actual starting point. In my experience don't be too soon. Taxes will start and you get a lot of paperwork which is useless if you did not start already. But if you need it for whatever reason or if there are clients nearby then you should have yourself registered. NADIA-JANE BRISTOLL: Of course your business needs a trade name. How do you come up with a good one? JOHAN LAFFRA: I wish I knew. You really need to find something. For some it comes naturally and for another it is really work to get a name that suits what it is that you are going to do. Just keep in mind that you need to be unique. It cannot already be used by someone else. It cannot be misleading in any way. So it needs to be unique. You really need to find one yourself. NADIA-JANE BRISTOLL: Which is not confusing as well. JOHAN LAFFRA: Which is not confusing as well which becomes more and more difficult because we have a lot of businesses in the Netherlands. It is in the millions now. So try to find something that isn't already out there. That is going to be a difficult process, but still you need to find one. If it is not going to work for just you ask your family and friends the people around you who know who you are and what you are about to do. That might end up with some good ideas for a lot of people. It also need to be considered if you want to have a website for your business. That also needs to be a name that is still available as a domain name. Also you should check if your trade name is already registered somewhere as a brand name. If that is the case you cannot use it as well. NADIA-JANE BRISTOLL: Of course. How did you come up with your name? AVISHAI TRABELSI: I used my network, my friends, family and the most creative people I knew to think about three aspects. The first thing is that it needs to be easy to pronounce. You don't want a very difficult one. The second thing is that it needs be international if it is your intention. It is very important because I see a lot of companies with very domestic names. Then it is very difficult to pronounce. They absolutely need to change the name when they go global. And we are all going global of course. The third thing is that you need to explain the values that you are trying to propose to your audience. This is how we came to the name Quicargo. It is quick and easy, very easy to book a shipment. This is how we did it. I have one comment here. The company, the legal entity, can be a different name than the brand name. It is important to give you more flexibility. NADIA-JANE BRISTOLL: I am wondering do you need any qualifications, permits or certificates to start a business in the Netherlands? JOHAN LAFFRA: You don't actually need it for the starting itself. Starting itself is for us to have you come by and register the business. We are not going to ask you for any paperwork at that point. But there are some specific areas in which you still need permits. Transport for one is well-known. Also if you want to start a food and beverage establishment there are also rules and regulations. But it is not something we ask you when you come for registration itself. But in certain areas and professions there are some things you need to have in order to be able to do the activity itself. NADIA-JANE BRISTOLL: You have employees. Do you have Dutch employees or foreign employees or both maybe? AVISHAI TRABELSI: Yes, we are an international team. 80% are Dutch and the rest are from Israel, the United States and Brazil. We relocate people from all over the world in order to realize Quicargo. NADIA-JANE BRISTOLL: It is very international? AVISHAI TRABELSI: Yes. It are important vibes to keep. NADIA-JANE BRISTOLL: Nice. Can you actually run a business from your home address? JOHAN LAFFRA: That depends on the activity. Some you can and some you can't. If it is just you at home at your laptop doing some consulting that is fine to do from home. If you were to sell, a very bad example, fireworks storage at home might not be the smart thing to do. So in my experience it depends on the activity that you have. In some cases it is allowed and in other cases it is prohibited. If you want to know for sure you can check with the municipality to find out if there are any specific limitations. NADIA-JANE BRISTOLL: How do you minimize risks? JOHAN LAFFRA: Be careful with what you do. I think that is the first step. Changing the legal form might help going from sole proprietorship to a BV. That could limit your risks hugely. But also think of insurances, and terms and conditions. Set up good agreements between you and the entity you work with. That limits your risks perfectly I think. NADIA-JANE BRISTOLL: And maybe pension as well? JOHAN LAFFRA: If you want to have some sort of pension when you get old then you should set up something for that as well. The same goes for insurances for sickness and health. If you want to have something if you become work invalid it might be wise to have something set up for that. NADIA-JANE BRISTOLL: How did you set up your network here in the Netherlands? AVISHAI TRABELSI: Network... I started to call. [ALL LAUGHING] AVISHAI TRABELSI: I just speak to the phone with my special accent and I try to introduce myself and the business and where I am coming from why it is important for me to realize it and why I chose the Netherlands. After maybe not hundreds but tens of calls I got the first client and from that moment we got more and more and now we have nearly a thousand businesses registered. NADIA-JANE BRISTOLL: Wow, that is a lot. And did you visit any events? AVISHAI TRABELSI: Yes, we created our brand. We put the names in the events. We also try to find the most influential people in our industry. We approached them a couple of times until they agreed to hear us. And I think what we are trying to do is also important for the environment but also commercially, so it is win win win. A lot of people, including the government are supporting such a project. It was easy for us to promote the positive impact and not something that is purely business and commercial. NADIA-JANE BRISTOLL: Do you have any tips for other entrepreneurs who want to start their business here? AVISHAI TRABELSI: Many, many. [ALL LAUGHING AND INDISTINCT CHATTER] AVISHAI TRABELSI: Even if you have a lean budget it is important not to save on all these administration things and to know exactly the rules in order not to miss anything. So, take a good lawyer and good accountant to make sure that you have the right insurance because we are getting a lot of information for instance involving privacy. You need to make sure you can provide those services. So don't try to do everything by yourself. Focus on your business and have maybe a local company help you with an expert to make it easier, faster and safer. NADIA-JANE BRISTOLL: Very good. Do you have any additional tips? JOHAN LAFFRA: I think he mentioned the most important ones. And get help whenever you need it. So come to us, come to the tax office, hire an accountant and try to get people close-by who can help you in certain areas of expertise. That really helps a lot. Get out there and talk to people. And tell them that you exist, tell them what you do. And go from there. So, go out. AVISHAI TRABELSI: I want to add one more thing. It is my experience from other countries. It is another tip. Here in my experience, the authorities in the Chamber of Commerce but even RVO and different parties were very accessible. So, it wasn't difficult to approach them and ask questions. From my perspective in the past, governmental parties were very difficult. They were not really accessible. So ask your questions and put it on the table. Sometimes you will be surprised that you will get quite efficient answers. This is important to try. Because you first think the government is too difficult to approach. NADIA-JANE BRISTOLL: But it is not? AVISHAI TRABELSI: Apparently not. At least not in my experience. NADIA-JANE BRISTOLL: That is good to know. Gentlemen, thank you so much for all the information. AVISHAI TRABELSI: Thank you very much. NADIA-JANE BRISTOLL: Starting a business requires a number of steps and key decisions. Once you have decided upon your business legal form you can have your enterprise registered at the local Chamber of Commerce. Whether you offer services or products, you will do so at your own risk, expense and with full responsibility towards third parties. Preparing well is the best way to start. The Dutch Chamber of Commerce provides information on starting a business. You are definitely not on your own. Plenty of competent assistance is to be found in the Netherlands business world. (On screen text: Business.gov.nl How to start and register a business in the Netherlands) [CLOSING TUNE]