Describing Business Activities for your newly formed Dutch business

As a founder setting up shop in the Netherlands, one of your first crucial tasks is accurately describing your business activities. This isn’t just a formality – it’s a key step that impacts your legal standing, tax obligations, and even potential partnerships. At House of Companies, we’ve guided countless entrepreneurs through this process, and we’re here to shed light on the three main areas where you’ll need to articulate your business activities: the Deed of Incorporation, the Chamber of Commerce (KvK) registration, and the Standard Business Index (SBI) codes.

1. The Deed of Incorporation: Laying the Foundation

Your company’s Deed of Incorporation is more than just a legal document – it’s the blueprint of your business. When it comes to describing your activities, precision is key.

Best Practices:

• Be Specific: Clearly outline your primary business activities.

• Think Long-term: Include potential future activities to avoid frequent amendments.

• Use Broad Language: A catch-all phrase like “and all related activities” can provide flexibility.

Examples:

1. E-commerce Startup:“The company’s objectives are to operate an online marketplace for sustainable products, manage the associated logistics and customer service, develop and maintain e-commerce software solutions, and engage in all related activities.”

2. Fintech Company:“The company aims to develop and provide innovative financial technology solutions, including but not limited to payment processing systems, blockchain applications, and AI-driven financial advisory tools, as well as to offer consultancy services in the field of financial technology, and to undertake all activities related to or in support of the aforementioned objectives.”

3. Green Energy Consultancy:“The company’s purpose is to provide consultancy services in the field of renewable energy, conduct research and development of sustainable energy solutions, facilitate the implementation of green energy projects, trade in renewable energy certificates, and perform all other activities that are related or conducive to these objectives in the broadest sense.”

2. Chamber of Commerce (KvK) Registration: Making It Official

Registering with the KvK is your business’s debut on the Dutch economic stage. Here, you’ll need to describe your activities in a way that’s both accurate and comprehensible to the wider public.

Best Practices:

• Be Concise: Provide a clear, brief description of your main activities.

• Use Layman’s Terms: Avoid jargon – your description should be understandable to the general public.

• Highlight Your USP: What sets your business apart? Make it known!

Examples:

1. AI Research Lab:“We develop cutting-edge artificial intelligence solutions to solve complex business problems, focusing on natural language processing and computer vision technologies.”

2. Sustainable Fashion Brand:“We design and sell eco-friendly clothing made from recycled materials, aiming to reduce the fashion industry’s environmental impact while promoting conscious consumerism.”

3. Urban Farming Company:“We create and maintain vertical gardens and rooftop farms in cities, providing fresh, locally-grown produce to restaurants and consumers while promoting sustainable urban living.”

4. Digital Marketing Agency:“We help businesses grow their online presence through tailored digital marketing strategies, including social media management, content creation, and search engine optimization.”

5. EdTech Platform:“We develop interactive online learning tools and courses, making quality education accessible to students worldwide through our user-friendly digital platform.”

3. Standard Business Index (SBI) Codes: Speaking the Language of Statistics

SBI codes are the Dutch equivalent of international NACE codes, categorizing your business activities for statistical purposes. Choosing the right SBI codes is crucial for proper classification and can impact various regulatory and tax matters.

Best Practices:

• Be Thorough: You can select multiple SBI codes to cover all your activities.

• Start Broad, Then Narrow: Begin with the general category, then select more specific subcategories.

• Update as Needed: As your business evolves, make sure to update your SBI codes accordingly.

Examples:

1. Artisanal Bakery with Cafe:

   • Primary code: 10.71 - Manufacture of bread and fresh pastry goods

   • Secondary codes:

     • 56.10 - Restaurants and mobile food service activities

     • 47.24 - Retail sale of bread, cakes, flour confectionery and sugar confectionery in specialized stores

2. Renewable Energy Installation Company:

   • Primary code: 43.21 - Electrical installation

   • Secondary codes:

     • 43.22 - Plumbing, heat and air-conditioning installation

     • 35.11 - Production of electricity

3. Virtual Reality Gaming Studio:

   • Primary code: 62.01 - Computer programming activities

   • Secondary codes:

     • 58.21 - Publishing of computer games

     • 32.40 - Manufacture of games and toys

4. Organic Cosmetics Manufacturer:

   • Primary code: 20.42 - Manufacture of perfumes and toilet preparations

   • Secondary codes:

     • 46.45 - Wholesale of perfume and cosmetics

     • 72.19 - Other research and experimental development on natural sciences and engineering

5. Drone Delivery Service:

   • Primary code: 53.20 - Other postal and courier activities

   • Secondary codes:

     • 51.21 - Freight air transport

     • 62.01 - Computer programming activities (for drone control software)

The House of Companies Advantage: Simplifying Complexity

Navigating these three areas of business description can be daunting, especially for non-Dutch founders. That’s where House of Companies steps in. Our eBranch portal is designed to streamline this process:

1. Smart Deed Generation: Our AI-powered system helps you craft a comprehensive yet flexible description of your activities for your Deed of Incorporation.

2. KvK-Ready Descriptions: We guide you in creating clear, concise descriptions that meet KvK standards and effectively communicate your business essence.

3. SBI Code Matcher: Our intelligent tool suggests the most appropriate SBI codes based on your business description, ensuring accurate classification.

4. Multilingual Support: Navigate the process in your preferred language, with accurate Dutch translations provided where necessary.

5. Future-Proofing: We help you think ahead, ensuring your business descriptions and classifications can accommodate future growth and pivots.

Conclusion: Setting the Stage for Success

Accurately describing your business activities is more than a bureaucratic hurdle – it’s an opportunity to clearly define your company’s purpose and position in the Dutch market. By leveraging the expertise and tools provided by House of Companies, you can ensure that your business starts on the right foot, with descriptions that are legally sound, publicly clear, and statistically accurate.

Ready to articulate your business vision in the language of Dutch commerce? Let House of Companies be your guide. Visit our eBranch portal today and take the first step towards making your mark in the Netherlands!