Expand to the Netherlands Without Setting Up a Company

Expanding into the Netherlands doesn’t need to begin with incorporation. If you’ve identified commercial potential, a candidate you want to hire, or a project you need to deliver, you can engage people on the ground legally, quickly, and without committing to a Dutch legal entity.

Whether you’re testing the market or securing a specific hire, there is a lawful way to operate without permanent establishment risk, incorporation delays, or regulatory exposure.

Download our guide to understand how international companies enter the Dutch market through compliant employment without setting up a company.

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to understand the key global expansion factors that make the difference between success and failure

If your company is considering hiring in the Netherlands to test revenue potential, secure a local opportunity, retain a key individual, or support a growing European footprint, the first question is not how many people to hire. It is how to hire without creating unnecessary legal and tax exposure.

• What you can and cannot do without a Dutch entity
• How to legally employ people in the Netherlands via EOR
• Why combining immigration and employment is critical
• When to scale through local contracts, and when not to
• How to exit without long-term liabilities.

Dutch employment, tax, and immigration rules are tightly integrated. The structure you choose determines whether you remain flexible or become locked into long-term obligations before the market justifies them.

This guide explains what is possible before you establish a Dutch entity, where the limits are, and how to hire legally while preserving optionality.

What You Can and Cannot Do Without a Dutch Entity

Without a registered legal entity in the Netherlands, you cannot act as the direct employer under Dutch law. That means you cannot:

• issue Dutch employment contracts in your own company name;
• register employees directly with the Dutch tax authorities and social security systems;
• run Dutch payroll or remit wage tax as the employer;
• terminate employees under Dutch dismissal procedures in your own capacity;

This does not mean hiring is blocked. It means the employer role must be handled through a compliant local structure.

Why Setting Up a Company Comes Last, Not First

Incorporating in the Netherlands establishes a full legal and fiscal presence. That step is appropriate once operations are stable, but it immediately triggers obligations, including:

• a registered office, local representation, and corporate filings;
• tax registration and potential VAT exposure;
• payroll, social security, and pension obligations;
• ongoing accounting, reporting, and audit requirements;
• formal dissolution procedures if the business does not scale as planned;

For many companies, these obligations arise before revenue, client traction, or long-term headcount plans are proven. In practice, the first hire often precedes the business case for a permanent establishment.

The Practical Alternative: Employing Through Employer of Record

If you have identified a candidate in the Netherlands or are already working with a contractor whose role has become operational, Acumen International can employ that individual on your behalf through an Employer of Record arrangement.

We become the legal employer in the Netherlands. You retain control over the role, responsibilities, and performance.

This allows you to:

• hire legally without incorporating;
• comply with Dutch labour law from day one;
• avoid early tax, payroll, and pension exposure;
• test the market without committing to a permanent legal footprint;

How Employment via EOR Works in the Netherlands

When Acumen International acts as Employer of Record:

• the employment contract is issued under Dutch labour law;
• the employee is included in compliant payroll with correct wage tax and social contributions;
• holiday pay, sick leave, and statutory benefits are administered correctly;
• termination is handled through lawful Dutch dismissal routes where required;
• pension and sector-specific obligations are applied where applicable;

From an operational perspective, your business directs the work. From a legal perspective, employment obligations sit with the local employer.

This separation matters in the Netherlands, where employee protection, dismissal law, and sickness obligations are strictly enforced.

Immigration and Employment Must Be Managed Together

If the individual you want to hire is not an EU/EEA national, employment and immigration cannot be handled in isolation.

Dutch hiring of non-EU nationals requires:

• a valid work and residence permit;
• alignment between the employment contract and permit conditions;
• correct sequencing so work does not begin before authorisation;

Using an Employer of Record allows employment terms and immigration processes to be coordinated, avoiding situations where someone is contractually hired but not legally permitted to work.

When Employment Is the Right Model

Employment via EOR in the Netherlands is typically appropriate when:

• the role is ongoing rather than project-limited;
• the individual works regular or fixed hours;
• the role is integrated into internal teams or client delivery;
• the individual represents your business externally;
• continuity and retention are important;

It is not the right model when:

• the engagement is genuinely short-term and deliverable-based;
• the individual operates independently across multiple clients;
• there is no operational subordination or integration;

The decision should reflect how the role functions in reality, not how it is labelled contractually.

Exiting Without Long-Term Liabilities

One of the advantages of using an Employer of Record in the Netherlands is controlled exit.

If the role ends or the market does not justify further presence:

• employment can be terminated using lawful Dutch procedures;
• notice, severance, and final pay are handled correctly;
• there is no dormant legal entity to unwind;
• there is no residual payroll, tax, or pension exposure;

This is particularly relevant in the Netherlands, where improper termination and sickness handling are common sources of disputes.

Typical Use Cases We Support

• hiring Dutch-based employees before entity setup;
• converting long-term contractors into compliant employment;
• employing non-EU nationals under lawful work permits;
• testing market presence ahead of acquisition or incorporation;
• scaling cautiously without triggering permanent establishment risk;