Doing Business 2018 Netherlands
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Doing Business 2018 Netherlands
Page 1
Doing Business 2018 Netherlands
Economy Profile of Netherlands
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Netherlands
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Netherlands
Ease of Doing Business in DB 2018 Rank
Region OECD high income
190 1
Netherlands
Income Category High income 32
DB 2018 Distance to Frontier (DTF)
Population 17,018,408
0 100
City Covered Amsterdam 76.03
DB 2018 Distance to Frontier (DTF)
0 100
84.06: Denmark (Rank: 3)
80.37: Finland (Rank: 13)
77.46: Regional Average (OECD high income)
76.13: France (Rank: 31)
76.03: Netherlands (Rank: 32)
71.69: Belgium (Rank: 52)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Netherlands
1
1 8
20 20
30
28
52
55 62
69
76
82
Rank
105
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Netherlands
100.00
100 94.28
87.59
84.22
81.58 80.04
80
69.33
58.33 59.94
60
DTF
45.00
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Netherlands
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Netherlands
Starting a Business - Netherlands
Standardized Company
Legal form Besloten Vennootschap (BV)
Paid-in minimum capital requirement EUR 0
City Covered Amsterdam
Indicator Netherlands OECD high Overall Best Performer
income
Procedure – Men (number) 4 4.9 1.00 (New Zealand)
Time – Men (days) 3.5 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 4.4 3.1 0.00 (United Kingdom)
Procedure – Women (number) 4 4.9 1.00 (New Zealand)
Time – Women (days) 3.5 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 4.4 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 8.7 0.00 (113 Economies)
Figure – Starting a Business in Netherlands and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
94.43: Belgium (Rank: 16)
94.28: Netherlands (Rank: 20)
93.28: France (Rank: 25)
93.15: Finland (Rank: 26)
92.50: Denmark (Rank: 34)
91.35: Regional Average (OECD high income)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Netherlands
Figure – Starting a Business in Netherlands – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
3.5 4.5
4
3
Cost (% of income per capita)
3.5
2.5
3
Time (days)
2 2.5
1.5 2
1.5
1
1
0.5
0.5
0 0
1 2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Netherlands
Details – Starting a Business in Netherlands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Check the company name for appropriateness and validity Less than one day no charge
Agency : Chamber of Commerce (online procedure)
As of July 2011, the Chamber of Commerce no longer carries out trade names searches.
However, parties themselves can carry out a check on trade names online on the Chamber
of Commerce website for free.
2 Draft and sign the company’s deed of incorporation that is executed by a 1 day EUR 1,750
civil law notary
Agency : Civil Notary
Notary rates are negotiable and can be billed on the basis of an hourly rate, or a fixed fee.
This varies between notaries. The deed can be signed in presence of the notary or by way
of a written (private) power of attorney.
3 Register the company at the local Chamber of Commerce and obtain a 1 day EUR 50
registration number
Agency : Chamber of Commerce
The registration at the Chamber of Commerce can be done online or in person. If it is
done online, it takes several hours to receive the registration number, and if the
documents are filed in person, it takes 1 to 5 working days. Registration at the local
Chamber of Commerce is mandatory. There is a registration fee of EUR 50. The payment
of the fee can be done in cash, wire transfer and bank draft. Usually an invoice arrives by
mail from the Chamber, and the preferred method of payment is by wire transfer.
The registration process can be completed online if it is done through a notary; however,
for registration applications completed through the Chamber of Commerce, the business
owner will submit the required documents online and then physically go to the Chamber
of Commerce in person for identification purposes.
After incorporation of the company, the founders of the company are jointly and severally
liable for each legal act performed during their management and which binds the
company in the period between execution of the deed of incorporation and the
registration at the Chamber of Commerce has been affected. Publication in the
Netherlands Official Gazette (Staatscourant) of the first registration and certain
subsequent registrations is required and will be made by the Chamber. Companies with
more than 50 employees must have a properly constituted workers council. The workers
council representatives are entitled to participate in discussions and give advice on
important company matters.
4 Register with the local tax authorities and social security authorities 1 day no charge
Agency : Local Tax Authority
The registration form can be filed in a day but it will take 2 to 6 weeks for the tax office
to provide the required tax numbers. For income tax, a separate registration form must be
filed, which can also take 4 weeks.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2018 Netherlands
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2018 Netherlands
Dealing with Construction Permits - Netherlands
Standardized Company
Estimated value of warehouse EUR 2,024,268.30
City Covered Amsterdam
Indicator Netherlands OECD high Overall Best Performer
income
Procedures (number) 13 12.5 7.00 (Denmark)
Time (days) 161 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 3.7 1.6 0.10 (5 Economies)
Building quality control index (0-15) 10.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Netherlands and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
86.79: Denmark (Rank: 1)
79.29: France (Rank: 18)
75.74: Finland (Rank: 37)
75.36: Belgium (Rank: 39)
75.14: Regional Average (OECD high income)
69.33: Netherlands (Rank: 76)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Netherlands – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
160 3.5
140 3
Cost (% of income per capita)
120
2.5
Time (days)
100
2
80
1.5
60
1
40
20 0.5
0 0
1 *2 3 4 5 6 7 8 9 10 11 12 13
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2018 Netherlands
Figure – Dealing with Construction Permits in Netherlands and comparator economies – Measure of Quality
15 14.0
12.0
11.0 11.4
Index score 10.0 10.0
10
5
0
Netherlands Belgium Denmark Finland France OECD high income
Details – Dealing with Construction Permits in Netherlands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain report on the soil conditions from soil researching company 30 days EUR 9,650
Agency : Soil Researching Company
The soil on which a building is to be constructed should not be contaminated. If a soil
report is not available, soil testing must be conducted. The soil testing should be
performed before requesting a building permit.
2 Hold a consultation with the municipal authorities 15 days no charge
Agency : Municipality
An appointment request is made online to meet with one of the building inspectors. The
consultation is free of charge. While this appointment is not mandatory, it is advisable to
check that all the requirements for the permit are met. They will also check whether the
zoning plan allows for the construction of a warehouse in the proposed location.
3 Submit a request for a building permit to the Municipal Executive (Mayor 98 days EUR 64,574
and Aldermen)
Agency : Municipal Executive (Mayor and Aldermen)
As of October 1, 2010 an online system www.eherkenning.nl/ was implemented which
allows uploading of all documents to request a building permit, as well as following up
on the request.
At the same time, several types of permits were combined into one General
Environmental Law (Wet algemene bepalingen omgevingsrecht- Wabo). All different
types of building permits (e.g., building permit, demolition permit, a permit to cut down
trees, etc) are now combined into one environmental permit.
The Municipality has 8 weeks to decide on the permit and another 6 weeks to finalize the
permit. If the building does not fit into the zoning scheme, the procedure to obtain the
permit will take 26 weeks.
There are exceptions in particular cases for which the procedure takes 26 weeks:
• Application for a specific fire-safe utilization of a building
• Application for a building in which an enterprise is going to start with production
processes that are harmful for the environment
• Application for a building that does not fit into the zoning scheme
• Application for a building permit concerning a renovation of a cultural heritage building
4 Notify Municipality if there is a heating installation 0.5 days no charge
Agency : Municipality
The notification is pursuant to the municipal heating regulations (Verordening
Stookinstallaties). The regulations establish technical and environmental rules with which
the installation should comply.
5 Notify building inspector two days before construction work begins 0.5 days no charge
Agency : Building Inspection Department
For each of the following activities, an independent notification is required:
• The start of construction work, including excavations
• The start of foundation activities
• The start of soil consolidation activities
Furthermore, the building inspection office should be notified at least one day before the
start of concrete pouring. This inspection can be carried out on site.
6 Request and receive inspection at foundation stage 1 day no charge
Agency : Building Inspection Department
There are one or two inspections at the foundation stage.
7 Request and receive inspection at roof stage 1 day no charge
Agency : Building Inspection Department
There are one or two inspections at the roofing stage.
Page 11Doing Business 2018 Netherlands
8 Notify building inspector upon completion of work 0.5 days no charge
Agency : Building Inspection Department
If a permit is required for the use the building, the building inspector must be notified
when part of the construction has been completed, such as when the connection to the
sewer system has been made, or when all the work has been completed. Notification must
be given upon completion of construction work in order to be granted a permit to use the
property. If inspections show that the building has not been constructed in accordance
with the building permit, an occupancy permit cannot be issued.
9 Notify Fire Department upon completion of work 0.5 days no charge
Agency : Fire Department
10 Receive final inspection 1 day no charge
Agency : Municipality
11 Request water connection 6 days no charge
Agency : Vitens N.V.
12 Receive inspection for water services 1 day no charge
Agency : Vitens N.V.
13 Pay and obtain water connection 21 days EUR 370
Agency : Vitens N.V.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2018 Netherlands
Details – Dealing with Construction Permits in Netherlands – Measure of Quality
Answer Score
Building quality control index (0-15) 10.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 3.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 2.0
(0-2) various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 0.0
What are the qualification requirements for the professional responsible for verifying that the There are no 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) specific
requirements.
What are the qualification requirements for the professional who supervises the construction There are no 0.0
on the ground? (0-2) specific
requirements.
Page 13Doing Business 2018 Netherlands
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
income per capita) warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 14Doing Business 2018 Netherlands
Getting Electricity - Netherlands
Standardized Company
Price of electricity (US cents per kWh) 10.8
Name of utility Liander
City Covered Amsterdam
Indicator Netherlands OECD high Overall Best Performer
income
Procedures (number) 5 4.7 2 (United Arab Emirates)
Time (days) 110 79.1 10 (United Arab Emirates)
Cost (% of income per capita) 29.5 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff index (0-8) 8 7.4 8.00 (28 Economies)
Figure – Getting Electricity in Netherlands and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
90.21: Denmark (Rank: 16)
88.97: Finland (Rank: 20)
85.89: France (Rank: 26)
84.44: Regional Average (OECD high income)
81.58: Netherlands (Rank: 52)
67.30: Belgium (Rank: 103)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 15Doing Business 2018 Netherlands
Figure – Getting Electricity in Netherlands – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
35
100
30
Cost (% of income per capita)
80 25
Time (days)
20
60
15
40
10
20
5
0 0
1 *2 3 *4 *5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Netherlands and comparator economies – Measure of Quality
8 8 8 8
8 7.4
7
7
6
Index score
5
4
3
2
1
0
Netherlands Belgium Denmark Finland France OECD high income
Page 16Doing Business 2018 Netherlands
Details – Getting Electricity in Netherlands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Liander and receive quote 20 calendar days EUR 0
Agency : Liander
Details: The customer can apply for an electricity connection with the utility, Liander,
online at www.aansluitingen.nl, in person, by phone, mail or fax.
The customer will need to attach the following documents to their application:
location of building to public road and the exact location of the utility.
The utility then prepares and calculate the connection fees.
No inspection of the entire internal wiring is carried out during the process, but the
electrician/electrical contractor, in charge of the internal wiring, will need to submit a
notification to Liander stating the installation has been carried out according to the
regulations.
2 Obtain external inspection by Liander 1 calendar day EUR 0
Agency : Liander
If there are no maps for the area where the building is located and thus a site inspection is
necessary, Liander will inspect the site to determine the specifics of the connection. The
client does not need to be present during the inspection.
3 Obtain external works from Liander’s contractor 90 calendar days EUR 11,961
Agency : Liander
Liander will sub-contract the works to a private firm. In this case, the works
consist of laying out a cable from the warehouse to the closest supply source.
A standard connection is a connection for a house or a small company with a
length up to 25 meters. Connection fees are fixed and set by the ACM (Autoriteit
Concument & Markt) and include the physical works for a connection up to 25 meters.
Beyond the 25 meters additional costs apply, depending on the distance.
Liander distinguishes between 3 categories of connections: households and small
businesses (loads of up to 3 x 80 Ampere); large businesses and small industrial (between
3 x 80 Ampere and 2 MVA); large industrial (over 2 MVA). The assumed case fits into
the second categor.
Before the electricity can be turned on, the client will need to show the relevant agency
(Liander) a copy of the supply contract. (Nowadays this is carried out by using electronic
communication.) This is done during the execution of the works and therefore gives no
additional delay of the process.
4 Sign contract with electricity supplier 7 calendar days EUR 0
Agency : Supplier
In the Netherlands, the electricity market is free. Liander is a distributor of electricity, but
not a provider. Therefore, in order to obtain electricity, the client will need to choose and
sign a contract with one of many suppliers.
5 Obtain meter installation by meter company or Liander 7 calendar days EUR 0
Agency : Liander or meter company
The customer can choose a meter company to install the meter for them,
as for example Liander’s own meter department.
Before the electricity can be turned on, the client will need to show the relevant agency
(Liander) a copy of the supply contract. (Nowadays this is carried out by using electronic
communication.) This is done during the execution of the works (procedure 3) and
therefore gives no additional delay of the process
Takes place simultaneously with previous procedure.
Page 17Doing Business 2018 Netherlands
Details – Getting Electricity in Netherlands – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.6
System average interruption frequency index (SAIFI) 0.3
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.1
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.consuwij
zer.nl/energie
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 18Doing Business 2018 Netherlands
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â—
Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 19Doing Business 2018 Netherlands
Registering Property - Netherlands
Standardized Company
Property value EUR 2,024,268.30
City Covered Amsterdam
Indicator Netherlands OECD high Overall Best Performer
income
Procedures (number) 5 4.6 1.00 (4 Economies)
Time (days) 2.5 22.3 1.00 (3 Economies)
Cost (% of property value) 6.1 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 28.5 22.7 29.00 (Singapore)
Figure – Registering Property in Netherlands and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
89.88: Denmark (Rank: 11)
80.73: Finland (Rank: 27)
80.04: Netherlands (Rank: 30)
76.81: Regional Average (OECD high income)
60.69: France (Rank: 100)
51.40: Belgium (Rank: 138)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Netherlands – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
2.5 7
6 Cost (% of income per capita)
2
5
Time (days)
1.5
4
3
1
2
0.5
1
0 0
1 *2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 20Doing Business 2018 Netherlands
Figure – Registering Property in Netherlands and comparator economies – Measure of Quality
30 28.5
26.5
24.5 24.0
25 22.5 22.7
Index score
20
15
10
5
0
Netherlands Belgium Denmark Finland France OECD high income
Details – Registering Property in Netherlands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Notary conducts a title search at the Land Registry Less than a day 1. Title search:
Agency : Cadastre, Land Registry and Mapping Agency (online procedure; (disbursements,
According to Dutch Civil Code it is mandatory to hire a civil law notary to perform the simultaneous with charged by the Land
registration process of property in the Netherlands. The civil law notary will conduct a procedure 2) Registry):
title search at the Land Registry to check for ownership and encumbrances before
- EUR 2.4 per
executing the deed. Art 84 Book 3 Civil Code states that for a legally valid transaction
registered title;
the seller should have the right to dispose, which is one of the major elements of a
- EUR 2.4 per
property right. For such transactions a notarial deed is compulsory ('authentic deed');
therefore the notary checks whether the seller is indeed the owner. It is mandatory in the cadastral map;
professional rules of the National Association of Notaries. Notaries can consult the land - EUR 2.4 per
register by an on-line system, called the Automatic Cadastral Registration (AKR), but cadastral extract (x2)
only regarding some aspects. The deeds and other registered documents from 1998 (per cadastral parcel
onward are online accessible. Since December 2009 all deeds are digitally available (first two extracts are
deeds 1832). Extracts from the cadastral map showing the relevant properties are also required, one
available online. To obtain all relevant information takes a few minutes. A notary can ask regarding the
the Land Registry Office to find out the history and numbers of a parcel. If a cadastral ownership and one
parcel has been changed (e.g. a parcel is divided in 2 new parcels), the parcel will be
regarding the
given a new, unique parcel number. The civil law notary then drafts the deed of transfer.
mortgages and
Some notaries charge by the hours of work they spend on the case, others charge as a
attachments – even if
percentage on the value of the property. An average fee is estimated between EUR 1,000
the property has no
and 3,500. Preemption rights ('Voorkeursrecht') only applies in exceptional cases, for
properties located in the Municipalities Preferential Rights Act ('Wet voorkeursrecht mortgages).
gemeenten') or for ground leases (as opposed to freehold).
2. Notarial fee (inter
alia including the
work mentioned
above under
procedure 1):
EUR 1,000-3,500
Final check: no cost
Page 21Doing Business 2018 Netherlands
2 Notary conducts a search on the representation of the parties Less than a day 1. Research
Agency : Trade Register ('Kamer van Koophandel' - www.kvk.nl) (online procedure; regarding the
For companies the notary must conduct an on-line research with the Trade Register with simultaneous with representation of the
respect to specific information of the company (such as address, managing directors). procedure 1) buyer and purchaser:
From July 1, 2012 all notaries are obliged to check addresses in the Dutch national online
(disbursements,
address database 'Basisadministratie Adressn en Gebouwen (BAG)'. The central database
charged by the
was designed to prevent individuals from using fake addresses.
Chamber of
Commerce)
The articles of association cannot be checked on-line. The civil law notary can have these
sent to him by mail or fax. It is to identify who is authorized to legally bind the company. - EUR 15 (hard copy),
This procedure is mandated by the Manual that was adopted in May 2009 by the EUR 7.50 (soft copy)
Association of Notaries (internal rules). The May 2009 Manual explains how to apply the and EUR 3.05 (online
"August 2008 Law against Whitewashing and Financing of Terrorism" (referred to as the review) for annual
"WWFT" law). Article 11 of the law is related to identifying and verifying the identity of accounts (of each
people. In Section B of the Annex (page 3), the text refers to "article 4, para 2 of the company);
Executive Decree to the Law", which states that "to identify companies registered in the - EUR 2.65 (online
Netherlands, an extract from the trade registrar is a sufficient document."
review) for names of
legal representatives
(of each company); "
The notary will also check the Insolvency Registry, which is a public register held by the
courts, in which everybody (including companies) who has been declared bankrupt can
be found. He checks both buyer and seller at the time of signing the deed and the 2.Research regarding
registration with the Land Registry. This is not mandatory but necessary to know whether the representation of
seller or buyer do not have the right to dispose and to bind, because of registration in the the buyer and
register. It is described in the professional rules of the National Association of Notaries. purchaser:
(disbursements,
This checking is done online at www.faillisementen.com. Only subscribers can access charged by the
this site and the annual membership fees are 175 Euro. Online checking of insolvencies Chamber of
can be done as well on http://insolventies.rechtspraak.nl which is part of the website of
Commerce)
the Dutch courts and checking this register is free of charge.
- EUR 7.50 (hard
copy) and EUR 2.65
(online review) for the
articles of association
(of each company);
- EUR 15 (hard copy),
EUR 7.50 (soft copy)
and EUR 3.05 (online
review) for an
authenticated
commercial extract
(of each company);
3 Execution of the transfer deed Less than a day Transfer Tax: 6% of
Agency : Civil law notary (online procedure) property value
The notarial deed of transfer must be drawn up by a notary and signed by the latter and
both parties. Before signing, a notary is required to investigate the title to the property
and the seller’s power to dispose of it in the public registers. The notary must provide for
a transfer free of mortgages and attachments, this requires the cooperation of third parties
and the retrieval of information other than that provided by the Land Registry. The
authorized persons will either have to appear before the notary or must have granted
power of attorney. After the deed has been registered with the Land Registry Office, a
civil law notary must carry out the post registration check in order to detect any potential
change between the execution and the registration of the deed. As the evidence of the
registration is sent by internet, just after the electronic submission following execution of
the transfer deed, this check can be done immediately.
4 Registration of deed Less than a day - EUR 150 for regular
Agency : Cadastre, Land Registry and Mapping Agency (online procedure) registration; EUR 126
Every notary deed must be registered with the Land Registry ('ingeschreven'). This can by semi automatic
be done through the internet (the notary does not need to go to the land registry or registration; EUR 77
'kadaster').
for fully automatic
The registration fee of the Land Registry depends on the way the deed is submitted to the
registration
Land Registry: Land Registry costs in 2014 amount to EUR 192.- for regular registration
- EUR 2.40 for post-
(= sending paper version of deed by mail), EUR 168 for semi automatic registration (=
sending pdf-file of deed by email) and EUR 103.- for fully automatic registration (= registration check.
sending data file with essentials of transfer only).
Page 22Doing Business 2018 Netherlands
5 Registration with Tax authority, Department Registration Less than a day Already paid in
Agency : The Ministry of Finance, Tax authority, Department Registration (online procedure) Procedures 3
(www.belastingdienst.nl)
Registration with the Ministry of Finance, Tax Authority, Department Registration is
done online: www.belastingdienst.nl This is the official register of the Department
Registration. Each notarial deed has to be registered within 10 days with the Tax
Authority who checks the deed for taxable aspects. The transfer tax is paid to the civil
law notary, who will pay this tax to the Tax Authorities after registration. The transfer tax
is 6% or 2% of the total purchase price or the market value, whichever is higher. Also, or
instead of transfer tax, sometimes VAT is applicable. It is 21% regarding property. This
depends, inter alia, on the status of the property and the fact if the seller is a VAT-
entrepreneur. They do not keep a copy but give a statement that the deed involved is
checked on a certain date. The deed itself is then returned with that statement to the civil
law notary.
Takes place simultaneously with previous procedure.
Page 23Doing Business 2018 Netherlands
Details – Registering Property in Netherlands – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 28.5
Reliability of infrastructure index (0-8) 7.0
What is the institution in charge of immovable property registration? Kadaster
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Kadaster
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Single database 1.0
or mapping agency kept in a single database, in different but linked databases or in separate
databases?
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 6.0
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: www.kadaster.nl
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.kadast
er.nl/web/artikel/d
ownload/Tarieven
-per-1-januari-
2016.htm
Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access: https://www.kada
ster.nl/kwaliteitsh
andvest
Is there a specific and separate mechanism for filing complaints about a problem that Yes 1.0
occurred at the agency in charge of immovable property registration?
Contact information: https://www.kada
ster.nl/web/artikel
/klantenserviceart
ikel/Bezwaren-
en-klachten.htm
Are there publicly available official statistics tracking the number of transactions at the Yes 0.5
immovable property registration agency?
Number of property transfers in the largest business city in 2016: There were
214,793 property
transfers in the
Netherlands in
2016
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