Setting Up a Business in the Netherlands: How to Hire Employees

Are you thinking about setting up a business in the Netherlands? Finding and hiring the right employees is one of the most important steps in building your success. Skilled and motivated employees bring the expertise and energy needed to grow your company. However, hiring the right people is not just a single action; it’s an ongoing process.

This guide outlines the key steps to hiring employees when setting up a business in the Netherlands. It will help you navigate local requirements and build a strong team efficiently.

Steps to Hire Employees When Setting Up a Business in the Netherlands

When you start setting up a business in the Netherlands, hiring the right employees becomes one of your first key priorities. The Dutch labour market offers access to highly skilled local and international professionals, but understanding the local hiring rules is essential before making your first hire.

Step 1: Choose the Right Entity when setting up a business

Before you can hire employees, your company must be legally registered. If you’re still setting up your business, you’ll need to register with the Dutch Chamber of Commerce (KvK) and the Dutch Tax Authority (Belastingdienst). Only registered companies can obtain a payroll tax number, which is required to pay employees and withhold taxes.

In some cases, it may not be efficient to create a local entity right away. A simpler solution is to outsource your payroll to a local employer like Octagon Professionals. You can then hire staff under our entity while remaining fully compliant. Octagon is also recognised by the Dutch Immigration Department (IND) as a valid employer for non-EU nationals, which allows you to access global talent without delay.

Step 2: Identify Your Hiring Needs when setting up a business in the Netherlands

Once your business registration is complete, define your goals and determine which roles you need to fill. Every company is different, and understanding your current situation helps you decide whether to hire full-time, part-time, or temporary staff.

Finding a balance between short-term flexibility and long-term growth is key. Some candidates may prefer permanent roles, while others might be open to temporary or freelance work. Below are common contract types in the Netherlands:

If you want to explore these contract types further, you can read Octagon’s detailed guide on employment types in the Netherlands.

Step 3: Attract the Right Candidates

With clear hiring goals, the next step is to attract applicants who fit your needs. Networking often helps you find top talent, but if you are new to the Dutch market, online recruitment is essential.

Here are popular job platforms to use when setting up a business and hiring in the Netherlands:

  • Indeed: The largest job site in the Netherlands, used by over half of all job seekers.
  • LinkedIn: The leading professional network, ideal for skilled workers and specialists.
  • Glassdoor: Great for reaching English-speaking professionals while showcasing company culture.
  • IamExpat Job Board: Targets international candidates and expats looking for roles in the Netherlands.
  • Werk.nl: The Dutch government’s official job portal for local candidates.

Because the Dutch market is competitive, more than 75% of job vacancies are handled by recruitment agencies. Partnering with an experienced recruiter can save your company time, effort, and money.

Octagon Professionals offers full recruitment outsourcing services to support international companies that are setting up a business in the Netherlands. We help you find and assess talent efficiently, ensuring each hire fits your business needs and complies with local regulations.

Step 4: Hiring Non-EU Employees

Hiring international employees adds value to your team, but it also involves immigration requirements. As a recognised IND sponsor, Octagon Professionals can employ highly skilled migrants on your behalf, ensuring all procedures run smoothly.

You can hire a foreign employee in the following cases:

  • Highly skilled migrants contributing to the Dutch knowledge economy.
  • Individuals with residence permits allowing them to work (for example, partners or graduates).
  • Self-employed professionals working under their permit terms.

To bring non-EU employees to the Netherlands, your company must hold recognised sponsor status. Since that process is lengthy and complex, Octagon can act as your employer of record, handling sponsorship, immigration, and the 30% ruling on your behalf.

Step 5: Onboard Your New Hire

Once you’ve found the right candidate, onboarding ensures they integrate successfully. Onboarding includes both administrative steps, like payroll registration, and cultural integration, such as team introductions and training.

Octagon Professionals provides comprehensive onboarding support to help companies set up their HR processes effectively. We help new hires settle into their role by:

  • Connecting them with colleagues and mentors
  • Introducing company policies and expectations
  • Arranging workspaces and equipment
  • Organising team-building events
  • Providing relocation and immigration assistance for expats

Conclusion

Setting up a business in the Netherlands and hiring employees can seem complex at first, but with the right guidance, it becomes a smooth and rewarding process. At Octagon Professionals, our mission and vision are one: to be the trusted HR partner of choice in the Netherlands and beyond, delivering innovative, people-first solutions that help organisations and individuals thrive. 

Ready to start setting up your business and hire your first employees in the Netherlands? Contact Octagon Professionals today to build your team with confidence and grow your business the right way.

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