Tips when starting an extra business activity

1. Adjust your KVK listing

You can add your new activities to your existing business or you can register a new business. Both options have consequences for your KVK registration.

Adding new activities

Do the new activities fit in with what you are already doing? If so, you can add them to your existing business. For example: you run a cycle shop and, as well as selling and repairing bikes, you are now going to start hiring them out too. Or if the work is more or less the same. For example, you are a coach and are now also going to work as an adviser as well.

If you decide to add new activities to your current business, you will have to consider the following:

A new trade name for your new activities

You can have as many trade names (company names) as you want. However, all company names must meet the rules set out in the Trade Names Act.  You can use the KVK Name Checker to make sure the new name you want is not already being used as a business or trade name.

If you have come up with a new or extra name, you need to add it to your registration in the Business Register via My KVK.

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Adjust your business description

Your business description sets out your main business activities. Check whether the description is still accurate now that you have new business activities. If it is not, you need to update your business description. KVK determines which SBI codes best match your new activities. SBI stands for Standard Business Classification and indicates the sector your business falls into.

Do you have several business activities? If so, decide which is the most important, so that you are registered under the correct codes. List the most important activity first.

Who looks at your SBI code?

The government, sector organisations, pension funds, banks, and insurance companies all use your company's SBI code. Any change to your main activity can have consequences for municipal permits or your business bank account. Check the organisation's website to see what steps to take when you decide to change activities.

You can check which SBI code you have by looking in My KVK.

Cost of updating business details

You can update your business details in the KVK Business Register for free. 

Starting a new business

You can also choose to start a new business because, for example:

• Your new activities are risky
• You are going to work together with someone
• You are starting completely different activities

Please note: you are only allowed to own 1 eenmanszaak. If you already have an eenmanszaak  and want to set up a new business, you must choose a different legal structure. A VOF for example, or a BV. 

2. Check the environment plan

Check with your municipality to see if the new activities are allowed under the environment plan. The environment plan brings together the regulations issued by all the relevant authorities. It sets out, for example, whether shops or hospitality establishments are allowed in a particular location, as well as what changes are planned for your local area in the future.

If the environment plan does not allow for your new activity, you might be able to get an environment and planning permit (Omgevingsvergunning, in  Dutch). This grants you an exemption from planning rules. You can also ask the municipality to change the environmental plan.

3. Adjust ongoing contracts

Check the contracts you have taken out in the name of your business. If your business name also changes as a result of your extra activity, you may need to amend your contracts. These include contracts for telephone and internet services, energy, a lease car, and supplies.

If you rent premises for your business, check your tenancy agreement to see whether you may carry out the new activities at this location.

4. Update your terms and conditions and insurance policies

Think about what risks you will run with your new activities. How can you limit them? You might need to update your terms and conditions or draw up an entirely new set of terms and conditions. For example, because different conditions apply to your work in the construction industry than to your work as a photographer. You can file the new or updated terms and conditions with KVK or the court.

Tell the insurance company that provides your your business liability insurance and disability insurance about your new activities. They will tell you if you have to amend your insurance or not. If you do not inform them, your insurer may not pay out if a problem occurs.

5. Apply for an extra business bank account

To prevent mistakes and reduce the risk of fraud, Dutch banks use the IBAN Name Check. Online banking software automatically checks that the International Bank Account Number (IBAN) is the same as the (company) name known to the bank. If the name and number do not match, the payment will be blocked. Banks usually use the first company name for your bank account.

If you send invoices with different company names, open a separate business account for each  name. This prevents confusion among your customers and problems with the IBAN Name Check. Different banks charge different rates for an additional business account. 

6. Update your administration

If you set up a new business for your additional business activities, you must set up a new administration. You do not need to do this if you add new activities to your existing business.

But make sure that, the hours, turnover, costs, VAT, and operating result are clear for each activity. You can do this by keeping track of the income and expenditure for each business activity separately. You will then be able to see your financial position for each business activity.

7. Check your tax arrangements

If your new activities are with your existing company, you only have to file VAT and income tax returns once for all activities together. You can keep using your old VAT ID number and login details.

An extra business activity can have tax consequences (in Dutch). In principle, you do not have to report to the Tax Administration that you are going to carry out new or additional activities. Only do this if you no longer have to submit a VAT return due to changes in your business activities.