Starting as a zzp'er: 7 important steps

1. Research: are you cut out to be a zzp'er?

As a zzp'er, you are an independent entrepreneur. Zzp stands for 'self-employed without staff'. In other words, as a zzp'er, you have your own business and no employees. You hire yourself out to various clients. A zzp'er carries out temporary assignments. You are not employed by the clients. The client pays your invoice. The only condition is that you really work as a zzp'er and not someone who is in effect an employee. Learn about the advantages of becoming an entrepreneur, but also about the disadvantages.

Test whether you have what it takes to become an entrepreneur with the KVK Skills Test. For example, how good are you at negotiating, networking, and administration?

Business plan

With a business plan you write your plans down on paper. This increases your chance of success. You investigate whether your plans are feasible. Does your own company generate enough money to cover your costs? Do you need investors or do you start from an unemployment benefit? Take these aspects into account when making your business plan.

Work place

Start your business in a location that suits you. Most freelancers start from home, but there are various possibilities, such as a multi-company building or hiring your own premises.

2. DBA Act and determination of employment

The Employment Relationships Deregulation Act (Wet DBA) is intended to provide clarity to self-employed persons and clients about their working relationship. Are you truly carrying out an assignment as an entrepreneur, or are you a bogus self-employed person? If you are a bogus self-employed person, you do not meet the conditions for being an entrepreneur (in Dutch). This means that you are actually employed and not self-employed.

3. Determine your hourly rate

Self-employed professionals often work with an hourly rate: you charge a fixed price for each hour you have worked. Many zzp'ers find it difficult to determine the right hourly rate. When calculating your hourly rate, you should take into account the income you need, the hourly rates of your competitors, and your experience.

In addition to an hourly rate, you can work with: 

• a project price
  You estimate how long you will be working on the project and charge a fixed price for the entire project.
• subscriptions
  You offer customers the option of purchasing regularly recurring services for a fixed monthly amount.
• results-based rate
  You get paid for the results you achieve. For example, a share of the turnover.

Quick rundown of how to calculate your hourly rate

1. First of all, calculate the minimum monthly amount you need to live on and to pay your financial obligations.
2. Add to this your holiday allowance, income tax, the income-related health insurance contribution, and unforeseen costs.
3. Then calculate your business costs, such as office rent, equipment, business insurance, etc. These are your necessary income and taxes plus business costs.
4. Divide this amount by the number of billable hours.
5. And there you have your minimum hourly rate, the rate you need to avoid making a loss. Your experience and skills are also worth something and therefore also play a role in determining your hourly rate.
6. You can compare your hourly rate with that of your competitors.

4. Minimise your risks

As a zzp'er, you run the risk of having to pay (a lot of) money due to unexpected events. For example, if you cause damage or if a customer holds you liable for a job that takes longer than expected. There are various ways to prevent this.

General terms and conditions

Draw up general terms and conditions to protect yourself from business risks. In your general terms and conditions, you list your and your client's rights and responsibilities.

Insurance

You can take out several types of insurance to cover business risks. We have listed the most important insurances for you:

• Occupational disability
• Business liability
• Professional indemnity

Working securely as a zzp'er

Zzp'ers also have to be aware of security risks, such as fraud and crime. Find out more how to reduce business risks in our Secure business section. 

See what else you can do to manage business risks.

5. Choose your legal structure

Zzp'ers must register with KVK. There you must choose a legal business structure. The legal structure you choose has an impact on your taxes and liability. If you are liable, you must pay for damages and debts. Most freelancers start with an eenmanszaak (sole proprietorship). And in some cases they start with a BV (private limited company). Find out which legal structure suits you with the Tool for choosing a legal structure on Business.gov.nl.

6. Register your company with KVK

So, you want to become a zzp'er? You have chosen a legal structure and come up with a good company name. The next step is making an appointment with KVK to register your company. First, you complete the registration form digitally. On the form, you describe your business activities. That is the work you do as a zzp'er. Next, you can make an appointment online at a KVK office. During your appointment, a KVK employee will determine a suitable SBI code together with you.  As a freelancer it is possible to offer multiple activities.

Do I have to register with KVK?

You can only register with KVK if you meet the criteria for entrepreneurs. See the infographic below to find out how this applies to you.

Registration Tax Administration

After your registration, KVK will pass on your details to the Dutch Tax and Customs Administration. They will send your VAT ID and VAT number by post within 2 weeks.

7. Set up your administration

Your accounts show you how your business is doing. Is enough money coming in? And which customers have not yet paid their invoices? You are legally required to keep an administration. And you have to keep your records for 7 years after you have ended your business. You can outsource your administration or do it yourself. 

Taxes

As an entrepreneur you have to deal with taxes. As a zzp'er, you will probably have to pay turnover tax and income tax. This calculation example shows you how to estimate how much money you need to set aside for taxes.

The Tax Administration determines whether you are an entrepreneur for income tax (in Dutch). If you are, you can benefit from tax schemes for businesses.

Small businesses scheme (KOR)

Do you expect your turnover to remain below €20,000? Then the small businesses scheme (KOR) from the Tax Administration can be useful. You have to register separately for this with the Tax Administration.