THE NETHERLANDS Doing Business in the European Union 2021: Austria, Belgium and the Netherlands Comparing Business Regulation for  Domestic Firms in 24 Cities in Austria, Belgium and the Netherlands  with Other European Union Member States with funding by the European Union © 2021 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The sole responsibility of this publication lies with the author. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Used with permission; further permission required for reuse. i Contents Doing Business in the Netherlands................................................................................................. 1 Main findings.........................................................................................................................................................................3 Dutch entrepreneurs operate in a homogeneous regulatory framework, but their experience dealing with business regulation varies at the local level........................................................................................................................................................3 Subnational differences highlight opportunities for cities to learn from each other....................................................................4 The time to do business varies widely across the country, but the overall quality of regulation is uniform........................5 Good performances exist across the country.........................................................................................................................................6 What’s next?......................................................................................................................................................................... 6 Replicating domestic good practices would improve the Netherlands’ scores for the ease of enforcing contracts and dealing with construction permits...............................................................................................................................................6 The Netherlands can also look to other EU member states and beyond for good practices....................................................7 Starting a Business .............................................................................................................................................................. 9 The process of starting a business is uniform, but the cost varies across the 10 cities benchmarked..................................9 It is easier and faster to start a business in the Netherlands than the EU average....................................................................10 Entrepreneurs complete five procedures and wait nine days to start a business.......................................................................10 What can be improved?.................................................................................................................................................................. 12 Dealing with Construction Permits.....................................................................................................................................16 Dealing with construction permits is easiest in Middelburg and hardest in Enschede............................................................ 16 On average, Dutch cities lag their EU peers on measures of efficiency and quality in construction permitting.............. 16 Dealing with construction permits in the Netherlands involves 11 common steps................................................................... 16 Despite national legislation, the number of procedures ranges from 13 to 16............................................................................. 17 Construction permitting is fastest in Groningen, Middelburg, and Rotterdam, and slowest in Enschede and The Hague..... 18 Building permit fees represent the largest source of variation in cost across cities.................................................................. 19 What can be improved?................................................................................................................................................................. 20 Getting Electricity............................................................................................................................................................... 24 Obtaining an electricity connection in the Netherlands takes longer but costs significantly less than the EU average..... 24 Entrepreneurs benefit from a standardized process, but variations exist in the time and cost to get an electricity connection................................................................................................................................................................................................ 25 The Netherlands has a reliable grid, and its robust regulatory framework reflects good practices..................................... 27 What can be improved?................................................................................................................................................................. 28 Registering Property........................................................................................................................................................... 30 The Dutch land registry is a centralized, deed-based system in which notaries and registrars play a key role .............. 30 Registering property in the Netherlands is fast but relatively expensive..................................................................................... 30 Four of the five steps to transfer property are conducted online.................................................................................................... 30 The Netherlands’ streamlined and fast process to register property is the result of a series of reforms............................31 Investments in digital infrastructure has paid off, especially in times of crisis.......................................................................... 32 What can be improved?..................................................................................................................................................................33 Enforcing Contracts............................................................................................................................................................ 35 Court efficiency varies across the country, but all courts lag on the quality of judicial processes....................................... 35 Commercial disputes follow a straightforward and consistent process across the country...................................................... 35 Enforcing contracts is fastest in Eindhoven but cheapest in Middelburg.................................................................................... 37 What can be improved?.................................................................................................................................................................40 City Snapshots and Indicator Details............................................................................................47 Acknowledgments........................................................................................................................68 ii Doing Business in THE NETHERLANDS Groningen Amsterdam Enschede The Hague Utrecht Arnhem Rotterdam Middelburg Eindhoven Maastricht Back to Contents 2 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Doing Business in the Netherlands benchmarks business regulation applying to small and medium enterprises in 10 cities (Amsterdam, Arnhem, Eindhoven, Enschede, Groningen, The Hague, Maastricht, Middelburg, Rotterdam, and Utrecht) across five Doing Business areas (starting a business, dealing with construction permits, getting electricity, registering property, and enforcing contracts). Eindhoven and Middelburg place consistently in the top five across indicator areas. Maastricht leads in getting electricity, Middelburg in dealing with construction permits, and Eindhoven in enforcing contracts. Five cities rank among the top half in at least two indicators and among the bottom half in at least two others, suggesting that they have something to teach and something to learn from their neighbors. Subnational score variations are most significant in the ease of dealing with construction permits, enforcing contracts, and getting electricity. These disparities can help policy makers identify which cities have good practices that other cities can adopt and improve without major legislative overhaul. Cities perform homogeneously in starting a business and registering property. The regulatory framework for the five areas is set at the national level and applies across all Dutch cities. All locations score the same on quality components of the Doing Business indicators. They obtain the highest score globally for the quality of the centralized land administration framework (registering property). Replicating local good practices can boost the Netherlands’ competitiveness, especially in dealing with construction permits and enforcing contracts. In starting a business, getting electricity, and registering property, the country can also look elsewhere in the European Union and globally to improve its business regulation. Time is the main source of variation among the performances of the Dutch cities benchmarked. Firms in Utrecht spend more productive hours complying with regulatory requirements than elsewhere in the country—four months more than their peers in Eindhoven. Back to Contents DOING BUSINESS IN THE NETHERLANDS 3 S mall and medium enterprises Doing Business provides objective mea- (SMEs) play an important role in sures of business regulations and their MAIN FINDINGS the Dutch economy, representing enforcement across 191 economies. It is 99.8% of the country’s enterprises and founded on the principle that economic Dutch entrepreneurs operate employing 63.8% of the workforce. activity benefits from clear rules: rules in a homogeneous regulatory SMEs in the Netherlands generate EUR that allow voluntary exchanges between framework, but their experience 240 billion annually, or 62.3% of total economic actors, set out strong property dealing with business regulation value-added, almost 6 percentage points rights, facilitate the resolution of com- varies at the local level higher than the EU average (56.4%).¹ mercial disputes, and provide contractual The regulatory framework for the five The Dutch government supports SMEs partners with protections against arbi- areas is set at the national level and by providing an extensive network of trariness and abuse. Such rules are much applies across all 10 cities. All locations agencies, including the Netherlands more effective in promoting growth and score the same on quality components.5 Enterprise Agency (Rijksdienst voor development when they are efficient, Processes are homogeneous across the Ondernemend Nederland, RVO), which transparent, and accessible to those for Netherlands for starting a business and aims to facilitate entrepreneurship, whom they are intended. Regulations registering property, unsurprising given access to funding, networking, and must be implemented properly to make the high level of centralization in these compliance with laws and regulations. it easier for entrepreneurs to do business. areas. More variation exists in dealing with The Netherlands Chamber of Commerce construction permits, getting electricity, (Kamer van Koophandel, KVK), which This report highlights divergences in and enforcing contracts, either because informs and supports entrepreneurs regulatory performance—including in local authorities and agencies can regu- at the local level through 18 agencies the implementation of the regulatory late further or because national rules are located across the country, also plays framework at the local level—among 10 implemented inconsistently across cities. a critical role. The Netherlands offers Dutch cities: Amsterdam, Arnhem, Eind- regulatory incentives to encourage local hoven, Enschede, Groningen, The Hague, Six of the benchmarked cities top the and foreign investors to establish and Maastricht, Middelburg, Rotterdam, and ranking in at least one measured area, operate businesses. For example, the Utrecht.4 It analyzes the regulatory hur- with Eindhoven and Middelburg placing government abolished the EUR 18,000 dles faced by entrepreneurs and suggests consistently among the top five cities minimum capital requirement² to sup- ways to make it easier to do business across all five regulatory areas (table port small business creation. Despite across the five areas benchmarked by 1). Conversely, Utrecht ranks consis- these efforts, the Netherlands performs providing good practice examples from tently in the bottom half. Five other cit- below the EU average for the ease of the Netherlands and other EU member ies—Amsterdam, Arnhem, Enschede, doing business.³ states. Maastricht, and Rotterdam—rank among TABLE 1  Six benchmarked cities top the rankings in at least one area Dealing with Starting a business construction permits Getting electricity Registering property Enforcing contracts Rank Score Rank Score Rank Score Rank Score Rank Score City (1–10) (0–100) (1–10) (0–100) (1–10) (0–100) (1–10) (0–100) (1–10) (0–100) Amsterdam 7 91.50 4 66.92 4 86.63 7 80.01 8 59.94 Arnhem 1 91.70 7 65.85 6 84.24 5 80.06 6 60.46 Eindhoven 5 91.57 2 68.89 2 87.08 1 80.10 1 62.24 Enschede 1 91.70 10 62.75 10 82.73 5 80.06 3 61.62 Groningen 1 91.70 5 66.88 9 82.95 1 80.10 5 61.49 The Hague 7 91.50 9 65.11 5 85.43 7 80.01 7 59.99 Maastricht 5 91.57 6 65.95 1 87.19 1 80.10 10 59.09 Middelburg 1 91.70 1 69.47 3 86.63 1 80.10 2 61.87 Rotterdam 7 91.50 3 68.32 7 84.24 7 80.01 4 61.61 Utrecht 7 91.50 8 65.60 8 83.37 7 80.01 9 59.89 Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. The indicator scores show how far a location is from the best performance achieved by any economy on each Doing Business indicator set. The scores are normalized to range from 0 to 100 (the higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and the Netherlands.” Back to Contents 4 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS the top half in at least two indicators and In the three other areas measured, the location. Variations in the number of among the bottom half in at least two however, significant disparities in regula- required procedures stem from locally indicators, suggesting that they have tory performance can help policy makers determined water and sewage con- something to teach and something to identify opportunities to improve admin- nection processes and the local-level learn from their neighbors. Getting elec- istrative processes and building local application of the Bibob law to combat tricity is easiest in Maastricht, the place institutional capacity. The regulatory money laundering.7 In nine cities, water where contract enforcement is the most performance gap is widest for dealing and sewage connections require separate difficult. Enschede is among the top- with construction permits, unsurprising applications; the municipality arranges performing cities for enforcing contracts, considering the central role played by sewage connections and private sector but the city scores poorly for dealing local authorities in this area (figure 1). companies arrange water connections. with construction permits and getting Amsterdam is the exception. There, a pri- electricity. By contrast, Amsterdam ranks In the Netherlands, dealing with con- vate company, Waternet, performs both high in the latter two indicator sets, but it struction permits requires between 13 water and sewage connections. The cit- lags in contract enforcement. and 16 procedures, which can be com- ies where the municipality is responsible pleted in 168 to 233 days, depending on for sewage connections have notably With remarkable consistency, Eindhoven ranks at the top for contract enforcement, co-leads for property registration, and is FIGURE 1  The regulatory performance gap is wide in three areas the runner-up for dealing with construc- Doing Business score (0–100) tion permits and getting electricity. Starting a Dealing with Getting Registering Enforcing Similarly, Middelburg leads on construc- business construction electricity property contracts permits tion permitting, with the second-fastest 100 time and one of the least expensive EU best EU best (Greece) (Germany) EU best processes. The city also shares the top (Lithuania) position for starting a business and regis- All 10 Dutch cities EU best tering property. Rotterdam is among the 90 (Denmark) EU average Maastricht most efficient locations for dealing with construction permits. All 10 Dutch cities EU best Enschede (Lithuania) Subnational differences highlight 80 opportunities for cities to learn from each other Dutch cities show homogeneous results in Middelburg two regulatory areas where they outper- 70 form the EU average: starting a business and registering property. The process of Eindhoven transferring property, which is fast but Enschede 60 relatively costly, is uniform nationwide and Maastricht relies heavily on notaries. All Dutch cities obtain the highest scores globally for the quality of the centralized land administra- 50 tion framework.6 It is easier and faster to start a business in the Netherlands than in the EU on average. The prevalence of centralized online systems—like the 0 online platform hosted by the Netherlands Highest score in country Lowest score in country Country average Chamber of Commerce—ensures that the business registration process is also Source: Subnational Doing Business and Doing Business databases. uniform across the 10 benchmarked cities. Note: Data for Amsterdam, EU averages, and EU best performances are not considered official until published in the In both regulatory areas, marginal differ- Doing Business 2021 report. The score indicates how far a location is from the best performance achieved by any economy on each Doing Business indicator. The score is normalized to range from 0 to 100 (the higher the score, the ences stem from variations in the fees better). Averages for the Netherlands are based on data for the 10 cities benchmarked. Averages for the European charged by private notaries to register a Union are based on economy-level data for the 27 EU member states. Other EU member states are represented by their capital city, as measured by global Doing Business. For more details, see the chapter “About Doing Business and Doing company or transfer property. Business in the European Union 2021: Austria, Belgium and the Netherlands.” Back to Contents DOING BUSINESS IN THE NETHERLANDS 5 different approaches and involvement connection fees charged by the four subnational variations in the area of levels, resulting in varying processing regional distribution utilities operating in enforcing contracts. The trial time can times. For example, in Arnhem, develop- the benchmarked cities (each utility serves vary from 396 days at the district court ers need only notify the municipality of between one and four of the measured in Eindhoven to 475 days in Maastricht. the connection works, which are carried cities). However, several factors drive varia- In Eindhoven, the courts’ use of an elec- out by a private sector contractor. In tions in the time to get electricity, including tronic calendar system (verhinderdata) Maastricht, the same procedure takes application and staff availability. Obtaining reduces the waiting period for the first 1.5 months. First, the developer requests a connection takes at least a month longer hearing to just 3–6 months by streamlin- a permit to assess connection feasibility in Utrecht, Groningen, and Enschede ing scheduling. In Groningen—where the and estimate the cost; then, the munici- than in Maastricht and Eindhoven (where trial phase lasts 442 days on average—a pality performs an onsite pre-connection it takes 97 and 98 days, respectively). case registered in August 2020 would inspection. Similarly, the process for Enschede is one of the cities where the con- be first heard in February 2021 and, if the applying anti-money laundering screen- nection process is delayed by a shortage of case is adjourned or requires a second ing varies by location. Dutch municipali- technical staff and the utility’s transition hearing, the next available date would be ties determine which industries are most to renewable energy sources. The time for in August of 2021. at risk and whether a project requires the utility to obtain a municipal permit for the basic Bibob screening or an in-depth works crossing a public road also varies The time to do business varies evaluation.8 Five of the 10 benchmarked by municipality. Getting this permit takes widely across the country, but cities apply Bibob screening to all three days in Utrecht but eight weeks in the overall quality of regulation construction projects above a certain Groningen, where the municipality requires is uniform monetary threshold.9 a thorough archeological assessment to Time is the dimension that varies the issue the permit. most across the indicators measured. The regulatory gap between Dutch cities Contract enforcement takes 19 months for getting electricity is also noteworthy. Delays in securing hearing dates in the in Maastricht, three months longer than Cost variations stem from the different trial and judgment phase cause the main in Eindhoven. Dealing with construction FIGURE 2  Eindhoven has the fastest turnaround time overall Netherlands average EU average (845 days) (964 days) Eindhoven Rotterdam Middelburg Amsterdam Groningen Maastricht The Hague Arnhem Enschede Utrecht 0 100 200 300 400 500 600 700 800 900 1,000 Time (days) Time to start a business Time to obtain construction permits Time to obtain electricity Time to register property Time to resolve a commercial dispute Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam and EU averages, which use economy-level data for 27 member states of the European Union, are not considered official until published in the Doing Business 2021 report. Back to Contents 6 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS permits varies from 5.6 months in procedures, requires 13). Instead, the main in the Netherlands points to possible Groningen to almost eight months in cause is the time needed for municipal improvements (table 3). Some improve- The Hague. Getting electricity takes 97 consultations and the water and sewer ments could be achieved by replicating days in Maastricht, 41 days less than in connection. It takes 22 days to obtain the EU or global good practices, and others Enschede. The time for property registra- utility connection in Groningen, the fastest by looking to subnational examples. tion and for starting a business is uniform in the Netherlands and one-quarter of the across the country. time needed in Arnhem, Enschede, and Replicating domestic good practices Utrecht (85 days). would improve the Netherlands’ Overall, it takes entrepreneurs in Utrecht scores for the ease of enforcing almost four months longer than their Three of the four good practices contracts and dealing with peers in Eindhoven to comply with the recorded for Maastricht relate to cost. construction permits bureaucratic requirements associated Entrepreneurs in Maastricht pay the low- Minor administrative improvements can with the measured Doing Business areas est costs in the Netherlands to connect make a significant difference to small (figure 2). Nevertheless, even in Utrecht, a warehouse to the electricity grid, go firms, which do not have access to the the total time is two months faster than through the construction permitting pro- resources and tools available to larger the EU average. cess, and transfer property. Dealing with businesses to extract better and faster construction permits costs just 1.5% of the service from bureaucracies. An effective Good performances exist across warehouse value in Maastricht compared way forward is to promote the exchange the country to 4.0% in Amsterdam, mainly due to of information and experience among Most Dutch cities have lessons to offer lower permit fees. In Maastricht, the cost cities, enabling underperforming ones to their peers. Even cities that do not perform of the warehouse construction permit learn from those with higher rankings. at the top on any indicator lead one indi- application (EUR 21,133) is one-quarter of Replicating more efficient processes cator category (table 2). With four each, that in Amsterdam (EUR 82,106). developed by other cities within the Eindhoven, Maastricht and Groningen Netherlands could produce efficiency are the cities with the highest number of gains without significant legislative good practices. Dealing with construction WHAT IS NEXT? changes. Nevertheless, various factors permits is fastest in Groningen, where it such as local economic priorities or takes 5.5 months compared to more than Streamlining regulatory procedures can budget availability may dictate whether 7.5 months in The Hague. However, this reduce the cost of doing business for replicating a good practice is desirable. variation is not caused by the number of local firms, enhancing their efficiency and regulatory steps (Groningen requires 15 ability to compete abroad. This report’s The two areas where improvements while The Hague, the city with the fewest review of the regulatory environment would be the most impactful are dealing TABLE 2  Most cities lead in at least one indicator category Starting a Dealing with Getting Registering Enforcing Number of top performances business construction permits electricity property contracts Least Fewest Shortest Least Shortest Least Least Shortest Least expensive procedures time expensive time expensive expensive time expensive Eindhoven 4 ü ü ü ü Groningen 4 ü ü ü ü Maastricht 4 ü ü ü ü Middelburg 3 ü ü ü Arnhem 2 ü ü Enschede 2 ü ü Amsterdam 1 ü The Hague 1 ü Utrecht 1 ü Rotterdam 0 Source: Subnational Doing Business and Doing Business databases. Note: The table does not show indicator categories in which all or most cities register an equal result: procedures, time and paid-in minimum capital required to start a business; the building quality control; procedures to obtain electricity and the reliability of supply and transparency of tariffs; the procedures and time to register a property as well as the reliability of infrastructure. Back to Contents DOING BUSINESS IN THE NETHERLANDS 7 TABLE 3  Opportunities for regulatory improvement in Dutch cities Relevant ministries and agencies* Regulatory area Good practices National level Local/regional level Starting a Introduce an automated name verification system • Ministry of Economic Affairs business Make third-party involvement optional, standardize incorporation forms, and and Climate Policy provide public access to the business registration system • Netherlands Chamber of Commerce Make starting a business a fully electronic process • Ministry of Finance Accelerate and streamline the VAT registration process • Dutch Tax and Customs Administration • Ministry of Social Affairs and Employment • Employee Insurance Agency • Royal Dutch Association of Civil-law Notaries Dealing with Increase efficiency by improving coordination and consolidating procedures • Ministry of the Interior and • Municipalities construction Continue expanding the digital platform to consolidate the construction permitting Kingdom Relations • Fire departments permits process further • Ministry of Infrastructure and • Regional Water Management environmental Introduce mandatory liability insurance requirements to cover developers and architects in the event of structural defects • Ministry of Justice and Security services • Association of Netherlands Review the building permit cost structure Municipalities Improve regulatory expertise together with the private sector • Royal Institute of Engineers • Office of Architects Registry Getting Streamline the process for obtaining external connection works and excavation permits • Netherlands Authority for • Electricity electricity Increase transparency by making data on legal time compliance publicly available Consumers and Markets (ACM) distribution utilities • Association of Netherlands • Electricity suppliers Allow entrepreneurs to request a new connection, supply contract, and meter Municipalities installation via a single window • Municipalities • Royal Institute of Engineers Allow the option to pay connection fees in installments and assess the possibility of lowering the cost of getting an electricity connection Registering Assess the possibility of reducing the cost of transferring property in the Netherlands • Ministry of Interior and property Explore the possibility of gradually reducing the role of notaries in property transfers Kingdom Relations or make their use optional • Ministry of Justice and Security Increase the transparency of the land administration system by collecting and compiling statistics on land disputes Enforcing Consider making measures allowing virtual hearings permanent • Ministry of Justice and Security • Local courts contracts Consider expanding e-features in courts for commercial litigation and small claims • The Council for the Judiciary Consider creating specialized commercial courts or divisions Note: All good practices are detailed at the end of the respective indicator section. *The list includes the main ministries and agencies relevant to each regulatory area but is not exhaustive. with construction permits and enforcing process as efficient as Eindhoven’s would sewage connections are requested jointly contracts (figure 3). If Amsterdam were also increase the Netherlands’ score on in Amsterdam to a private sector company. to reduce the cost of construction per- the ease of getting electricity. mits to levels in Maastricht (1.5% of the The Netherlands can also look to warehouse value) and the time to that in The potential for meaningful improvement other EU member states and beyond Groningen (168 days), the Netherlands’ extends beyond Amsterdam. Most Dutch for good practices score would improve from 66.92 to cities could look to Amsterdam to learn Even if the Netherlands were to adopt the 71.54, just behind Switzerland but ahead how to process building permit applications good practices found within its borders, of Spain. Similarly, if Amsterdam could more efficiently. Dutch cities could consider the country would still lag the perfor- reduce the time to enforce contracts by consolidating procedures and reducing the mance of most other EU member states, 43 days (to the time in Eindhoven) and the time developers spend on separate water particularly in dealing with construction cost by 5 percentage points (to the cost and sewage applications or preliminary permits and enforcing contracts. Looking in Middelburg), the Netherlands' score consultations. Unlike the other nine cit- to good practices in other EU member would increase by 3.1 points. Making ies—where water and sewage connections states is another way to boost competi- Amsterdam’s electricity connection require separate applications—water and tiveness in these indicators. Back to Contents 8 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS form and submit the memorandum one distributor, UK Power Networks, FIGURE 3  If Amsterdam adopted each city’s best practices, the Netherlands’ and articles of association online.11 In implemented a new software system, ease of enforcing contracts and dealing Portugal, entrepreneurs can establish an the Design Fast Track and Approved with construction permits would increase LLC through an online registration service Designer Scheme, that allows for direct significantly (‘Empresa Online’). They can access this contact with subcontractors and tracks service through the Business Portal by their progress. The utility also introduced Doing Business score (0–100) using a digital mobile key, a citizen card, common requirements for the design 100 or a digital certificate.12 and planning of the works and material specifications for subcontractors to carry Dealing with construction permits in out external works. As a result of these 80 the Netherlands takes longer and is initiatives, UK Power Networks reduced more expensive than the EU average. the time to provide a new electricity con- 70 71.54 Building permit fees across Dutch cities nection by a month. Currently, it takes 46 66.92 are high, accounting for more than 80% days to complete the connection works, 62.99 of the total cost to complete construc- which is more than twice as fast as the 60 59.94 tion permitting. In economies that have Dutch average. adopted good practices in this area, 50 building permit fees are generally set to The cost of transferring property in the Dealing with Enforcing construction permits contracts recover the cost of providing services Netherlands is significantly higher than Amsterdam rather than to generate tax revenue. New the EU average (4.6% of the property Best of the Netherlands Zealand charges permit fees at a level value), mainly because of the 6% prop- that covers the costs associated with erty transfer tax. The cost of registering the review of plans, any inspections, and property is lower than the Netherlands Source: Subnational Doing Business and Doing Business databases. overhead costs. When setting the fees, in 19 EU member states. Denmark, Note: Data for Amsterdam are not considered official the Auckland Council considers factors Estonia, Lithuania, Poland, and the Slovak until published in the Doing Business 2021 report. including the cost implications of infra- Republic have very low property transfer structure funding decisions on develop- taxes (less than 1%) or have abolished The Netherlands could streamline its ment and the challenges developers face them altogether. company registration process. Digital in getting their products built, noting “if tools for company registration are already development costs are too high this may Dutch courts lag in terms of automation available to notaries, but entrepreneurs act as a barrier to development and slow and case management systems. The cannot complete the process online by down growth.”13 Netherlands’ judiciary would benefit themselves. Incorporating technology from adopting additional features such as would allow entrepreneurs to use a digi- To make getting electricity easier, the electronic service of process or e-filing of tal identity, eliminating the need for an Netherlands could reduce the time it the claim, two tools that could streamline in-person visit to the notary. Several EU takes to connect a warehouse to the elec- and accelerate the process of commenc- member states employ virtual interfaces tricity grid. On average, getting electric- ing a lawsuit. Estonia and Germany have for business incorporation. These econo- ity in the Netherlands takes almost one made enforcing contracts easier by mies require no in-person interaction month longer than the EU average. Dutch introducing electronic filing of both the with the authorities, third-party partici- authorities and utilities could take inspi- initial complaint and electronic service pation, or hard-copy submission of docu- ration from the United Kingdom. In 2017, of process without the need for paper ments to start a company, reducing the the UK regulator, Ofgem, approved the documents. administrative burden. Estonia’s online Incentive on Connections Engagement company registration portal allows entre- (ICE) initiative to encourage distribution preneurs to check the company name, network operators to complete the exter- submit the registration application, and nal connection works faster. According pay the share capital electronically in a to the ICE guidance, the utilities must single interaction.10 The Danish Business provide data demonstrating that they Authority provides LLCs with a one-stop, have responded to their customers on centralized online platform for business time and according to their customer and tax registration, which entrepreneurs service engagement. Distribution system access using their NemID digital signa- operators can be penalized if they fail ture. Companies complete a registration to meet these requirements. Moreover, Back to Contents DOING BUSINESS IN THE NETHERLANDS 9 Starting a Business The process of starting a business FIGURE 4  It takes five procedures in nine days, at an average cost of 3.1% of income is uniform, but the cost varies per capita, to start a business in the Netherlands across the 10 cities benchmarked Time Cost (% of Across the Netherlands, starting a private (days) income per capita) limited liability company (LLC) (besloten 9 Time 9 days 4 vennootschap, bv) requires entrepreneurs 8 to complete the same five procedures, 7 Cost taking the same amount of time. The 3.1% 3 Dutch Civil Code14 sets the requirements 6 for operating a bv at the national level, 5 making the process uniform nationwide. 2 4 The centralized organizational structure of the startup process and the prevalence 3 of online platforms—such as that of the 2 1 Netherlands Chamber of Commerce 1 (Kamer van Koophandel, KVK)—ensure procedural uniformity. The Chamber of 0 0 Verify Draft and Register Register Register as Commerce, an official and independent company sign notarial UBOs company and employer administrative body, manages the Dutch name deed obtain VAT-id Commercial Register (Handelsregister) and Procedures the ultimate beneficial owner (UBO) regis- Less than one day (online procedure) ter,15 and provides information, advice, and Source: Subnational Doing Business and Doing Business databases. support to Dutch businesses. Registering a Note: In the Netherlands, entrepreneurs complete VAT registration as part of the general company registration process. company with the Chamber of Commerce It takes a total of six days to complete company and VAT registration. The Chamber of Commerce issues the KVK, or is a centralized process, with applications Chamber of Commerce registration number, and the RSIN number (Rechtspersonen en Samenwerkingsverbanden Informatienummer), an identification number for legal entities and associations, within several hours. However, the due handled electronically in the order received. diligence required to activate the VAT number takes five days. Nearly all requirements can be completed TABLE 4  Costs vary across Dutch cities, but procedures and time are uniform quickly, within a day or less each (figure 4). The exception is the time to obtain the value Paid-in minimum Cost capital requirement added tax (VAT) identification number. All Score Procedures Time (% of income (% of income per applications are processed centrally, and City Rank (0–100) (number) (days) per capita) capita) the Dutch Tax and Customs Administration Arnhem 1 91.70 5 9 2.2 0 (Belastingdienst or Tax Authority) conducts Enschede 1 91.70 5 9 2.2 0 a risk assessment process. For a low-risk Groningen 1 91.70 5 9 2.2 0 business activity—like that of the Doing Middelburg 1 91.70 5 9 2.2 0 Business case study company—where all Eindhoven 5 91.57 5 9 3.3 0 information is provided upfront, the VAT Maastricht 5 91.57 5 9 3.3 0 number is issued in five days. Amsterdam 7 91.50 5 9 3.8 0 The procedures and time are uniform, The Hague 7 91.50 5 9 3.8 0 but the cost to start a business ranges Rotterdam 7 91.50 5 9 3.8 0 from 2.2% of income per capita (EUR Utrecht 7 91.50 5 9 3.8 0 1,050) in Arnhem, Enschede, Groningen, Source: Subnational Doing Business and Doing Business databases. and Middelburg to 3.8% (EUR 1,800) in Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Rankings are based on the average scores for the procedures, time, cost, as well as the paid-in minimum capital associated with Amsterdam, The Hague, Rotterdam, and starting a business. The score is normalized to range from 0 to 100 (the higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and the Utrecht (table 4). Although the Chamber Netherlands.” Back to Contents 10 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS of Commerce’s business registration fee It is easier and faster to start a Kingdom,19 Dutch entrepreneurs are not is set nationally at EUR 50,16 individual business in the Netherlands than required to deposit cash as paid-in capital notaries set their own fees, making these the EU average before incorporation.20 the main driver of cost variation for start- Entrepreneurs in the Netherlands must ing a business across the 10 locations. comply with five procedures to start Entrepreneurs complete five a business, slightly fewer than the EU procedures and wait nine days to Almost the entire cost of starting a busi- average (5.7 procedures) (figure 6). start a business ness in the Netherlands (97%) is attribut- Only eight EU member states allow Starting a business anywhere in the able to notary charges and fees (figure 5). entrepreneurs to start a business in fewer Netherlands requires the same five Notary rates, which became negotiable in procedures.18 The entire process takes procedures across the Netherlands. the Netherlands in 1999, can be billed at nine days in the Netherlands—three days Although notaries assist with the first an hourly rate or as a fixed fee; notary fees faster than the EU average but more than four procedural steps to start a business, can vary within the same city. Among the twice as long as the European Union’s the entrepreneur or someone on behalf variables that determine the price of notar- best performers, France and Greece, of the entrepreneur like an accountant ial services for starting a business are the where it takes just four days. Dutch must complete the fifth—registering the corporate structure of the company, the entrepreneurs pay the equivalent of 3.1% company as an employer with the Tax number of founders, whether the articles of income per capita on average to start Authority (figure 7). of association require special provisions, a business, on par with the EU average the qualifications of those involved in the but significantly higher than the 12 top As a first step to register a bv, the entre- assignment’s execution, the notary office’s performers in the European Union for preneur or notary verifies the availability overhead costs, the size and status of the cost (where entrepreneurs pay just 0.5% of the proposed company name using the office, and local competition. Although it of income per capita on average). Among Chamber of Commerce’s online tool.21 is possible that entrepreneurs in different the top performers globally, there is no Although the entrepreneur can complete locations would pay the same amount in cost to start an LLC in Slovenia; in Ireland, this step independently, most seek advice fees to establish a bv,17 the median price Denmark, and the United Kingdom, the from notaries on the company name to is lower in Arnhem, Enschede, Groningen cost of starting a business is less than ensure that it complies with the Trade and Middelburg—cities where demand for 0.3% of income per capita. Like five Name Act.22 incorporation services per notary is lower. other EU member states and the United In the Netherlands, a bv must be incorpo- rated by a notarial deed executed in the FIGURE 5  Notary services account for 97% of startup costs in the Netherlands physical presence of a notary either by the entrepreneur or the person granted Amsterdam power of attorney to act on their behalf. Entrepreneurs send the required informa- The Hague tion and documentation23 to the notary 3% Rotterdam by post, in person, or electronically (by email or through online software systems Utrecht such as ‘Online Dossier’) for the notary to Eindhoven draw up the deed of incorporation. Most entrepreneurs submit the documentation Maastricht 97% by email. Before the COVID-19 pandemic, Arnhem all shareholders of the bv were required to Netherlands appear in person with a valid identifica- Enschede average (EUR 1,448) tion document for the notary to execute Groningen the deed or legalize a power of attorney. However, the Royal Dutch Association of Middelburg Civil-law Notaries (Koninklijke Notariële 0 500 1,000 1,500 2,000 Beroepsorganisatie, KNB) enacted tem- Cost (EUR) porary policy rules during the pandemic allowing notaries to verify the identities Notary charges and fees Business registration fee of entrepreneurs remotely (using audio- visual communications technology) and Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. suspending the need for the in-person Back to Contents DOING BUSINESS IN THE NETHERLANDS 11 FIGURE 6  Dutch cities outperform the EU average for number of procedures and time and are on par for cost Procedures Time Cost (number) (days) (% of income per capita) 1 1 Slovenia (EU best) 0 United Kingdom Denmark 2 France 1 France, Greece (EU best) 4 member states* United Kingdom 5 2 Arnhem, Enschede, (EU best) 3 Denmark Belgium Groningen, Middelburg Dutch average, EU average 3 United Kingdom 4 All 10 Dutch cities Eindhoven, Maastricht 10 Amsterdam, The Hague, 4 Rotterdam, Utrecht EU average Denmark, France 5 All 10 Dutch cities Germany Belgium 5 EU average 15 6 6 Germany 7 7 35 Belgium 8 Poland 13 Austria, Czech Republic, Germany 9 40 Italy 14 Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam, comparator economies, and EU averages are not considered official until published in the Doing Business 2021 report. EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by Doing Business. * Estonia, Finland, Greece, Slovenia. signing of powers of attorney with the numbers to the company: the Chamber can search online for the company’s notary (box 1). of Commerce registration number information using the Commercial Reg- (KVK-nummer) and the legal identities ister’s database27 or the extract from the Once the deed is signed, the notary sub- and associations identification number Chamber of Commerce. mits the required information electroni- (Rechtspersonen en Samenwerkings- cally24 to the Chamber of Commerce to verbanden Informatienummer, RSIN- VAT registration is initiated with com- register the bv online through an online nummer) used for data exchange with pany registration at the Chamber of platform (Online Registreren Notarissen, government entities. Entrepreneurs Commerce. The Chamber automati- ORN) and its UBOs through the NAU receive a letter from the Chamber of cally forwards the company’s registration platform (Notaris Applicatie UBO).25 Commerce informing them of the suc- information to the Tax Authority, which Only a notary can complete this process cess of the company’s registration in the in turn assigns the company’s VAT electronically. Entrepreneurs wishing to Commercial Register. While awaiting this identification number and delivers it by register the company and UBOs them- letter, the notary can check the company’s post to the entrepreneur. Entrepreneurs selves can visit a Chamber of Commerce registration status online using the ORN can access company tax information, office in person. Most entrepreneurs opt application. Alternatively, entrepreneurs including the VAT identification number, for a notary to complete the process electronically, citing time efficiency.26 Upon approval of UBO registration, the FIGURE 7  How does the business registration process work in the Netherlands? Chamber of Commerce sends a confir- mation letter by post to the company and 1. Verify 2. Draft 3. Register 4. Register 5. Register company and sign Ultimate its UBOs. The NAU platform automati- company as employer name notarial deed Benefial Owners cally notifies the notary whether UBO registration was approved or not. 4. Obtain VAT-id (requested automatically) Once registrations are complete—for the company, directors, and UBOs—the Chamber of Commerce assigns two Source: Subnational Doing Business and Doing Business databases. Back to Contents 12 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS BOX 1  Starting a business during COVID-19 In the Netherlands, entrepreneurs appear in person before a civil-law notary to execute the notarial deed—either to sign the deed of incorporation or to be identified for the purpose of legalizing a private power of attorney. In April 2020, amid the COVID-19 pandemic, the authorities enacted a temporary law allowing the digital approval of deeds in special emergency situ- ations. However, for the process of incorporating a bv, the entrepreneur or their authorized representative still signs the notarial deed in person. The KNB responded to the pandemic by amending some common practice policy rules to allow the digital authorization of signatures.a Because some entrepreneurs wished to avoid face-to-face meetings, the KNB allowed notaries to verify the identity and signature of entrepreneurs granting a power of attorney using an audiovisual connection. Consequently, some notaries reported an increase in the use of private powers of attorney during the pandemic. Notaries were free to determine whether to allow in-person appointments with clients during the pandemic. Most notary offices remained open during the lockdown, offering services in accordance with pandemic guidelines for social distancing. Telephone and videoconference meetings to provide advice and guidance on the establishment of a bv increased sharply. These safety measures, coupled with the KNB’s policy response, helped the Netherlands to maintain a smooth business startup process dur- ing the COVID-19 pandemic. Despite the increased use of electronic communication tools, this solution remains temporary and partial— entrepreneurs or their authorized representative still physically attend the signing of the notarial deed. Beyond this, however, no further in-person interactions are required to complete the remaining procedures to start a business in the Netherlands. The remaining steps are executed either electronically (checking the company name, registering the company and UBOs) or by post (registering as an employer). a. For more information on the KNB’s response to COVID-19, see the website at https://www.knb.nl/actueel/coronavirus. and file various tax returns electronically name.33 Most entrepreneurs seek the (payroll, corporate, VAT) using the Tax WHAT CAN BE IMPROVED? assistance of a notary to ensure that the Authority’s portal for entrepreneurs.28 proposed company name complies with Private limited companies located in Introduce an automated name the Trade Name Act. Entrepreneurs and the Netherlands with a turnover not verification system their notaries can also check the Benelux exceeding EUR 20,000 per calendar The entrepreneur has the legal respon- Office for Intellectual Property34 for brand year can receive a VAT exemption by sibility to check the availability of the names and the Internet Domain Name opting for the small business scheme company name in the Netherlands.32 The Registration Foundation (SIDN)35 for (Kleineondernemersregeling, KOR).29 name must meet certain requirements, domain names. such as not using another company’s Finally, a company hiring employees for brand name and avoiding confusion with By simplifying the rules and offering an the first time must register as an employ- existing company names. The Chamber automated name verification system at er with the Tax Authority. Firms register of Commerce’s website offers instruc- the time of company registration, the as an employer by completing and sign- tions on how to check the company name authorities would allow entrepreneurs to ing a PDF form (available online from the before registration and provides an online verify for themselves that the proposed Tax Authority’s website30); they mail the tool for entrepreneurs to verify whether company name complies with the legal form by post to the Tax Authority office in their proposed company name is already requirements for company registration. Heerlen.31 Within six weeks of complet- listed in the Commercial Register. This ing registration, the company receives a tool cannot check for phonetics, special Various economies have redesigned payroll tax number, a payroll tax return punctuation marks, or other distinguish- the registration process to allow entre- letter—listing the tax return filing periods ing factors between names that could preneurs to automatically verify the for the current year—and information on confuse the public or be disallowed proposed company name at the time the contributions due to the employee under the Trade Name Act. Therefore, of application for business registra- social security insurance scheme. the Chamber of Commerce recommends tion. Australia, Canada, and the United that entrepreneurs seek the assistance States introduced clear rules in the early of a notary to evaluate the company 2000s to determine whether proposed Back to Contents DOING BUSINESS IN THE NETHERLANDS 13 company names were identical or similar transparent, and prices should reflect made third-party involvement optional to existing companies or required specific variations only for the services provided. for companies using registry-provided consent. This approach allows for auto- standard incorporation documents.44 matic name rejection or acceptance at Various digital platforms—for example, Entrepreneurs can establish a “one-per- the time of registration, increasing both Firm2441—allow entrepreneurs to estab- son” company, a private limited company, the transparency and efficiency of the lish a bv in the Netherlands and offer or a public LLC instantly at just one desk. name clearance process and company standardized articles of association for In the United Kingdom, entrepreneurs registration overall. Other economies company incorporation. However, these can register an LLC using the Companies allow entrepreneurs to choose from a still require the involvement of a notary. House’s online tool45 at a cost of GBP 12 list of preapproved company names. In Most entrepreneurs prefer to use cus- (approximately EUR 14). The registration Portugal, entrepreneurs can choose from tomized incorporation documents and, website automatically generates model a list on the business registry’s website36 therefore, do not take advantage of these articles of incorporation and company and register the company through a platforms. The Dutch authorities could memoranda.46 single contact point, Empresa na Hora.37 reduce the cost of starting a business In Estonia, entrepreneurs can check the by formalizing the use of standardized Make starting a business a fully proposed company name online using articles of association and making them electronic process the e-Business Register,38 which accesses flexible enough to accommodate most The coronavirus pandemic has driven county court registry databases and small businesses. Standardization could technological advances at a staggering displays real-time data on all legal per- make it possible for registry officials to pace worldwide. In the European Union, sons registered in Estonia. In the United verify their accuracy, signatures, and legal the move toward online business regis- Kingdom, the online registration website compliance. For a standard company, a tration was already well underway. EU alerts entrepreneurs if the desired com- single verification should suffice; larger Directive 1151/2019 requires that all EU pany name cannot be used and provides companies with more complex structures member states introduce an online pro- guidance for choosing another company and special requirements could continue cedure for company formation, branch name.39 to solicit the services of third-party pro- registration, and document submission. fessionals and use customized incorpora- However, the availability of online tools Make third-party involvement tion documents. Allowing entrepreneurs for company registration varies across the optional, standardize incorporation to file the incorporation documents European Union. In several EU member forms, and provide public access to electronically with the Chamber of states, entrepreneurs can register their the business registration system Commerce would also facilitate company company electronically; in others, the law Starting a bv in the Netherlands costs on formation by reducing the need for legal requires the involvement of a third party average 3.1% of income per capita. The intermediaries and reducing costs. (a notary, accountant, or lawyer) in the cost to start a business is higher in only incorporation process.47 10 other EU member states.40 Notary Fewer than half of the 191 economies fees comprise the bulk of this cost measured by Doing Business require In the Netherlands, digital tools for (97%) in the Netherlands. Although entrepreneurs to hire a third-party agent company registration are available only notaries play a similarly central role in when starting a business. Increasingly, to notaries, who must verify the identity the business startup process in other EU economies are making the use of inter- of all shareholders. But the process for member states, notary fees elsewhere mediaries optional when incorporating starting a business is not fully online— are a fraction of those in the Netherlands. a new LLC. Third-party agents are not the notarial deed is still executed in the In the Czech Republic, entrepreneurs required in the 10 EU member states physical presence of a notary. Moreover, starting a simple LLC pay a flat fee of with the lowest cost to start a business company founders hiring employees for CZK 2,000 (approximately EUR 77) (figure 8). Across regions, the overall the first time must send a PDF form by for the notary to draft and notarize the cost to start a business is lower in post to the Tax Authority’s Heerlen office. company articles of association. There economies where there is no third-party Allowing entrepreneurs to use a digital are no formal standardized articles of involvement.42 Entrepreneurs pay no fees identity would eliminate the need for an association in the Netherlands; in prac- when using SPOT,43 Slovenia’s electronic in-person visit to the notary. Furthermore, tice, many notaries use a standardized one-stop shop, to start a simple LLC. This adding employee registration to the framework for the notarial deed. Still, procedure makes use of standardized electronic incorporation process would notary rates vary significantly, even electronic articles of association and can eliminate the need for the submission for the same type of company incor- be used by both single-member LLCs of paper documents. By adopting these poration within the same city. Notarial (one founder) and multi-member LLCs measures—and making the temporary costs should be more accessible and (several founders). Portugal successfully digitalization measures adopted during Back to Contents 14 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS FIGURE 8  Starting a business costs more in economies with third-party involvement Total cost to start a business (% of income per capita) 14 12 10 8 6 4 2 0 ly a y us y e s l a ic ic a a e e a a k a Ita land alt an tia pr a n g d n ium ustri ngar Spai erag land tuga our atvi ubl ubl lgari toni reec ranc nlan ede uani ani mar elan veni d Po M rm oa Cy lg Ge Cr Be A H u a v h e r Po r e mb L R ep Rep Bu Es G F Fi Sw Lith Rom Den Ir S lo t x EU Ne Lu ec h va k Cz Slo EU member states with third-party involvement in business incorporation EU member states with no third-party involvement in business incorporation Source: Subnational Doing Business and Doing Business databases. Note: Values for Austria, Belgium, and the Netherlands are based on data for the cities benchmarked in this report; data for other EU member states (represented by their capital city as measured by global Doing Business) are not considered official until published in the Doing Business 2021 report. COVID-19 permanent—the authorities can establish an LLC through an online Accelerate and streamline the VAT could fully digitalize the company incor- registration service (‘Empresa Online’). registration process poration process in the Netherlands. They can access this service through the Each of the individual requirements to Business Portal by using a digital mobile start a business in the Netherlands can Several EU member states have vir- key, a citizen card, or a digital certificate.50 be completed in one day or less—except tual interfaces for business incorporation. for VAT registration. The due diligence These economies require no in-person Economies worldwide offer an elec- process to issue the VAT number for a interaction with the authorities, third- tronic end-to-end company registration low-risk activity, takes roughly five days. party participation, or hard-copy process. Canada’s registration process This lengthy wait is due to staff workload submission of documents to start a com- has been entirely paperless since 2006. and the thorough evaluation of the appli- pany, reducing the administrative burden. An integrated IT system links the cation undertaken by revenue officers to Estonia’s online company registration databases of relevant agencies (regis- reduce the risk of noncompliance and the portal allows entrepreneurs to check the try, tax, social security, and statistics incidence of fraudulent reimbursement company name, submit the registration institute). Entrepreneurs can submit a claims. application, and pay the share capital single electronic form and pay electroni- electronically in a single interaction.48 cally through the website.51 Once all the The authorities could consider stream- The Danish Business Authority provides requirements are met, and payment lining risk screening at the point of LLCs with a one-stop, centralized online is received, the system automatically registration, thereby freeing resources for platform for business and tax registra- processes the information and instantly reallocation to other compliance actions. tion, which entrepreneurs access using issues the registration certificate. In the In Croatia, which takes this approach, their NemID digital signature. Companies United Kingdom, company founders have obtaining a decision on VAT registra- complete a registration form and submit the option of registering their company tion takes one to two days. Checks are the memorandum and articles of associa- online with the Companies House52 in a performed to assess the accuracy of the tion online.49 In Portugal, entrepreneurs process that takes only several hours. information submitted after registration. Back to Contents DOING BUSINESS IN THE NETHERLANDS 15 Some EU member states issue VAT and other tax numbers on the spot. In Italy, just two days after submitting a single electronic notice (Comunicazione Unica, or ComUnica) to the business register, the company receives the fiscal code, VAT number, and registry application ref- erence number. In France, entrepreneurs can file a joint application for company incorporation, allowing them to meet the requirements of various agencies— including the tax authorities—in just two days. Similarly, in Greece and Hungary, completing the company registration and obtaining the taxpayer/VAT number takes two days. Back to Contents 16 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Dealing with Construction Permits The Dutch construction permitting days) even though the city requires most expensive in the European Union, system is regulated at the national level two more procedures than The Hague, with Amsterdam and Groningen among by the Environmental Licensing (General where the process takes two months the top five most expensive European cit- Provisions) Act (referred to hereafter by longer (233 days). The cost—which ies. Dutch cities are on average over three its Dutch acronym, Wabo).53 The Wabo averages 2.7% of the warehouse value times slower than Denmark (64 days) legislation allows a developer to submit in the Netherlands—ranges from 1.5% in and nearly three months slower than all permits and notifications required for Maastricht to 4.0% in Amsterdam. Germany (126 days), but slightly faster a project in a single application to the than Belgium (211 days) and France (213 Omgevingsloket online platform (also On average, Dutch cities lag days). On the building quality control referred to as OLO).54 Although legisla- their EU peers on measures index, the Dutch cities score higher than tion is set at the national level, the law of efficiency and quality in the UK and on par with Germany, but leaves room for implementation varia- construction permitting below France, Belgium, and Denmark, tions at the local level. Dealing with construction permits across and the EU average (11.6). the Dutch cities measured requires, on Dealing with construction average, 14 procedures in 202.8 days at Dealing with construction permits is easiest in Middelburg a cost of 2.7% of the warehouse value permits in the Netherlands and hardest in Enschede (figure 9).55 The number of procedures is involves 11 common steps The 10 Dutch cities benchmarked show roughly on par with the EU average (13.8), In most cities in the Netherlands, the notable differences in the efficiency of the but the process takes nearly a month construction permitting process follows construction permitting process (table longer than the EU average (181.1 days). a general scheme of 11 steps (figure 10). 5). Amsterdam, Arnhem, Eindhoven, It is also roughly one-third more expen- Some cities require additional proce- The Hague, and Utrecht require the few- sive to get a construction permit in the dures. Before construction, the first step est procedures (13), while Maastricht Netherlands than the EU average (1.9% of is to obtain a report of the soil conditions requires the most (16). Construction the warehouse value). Construction per- from a soil research company. The soil permitting is fastest in Groningen (168 mitting in the Netherlands is among the report, required for the permit applica- tion, ensures that soil quality is suf- TABLE 5  Dealing with construction permits in the Netherlands—where is it easier? ficient and that soil pollution is minimal. Simultaneously, the developer consults Cost Building quality with the municipality to discuss the Score Procedures Time (% of warehouse control index City Rank (0–100) (number) (days) value) (0–15) feasibility of the project. Developers typi- Middelburg 1 69.47 14 169 2.3 10 cally conduct this consultation—which is optional but strongly advised by the Eindhoven 2 68.89 13 202 1.7 10 municipality—to prevent delays due to Rotterdam 3 68.32 15 169 2.4 10 project complications. Amsterdam 4 66.92 13 189 4.0 10 Groningen 5 66.88 15 168 3.6 10 As a next step, the developer applies online for the construction permit Maastricht 6 65.95 16 204 1.5 10 (Omgevingsvergunning). The municipal Arnhem 7 65.85 13 231 2.4 10 departments reviewing the application Utrecht 8 65.60 13 231 2.6 10 (for example, the environment depart- ment) access it through the OLO online The Hague 9 65.11 13 233 2.9 10 platform. Enschede 10 62.75 15 232 3.3 10 Source: Subnational Doing Business and Doing Business databases. After the construction permit is granted, Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Rankings are based on the average score for the procedures, time and cost associated with dealing with construction permits, the developer notifies the building as well as for the building quality control index. The score is normalized to range from 0 to 100 (the higher the score, inspector two days before starting the better). For more details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and The Netherlands.” construction. The building inspector is Back to Contents DOING BUSINESS IN THE NETHERLANDS 17 FIGURE 9  Dealing with construction permits in the Netherlands requires more time and is more expensive than in most other EU member states EFFICIENCY OF CONSTRUCTION PERMITTING BUILDING QUALITY CONTROL Procedures Time Cost Index (number) (days) (% of warehouse value) (0–15) 1 1 0 Luxembourg 15 4 member states (EU best)* (EU and global best) Denmark 7 Denmark 60 (EU and global best) Denmark (EU best) Belgium 14 8 80 United Kingdom 1 United Kingdom Germany Belgium, Germany, United Kingdom 9 100 Maastricht France 13 Eindhoven EU average France 10 120 2 Middelburg Germany Arnhem, Belgium 12 11 140 Rotterdam Dutch average Utrecht EU average Amsterdam, Groningen 12 Arnhem, 160 3 The Hague Denmark 11 Eindhoven, Middelburg, Rotterdam Enschede 13 The Hague EU average 180 Utrecht Groningen EU average Amsterdam Germany 10 All 10 Dutch Dutch average 14 France cities Middelburg Dutch average 200 Eindhoven 4 Amsterdam Enschede, Belgium Maastricht 15 Groningen France 220 United Kingdom 9 Arnhem, Utrecht Rotterdam Enschede 16 Maastricht 240 The Hague 8 Czech Republic, Slovak Republic 8 23 500 Cyprus Croatia Romania 24 520 9 0 Source: Subnational Doing Business and Doing Business databases. Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital or largest business city as measured by Doing Business. Data for Amsterdam, comparator economies and EU averages are not considered official until published in the Doing Business 2021 report. * Czech Republic, Estonia, Poland and Slovak Republic. present during the building’s foundation, notifies the building inspector that the individual case.59 Five of the 10 bench- which entails pile driving,56 concrete project is complete. The building inspec- marked cities apply Bibob screening to pouring, and concrete reinforcement. tor conducts a final inspection. If the all construction projects above a certain The building inspector may also conduct building passes the inspection, the fire- monetary threshold.60 The Bibob proce- a random inspection to ensure the safety safe occupancy permit is granted. dure consists of the developer filling out of the construction and the construction a form, which is then forwarded to the site. In parallel, the developer applies Despite national legislation, the municipal Bibob office. The form is con- for the water and sewage connections. number of procedures ranges fidential, and the information in the form The procedure to request the connec- from 13 to 16 is not shared with the permitting office; tion is the same in all cities. Through the Dealing with construction permits only the outcome of the Bibob screening national Mijnaansluiting57 platform, the requires between 13 and 16 procedures is shared with the permitting office. If the developer can request the connection in the Netherlands, depending upon the project passes the screening, the devel- to most utilities: gas, electricity, water, municipality. The various water and sew- oper receives no further communication; sewage (in a limited number of regions), age connection processes and the local- if the project fails, the municipality may heating, and media and communication. level application of the Bibob Act—part deny the construction permit. Once an application is submitted, the of the legal framework addressing money platform forwards it to the relevant util- laundering activities—are the main driv- In nine cities, water and sewage con- ity company. The remainder of the con- ers of variation.58 nections require separate applications nection process is coordinated directly because sewage connections are between the developer and the utility Dutch municipalities determine which arranged through the municipality and company. industries are most at risk to money laun- private sector companies are responsible dering and apply the Bibob screening; for water connections. Amsterdam is the Once construction and the utility con- they choose either a basic screening or exception. Since 2005, when the water nections are completed, the developer in-depth evaluation depending upon the and sewage companies merged, a private Back to Contents 18 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS FIGURE 10  The main stages of construction permitting show slight variations in Construction permitting implementation is fastest in Groningen, Middelburg, and Rotterdam, and Before construction slowest in Enschede and The Obtain report on the soil conditions* Hague Hold a consultation with the municipal authorities* The time to deal with construction per- Submit a request for a building permit to the municipal executive* mits ranges from 5.6 months in Groningen to more than 7.5 months in The Hague. Apply for Bibob clearance (a) This difference is not necessarily caused Notify building inspector two days before construction begins* by the number of procedures (Groningen During construction requires 15 while The Hague requires Request and receive inspection at foundation stage* 13), but rather by differences in the time Receive a random inspection* needed for municipal consultations and utility connection procedures (figure 11). Utility connections (b) Request water and sewage connection* The time to schedule a consultation Obtain water and sewage connection* to discuss project feasibility with the After construction municipality ranges from eight days in Maastricht to 60 days in The Hague. Notify building inspector upon completion of work* Several factors account for this differ- Receive final inspection* ence. One is the difference between the Obtain occupancy permit* types of consultations and the different Local authorities Private expert Utility arrangements the municipalities offer. The developer can submit a draft applica- Source: Subnational Doing Business and Doing Business databases. tion through the national online platform * Procedure applies to all cities OLO or arrange a consultation directly Before construction (a) This procedure only applies in: Amsterdam, Enschede, Groningen, Maastricht, and Rotterdam. with the municipality. For both options, (b) The number of procedures to connect to water and sewage services varies depending on the city. In Amsterdam, Obtain report on the soil conditions* these services are merged, while all other cities require separate applications. it is at the municipality’s discretion to set This procedure is simultaneous Hold a consultation withwith the previous the municipal one. authorities* the cost, and consultations are not bound Submit a request for a building permit to the municipal executive* to any maximum time. Permitting officer company, Waternet, Apply has made for Bibob clearance (a) these con- the developer receives confirmation of availability can also drive variations in nections in Amsterdam.61 receipt from the municipality within two time. Cities such as Utrecht (25 days), Notify building inspector two days before construction begins* weeks. Upon confirmation of receipt, the Enschede (30 days), and The Hague During construction (60 days) have a shortage of permitting The nine cities where the municipality is developer can make the connection. The Requestfor responsible the sewage and receive connection inspection at notification is not open to objections or foundation stage* officers, resulting in delays and longer have notably different approaches Receive a random inspection* and appeals. The sewage connection request response times. involvement levels. In Arnhem, the first process is similar, with the primary differ- Utility connections (b) step to obtain a sewage connection is ence that the municipality acts as a coor- During the COVID-19 pandemic, to notify thewater Request and sewage connection* municipality. In Enschede, dinator between the contractor and the procedures took longer in Arnhem, Eindhoven,Obtain Groningen, water and sewage The Hague, and developer. The size of the municipality’s connection* Amsterdam, Eindhoven, and The Hague, Utrecht, the After construction builder makes a formal role differs by municipality. In Enschede, and contact with municipalities was request to the municipality, which either the municipality arranges the connection. more challenging due to remote working Notify building inspector upon completion of work* completes the sewage works or pro- In Utrecht, the municipality obtains quo- arrangements. In Enschede, Groningen, Receive final inspection* vides a list of contractors. The sewage tations from three contractors, which it and Rotterdam, developers indicated Obtain occupancy permit* notification procedure (as in Arnhem) is shares with the developer. The developer that municipalities adjusted well (though relatively simple. The developer Local authorities submits Private experta Utilitycontacts the contractor of its choice then not immediately), and contact with the form containing basic information on the from the three options. In Maastricht, municipalities went smoothly via virtual developer, the connection site, and the Middelburg, and Rotterdam, the devel- meetings. For all cities, developers noted type of connection and a simple blueprint oper requests a permit to assess whether that when an interaction needed to occur of the connection site. The notification a connection is possible and estimate the between different departments within the requires minimal interaction between cost. In Maastricht and Rotterdam, the municipality (whether it be for a meeting the developer and the municipality. municipality carries out an onsite inspec- or to answer a question), it took longer After submitting the information form, tion before making the connection. than normal due to home-based work. Back to Contents DOING BUSINESS IN THE NETHERLANDS 19 FIGURE 11  The time to connect to water and sewage services varies most Groningen 98 22 30 18 Middelburg 98 23 30 18 Rotterdam 98 23 30 18 Amsterdam 98 43 30 18 Eindhoven 98 56 30 18 Maastricht 98 58 30 18 Arnhem 98 85 30 18 Utrecht 98 85 30 18 Enschede 98 85 30 19 The Hague 98 57 78 0 50 100 150 200 250 Time (days) Building permit approval Utility: water and sewage Soil test Other municipal procedures Source: Subnational Doing Business and Doing Business databases. Note: Other municipal procedures include the consultation with the municipality, notifications of start and completion of construction, inspections during and after construction, and obtaining the occupancy permit. The soil test and the consultation with the municipality procedures are simultaneous in all cities. The Hague is the only city where the consultation with the municipality takes longer than the soil test. For details on the simultaneity effect, see the data notes. Data for Amsterdam are not considered official until published in the Doing Business 2021 report. The process of getting water and sewage days to assess the permit application and cities benchmarked (figure 12). In the connections also drives significant sub- another 42 days for the permit to become Netherlands, permit fees cover the entire national time variations. One company irrevocable—a total of 98 days from construction process, including inspec- is responsible for both water and sewage application submission to the start of tion fees and the fire-safe occupancy connections in Amsterdam—saving construction. Municipalities can prioritize permit. developers time—while in all other cities, projects that are particularly beneficial to developers must make separate applica- the community, such as those creating Although the permit application is a tions for these services. As different enti- jobs or exceptional economic value; these national procedure, municipalities set ties provide these services in the Dutch projects often have a faster processing permit fees. In all cities, the permit fee is cities benchmarked, there is significant time. based on construction costs, and some time variation, ranging from 22 days in distinction is made depending on the Groningen to 85 in Arnhem, Enschede, Building permit fees represent building’s intended use. The permit fee and Utrecht. Additionally, municipali- the largest source of variation in is a fixed percentage of the construction ties have different processes in place to cost across cities costs in Arnhem (2.0% of warehouse obtain the sewage connection, leading to The average cost of dealing with construc- costs), Rotterdam (2.1%), Utrecht (2.1%), further variation: in Rotterdam the devel- tion permits in the Netherlands is 2.7% of and The Hague (2.6%). In Amsterdam, oper applies for a permit for the sewage the warehouse value, ranging from 1.5% Eindhoven, Enschede, Groningen, and connection, in Utrecht the developer in Maastricht to 4.0% in Amsterdam. Middelburg, the municipality uses a cost- submits a sewage connection request, The difference in cost primarily stems based tiered system to determine the and in Arnhem the developer presents from permitting fees: in Amsterdam a permit fee. Maastricht uses a slightly dif- a notification of plans to connect to the permit application for the Doing Business ferent approach whereby the municipality sewage system. case study warehouse costs EUR 82,106; estimates the construction costs based the same permit in Maastricht costs just on the building area, purpose, and market The time to request the building permit is EUR 21,133. On average, municipal fees prices. The municipality’s construc- uniform across the 10 cities. The official comprise 82% of the cost of dealing tion costs are then applied to the cost time limit is respected in practice, with 56 with construction permits across the 10 schedule to determine the permit fee. Back to Contents 20 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS of 2 points) and professional certification FIGURE 12  Municipal fees account for 82% of the average cost of dealing with construction permits requirements (0 out of 4 points).64 Maastricht 21.1 Fees as percentage of average total cost When structural defects are discovered during construction, it is important that Eindhoven 27.9 15% the responsible party be held liable and Middelburg 43.5 82% 3% that the parties involved in the building design, supervision, and construction Rotterdam 46.5 have insurance to cover the costs of any Arnhem 46.8 structural defects. In the Netherlands, even though the law specifies who is Utrecht 51.5 liable for structural defects (namely the The Hague 57.9 construction company, professional in Enschede 63.5 charge of the supervision, and the archi- tect or engineer that designed the build- Groningen 75.2 ing plans), there is no legal requirement Amsterdam 82.3 to obtain a latent defect liability insurance policy to cover structural flaws in the 0 10 20 30 40 50 60 70 80 90 100 building once it is in use.65 Cost (EUR, thousands) Municipal fees Private sector fees Utility-water and sewage fees Having the appropriate technical qualifi- cations is also essential in the construc- tion sector. The Netherlands scores no Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. points on the professional certifications index, as the national law does not meet In addition to the above cost schedules, submitting a preliminary application costs all requirements as measured by Doing municipalities have varying permit dis- 30% of the total permitting fee. Some cit- Business, such as the minimum require- count schemes to encourage sustainable ies deduct the consultation fee from the ment of a university degree.66 construction. For example, in Amsterdam, permitting fee when the builder submits the permit fee is discounted by up to the permit application. In Middelburg, the EUR 25,000 for energy-efficient technol- consultation costs 25% of the permitting WHAT CAN BE IMPROVED? ogy like solar panels or green roofs.62 fee, but this is deducted from the permit- The Hague discounts the permit fee by ting fee upon application submission. Increase efficiency by improving up to EUR 200,000 for energy-efficient coordination and consolidating installations, sustainable materials, and In most Dutch cities, water and sewage procedures repurposable building design.63 connection costs comprise between 1 Streamlining construction permitting and 5% of the total cost. Maastricht is clearances and utility connections is key The consultation fees charged by munici- the exception at 14% (lower construction to making the construction process more palities also differ by city. These fees costs mean that utility fees comprise a efficient. Getting a construction permit in are set by the municipality in the overall larger share of the total cost). Utility con- the Netherlands takes, on average, nearly permit fee schedules. For example, The nection costs vary from city to city due to a month longer than the EU average, three Hague charges a set fee of EUR 100, differing systems (for example, municipal times longer than in Denmark, and twice regardless of the size of the construc- involvement in sewage connection) and as long as in the United Kingdom. tion project. In Utrecht, the consultation fee schedules (flat fees versus per meter fee for projects with construction costs fees). In nine of the 10 cities benchmarked, water below EUR 1 million is EUR 345, while the and sewage connections are handled sepa- fee for projects above this threshold is On the building quality control index, all rately, lengthening the process. Additionally, EUR 3,000. In some cities, such as benchmarked Dutch cities score 10 out there is no standard sewage connection Groningen, there is no consultation of 15 points (table 6), which is below procedure across cities. Combining the fee. Fees can also differ depending on the EU average (11.6 points). Despite its water and sewage applications could the type of consultation. For example, strength in most quality control aspects, reduce utility connection procedures sig- in Maastricht a conversation with the Netherlands does not get full marks nificantly and ease the developer’s burden the municipality is free of charge, but in liability and insurance regimes (1 out of interacting with multiple companies. Back to Contents DOING BUSINESS IN THE NETHERLANDS 21 TABLE 6  There is room for improvement on the building quality control index All 10 Dutch cities   (score) BUILDING QUALITY CONTROL INDEX (0–15) 10 Quality of building regulations Are building regulations easily accessible? 1 (0–2) Are the requirements for obtaining a building permit clearly specified? 1 Quality control before construction Which entity(ies) is/are required by law to verify the compliance of the building plans with 1 (0–1) existing building regulations? Quality control during construction Are inspections mandated by law during the construction process? 2 (0–3) Are inspections during construction implemented in practice? 1 Quality control after construction Is a final inspection mandated by law? 2 (0–3) Is a final inspection implemented in practice? 1 Is any party involved in the construction process held legally liable for latent defects once the 1 building is in use? Liability and insurance regimes (0–2) Is any party involved in the construction process legally required to obtain a latent defect liability—or decennial (10-year) liability—insurance policy to cover possible structural flaws or 0 problems in the building once it is in use? Are there qualification requirements for the professional responsible for verifying that the 0 Professional certifications architectural plans or drawings are in compliance with the building regulations? (0–4) Are there qualification requirements for the professional who conducts the technical 0 inspections during construction? Maximum points obtained Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. For details on the scoring of each question, see the data notes. Most Dutch cities could follow significant amount of time to the permit- information on building regulation make Amsterdam’s example. There, the ting process. In The Hague, for example, consultations before submitting the per- developer submits one request via it takes 60 days on average to have a mit request unnecessary. The Netherlands mijnaansluiting.nl and coordinates the consultation. Furthermore, there is more plans to consolidate and clarify Dutch new connection with one entity. The than one type of consultation available in building regulations and make them other cities could consider moving the each city, but no centralized explanation more easily accessible on the new Digital sewage request procedure—currently of the various options. Depending on the System Environmental Code (DSO) done via municipal websites—onto the type of consultation, the time, cost, and platform (box 2). Such reforms should mijnaansluiting.nl platform. Improved level of advice can vary significantly. For help reduce the need for developers in coordination between municipal sewage example, in Arnhem one consultation the Netherlands to hold consultations connection services and the public water option costs EUR 561 while another costs with the municipality before requesting connection companies would benefit the 40% of the construction cost. Costs the permit. developer. Additionally, as the sewage also vary between cities, from no cost request procedure varies significantly in Enschede to EUR 3,000 in Utrecht. Continue expanding the digital by location in the Netherlands, munici- Making the relevant information clearer platform to consolidate the palities could consider standardizing this and more accessible could reduce the construction permitting process procedure nationally. need for developers to seek municipal further consultations for simpler projects, which Currently, developers in the Netherlands Dutch cities could also achieve substantial could, in turn, reduce the burden on per- use the OLO platform to submit the improvements by reducing the developer’s mitting officials. Additionally, the authori- building permit application and track need to consult with municipal authorities ties should better explain the types of its progress. They submit their util- before applying for the building permit. consultations available to make it easier ity connection requests through the mij- Although the procedure is optional, devel- for developers to choose the best option naansluiting.nl portal. Communication opers prefer to go through the additional for their needs. with building inspectors is also digital but process to reduce complications, delays, occurs via email. Integrating these digital and errors when the permit is requested. In Denmark and New Zealand, clear, activities into a single window platform For some cities, this procedure adds a consolidated, and readily available could improve user-friendliness and Back to Contents 22 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS BOX 2  New reform in construction permitting in the Netherlands: toward a more efficient process On March 22, 2016, the Dutch government accepted a new environmental code (Omgevingswet), now scheduled to take effect on January 1, 2022 (the initial implementation date was pushed back due to the pandemic).a The new code replaces the Wabo legislation, further simplifies and integrates spatial planning regulations, and makes it easier to start a construction project. It will bundle 26 spatial environment laws into one, 60 General Management Measures into four, and 75 ministerial regulations into a single environmental regulation. Additionally, a new platform, DSO, will replace the OLO online platform (currently used for construction permits) and two other platforms used for spatial planning (AIM and ruimtelijkeplannen.nl). The law will also reduce the number of cases requiring a permit, making notification the norm and a permit the exception. The number of permit cases falling under the lengthier procedure—which can take up to 26 weeks—will also be reduced, meaning most permit cases will fall under an eight-week procedure. The “lex silencio positivo” will be discontinued (under current regu- lation, if a municipality fails to respond within the legal term, the permit is automatically granted). If a municipality does not respond within the legal term, the municipality will have to pay a penalty to the developer. The developer can also appeal to the courts directly. Finally, the quality control criteria will be updated with the introduction of the Quality Assurance for Building Act (referred to as Wkb). Under this act, inspections will be privatized and carried out by quality assurance companies (kwaliteitsborgers). The quality assurance companies must meet strict minimum qualifications, including education, years of experience, and the com- pletion of a specialized course (currently under development). The quality assurance company will be involved in the construc- tion process throughout the project’s entirety, including design, implementation, construction, and completion. A risk-based assessment of the type of building and services required will determine the fees charged by the quality assurance company. The construction contractor will be responsible for all defects and their consequences, including if a client discovers a defect later—the client will be able to force the contractor to fix these defects. The contractor will also be required to inform the client if they are insured against bankruptcy and risks of damage or defects. a. For more information on the new reform, see https://www.rijksoverheid.nl/onderwerpen/omgevingswet/vernieuwing-omgevingsrecht. allow developers to track their projects in Information Modelling (BIM) systems, Introduce mandatory liability one place. which incorporate building regulation insurance requirements to cover parameters into project design.67 The developers and architects in the Shifting from the OLO platform to the software helps professionals plan proj- event of structural defects DSO platform will integrate three online ects that comply with national and local Although developers and architects in spatial planning tools (combining the regulations, and it makes conducting the Netherlands are liable by law for OLO, AIM, and ruimtelijkeplannen.nl). post-design checks easier and faster structural flaws or building problems, The Dutch might consider also integrat- for public authorities. Australia devel- the law does not require them to obtain ing the utilities portal to further stream- oped the DesignCheck program, which insurance to cover costs arising from line the permitting process, creating one provides an automated code-checking structural defects once the building is in single platform for developers to make tool for designers to check code require- use. Such insurance benefits clients and all necessary requests. Expanding the ments at varying stages of project design; contractors, and it encourages construc- scope further to include communication basic building-code compliance tests tion companies—particularly small and with building inspectors would create a can be done rapidly and automatically.68 medium-sized construction companies— comprehensive picture of developer and Introducing BIM technology requires a to pursue more projects.69 municipality activities. In the United Arab financial investment and training for both Emirates, the use of cameras and drones private professionals and public sector With the Omgevingswet reform (see to inspect construction sites reduces the officials. A strong collaboration between box 2), the Netherlands will take the first need for onsite inspections, freeing up professional associations and municipali- step in this direction by making it manda- inspectors’ time. ties would be essential in the preparation tory for contractors to inform their clients and implementation phases. whether they have insurance for bank- In the long run, Dutch cities should look ruptcy, defects, and damages and, if so, into the advantages offered by Building what type of insurance. The Netherlands Back to Contents DOING BUSINESS IN THE NETHERLANDS 23 could emulate the examples of France Improve regulatory expertise Business data suggest that construction and Denmark. France, an early adopter together with the private sector permitting is more efficient in economies of mandatory decennial (10-year) insur- Construction permitting is a complex that rely on some form of private sector ance policies, applies the same insurance process involving multiple stakeholders. participation in construction permitting requirement to all new buildings, regard- Managing this process requires permit- or control processes. But such a system less of their purpose.70 Two coverage issuing agencies that are adequately needs to be accompanied by adequate levels are required for structural defects: staffed and technically competent, with safeguards, such as more robust quali- insurance taken out by the owners of the professional case management know- fication requirements for professionals building (dommage ouvrage) and decen- how and technology. Developers in the who approve building plans. The upcom- nial insurance taken out by the builders. Netherlands cite inadequately trained or ing reforms in the Netherlands will take In Denmark, regulations require decen- understaffed permit-issuing offices as a significant step in this direction by nial insurance for the construction of causes of construction permitting delays. privatizing inspections and updating new permanent dwellings. When issuing inspectors’ minimum qualifications. the occupancy permit, the municipal- More robust qualification requirements ity checks the validity of the insurance for professionals involved in construction before issuing the building permit and permitting and control could be benefi- completing construction. cial. In the Netherlands, the professionals who approve standard case building Review the building permit cost plans and supervising construction must structure have a senior secondary vocational edu- Building permit fees across all Dutch cation (MBO), one year of work experi- cities are high, accounting for more than ence, and some additional specialized 80% of the total cost of construction certifications.73 In contrast, in Croatia and permitting. Based on the construc- Portugal, these professionals must have tion value, a Dutch entrepreneur pays a university degree in architecture or EUR 51,096 on average for the build- engineering. Introducing a requirement ing permit—almost four times the EU for higher education would automatically average (EUR 13,989). Building permit increase the technical competency of fees allow local authorities to provide the Dutch permitting agencies. Globally, public infrastructure and facilities that more than 80% of economies measured benefit local development. However, high by Doing Business require a university building permit fees tend to reduce com- degree in architecture or engineering for mercial property investment, adversely professionals reviewing building plans. affecting job growth.71 In the medium term, understaffing could In economies that have adopted good be addressed by giving certified private practices in this area, building permit sector professionals a more significant fees are generally set to recover the cost role in the permitting process. Although of providing the services rather than this might require legislative action, the to fulfill a tax purpose. New Zealand benefits of a highly specialized workforce charges permit fees at a level that covers flexible to changes in demand could be the costs associated with the review of substantial. Most EU member economies plans, inspections, and overhead costs. have made a complete shift from public When setting the fees, the Auckland to private governance mechanisms in Council considers factors including the building regulation, reflecting a desire cost implications of infrastructure fund- to improve the quality of regulation, ing decisions on development and the reduce the administrative burden for challenges developers face in getting applicants, and support a greater focus their products built, noting “if develop- on risk mitigation.74 Australia, Singapore, ment costs are too high this may act as and the United Kingdom are among the a barrier to development and slow down countries that have adopted a system of growth.”72 third-party contractors to expand regula- tory coverage and expertise.75 Doing Back to Contents 24 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Getting Electricity Electricity-related laws and regula- MAP 1  Electricity distribution utilities operate in designated geographic zones tions are defined at the national level and monitored by an independent administrative body, the Netherlands Groningen Enexis Authority for Consumers and Markets (ACM).76 Distribution system operators (DSOs)—also referred to as “electricity distributors” and “distribution utilities” in this chapter— are key players in the connection process. The low and medium Amsterdam voltage grids in the 10 benchmarked cit- Liander Enschede ies are operated by four utilities: Enduris, Enexis The Hague Enexis, Liander, and Stedin (map 1). Each Stedin Utrecht Stedin Arnhem utility serves a specific geographic area Rotterdam Liander Stedin and is responsible for expanding and maintaining its own grid. The national high voltage grid is managed by a trans- Middelburg Enduris Eindhoven mission system operator, TenneT, which Enexis transports electricity and balances supply with demand.77 Maastricht Among the 10 cities benchmarked, get- Enexis ting electricity is easiest in Maastricht and Eindhoven, and most difficult in Enschede and Groningen (table 7). The Source: Subnational Doing Business and Doing Business databases. Note: The Enduris and Stedin distribution utilities, which are both members of the Stedin Group, are in the process of procedural steps to obtain a new con- being merged. nection are identical across locations, but the time and cost to complete them vary TABLE 7  Maastricht and Eindhoven score highest in the Netherlands for getting substantially. electricity Cost Reliability of supply and Obtaining an electricity connection Score Procedures Time (% of income transparency of tariffs index in the Netherlands takes longer City Rank (0–100) (number) (day) per capita) (0–8) but costs significantly less than Maastricht 1 87.19 4 97 18.3 8 the EU average Eindhoven 2 87.08 4 98 18.3 8 Across the Dutch cities benchmarked, a Middelburg 3 86.63 4 102 23.7 8 new electricity connection costs 21.9% of Amsterdam 4 86.63 4 102 24.1 8 income per capita on average, one-sixth The Hague 5 85.43 4 113 24.6 8 of the average cost in the European Union. Arnhem 6 84.24 4 124 24.1 8 This low cost places Dutch cities among Rotterdam 7 84.24 4 124 24.6 8 the EU member states with the lowest grid Utrecht 8 83.37 4 132 24.6 8 connection costs.78 The process requires Groningen 9 82.95 4 136 18.3 8 the same four procedures in all 10 cities, in line with the EU average of 4.5 proce- Enschede 10 82.73 4 138 18.3 8 dures. However, completing these steps Source: Subnational Doing Business and Doing Business databases. Note: Rankings are based on the average scores for the procedures, time, and cost associated with getting electricity takes on average almost four months and the reliability of supply and transparency of tariffs index. The score is normalized to range from 0 to 100 (the across the Dutch cities, nearly one month higher the score, the better). For more details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and the Netherlands.” Data for Amsterdam are not considered official until longer than the EU average. Obtaining a published in the Doing Business 2021 report. Back to Contents DOING BUSINESS IN THE NETHERLANDS 25 new connection takes longer than the electricity connection, customers initiate water, sewer, gas, telecommunications, Dutch average (116.6 days) in only five the application process by submitting a or electricity—are legally required to EU member states.79 In Germany, obtain- form online, together with details on the register their pipes and cables with the ing an electricity connection takes less requested capacity and the building’s cadaster and regularly update their maps. than one month, making it the European exact location (figure 15). The customer can sign a supply contract Union’s fastest economy as measured by with any available energy supplier as Doing Business (figure 13). Upon receiving the request, the utility well as hire a specialized company to assesses the feasibility of the connection install the meter at any point during the The Netherlands performs well on the and, if positive, provides the client with connection works.83 Using an electronic Doing Business reliability of supply and a quote for connection fees. The utility platform, the supplier and the meter transparency of tariffs index, with all 10 (on the client’s behalf) then obtains the company notify the distribution utility cities scoring the maximum 8 points on necessary excavation permits from the of the supply contract signing and meter the index (figure 14).80 The Dutch cities local municipality and performs the installation.84 Finally, the utility electrifies offer a reliable grid and the regulatory connection works using an external the connection without any further action framework is robust and follows good contractor. Before the external con- by the customer. practices. nection works can start, as an internal step the utility’s contractor submits a Entrepreneurs benefit from Doing Business studies the hypothetical request (KLIC request82) through the a standardized process, but case of a local firm that needs a 140-kilo- Netherlands’ Cadastre, Land Registry variations exist in the time volt-ampere (kVA) electricity connection and Mapping Agency’s online platform and cost to get an electricity for a newly built warehouse located in to obtain a map showing the existing connection a commercial area outside a city’s his- underground cables and pipes. This map, In all benchmarked cities, entrepreneurs torical center. In all 10 cities measured which takes a maximum of two days to can request connections from different in the Netherlands, a new warehouse receive, is required to prevent damage distribution utilities while benefitting would be connected to the low voltage during the excavation works (figure 16). from the same predictable process. This underground network.81 To obtain a new Utilities with underground networks—for predictability stems from the strict legal FIGURE 13  Getting electricity in the Netherlands takes almost a month longer than the EU average EFFICIENCY OF GETTING ELECTRICITY Procedures Time Cost (number) (days) (% of income per capita) 1 1 0 France (EU best) 20 Eindhoven, Enschede, Lithuania (EU best) 2 Germany (EU best) 30 Dutch average 20 Groningen, Maastricht Finland Middelburg Czech Republic, Germany, Denmark 40 Amsterdam, Arnhem Finland Rotterdam, The Hague, Utrecht Latvia, Sweden 3 France 40 50 France 4 All 10 Dutch cities EU average 90 Maastricht 80 EU average 100 Eindhoven Amsterdam, Middelburg Denmark Finland 5 110 100 The Hague Dutch average 120 Arnhem, Rotterdam Belgium 6 120 130 Utrecht EU average Groningen Belgium 140 Enschede 7 140 Belgium 170 180 8 900 Bulgaria 260 Romania Romania 9 270 920 Source: Subnational Doing Business and Doing Business databases. Note: EU average uses economy-level data for the 27 member states of the European Union. Data for individual economies are for their capital city as measured by the global Doing Business. Data for Amsterdam, comparator RELIABILITY AND and EU averages are not considered official until published in the Doing Business 2021 report. economies OF SUPPLY TRANSPARENCY OF TARIFFS INDEX (0–8) 15 other EU economies 8 All 10 Dutch cities (EU best)* EU average Back to Contents Denmark 7 Belgium 140 Enschede 7 140 Belgium 170 26 DOING BUSINESS IN 8 180 BELGIUM AND THE NETHERLANDS THE EUROPEAN UNION 2021: AUSTRIA, 900 Bulgaria 260 Romania Romania 9 270 920 Obtaining a connection requires slightly in Maastricht and Arnhem and one month FIGURE 14  Dutch cities perform in the top tier on the reliability of electricity supply over three months in Maastricht and on average in the rest of the benchmarked Eindhoven (97 and 98 days, respectively), cities. In Groningen, the time for the RELIABILITY OF SUPPLY AND while entrepreneurs can wait for over four municipality to issue a permit is closer to TRANSPARENCY OF TARIFFS INDEX (0–8) months in Arnhem, Rotterdam, Utrecht, the maximum term of eight weeks due to 15 other EU economies 8 All 10 Dutch cities Groningen, and Enschede. Longer wait the presence of ancient burial grounds in (EU best)* EU average times are typically the result of DSOs the area, which require thorough archeo- Denmark 7 receiving a high number of applications logical assessments. In Enschede, a permit and lacking the technical staff to deal with is only required when public domain exca- 6 the connection process.86 Liander and vation works exceed 25 meters.89 Enexis are experiencing a heavier work- Malta 5 load related to their ongoing transition to New connection application processing renewable energy (box 3).87 Furthermore, times also cause subnational variations 4 the time to obtain a municipal permit in the time to get electricity. Enexis, which to cross a public road, which the utility operates in Maastricht and Eindhoven, 3 obtains on behalf of the client, can also processes requests within eight days, five vary across locations. In all cities bench- days faster than utilities in the majority of 2 marked except Enschede, an excavation the other cities (figure 17). Enexis is the permit is required. The legal time limit to only utility that allows the submission of 1 issue a permit is set nationally at eight connection requests through its website, weeks, but municipalities can set shorter resulting in faster processing. Applications 0 limits.88 In practice, obtaining the permit for all other utilities are submitted through takes from three days in Utrecht to 14 days the national platform, Mijnaansluiting.90 Source: Subnational Doing Business and Doing Business databases. Note: EU average uses economy-level data for the 27 FIGURE 16  Dutch utilities benefit from a digital system to obtain maps of underground member states of the European Union. Data for individual economies are for their capital city as measured by Doing cables Business. Data for Amsterdam, EU averages, and EU comparators countries are not considered official until published in the Doing Business 2021 report. * Belgium, Cyprus, Czech Republic, Estonia, Finland, France, Germany, Ireland, Latvia, Lithuania, Poland, Slovak Republic, Slovenia, Spain, Sweden. FIGURE 15  Getting electricity takes four steps across the Netherlands Procedure Agency Submit application to utility Distribution utility and receive quote Obtain external works from Distribution utility utility’s contractor Sign contract with electricity Supplier supplier* Obtain meter installation by Meter company meter company* Source: Subnational Doing Business and Doing Business databases. * Procedure occurs simultaneously with previous one time limits imposed by national regula- tion for the various steps required to get an electricity connection.85 Furthermore, the entire process is digitalized. However, there are local variations in the dura- tion and cost to obtain a new electricity Source: Cadastre, Land Registry and Mapping Agency (https://www.kadaster.nl/zakelijk/producten/graafwerk/klic-melding). connection. Note: KLIC is the acronym for Kabels en Leidingen Informatie Centrum (Cables and Pipes Information Center). Back to Contents DOING BUSINESS IN THE NETHERLANDS 27 BOX 3  The transition to renewable energy has increased the workload for distribution utilities When applying for an electricity connection, customers in the Netherlands indicate a date by when, ideally, the final electric- ity connection will be made.a However, the utilities are struggling to honor this customer-oriented approach. In June 2019, the Dutch government introduced a new climate agreement (Klimaatakkoord) containing a series of measures drawn up in consul- tation with stakeholders across Dutch society to combat climate change. The agreement aims to generate 70% of electricity from renewable sources by 2030 and ban fossil fuels by 2050.b Subsequently, construction of new solar fields in the north and east regions of the country—where Liander and Enexis operate—has boomed. However, the existing electrical grids, designed to carry significantly less electrical flow, lack the capacity to receive the electricity generated by this multitude of solar panels. For this reason, utilities are working on expanding their grids, resulting in an increased workload.c The utilities’ annual reports show that the grids’ newly-constructed cable length in kilometers has increased in recent years.d Enexis notes that electricity grid expansion in the next two years will have to be realized at the speed of what would typically take 30 years to accommodate all renewable energy-related applications.e a. This date is called the “wensmoment” (wish moment). The wish moment must be a “reasonable time period”, taking into account the legal time period of 18 weeks. b. See the Dutch government’s website at https://www.rijksoverheid.nl/onderwerpen/klimaatverandering/klimaatakkoord/maatregelen-klimaatakkoord-per-sector. c. For example, see a map of areas where Enexis has issues returning supply generated (for example, from solar panels) to the electricity grid at https://www.enexis.nl/zakelijk/duurzaam/beperkte-capaciteit/gebieden-met-schaarste. d. Between 2016 and 2019, Enexis built 4,100 km of new cables (see 2019 Enexis Annual Report at https://www.enexisgroep.nl/media/2695/enexis -holding-nv-jaarverslag-2019.pdf). Between 2016 and 2019, Liander built 888 km of new cables (see Liander annual reports from 2019, 2018, and 2017 at https://www.liander.nl/sites/default/files/Liander_Jaarbericht_2019.pdf; https://www.liander.nl/sites/default/files/Jaarbericht%202018.pdf; https://www.liander.nl/sites/default/files/Liander_Jaarbericht_2017_29062018.pdf). e. See the Enexis website at https://www.enexis.nl/over-ons/wie-zijn-we/ons-werk/enexis-werkt-aan-de-toekomst-van-energie/situatieschets. For connections exceeding 3x80 ampere, FIGURE 17  Getting electricity takes the least time in Maastricht and the most in Enschede as in the Doing Business case study, applica- tions received through Mijnaansluiting are forwarded manually to the relevant utility, Maastricht 7 90 causing delays in the review process.91 Eindhoven 8 90 The national regulator, ACM, sets the Amsterdam 12 90 maximum electricity connection fee. Utilities can propose tariffs to the regula- Middelburg 12 90 tor that fall below this maximum amount. All four utilities charge a connection fee The Hague 12 101 comprising two components: (i) the Arnhem 12 112 requested capacity and (ii) a fee based on how far the connection point is from Rotterdam 12 112 the existing grid.92 At EUR 8,591, getting electricity is least expensive in Eindhoven, Utrecht 12 120 Enschede, Groningen, and Maastricht— from EUR 2,500 to EUR 3,000 lower than Groningen 10 126 the average cost in the other Dutch cities Enschede 12 126 benchmarked (figure 18). 0 20 40 60 80 100 120 140 160 The Netherlands has a reliable Time (days) grid, and its robust regulatory Processing application and issuing quote Excavation permit and connection works framework reflects good practices In addition to efficiency, Doing Business also measures the reliability of supply Source: Subnational Doing Business and Doing Business databases. and the transparency of tariffs using an Note: The procedures "signing the supply contract" and "obtain meter installation" are not represented in the figure as index that scores cities on a scale of 0 to they are simultaneously done with the "excavation permit and connection works" procedure. For more information see the data notes. Data for Amsterdam are not considered official until published in the Doing Business 2021 report. 8. All Dutch utilities score the maximum Back to Contents 28 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS FIGURE 18  Capacity and connection charges drive cost variations WHAT CAN BE IMPROVED? Cost (EUR) 14,000 Streamline the process for obtaining external connection works and 12,000 excavation permits 10,000 The Netherlands’ distribution utilities are 8,000 6,550 6,250 facing a series of new challenges simul- 6,713 taneously: accommodating an increasing 6,000 5,163 volume of connection requests, dealing 4,000 with a shortage of technical staff, and 5,330 meeting new demands for renewable 4,437 4,802 2,000 3,428 energy sources. With an increased 0 demand of new connection requests, Enexis Enduris Liander Stedin Dutch municipalities are also affected. Capacity fee Connection fee Consequently, businesses must wait longer to obtain electricity connections. Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Dutch authorities and utilities could take inspiration from the United Kingdom to of 8 points. DSOs report their annual within six months.93 Enexis—operating reduce new connection wait times. In performance on grid quality, capacity, in Eindhoven, Enschede, Groningen, 2017, the UK regulator, Ofgem, approved and safety to ACM. In addition, tariffs and Maastricht—recorded the fewest the ICE initiative to encourage distribution and tariff changes are efficiently com- outages in 2019, when each customer network operators to complete the exter- municated to customers, and these are experienced 0.15 service interruptions nal connection works faster. According to available online. All 10 benchmarked cit- lasting a total of 12 minutes on aver- the ICE guidance, the utilities must pro- ies have automated systems to monitor age. In contrast, Liander’s customers in vide data demonstrating that they have power outages and restore services and Amsterdam and Arnhem experienced responded to their customers on time utilities. DSOs compensate customers 0.32 service interruptions, lasting three and according to their customer service in the event of outages that exceed times longer (nearly 35 minutes) on aver- engagement. DSOs can be penalized if four hours, and this must be paid out age (figure 19). they fail to meet these requirements. Moreover, one DSO, UK Power Networks, implemented a new software system, FIGURE 19  Amsterdam and Arnhem experienced the most frequent and longest outages the ICP Design Fast Track and Approved in 2019 Designer Scheme, that allows for direct contact with subcontractors and tracks 0.6 their progress. The utility also introduced 0.5 common requirements for the design and planning of the works and material 0.4 specifications for subcontractors to carry out external works. As a result of these 0.3 initiatives, UK Power Networks reduced the time to provide a new electricity 0.2 connection by one month. According to 0.1 Doing Business data, it takes 46 days to complete the connection works in the 0.0 United Kingdom, nearly 2.5 months Enduris Enexis Liander Stedin faster than the Dutch average. SAIFI (average number of service interruptions experienced by a customer in 2019) SAIDI (average total duration of outages in 2019 for each customer served - in hours) Regarding reducing excavation permit wait times, Dutch cities could learn from Source: Subnational Doing Business and Doing Business databases. one another and elevate the local good Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. practices identified in this study to the Back to Contents DOING BUSINESS IN THE NETHERLANDS 29 national level. Local laws on underground Allow entrepreneurs to request a acceptance, 70% before the external infrastructure in Amsterdam, Enschede, new connection, supply contract, connection works commence, and the and Utrecht establish good practices by and meter installation via a single remaining 10% upon completion. Enduris setting different time limits for crossing window requires 60% of the total fee to be paid a public domain, depending on whether Economies can reduce the number of upfront and the remaining 40% once the excavation works are under or over 25 procedures required to obtain an electric- the external connection works are com- meters in length. If the total length is less ity connection by allowing customers pleted. A payment arrangement whereby than 25 meters in length, the works are to apply for the electricity connection, the customer pays after the connection is considered noninvasive, and the project is supply contract, and meter installation completed or a share of the bill upfront deemed eligible for a “small works permit”. through the same electronic platform and the balance at a later stage is consid- Issuance of this type of permit is faster (instead of through three separate appli- ered a good practice. than for a project with a length over 25 cations). The Dutch utilities have already meters. In Utrecht, the municipality must come together to cooperatively introduce Getting an electricity connection in the issue a permit decision within three busi- a national platform under the Mijn Netherlands is inexpensive compared ness days of receiving a permit request for Aansluiting, or “my connection”, initia- to other EU member states. Still, the noninvasive works.94 The municipality in tive, which allows customers to apply Netherlands could reduce the cost Enschede went a step further, eliminat- for all utility-related connections in one further. In France, the connection to elec- ing the need for an excavation permit for place.98 The single electronic interface tricity costs 5.8% of income per capita, public road crossings under 25 meters in is designed to optimize the application one-third as much as in the Netherlands. length altogether. Although in Arnhem the process for anything related to electric- The cost is significantly lower because the municipality does not make a distinction ity, gas, water, sewer, media, and com- federal government subsidizes the cost based on the length of the crossing, it does munications (television, internet, and by requiring that municipalities finance a provide a local good practice in terms of telephone). The platform could integrate portion of the connection costs.99 lowering the legal time limit.95 additional utilities, suppliers, and meter companies. In Italy, customers have the Increase transparency by making option to apply for a new electricity con- data on legal time compliance nection in a single application through a publicly available chosen supplier. Thanks to economies of Beyond monitoring legal compliance, it is scale, it is easier and faster for a supplier also critical that municipalities, distribu- to go through the process of obtaining a tion utilities, and electricity suppliers connection in a single application than it make data on proceeding times publicly is for a first-time applicant. available. Doing so would help entrepre- neurs to accurately estimate waiting Allow the option to pay connection times. In Austria, the regulator publishes fees in installments and assess the a standardized electricity quality report, possibility of lowering the cost of the Kommerzielle Qualität Storm, which getting an electricity connection includes cross-cutting data on the In the Dutch cities where Stedin operates, various steps of the electricity connec- the connection works do not commence tion process.96 The report includes data until the client has paid the connection on application processing times and the fees in full. Electrical connections could time to complete a connection at differ- be expedited by allowing customers to ent voltage levels, making the data easily pay the connection fees after the con- comparable across cities and utilities.97 nection is completed or in installments Data are collected annually from utilities instead of requiring the full payment through a questionnaire. A similar data- upfront. Liander, Enduris, and Enexis driven report could help streamline already use such a system, providing the electricity sector—and help Dutch a good example for the Dutch cities. entrepreneurs and utilities set clear Enexis allows entrepreneurs to pay the and realistic expectations. Such data total connection fee after the external reporting could also serve as an indirect connection works are completed. Liander accountability measure to incentivize requires entrepreneurs to pay 20% of utilities and boost their performance. the total connection fee upon quote Back to Contents 30 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Registering Property The Netherlands’ Cadastre, Land Registry, slightly, even though public fees and tax- Maastricht, and Middelburg (EUR 1,000). and Mapping Agency—known locally as es are fixed nationwide at EUR 114,147. Notaries charging at the lower end of the Kadaster—maintains the public registers This amount comprises transfer taxes of range can be found in all Dutch cities, but of land rights and mapping nationwide. 6%101 of the property value (EUR 141,031) larger notary offices working with multina- Kadaster is an independent public body and other fees for cadastral and map tional enterprises are more present in the that operates under the auspices of searches, and fees for digital registration cities of the Randstad. the Ministry of Interior and Kingdom with Kadaster102 (totaling EUR 116). Relations. Established in the early nine- The Netherlands’ land management sys- teenth century by Napoleon, the institu- Variations in cost stem primarily from dif- tem is uniform nationwide, with a public, tion’s structure, functioning, and funding ferences in notary fees. Notary rates, which central-level database storing geospatial were transformed by the 1994 Cadastre were deregulated in 1999, can be billed at an and land rights data. Property rights trans- Organization Act. Kadaster registers hourly rate or fixed fee. As such, notary fees fers are completed through the authenti- rights and interests affecting any real can vary within the same city. Among the cation of a deed of sale by a notary. The estate, keeps the registers updated with variables that determine the price of notar- notary also verifies the parties’ identities information on rights and rightsholders, ial services are the size of the notary office, and rights, intermediates the payments, and maintains administrative and geo- the seniority of the notary, and their client and submits the deed together with a graphical records and geospatial data.100 composition (large companies, small busi- request for registration to the Kadaster. nesses, or private individuals). Although The Registrar receives the application The Dutch land registry is a the city of operation does not appear to be form, checks the documentation, and centralized, deed-based system a primary driver of cost variation, entrepre- updates the database to reflect the trans- in which notaries and registrars neurs in the Randstad cities of Amsterdam, fer. The new rights are constituted retro- play a key role The Hague, Rotterdam, and Utrecht are actively to the day of deed authentication. The process to register a property is uni- likely to pay higher fees (EUR 2,250) than form throughout the Netherlands, with elsewhere in the Netherlands. In Arnhem Registering property in the the same five procedures taking three and Enschede, notary fees tend to be lower Netherlands is fast but relatively days in all benchmarked cities (table (EUR 1,500) than in the Randstad cities expensive 8). The cost to register property varies but higher than in Eindhoven, Groningen, Property registration in the Netherlands is efficient. A property transfer between TABLE 8  Registering property is uniform across Dutch cities, with slight cost variations domestic private companies requires five procedures, on par with the EU average Cost Quality of land Score Procedures Time (% of property administration index (figure 20). At just three days, it takes City Rank (0–100) (number) (day) value) (0–30) significantly less time for an entrepreneur Eindhoven 1 80.10 5 3 6.05 28.5 in the Netherlands to complete these Groningen 1 80.10 5 3 6.05 28.5 procedures than the EU average of 28 Maastricht 1 80.10 5 3 6.05 28.5 days. However, the cost to register a Middelburg 1 80.10 5 3 6.05 28.5 property is the equivalent of 6.1% of the Arnhem 5 80.06 5 3 6.07 28.5 property value, higher than the EU aver- age of 4.8%. The Netherlands scores Enschede 5 80.06 5 3 6.07 28.5 among the top five economies globally on Amsterdam 7 80.01 5 3 6.10 28.5 the quality of land administration index The Hague 7 80.01 5 3 6.10 28.5 (28.5 out of 30 points)—one of only two Rotterdam 7 80.01 5 3 6.10 28.5 EU member states.103 Utrecht 7 80.01 5 3 6.10 28.5 Source: Subnational Doing Business and Doing Business databases. Four of the five steps to transfer Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Rankings are based on the average score for the procedures, time, and cost associated with registering property, as well as for the property are conducted online quality of land administration index. The score is normalized to range from 0 to 100 (the higher the score, the better). Notaries perform the procedures For more details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and the Netherlands.” required to transfer property in the Back to Contents DOING BUSINESS IN THE NETHERLANDS 31 FIGURE 20  Property registration is efficient but costly in the Netherlands EFFICIENCY OF PROPERTY REGISTRATION QUALITY OF LAND ADMINISTRATION Procedures Time Cost Index (number) (days) (% of property value) (0–30) Portugal, Sweden 1 1 Slovak Republic 0 30 (EU and global best)* (EU and global best)** Netherlands (EU best) All 10 Denmark 5 Dutch cities Denmark 29 2 1 Lithuania, Netherlands All 10 Dutch cities 20 (EU and global best)*** 28 Denmark 3 United Kingdom 4 25 United Kingdom 27 4 EU average EU average 5 30 United Kingdom 26 France All 10 Dutch EU average 5 cities 35 6 All 10 25 Germany, Dutch cities United Kingdom 6 Germany Denmark 40 7 France 24 France France 7 45 Germany 23 8 EU average Belgium 8 50 Belgium 22 Germany 12 9 Belgium 55 6 Belgium Greece 10 13 175 5 Poland Malta Greece 11 180 14 0 Source: Subnational Doing Business and Doing Business databases. Note: Averages for the European Union are based on economy-level data for the 27 EU member states. * Georgia and Norway also have one procedure. ** Belarus, Georgia, Kazakhstan, Kiribati, and Saudi Arabia also have a cost of 0.0% of the property value. *** Rwanda and Taiwan, China also score 28.5 points. Netherlands. First, they verify the par- most notaries conduct these searches pays the purchase price to the seller and ties’ identities and their rights to the using licensed software provided by pri- the due taxes to the Tax Authority. property by consulting Kadaster and vate companies that develop integrated Trade Register104 databases (figure 21). products using the open-source codes Notaries have a maximum of 10 calendar Unlike in other deed systems, the notary made available by Kadaster and other days after the day on which the deed is only needs to check the previous deed public institutions. These applications drawn up and signed to present the deed of sale. Notaries can sign up to get free pull data from public databases, including to the tax authority. The transfer tax must access to Kadaster’s systems. However, those at Kadaster and the Trade Register. be paid within one month from the regis- The notary obtains the registered title, tration, but in practice, notaries pay the cadastral map, and one cadastral extract transfer tax immediately. Kadaster then FIGURE 21  It takes five steps to transfer property in the Netherlands regarding the ownership and another reviews the documentation received, cadastral extract regarding mortgages a mostly automated process, and the Preregistration Agency and encumbrances.105 The notary obtains Registrar updates Kadaster’s databases Title search Land Registry basic information from the Trade Register to reflect the transfer. The rights of the search, including the two parties’ names, buyer are constituted retroactively from Parties’ search Trade Registry addresses, and legal representatives. the date of the deed’s execution. Next, the notary drafts the deed for the Sign and notarize the deed Notary parties to sign in person. Once signed, The Netherlands’ streamlined Registration Agency the notary authenticates the deed and and fast process to register Register title transfer at Land Registry signs a true copy, which is submitted property is the result of a series Revenue Agency online to Kadaster. Upon submission, of reforms Tax registration Tax Authority the notary receives a receipt, checks the Various factors explain why the Dutch Kadaster online to ensure no change in land administration system is so efficient Source: Subnational Doing Business and Doing Business databases. rights has occurred in the meanwhile and and uniform. These include the early Back to Contents 32 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS development of a single database for the applications). To this end, compatibility automatic system, but its use is not man- land registry and cadaster, the country’s protocols between Kadaster’s application datory. Notaries can opt for the previous constant orientation toward simplifying and other electronic signature providers semi-automatic registration or even submit processes by using the latest technology, were developed. the paper deed by postal mail. To encour- and a whole-of-government approach to age the adoption of the new technology, developing an integrated IT architecture In 2008, Kadaster introduced the KIK however, Kadaster charges more for paper for delivering public services built around system (Ketenintegratie Inschrijving registration (EUR 172) than for semi- key public registries.106 The authorities Kadaster, the chain integration inscrip- automatic registration (EUR 144.5) or fully have also followed a reform approach tion cadaster), which enabled the partial digital registration (EUR 82.5).111 The vast integrating continuous consultation with digital processing of deeds submitted by majority of notaries now use the automatic key stakeholders such as the Civil-Law notaries.107 The KIK system splits deeds or semi-automatic options. Notaries Association to define the most into two sections: a standard section (a efficient and effective procedures and “stylesheet”, already reviewed by the Consistent, nationwide efficiency stan- technologies. Registrar) containing key information to dards are the result of a country-wide register any transfer or mortgage and a team of registrars and a unified cadastral As a result of reform efforts dating to section where notaries and other par- system. Following a 2006 reform, all the 1980s, today, the notary’s interaction ties can customize terms specific to the regional property-related databases and with Kadaster is entirely electronic, and transaction. To accelerate the process, registrar teams were merged into one, and the processing of most requests is fully data related to the standard section of the the practice of assigning each region to automated (figure 22). In 1990, Kadaster deed are extracted automatically from the one team of registrars was discontinued.112 introduced an interface, Automatische Basic Land Register (BRK, Basisregistratie Currently, the Netherlands has a national Kadastrale Registratie, that allowed Kadaster). When submitting the deed, team of registrars that update the registry notaries to submit registration forms the notary also sends a duplicate XML with transfers anywhere in the country.113 electronically for the first time. However, version of the deed’s standard section.108 paper-based signed deeds were still If the deed is presented electronically for Investments in digital required to accompany the applica- registration by the notary in accordance infrastructure has paid off, tion. In 1999, the authorities completed with the model, the cadastral registration especially in times of crisis scanning historical deeds and began is adjusted without further human inter- The Dutch property registration system’s scanning new deeds upon their receipt, vention. Kadaster reviews the stylesheet reliance on digital infrastructure made it enabling faster document processing automatically.109 resilient to the unprecedented challenges by registrars. In 2005, the Netherlands created by the COVID-19 pandemic. began using electronically signed deeds The latest major technical advance was Kadaster recorded no serious disruptions exclusively, abolishing paper docu- the 2018 migration to KOERS (Kadastrale to service delivery in 2020. In addition, ments. Kadaster unveiled the WebELAN Objecten Rechtenregistratie Systeem, Kadaster staff were able to complete application for notaries, enabling them to the cadastral objects and rights system). their tasks remotely. Four out of the five submit electronically signed documents. KOERS introduced the full automation of procedures to transfer property are con- The notaries could opt to use either standard deed processing and software ducted entirely online in the Netherlands. Kadaster’s free electronic signature checks of more information included in The execution of the deed by the notary application or another provider’s applica- the deed, such as size and boundaries, is the only procedure requiring physical tion (to accommodate those notaries rights and rightsholders against the data- interaction. Additional remote services that had purchased electronic signature base.110 Only notaries can use the KOERS were enabled during the pandemic, but FIGURE 22  The Dutch Kadaster’s Key Steps in Going Digital 1990 1999 2005 2008 2018 First electronic Scanning of historical The requirement of KIK system enabling KOERS Sysyem registration forms deeds completed submitting paper partial digital further digitalized were enabled and new ones were deeds was abolished processing of deeds and enabled future scanned upon receipt (WebELAN) was introduced upgradings Source: Subnational Doing Business and Doing Business databases. Back to Contents DOING BUSINESS IN THE NETHERLANDS 33 the temporary provisions do not apply to of liability for entities or agents recording and Portugal, the use of legal profession- the execution of transfer deeds.114 land transactions. The index also looks als to transfer property is not required at how efficiently the courts, as a last by law. Companies can choose whether All cities in the Netherlands rank at the resort, handle disputes. All Dutch cities and when to seek legal assistance. One top of the quality of land administration score 7.5 out of 8 points on this index. way to make such a reform successful is index, a measure of the quality of land The Netherlands is one of only five EU for Kadaster to introduce a standardized administration institutions across five countries116 where a first instance court contract for property transactions; this areas: reliability of infrastructure, transpar- decision in a standard property dispute typically reduces the risk of mistakes or ency of information, geographic coverage, can be obtained in less than a year. If the omissions. Offering such contracts would and land dispute resolution.115 The reliabil- Dutch courts were to publish statistics also reduce both the time and cost to ity of infrastructure component measures on the number of property-related legal register property. Companies could still whether the land registry and mapping disputes, the benchmarked cities would consult legal professionals and draw up system (cadaster) have adequate infra- obtain the maximum score on the land tailor-made contracts, especially for more structure to guarantee high standards and dispute resolution index. complex transactions, but it would not be reduce errors. All cities in the Netherlands required. In Denmark, all requirements to score 7 out of 8 points for the reliability draft and submit the deed are clearly out- of infrastructure on account of the coun- WHAT CAN BE IMPROVED? lined and explained in the Land Register try’s advanced electronic infrastructure. Act and subsequent regulations, making Kadaster maintains a single electronic Assess the possibility of reducing it easy for parties to do it themselves. database for encumbrances and maps and the cost of transferring property in Moreover, Denmark abolished a previous has fully digitized its maps and scanned the Netherlands requirement to have the deed signed by the majority of deeds. Keeping the major- At 6.1% of the property value, the cost two witnesses following the introduc- ity of deeds in a fully digital format would to transfer property is higher in the tion of the electronic signature. Portugal raise the score to the maximum. Netherlands than the EU average (4.8%) successfully made notary involvement and the OECD high-income economy optional for companies wishing to trans- The 10 benchmarked cities obtain the average (4.2%). As noted above, the fer property. The parties must only sign maximum score of 6 points on the main component of the cost is the 6% the agreement in person at the registry. transparency of information component, transfer tax. Because an expensive prop- As a result, registering property in the which measures whether and how erty registration process can represent a Portuguese cities of Faro, Funchal, and the land administration system makes burden for the private sector, the authori- Ponta Delgada takes just one procedure land-related information available to the ties could consider reducing the transfer and one day. The registry provides the public. Kadaster publishes fee schedules, tax. Several EU member states, including parties to the transaction with standard lists of required documents needed to Denmark, Estonia, Lithuania, Poland, and official templates to sign. register a property, and statistics on the Slovak Republic, have either very low property transfers. Furthermore, one can property transfer taxes (less than 1%) or Increase the transparency of the find Kadaster’s commitments to service have abolished them altogether. Of the land administration system by standards (deadlines for various proce- European Union’s 27 member states, 19 collecting and compiling statistics dures) on the institution’s website and have a lower cost to register property on land disputes a form to submit complaints, which are than the Netherlands. Globally, register- When land disputes occur, ensuring handled independently. ing a property transfer is less costly than that they clear the courts quickly is the Netherlands in 125 of the 190 econo- important—citizens’ resources should The geographic coverage component mies measured by Doing Business. not be unnecessarily tied up in the legal measures the extent to which the land system. However, the Netherlands does registry and mapping system provide Explore the possibility of gradually not make information on land disputes complete geographic coverage of pri- reducing the role of notaries in in the courts at the national level publicly vately held land parcels. Because all prop- property transfers or make their use available. Such statistics inform citizens erties in the Netherlands are mapped optional about the court’s true performance. They and registered, all cities score 8 out of 8 All property transactions in the also provide the court with information points for geographical coverage. Netherlands require that a notary on current bottlenecks and challenges authenticate the deed of sale between that can inform future reform initiatives. The land dispute resolution index the two parties, adding time and cost to measures the accessibility of conflict the process. In many countries, including Court statistics should be published resolution mechanisms and the extent EU member states Denmark, Sweden, continuously and updated regularly. Six Back to Contents 34 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS EU countries publish land dispute statis- MAP 2  Six EU member states make statistics on land disputes publicly available tics: Croatia, Estonia, Ireland, Lithuania, Slovenia, and Sweden (map 2). Dutch authorities should consider making such data publicly available in a user-friendly format, updated regularly or in real-time. Publish land dispute statistics Source: Doing Business database. Note: The data for EU member states are not considered official until published in the Doing Business 2021 report. Back to Contents DOING BUSINESS IN THE NETHERLANDS 35 Enforcing Contracts The Dutch judiciary is one of the most Court efficiency varies across the selected common law countries such as reliable and transparent in the world.117 country, but all courts lag on the the United Kingdom (45.7%). However, many court processes in the quality of judicial processes Netherlands lack the automation and dig- Resolving the Doing Business case study’s On the Doing Business quality of judicial italization found in other advanced judi- standardized commercial dispute is processes index, all Dutch cities bench- ciaries.118 Investment in the court system fastest in Eindhoven (471 days), 42 days marked score 7 of 18 possible points— has focused on making litigation easier, faster than the average across the 10 the lowest in the European Union and faster, and more automated to improve Dutch cities benchmarked (513 days) below the global average of 8.8 points. work quality and case flow.119 In 2019, (table 9).124 The Dutch courts resolve The Dutch courts’ performance for case the Netherlands adopted a technology- commercial disputes more than four management and court automation focused plan targeting “timely justice” months faster than the EU average (653 systems (2.5 out of 10 points on both (Tijdige Rechtspraak)—to cut disposition days) (figure 23).125 The fastest Dutch components) is lower than Germany (5 times, in particular—by 2023.120 courts, Eindhoven and Rotterdam (471 points) and Denmark (8 points). days and 485 days, respectively), are Temporary changes to court rules adopt- slightly slower than France (447 days) Commercial disputes follow a ed during the COVID-19 pandemic accel- but faster than Germany (499 days). straightforward and consistent erated the Netherlands’ move toward process across the country court modernization.121 For the first time, Despite its relatively fast process for con- The Dutch Code of Civil Procedure judges held virtual hearings and accepted tract enforcement, the Netherlands lags (Wetboek van Burgerlijke Rechtsvordering, judicial files electronically, improving the EU average for cost efficiency. At 21.6% or Rv) governs litigation nationwide. court automation and efficiency.122 of the claim value, enforcing contracts is District courts (rechtbank) have jurisdic- Before the public lockdown beginning on more expensive in the benchmarked cities tion over the Doing Business case—a March 17, 2020—shuttering the Dutch than in 16 other EU member states, most breach of contract dispute between two courts—these practices were uncom- notably France (17.4%), Belgium (16.4%), companies valued at 200% of income mon.123 Even if temporary, these changes and Germany (14.4%). However, the per capita (EUR 94,021).126 The courts in could reshape the way courts across the process is less costly than in Denmark the cities of Eindhoven and Enschede are Netherlands deal with litigation. (23.3%) and significantly cheaper than in branches of the district courts of Oost- Brabant and Overijssel, respectively. In TABLE 9  Enforcing contracts in the Netherlands: where is it easiest? principle, these branches hear cantonal cases (kantonzaken) with a claim value of Score Time Cost Quality of judicial City Rank (0–100) (day) (% of claim) processes index (0–18) up to EUR 25,000. However, an exception in the 2013 reorganization of legal districts Eindhoven 1 62.24 471 20.9 7 (arrondissementen) allowed Eindhoven’s Middelburg 2 61.87 512 18.9 7 district court branch to hear commercial Enschede 3 61.62 510 19.7 7 cases over EUR 25,000. Rotterdam 4 61.61 485 21.6 7 Groningen 5 61.49 519 19.4 7 The plaintiff initiates the litigation pro- Arnhem 6 60.46 517 22.3 7 cess by serving the defendant with the The Hague 7 59.99 519 23.4 7 lawsuit, usually in person via a bailiff. During the pandemic, temporary legisla- Amsterdam 8 59.94 514 23.9 7 tion allowed bailiffs to serve documents Utrecht 9 59.89 526 23.2 7 by postal mail.127 The parties must Maastricht 10 59.09 561 22.8 7 respect a one-week summons term Source: Subnational Doing Business and Doing Business databases. (dagvaardingstermijn) between the ser- Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Rankings are based on the average score for the time and cost associated with enforcing a contract, as well as for the quality of vice of the summons and the beginning judicial processes index. The score is normalized to range from 0 to 100 (the higher the score, the better). For more of the process; the summons is registered details, see the chapter “About Doing Business and Doing Business in the European Union 2021: Austria, Belgium and the Netherlands.” with the court during this period.128 Back to Contents 36 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS FIGURE 23  Dutch courts have room to improve across all indicators, especially on the quality of judicial processes EFFICIENCY OF CONTRACT ENFORCEMENT QUALITY OF JUDICIAL PROCESSES Time Cost Index (days) (% of claim value) (0–18) 1 0 18 9 300 Lithuania (EU best), Luxembourg (EU best) 10 15 Luxembourg (EU best) United Kingdom 350 14 Germany Denmark 14 15 400 16 13 France Eindhoven Belgium United Kingdom 450 Rotterdam 17 Germany France Enschede 18 France 12 Germany 500 Middelburg EU average Amsterdam 19 Middelburg Dutch average Groningen 11 Arnhem 550 Groningen, The Hague EU average 20 Enschede Denmark Utrecht 21 Eindhoven 10 Maastricht Dutch average Rotterdam 600 22 Arnhem 23 Maastricht 9 EU average 650 Denmark Utrecht 24 The Hague Amsterdam Belgium 8 700 33 Czech Republic 34 1,700 Netherlands 7 All 10 Dutch cities Greece 45 1,750 United Kingdom 46 0 Source: Subnational Doing Business and Doing Business databases. Note: The average for the European Union is based on economy-level data for 27 EU member states. Data for Amsterdam, comparator economies and EU averages are not considered official until published in the Doing Business 2021 report. The defendant has six weeks to respond is appointed (the judge selects the expert Judges do not limit themselves to the to the claim.129 To simplify the court only if the parties cannot agree on one). A documentary evidence provided by the hearing, the judge can order the parties case like the Doing Business standardized parties and experts. Hearings can be held to provide preparatory briefs clarifying commercial dispute is typically decided in onsite, allowing the judge to observe the factual or disputed points. Briefs should one or two hearings. One adjournment is core of the conflict first-hand to inform reach the court a minimum of 10 days easily granted; subsequent adjournments his or her judgment. In Utrecht, lawyers before the hearing.130 Complementary are much less common as they require the report that such a practical approach has evidence is gathered at this stage, and, agreement of both parties. The judge only a positive impact on the trial and judg- when appropriate, the parties submit accepts unilateral adjournment requests ment phase, particularly in construction additional written arguments. for compelling reasons or force majeure cases.135 (klemmende redenen of overmacht). The main purpose of the first hearing is to When a second hearing is needed, which gather information on the case and orga- Dutch courts hear a relatively low can take up to six months to schedule in nize the litigation process. The parties, volume of commercial cases compared many Dutch courts, it is typically the last. who appear with their attorney in court, to courts in other countries.132 In The The parties discuss the evidence, includ- play an important role in the procedure.131 Hague, court officials credit out-of-court ing the expert’s report, and make their In many cases, the first hearing is an settlements for their modest caseload.133 concluding arguments. After the final trial opportunity to clarify the parties’ respec- In Middelburg, lawyers explain that the hearing, it can take a few months for the tive positions, eliminating the need for parties and the judge often use the time judge to issue a ruling. additional replies or rejoinders. between the service of the summons and the first hearing to discuss an extrajudi- Enforcement is a separate judicial pro- The parties enjoy substantial autonomy cial resolution. Even when the parties cess. A copy of the judgment is sent to in trial management; they decide on cannot reach a settlement, this discus- the attorneys of both parties the day after the type of evidence to present and its sion reduces the number of contentious the ruling. The plaintiff can contact the order. However, if the judge deems the issues, allowing a decision on most court bailiff (gerechtsdeurwaarder) on evidence insufficient, a technical expert disputes after the first hearing.134 the same day. The bailiff subsequently Back to Contents DOING BUSINESS IN THE NETHERLANDS 37 serves the defendant with the judgment The main variation in time and overall is adjourned or requires a second hear- (vonnis betekenen). If the defendant performance across Dutch courts stems ing, the next available date would be in does not comply with the enforcement from the trial and judgment phase (fig- August 2021. During the pandemic, the order, the bailiff can seize the defendant’s ure 24), specifically the time between backlog of cases increased. To avoid the moveable property and organize the claim registration and the first hearing. creation of additional delays in Dutch sale.136 Seized items are auctioned pub- The duration of the trial and judgment courts, the authorities passed a tem- licly under the supervision of the bailiff, phase ranges from 390 days in Enschede porary act (Tweede Verzamelspoedwet either in person or online. to 475 days in Maastricht. Across the COVID-19) to increase the number Netherlands, the trial and judgment phase of available judges by allowing retired Enforcing contracts is fastest lasts 430 days on average, a month faster judges to rejoin the judiciary. In Utrecht, in Eindhoven but cheapest in than the EU average (469 days). The trial the second slowest city for enforcing Middelburg and judgment phase takes less than 390 contracts, two retired judges were called Litigating a commercial contract dispute days in 15 EU member states; in eight, it back to help with the caseload. is fastest in Eindhoven, where contract takes more than 475 days.138 enforcement is almost three months In Eindhoven, Middelburg, and Rotterdam, shorter than in Maastricht, the city where Dutch courts face diverse challenges scheduling the first hearing takes less time. it takes the longest. that influence trial time, including staff- In Middelburg, a court officer (instead of a ing gaps and the low level of court judge) assigns cases based on judges’ legal Court performance is remarkably uniform automation. Because both parties and experience and availability. This approach across the Netherlands. However, this is their attorneys must attend the first streamlines the scheduling process. unsurprising, given the level of commu- hearing, scheduling can be complex and Lawyers in Eindhoven note that the court’s nication and organization within the vari- time-consuming. Litigants routinely wait efficient use of the scheduling system has ous branches of the Dutch judiciary. The for six months—sometimes longer—for helped to reduce the waiting period from Council for the Judiciary holds monthly their first hearing. In Groningen, a case filing the summons to the first hearing to meetings with the presidents of the first registered in August 2020 would be three to six months. This system, which country’s 11 district courts, four appellate heard in February 2021 and, if the case consolidates the schedules of the parties courts, and the Supreme Court with the aim of improving efficiency throughout the country and, as a consequence, mini- FIGURE 24  Differences in the trial and judgment phase drive variations in the time to resolve a commercial dispute mize subnational variations. Eindhoven 15 396 60 In the five districts with the shortest contract enforcement times, the one- Rotterdam 15 410 60 year commercial case clearance rate in Enschede 30 390 90 2019 was higher on average than that in the districts where it takes the longest.137 Middelburg 30 421 61 The Amsterdam court has the highest Amsterdam 10 442 62 caseload and some of the most complex cases. Arnhem 20 435 62 Groningen 15 442 62 To initiate litigation, a bailiff serves the The Hague 15 442 62 writ of summons on the defendant and registers a copy with the court clerk. This Utrecht 15 449 62 phase usually takes no more than 20 days Maastricht 20 475 66 across the Netherlands. Although it is not required by law, the plaintiff can send a EU average 41 469 143 letter to the defendant before action in an 0 100 200 300 400 500 600 700 attempt to settle the dispute. In Enschede Time to resolve a commercial dispute (calendar days) and Middelburg, lawyers tend to allow more time to complete pretrial steps, Filing and service Trial and judgment Enforcement of judgment increasing the duration of the dispute’s filing and service phase to 30 days (still Source: Subnational Doing Business and Doing Business databases. Note: The average for the European Union is based on economy-level data for 27 EU member states. Data for shorter than the EU average of 41 days). Amsterdam and EU average are not considered official until published in the Doing Business 2021 report. Back to Contents 38 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS and their lawyers, allows administrative more than 10 days (except for Enschede, procedures are on the longer end. Fees are personnel to optimize judges’ schedules, where the plaintiff typically gives the slightly lower in Enschede, Groningen, and maximizing efficiency in scheduling the defendant more time to comply). Among Middelburg, where the demand for legal first hearing. Scheduling the hearing date EU member states, only Luxembourg (60 services on commercial matters is lower. in Rotterdam is also easier following a days) enforces the judgment faster than recent increase in judges, a new com- the Netherlands. At 90 days, Enschede The Court Fees Law (Wet griffierechten puterized case assignment system, and lags the other Dutch cities; even so, in the burgerlijke zaken)142 sets court fees the expanded use of virtual hearings.139 European Union only Luxembourg and nationwide, including the fees to register These measures help judges to manage Estonia (75 days) have faster enforce- the claim and for the issuance of the judg- their schedules and administrative staff to ment times than Enschede. The sale of ment (EUR 2,042). However, the fees of ensure courtroom availability. Judges also the debtor’s seized assets is not allowed expert witnesses are unregulated, result- receive valuable daily support from staff, until four weeks after the judgment; bai- ing in variations across the benchmarked many of them local university students. liffs use this waiting period to prepare the cities in court fees. Expert witness fees auction (which can take place soon after are highest in Enschede, Maastricht, Trial hearings are used to discuss evi- the four-week period). Occasionally the and Middelburg—among the smaller dence, including from expert witnesses. process can take several days longer—for cities benchmarked—and Rotterdam. If the legal and factual aspects of the example, the attachment of movable Practitioners report that there are fewer dispute are clear, no adjournment or assets might take place with a police local experts in smaller cities, reducing additional hearing is needed. Delivery of officer, which requires coordination of the competition and raising prices. In addi- an expert opinion rarely takes more than officer’s and the bailiff’s schedules. tion, experts who charge the same rate three months. for services nationwide tend to be based The cost of litigation varies from 18.9% of in larger cities; they charge transportation After evidence is collected and argu- the claim value in Middelburg to 23.9% in expenses when they travel to locations ments are debated, the judge issues a Amsterdam. Attorney fees, which make up outside of their hub. decision. Judges usually aim to draft their the bulk of the cost, are typically charged judgment in six weeks, but it can take sig- at an hourly rate (figure 25). Because the The Bailiffs’ Fee Decree (Besluit tarieven nificantly longer in practice. In most cities attorney fee structure is not standardized ambtshandelingen gerechtsdeurwaard- a decision can take three to six months, in the Netherlands, critics argue that legal ers) regulates enforcement costs in the depending on the workload of the judge fees lack transparency.141 Attorneys explain Netherlands.143 The cost to store the and the complexity of the case. As part that rates vary depending on the demand seized goods and organize the public of the judiciary’s ‘Tijdige Rechtspraak’ for judicial services and time to resolve the sale varies across the benchmarked cit- (timely justice) program, the courts case. In their assessment, the hourly rate ies. Auctions occur either onsite (if the jointly set up an inloopkamer (literally, is generally higher in Amsterdam and The attached goods are on the defendant’s a “catch-up chamber”), which became Hague, given higher demand for judicial premises), in a rented hotel conference operational in March 2021, to address services. Costs are also relatively high in room, or at an auction house. There is no these delays, reduce existing backlogs, Maastricht and Utrecht, where judicial cost for an onsite auction. For auctions and assist judges in finalizing their judg- ments.140 This chamber provides extra capacity where the need is greatest FIGURE 25  Court costs in the Netherlands are higher than the EU average across the entire judiciary. Judges and Netherlands (average) EU (average) lawyers from the inloopteams focus on Total cost: 21.6% of claim value Total cost: 20.4% of claim value specific case flows to address the backlog efficiently. Most of the courts covered in 4.4% 4.0% the study (Gelderland, Limburg, Central Netherlands, East Brabant, Rotterdam, 4.8% 11.7% and The Hague) have already requested 12.4% 4.7% that the National Council of the Judiciary include them in the project. Attorney Court Enforcement Enforcement procedures are uniform across the Netherlands. Enforcement Source: Subnational Doing Business and Doing Business databases. takes 65 days on average across the Note: The average for the European Union is based on economy-level data for 27 EU member states. Data for courts and cities report a variation of no Amsterdam and for EU average are not considered official until published in the Doing Business 2021 report. Back to Contents DOING BUSINESS IN THE NETHERLANDS 39 held at a hotel conference room, the to manage case documents are two of apply the law consistently. However, cost is lowest in Enschede, Groningen, the Dutch judicial system’s most urgent some widely available features in other and Middelburg. Costs associated with weaknesses. advanced economies are not available in an auction held at an auction house are the Netherlands. For example, unlike in included in the auction price and charged With the legal framework applied consis- 42 other economies measured by Doing directly to the purchaser of the goods. tently nationwide, all Dutch courts follow Business, the initial complaint cannot be the same judicial processes as measured filed electronically in the Netherlands. The Dutch judicial system ranks among by Doing Business145 (figure 26). However, Also, a bailiff must carry out the service the top civil justice systems globally,144 the failure of recent digitalization projects of process in person (the Supreme Court and international parties are increasingly (see box 5) has prevented the Dutch temporarily allowed bailiffs to serve choosing the Dutch courts—specifically courts from reaching a level of court documents by postal mail during the the Netherlands Commercial Court—to automation and case management sys- pandemic). resolve their cross-border disputes (box tem comparable to that of their peers. 4). However, the Netherlands scores The Dutch courts also have a mixed only 7 of 18 possible points on the Doing The Dutch courts are only partially performance on the court structure and Business quality of judicial processes automated. As in Belgium, the availability proceedings component. Small claims index. This index measures whether an of electronic means to manage a case courts (kantonrechter) are available, and economy has adopted a series of good is among the lowest in the European self-representation is permitted, prevent- practices in its court system in four Union.146 Some automated features are ing small-figure disputes from burdening areas (court structure and proceedings, available to litigants (for example, they the district courts. The law also provides case management, court automation, can pay court fees electronically), and for pretrial attachment of the defendant’s and alternative dispute resolution). The the court publishes commercial judg- movable property to prevent the debtor lack of automatic case assignment tools ments at all levels, allowing litigants from disposing of assets before trial. and the absence of innovative platforms to assess their rights and lawyers to Like in 163 other economies worldwide, BOX 4  The Netherlands Commercial Court: a European judicial destination for international commercial disputes The Netherlands Commercial Court (NCC) was established on January 1, 2019, as a specialized division within the Amsterdam District Court and the Amsterdam Court of Appeal that offers high-level international dispute settlement by hearing complex cross-border commercial cases.a NCC proceedings are conducted in English, and all cases are heard and disposed of by a three- judge panel with specific knowledge in the field of international commercial litigation. The NCC is one of the world’s first civil law-based international commercial courts.b The NCC’s jurisdiction is based on consent. If the dispute does not fall under the Amsterdam District Court’s jurisdiction, the parties must designate the NCC as the competent court (typically in the forum selection clause of their agreement). There must be an international aspect to the dispute, and the parties must have expressly agreed that the proceedings will be held in English.c The idea to create the NCC came from the national Council for the Judiciary, which, in 2015, noted that a considerable number of complex cross-border disputes were settled outside of the Netherlands by foreign courts or through (international) arbitration. The Council expressed concern that the Netherlands could forego knowledge on the settlement of international commercial disputes within the existing Dutch legal framework. The NCC was subsequently created as a landmark forum for EU companies, with the ambition to offer first-class international legal services and establish a knowledge hub in the Netherlands. The NCC can hear contractual disputes, precontractual issues, tort claims, personal property disputes, and corporate law mat- ters. Unlike other Dutch courts, the NCC establishes an informal, pretrial case management conference which gives parties a say on how proceedings will be conducted. A web portal, eNCC, facilitates communication and document exchange. The NCC rendered its first final judgment on the merits in March 2020. With state-of-the-art facilities, highly qualified judges, and proceedings conducted in English, the NCC is expected to become a benchmark venue for EU companies. a. As such, the NCC would not be competent to hear the Doing Business case study which focuses on domestic litigation. b. Van der Weide, J. A. 2020. “The Netherlands Commercial Court (NCC): Its Challenges and Perspectives.” In Chen, L., and A. Janssen (eds.) Dispute Resolution in China, Europe and World. Ius Gentium: Comparative Perspectives on Law and Justice, vol 79. Springer, Cham. c. See the NCC rules, available at https:/ /www.rechtspraak.nl/English/NCC/Pages/rules.aspx. Back to Contents 40 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS the Dutch courts randomly assign cases FIGURE 26  The level of case management and court automation is low in the Dutch courts to judges. However, this process is not Court structure and proceedings (-1–5) fully automated. Also, except for the 6 NCC—which focuses on international 5 cases—the Netherlands has no dedicated 4 specialized commercial court or division 3 within the district courts. 2 1 Alternative dispute With just 0.5 out of 6 possible points, the Case management (0–6) resolution (0–3) Netherlands also lags in case manage- ment techniques for judges, lawyers, and parties to a dispute. The pretrial conference is not an established good practice in Dutch courts, although some Court automation (0–4) judges make use of the first hearing of a trial to streamline the dispute. Paper files Dutch average EU average EU best are still widely used in the Dutch courts, and the introduction of an integrated Source: Subnational Doing Business and Doing Business databases. electronic case management system has Note: The average for the European Union is based on economy-level data for 27 EU member states. Data for EU averages are not considered official until published in the Doing Business 2021 report. Among EU member states, generally failed. The lack of digitaliza- Croatia, Poland, and Romania have the highest score on the court structure and proceedings index. Latvia has the tion has reduced the availability of court highest score on the case management index. Estonia, Lithuania, and the Slovak Republic have the highest score on the court automation index. Germany, Hungary, Italy, Lithuania, Latvia, Poland, Romania, and Spain have the highest score reports and statistics. Procedural law sets on the alternative dispute resolution index. time standards for some court events, but these are not binding in most cases. Lastly, the Dutch Code on Civil Procedure BOX 5  A quality and innovation initiative that fell short of digitalizing Dutch does not strictly regulate adjournments courts (merely referring to generic compelling As part of its push to modernize and digitalize the Dutch justice system, in 2014 reasons or force majeure clauses), which the Ministry of Justice and Security and the Council for the Judiciary jointly set up can be a source of delay. an ambitious initiative to introduce digital litigation and simplify civil procedure law. The program, Kwaliteit En Innovatie (quality and innovation, known by its Although the Netherlands provides a acronym KEI), was piloted at the Midden-Nederland (Utrecht) and Gelderland framework for voluntary mediation, regu- (Arnhem) district courts. lates commercial arbitration, and ensures that valid arbitration clauses are enforced From January 1, 2018, to October 19, 2019, attorneys litigating commercial cases in practice, no financial incentives exist to before the two district courts were required to do so digitally in proceedings on encourage mediation or conciliation. the merits, including electronic service of process and digital communication be- tween the court and lawyers. Despite a high level of enthusiasm for a compre- hensive digital system, ultimately, the KEI program was unsuccessful. Lawyers and judges explain that the system was too ambitious and unable to process the WHAT CAN BE IMPROVED? volume of information received. One respondent confessed to taking leave as a result of the frustration caused by a constantly crashing computer. The KEI led to Consider making measures allowing underperformance, user frustration, and even episodes of complete shutdown. virtual hearings permanent During the COVID-19 pandemic, the Despite the KEI’s failure, efforts to modernize the judiciary were not in vain. Some Dutch judiciary temporarily allowed the KEI procedural changes were kept after the pilot ended. Immediately after end- use of digital features as a means of ing the KEI program, the judiciary launched new attempts to digitalize the legal continuing court operations.147 Between system through the gradual implementation of Digital Access (Digitale Toegang) March 17 and April 6, 2020, only very and Digital Work File (Digitaal Werkdossier). These initiatives will be piloted for urgent cases (so-called “List 1” cases) attachment requests at the Amsterdam District Court starting on June 1, 2021. were conducted online (via Skype) or Unlike KEI, participation will be voluntary. If the pilot is successful, all 11 district courts should be able to receive digital attachment requests by the end of 2021. by telephone in court. From April 7 to The Council for the Judiciary intends to fully digitalize the Dutch courts by the May 10, urgent cases (“List 2”) were end of 2024 (for non-professionals, paper-based litigation will remain an option). treated in the same way. In parallel, the courts encouraged written proceedings Back to Contents DOING BUSINESS IN THE NETHERLANDS 41 for these cases. Experts participating in Features such as electronic filing of cases Business data show that the 101 econo- this study provided contrasting feedback and electronic service of process—that is, mies with dedicated commercial courts on the shift to remote litigation. Many the initial summons can be served by email, resolve cases 92 days sooner on average users were generally satisfied, but oth- fax, or text message—can streamline and than those without such courts. ers—often judges—highlighted the accelerate the process of commencing a importance of nonverbal communica- lawsuit. But court automation has broader Given the level of business activity in tion and in-presence, informal contacts, benefits. Electronic records tend to be the Netherlands, a dedicated commer- which were absent in the virtual hearings. more convenient and reliable. Reducing cial court would have no shortage of in-person interactions with court officials cases. The establishment of the NCC Making virtual hearings an option per- results in better access to courts. These in Amsterdam is already creating a hub manently would provide more flexibility features also reduce the cost to enforce of commercial litigation knowledge. in the organization of the litigation. It a contract—parties save on courthouse However, the NCC’s focus is primarily on would facilitate the scheduling of trial visits, while courts save on storage costs, international cases. hearings and time savings for judges, archiving costs, and court officers’ costs. attorneys, and litigants. Furthermore, The implementation of Korea’s e-court A gradual approach toward specialized virtual hearings could reduce the impact system resulted in a savings of $221 per commercial jurisdictions could be an of common circumstances that currently e-filing from a reduction in paper use, option. In 1995, North Carolina, a U.S. warrant a hearing adjournment (such as the time spent in court, cheaper service state with a population of more than 10 the unavailability of a hearing room or of process, lower transportation costs, million, created a business court with a minor health condition of one of the par- easier archiving of documents, and easier statewide jurisdictional reach. Initially ties). The Netherlands could follow the payment of fees.151 Furthermore, e-filing staffed by one judge, the court’s expan- example of other economies with a legal facilitates access to and the delivery of sion was recommended in 2004. As of framework allowing litigation to occur justice. The best-performing economies mid-2019, there were five active business remotely. In Estonia, all steps in a legal have several features of court automation. court judges sitting in four cities across dispute can be completed remotely, Estonia, Lithuania, and the Slovak Republic the state who hear cases originating in from initiating the case until the publica- are the EU member states that obtain North Carolina.153 tion of the decision. During the 2020 the highest possible score on the Doing COVID-19 lockdown period, around 61% Business court automation index. of hearings were held online in Estonia, keeping the number of decided cases Doing Business records 24 reforms intro- steady with the previous quarter (when ducing an e-filing system for commercial there was no lockdown).148 In Singapore, court cases and allowing attorneys to the Chief Justice of the Supreme Court submit the initial complaint online. Today, cited time and cost efficiencies to justify 42 economies worldwide allow the that most cases would resume but will electronic filing of the initial complaint. continue to be held virtually on a perma- Similarly, 37 economies permit e-service nent basis.149 of process. Germany made enforcing contracts easier by introducing e-filing Consider expanding e-features in of the initial complaint and e-service courts for commercial litigation and of process without the need for paper small claims documents. COVID-19 has highlighted the subopti- mal nature of courts around the world. Consider creating specialized In many jurisdictions, the shift toward commercial courts or divisions virtual justice is gaining momentum and Having courts or divisions with general improving court efficiency. However, commercial jurisdiction—hearing only with a low level of court automation, the commercial cases—is an internationally Netherlands lags in this regard. There recognized good practice. When properly have been attempts to modernize the established, such courts can improve effi- Dutch courts, but with some courts still ciency because they tend to have stream- adopting older data management sys- lined procedures and because they offer tems (such as MS-DOS), there is room an alternative forum for litigants that may for improvement.150 compete with regular courts.152 Doing Back to Contents 42 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Maastricht has the second lowest threshold Dutch Civil Code. Notaries also require a copy NOTES at EUR 500,000. Enschede, Groningen, of the founders’ identification documents. and Rotterdam all apply a threshold of EUR 24. The various forms completed by the civil-law 1,000,000. Although Arnhem did not apply notary to register a company are available at 1. European Commission. 2019. 2019 Small the basic Bibob screening to construction https:/ /www.kvk.nl/inschrijven-en-wijzigen Business Act Fact Sheet, Netherlands. projects at the time of this study, it has /inschrijven-onderneming-bv-of-nv-bestaand/. Brussels: European Commission. implemented one in 2021. 25. The national electronic registration platform, 2. World Bank. 2013. Doing Business 2014: 10. For more information on Estonia’s online ORN, was introduced in 2013; the NAU in 2020. Understanding Regulations for Small and company registration portal, see the website 26. Based on interviews with representatives Medium-Size Enterprises. Washington, DC: at https:/ /www.rik.ee/en/company from the Chamber of Commerce and private World Bank Group. See also van Gelder, -registration-portal/e-residency. professionals in the Netherlands, April to Gabriël. 2012. “Finally: Dutch Flex-BV is now 11. For more information on the Danish system, December 2020. in force.” DLA Piper, November 28. see the website at https:/ /indberet.virk.dk/. 27. See the Commercial Register's database at https:/ /www.dlapiper.com/en/us/insights 12. See the Business Portal’s website at https:/ /www.kvk.nl/zoeken/handelsregister/. /publications/2012/11/finally-dutch-flexbv-is https:/ /eportugal.gov.pt/en/entrar. 28. Entrepreneurs can access the Tax Authority -now-in-force/. 13. Auckland (New Zealand) Council. 2019. portal at https:/ /www.belastingdienst.nl/wps 3. Data used in this report for Amsterdam and “Contributions Policy 2019.” Auckland: /wcm/connect/nl/ondernemers/content comparator economies are not considered Auckland Council. https:/ /www /inloggen-voor-ondernemers. official until published by the Doing Business .aucklandcouncil.govt.nz/plans-projects 29. More information on the small business 2021 report. -policies-reports-bylaws/our-policies scheme (Kleineondernemersregeling, KOR) is 4. The cities were selected based on /docsdevelopmentcontributionspolicy available at https://business.gov.nl/subsidy demographic and geographical criteria. Each /contributions-policy.pdf. /small-businesses-scheme/. city belongs to a different NUTS2 region (the 14. Book 2 Title 5 of the Dutch Civil Code. 30. The PDF form is available at https://download Nomenclature of Territorial Units for Statistics, 15. The Netherlands’ UBO register was launched .belastingdienst.nl/belastingdienst/docs or NUTS, is a geocode standard for referencing on September 27, 2020. For EU member /melding_loonheffingen_aanmelding the subdivisions of countries for statistical states, the UBO register is mandatory under _werkgever_lh5901z9fol.pdf. purposes developed by the European Union). EU Directive 2015/849, the fourth anti-money 31. Any company that becomes an employer Furthermore, the selection of cities was laundering directive. In the Netherlands, the must send the form to the following address: agreed between the World Bank project team, UBO register is legally regulated by the Wwft Dutch Tax and Customs Administration, the European Commission’s Directorate- Implementation Decree 2018, the Commercial Postbox 2892, 6401 DJ, Heerlen. General for Regional and Urban Policy, the Register Act 2007, and the Commercial 32. According to interviews with the Chamber of Invest in Holland Network and the Ministry Register Decree 2008. Commerce by the Subnational Doing Business of Economic Affairs. The data presented for 16. The Chamber of Commerce’s business team in June 2020, as of July 2011, the Amsterdam are those published by the global registration fee was EUR 50 for the period Chamber of Commerce no longer carries out Doing Business report, which uses Amsterdam January to December 2020. The annual trade name assessments and cannot refuse as a proxy for the Netherlands. compulsory contribution was abolished the registration of a company based on the 5. The indicator quality components are the in 2013. Companies, associations, and name chosen, except for those that are not building quality control index for dealing foundations do not pay any other costs for allowed by law. with construction permits, the reliability of registration in the commercial register after 33. For more information, see https:/ /www.kvk supply and transparency of tariff index for initial registration. .nl/advies-en-informatie/bedrijf-starten/een getting electricity, the quality of the land 17. Entrepreneurs setting up a bv must use the -bedrijfsnaam-kiezen/. administration index for registering property, services of a notary, located anywhere in 34. See the website of the Benelux Office for and the quality of judicial processes for the Netherlands, independent of where the Intellectual Property (BOIP) at https:/ /www enforcing contracts. company will be established, to draft and .boip.int/nl/merkenregister#/. 6. Data used to calculate the quality of the land execute the notarial deed. 35. See the website of the Internet Domain Name administration index for registering property 18. Starting a business in Estonia, Finland, Greece, Registration Foundation at https:/ /www.sidn.nl/. are not considered official until the Doing and Slovenia requires three procedures; 36. For more information, see the business registry’s Business 2021 report is published. in Ireland, Latvia, Lithuania and Sweden it website at http:/ /bolsafirmasdenominacoes 7. Although the Bibob law is a national-level requires four. .justica.gov.pt/index.php. regulation, municipalities apply it locally at 19. Belgium, Cyprus, Finland, Ireland, and Portugal 37. World Bank. 2018. Doing Business in the their discretion. The law, which is partially do not require any paid-in minimum capital at European Union 2018: Croatia, the Czech integrated into the Wabo permitting the time of business startup. Republic, Portugal and Slovakia. Washington, legislation, serves as an additional layer of 20. The Act for Simplification and Flexibilization of DC: World Bank. protection against money laundering and Private Company Law (Wet vereenvoudiging 38. For more information on Estonia’s e-Business criminal activity. en flexibilisering bv-recht) took effect on Register, see the website at www.rik.ee. 8. The basic screening comprises a form October 1, 2012, abolishing the minimum 39. For more information on registering a that the developer fills out that includes capital requirement for these companies company with Companies House, see the company accounting information. Should the (previously set at EUR 18,000). website at www.gov.uk/limited-company municipality choose to carry out an in-depth 21. The Chamber of Commerce’s online tool is -formation/register-your-company. evaluation—for example, if they have doubts available at https:/ /www.kvk.nl/advies-en 40. These 10 EU member states are Austria, about the legitimacy of the business—the -informatie/bedrijf-starten/een-bedrijfsnaam Belgium, Cyprus, Croatia, Germany, Hungary, authorities contact the developer for further -kiezen/. The tool is only capable of verifying Italy, Malta, Poland, and Spain. information. whether an existing company name in the 41. See the Firm24 website at https://www 9. These cities are Amsterdam, Enschede, Commercial Register uses the identical .firm24.nl. Other online platforms that help Groningen, Maastricht, and Rotterdam. spelling as that of the proposed company. entrepreneurs to establish a bv include the Amsterdam, which has the lowest threshold, 22. For the Trade Name Act, see https:/ /wetten following: https:/ /www.bv-oprichten applies a basic Bibob screening to all .overheid.nl/BWBR0001906/2017-09-01. .com/#bv%20oprichten; https:/ /www.ligo.nl construction projects over EUR 250,000, 23. To draw up a deed of incorporation, the /bv-oprichten; https:/ /www.standaardbv.nl/; suggesting that the Amsterdam municipality civil-law notary requires information including https:/ /www.uwbvoprichten.nl/. views construction projects as vulnerable the company name, location, and purpose as 42. Coste, Cyriane, Marie Delion, Adrián to a relatively high risk of criminal activity. described in Article 2:177, paragraph 1 of the González, Frédéric Meunier, Nathalie Back to Contents DOING BUSINESS IN THE NETHERLANDS 43 Reyes, and Yuri Valentinovich. 2019. “The Wabo legislation, serves as an additional layer 69. World Bank. 2015. Doing Business 2016: Involvement of Third-Party Professionals in of protection against money laundering and Measuring Regulatory Quality and Efficiency. Business Registration and Property Transfer.” criminal activities. Washington, DC: World Bank. World Bank Research and Development 59. The basic screening is comprised of a form 70. Except those listed in articles L243-1-1 of the Center in Chile, Indicators Group Research that the developer fills out that includes Insurance Code. Note. World Bank, Washington, DC. company financial information. Should the 71. Gregory S. Burge. 2010. “The Effects of 43. For more information on SPOT, see the municipality choose to carry out an in-depth Development Impact Fees on Local Fiscal website at https:/ /spot.gov.si/. evaluation—if they have doubts about the Conditions.” in Gregory K. Ingram and Yu- 44. World Bank. 2019. Doing Business in the legitimacy of the business—the developer is Hung Hong (eds). Municipal Revenues and Land European Union 2020: Greece, Ireland and Italy. contacted for further information. Policies. Cambridge, MA: Lincoln Institute of Washington, DC: World Bank. 60. These cities are Amsterdam, Enschede, Land Policy. 45. For more information, see the website at Groningen, Maastricht, and Rotterdam. 72. Auckland (New Zealand) Council. 2019. https:/ /www.gov.uk/limited-company Amsterdam, which has the lowest threshold, Contributions Policy 2019. -formation. applies a basic Bibob screening to all https:/ /www.aucklandcouncil.govt.nz/plans 46. Examples are available at www.gov.uk construction projects over EUR 250,000, -projectspolicies-reports-bylaws/our-policies /register-a-company-online. suggesting that the Amsterdam municipality /docsdevelopmentcontributionspolicy 47. European Commission. 2018. Commission views construction projects as vulnerable /contributions-policy.pdf. Staff Working Document Impact Assessment. to a relatively high risk of criminal activity. 73. For nonstandard or more complex cases, Brussels: European Commission. https:/ /eur Maastricht has the second lowest threshold at different requirements apply. For more details -lex.europa.eu/LexUriServ/LexUriServ.do?uri EUR 500,000. Enschede, Groningen, and on the requirements, see https:/ /vng.nl/sites =SWD:2018:0141:FIN:EN:PDF. Rotterdam all apply a threshold of /default/files/vth_wabo_kwaliteitscriteria 48. For more information on Estonia’s online EUR 1,000,000. Although Arnhem did _versie_2.2_2019_deel_b.pdf. company registration portal, see the website not apply the basic Bibob screening to 74. Visscher, Henk, and Frits Meijer. 2005. at https:/ /www.rik.ee/en/company construction projects at the time of this study, “Certification of Building Control in The -registration-portal/e-residency. it has implemented one in 2021. Netherlands.” OTB Research Institute for 49. For more information on the Danish system, 61. In Amsterdam as in all the other cities, Housing, Urban and Mobility Studies. Delft see the website at https:/ /indberet.virk.dk/. private sector companies are owned by public university of Technology, The Netherlands. 50. See the Business Portal’s website at https:/ / shareholders (combination of municipalities 75. Moullier, Thomas. 2017. “Building Regulatory eportugal.gov.pt/en/entrar. and provinces). For more information on Capacity Assessment: Level 2—Detailed 51. For more information on the Canadian system, Waternet merger, see https:/ /publicaties Exploration.” World Bank, Washington, DC. see https:/ /www.ic.gc.ca/eic/site/cd-dgc.nsf .rekenkamer.amsterdam.nl/gemeentelijke 76. As the regulator, ACM is charged with /eng/cs06642.html. -rioolwatertaken/. sector-specific market supervision of 52. Additional information on the system in the 62. For further details on permit discounts in telecommunications, the gas and electricity United Kingdom is available at https:/ /www Amsterdam: https:/ /www.amsterdam.nl market, fair competition, and consumer .gov.uk/limited-company-formation/register /veelgevraagd/?caseid=%7b35E4893B protection law. For more information, see -your-company. -EE26-4D8D-AC88-89A092BC12D8%7d. ACM’s website at https:/ /www.acm.nl/nl. 53. The Wabo (Wet algemene bepalingen 63. For further details on permit discounts in The 77. As regulated by the Electricity Act 1998, omgevingsrecht) legislation was enacted in Hague: https:/ /www.denhaag.nl/nl Article 10a, available at https:/ /wetten 2010 and has been amended several times /vergunningen-en-ontheffingen .overheid.nl/BWBR0009755/2021-01-01. since. Its main purpose is to consolidate and /omgevingsvergunningen/korting-op For more information on the activity of the simplify regulations and permitting pertaining -bouwleges-krijgen.htm. transmission system operator, see the TenneT to construction, nature, and environment. 64. For more information on the Doing Business website at https://www.tennet.eu/e-insights 54. For more information on the online platform, methodology, see https:/ /www.doingbusiness /regulation-of-the-electricity-price/dutch see http:/ /omgevingsloket.nl and http:/ /olo.nl. .org/en/methodology/dealing-with -regulation/. 55. The dealing with construction permits indicators -construction-permits. 78. The EU member states with the lowest grid record all procedures required for a business in 65. The relevant laws can be found in the Burgerlijk connection costs are the Czech Republic, the construction industry to build a warehouse, Wetboek book 6 title 1 article 74 and book 6 France, and Poland. along with the time and cost to complete each title 12 section 1. 79. These countries are Bulgaria, Belgium, Cyprus, procedure. In addition, the indicator measures 66. For more information on the Doing Business Hungary, and Romania. the building quality control index, which methodology, see https:/ /www.doingbusiness 80. To measure the reliability of supply and evaluates the quality of building regulations, .org/en/methodology/dealing-with transparency of tariffs, Doing Business presents the strength of quality control and safety -construction-permits. an index scored from 0 to 8 points. The index mechanisms, liability and insurance regimes, and 67. Srinivasan, Jayashree, Enrique Orellana measures the role of the energy regulator, the professional certification requirements. For more Tamez, Kamal Chakaroun, Farrukh Umarov, systems used to monitor power outages and information, see the data notes. Lodovico Onofri. 2020. “From Paper to the restore supply, whether financial deterrents 56. Pile, a vertical structural element that is driven Cloud: Improving Building Control through exist to limit outages, and whether effective to reach load-bearing level in the ground, is a E-permitting.” Doing Business Case Studies. tariffs are available online and customers are necessary foundational element in construction World Bank, Washington, DC. notified of a change in tariffs a full billing cycle due to soft soil in the Netherlands. http:/ /documents.worldbank.org/curated in advance. For more details, see the data notes. 57. The platform is a result of cooperation /en/705331592344507733/From-Paper 81. Electricity Code, Article 2.19 in conjunction between the various utility companies -to-the-Cloud-Improving-Building-Control with Article 2.25 paragraph 2 sub c states that with the aim of simplifying the application -through-E-permitting. a connection with a capacity of between 60 process for developers. The Mijnaansluiting 68. International Finance Corporation; World kVA and 0.3 MVA will be made at the low- platform sorts applications before forwarding Bank; Multilateral Investment Guarantee voltage level (https:/ /wetten.overheid.nl them to the appropriate utility. The utility Agency. 2013. Good Practices for Construction /BWBR0037940/2020-12-05). then processes the application. For more Regulation and Enforcement Reform: 82. KLIC is the Kabels en Leidingen Informatie information on the platform, see the website Guidelines for Reformers. Investment Climate. Centrum (Cables and Pipes Information at www.mijnaansluiting.nl. Washington, DC: World Bank Group. Center). The KLIC request must be submitted 58. The Bibob law is a national-level regulation https:/ /openknowledge.worldbank.org 20 business days at the earliest and three applied at the discretion of the municipality. /handle/10986/16612. business days at the latest from the start The law, which is partially integrated into the of the excavation works. The Information Back to Contents 44 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Exchange Above-and Underground Networks https:/ /jaarverslag.stedingroep.nl/2019 that urban planning commissions are to bear Act 2018 (WIBON) states in Article 10 that /xmlpages/resources/TXP/stedin_groep the cost of extension works for the electricity the cadastre is required to send a notice of _verslag_2019/pdf/Stedin_Groep_Jaarverslag grid, provided that the network extension can receipt immediately after the KLIC request is _2019.pdf. benefit future residents and firms. submitted. Article 13 paragraph 1 stipulates 87. Consultative meetings with Dutch distribution 100. Article 3 of the Cadaster Act of 1989. that within two business days the cadastre utility and other practitioners for this study. Kadaster’s mandate includes statutory sends all requested information. In case the 88. As regulated by the General Administrative and advisory tasks in relation to rural subcontractor finds a grid that was not included Law Act, available from https:/ /wetten areas, the registration and provision of in the map while digging, Article 20 requires .overheid.nl/BWBR0005537/2021-03-01. topographical information, registration of that the cadaster be notified immediately. The Local municipalities have their own regime ships and aircraft, maintenance of the national cadaster then notifies all potential owners of that can deviate from the national law as long triangular network, the management of the cables, and those parties are required to as they do not exceed the limits as set by the public law restrictions, the Key Registers of respond within 10 business days. national law. Addresses and Buildings (BAG), the spatial 83. The meter market for connections exceeding 89. The Doing Business case study assumes that planning portal (RO-online), the combined 3x80 ampere was liberalized in 2011. Since the electricity cable crosses a 10-meter- underground utility information exchange then, distribution utilities cannot install wide public road. In Enschede, permits (KLIC), and the national immovable property meters, and the customer is responsible for for excavations under 25 meters are not valuation system (WOZ). hiring a meter company. See the regulator’s required according to the General Regulation 101. The value of the property transferred in the website at https:/ /www.acm.nl/nl Underground Infrastructure Enschede 2018 Doing Business case study is EUR 2,350,524. /onderwerpen/energie/afnemers-van-energie (https:/ /dloket.enschede.nl/loket/sites As of December 31, 2020 (this report’s cutoff /energietarieven/meettarief; Electricity Law, /default/files/IMG/AVOI%20Enschede%20 date), the property transfer tax was 6% of art. 95ca par. 2 (https:/ /wetten.overheid.nl 2018.pdf. Article 2.8). the property value for commercial properties /BWBR0009755/2021-01-01). 90. For more information, see the website at and 2% for residential properties. Starting 84. The electronic platform is Energy Data www.mijnaansluiting.nl. January 1, 2021, the property transfer tax for Services Netherlands (EDSN). All Dutch 91. The Mijnaansluiting platform sorts commercial property increased to 8% of the distribution utilities, suppliers, meter applications before forwarding them to the property value. See Article 14 of the Act on companies, and parties that purchase appropriate utility. The utility then processes taxation of legal transactions. electricity on the wholesale market and sell the application. Using the Enexis website is 102. For a semiautomatic registration, the fee is it to suppliers are connected to this platform. faster because it eliminates the need for the EUR 144.50; for paper registration, the fee is The parties use this platform and an internal forwarding step—it is submitted directly to the EUR 172. See Article 2 of the Fee Schedule of message system for digital data exchange. utility. Enexis also allows customers to submit the Kadaster. Each connection is identified by a unique applications through the national platform. 103. The top global performers on the quality of European Article Number (EAN) code that is 92. The first 25 meters of cable are free of charge. land administration index are Lithuania, the used for internal communication. 93. Electricity Code, Article 8.8 (https:/ /wetten Netherlands, Rwanda, and Taiwan, China. 85. The Electricity Code, Article 8.4 sub d .overheid.nl/BWBR0037940/2019-02 104. In case of transfers between natural persons, -01#Hoofdstuk8%20-%20Article%208.8). the notary checks the municipality’s online (available at https:/ /wetten.overheid.nl Compensation for outages exceeding four identification database. /BWBR0037940/2020-12-05) stipulates hours is paid out automatically. 105. The mortgages and encumbrance extract that a utility has 10 working days to send 94. The Cables and Pipelines Regulation establishes must be obtained for all transfers, including a quote after receiving an application for a that the municipality must issue a permit connection with a maximum capacity of 10 properties without encumbrance. decision within two business days of receiving a MVA. The Electricity Act, Article 23 par. 4 106. The Netherlands has 10 basic registers: permit request for noninvasive works. (available at https:/ /wetten.overheid.nl Central Register of Persons (BRP, 95. In Arnhem, it takes six weeks to issue a permit /BWBR0009755/2021-01-01) sets a limit of Basisregistratie Personen); Trade Register (HR, instead of eight weeks set at the national 18 weeks to obtain a new connection from the Handelsregister), Addresses and Buildings level, however the length of legal time frame moment the connection request is submitted Registry (BAG, Basisregistratie Adressen is still considered long compared to other to the utility. Note that a connection request is en Gebouwen); Topographical Registry economies. considered submitted as soon as the applicant (BRT, Basisregistratie Topografie); Land 96. See the Austrian regulator’s website at accepts the quote as offered by the utility. Registry (BRK, Basisregistratie Kadaster); https:/ /www.e-control.at/marktteilnehmer 86. Consultative meetings with Dutch distribution Vehicles Key Register for vehicle registration /erhebungen/erhebungen-zur-qualitaet-der utility and other practitioners for this study. (BRV, Basisregistratie Voertuigen, voor -netzdienstleistung. Distribution utilities acknowledge issues with kentekenregistratie); Basic Income Register 97. Dutch utilities also publish statistics on the current staffing on their websites. See for (BRI, Basisregistratie Inkomen); Real Estate number of applications, length in kilometers example https:/ /www.enexisgroep.nl Valuation Register (WOZ, Basisregistratie of the electricity grid, incidents, transported /actuele-themas/schaarste-personeel/; and Waardering Onroerende Zaken); Large- electricity on the grid, and average outage https:/ /www.liander.nl/nieuwe-aansluiting. Scale Topography Key Register (BGT, duration and frequency in an annual report. The This staff shortage has also been mentioned in Basisregistratie Grootschalige Topografie); Dutch regulator also publishes factsheets that the national news (https:/ /www.ad.nl Subsurface Key Register (BRO, Basisregistratie contain similar information. The most recent /friesland/netbeheerders-zoeken-honderden factsheet dates from 2017 (the regulator is Ondergrond). For additional information, see -personeelsleden-in-groningen-drenthe modernizing the visuals). For more, see the https://data.overheid.nl/community/group -en-friesland~a8dd345e/; https:/ /www ACM’s website at https:/ /www.acm.nl/nl /basisregistraties_10. .deondernemer.nl/personeel/arbeidsmarkt /publicaties/factsheets-kwaliteit-2017-van 107. Louwman, W., and J. Vos. 2009. /chronisch-personeelstekort-stedin -alle-regionale-netbeheerders. “Automatisering van de afdoening van de -werft-technische-tieners-baangarantie 98. Customers can track the status of their notariële akten door het Kadaster.” JBN -rijbewijs~1099504). As for increased application (utility preparing the quote; 2009/3–14. workload, see Enexis Annual Report 2019, scheduling an inspection, if applicable; whether 108. Vos, J. 2010. The Digitalization of Land available at https:/ /www.enexisgroep.nl the application file is sent to a subcontractor for Registration in the Netherlands: Paving the /media/2695/enexis-holding-nv-jaarverslag completing excavation works, so the utility can Road for Cross Border Practices. Netherlands: -2019.pdf; Liander Annual Report 2019, also start simultaneous works in case of a small Dutch Kadaster. https:/ /silo.tips/download/ available at https:/ /www.liander.nl/sites capacity connection request, and so on). the-digitalization-of-land-registration-in-the- /default/files/Liander_Jaarbericht_2019 99. This requirement is in accordance with the netherlands-paving-the-road-for-c#. .pdf; Stedin Annual Report 2019, available at: Energy Code (Article L342-11), which specifies Back to Contents DOING BUSINESS IN THE NETHERLANDS 45 109. Vos, J., C. Lemmen, and B. Beentjes. 2017. International Bar Association; Council of 135. Subnational Doing Business research, interviews “Blockchain-based Land Administration; Europe – European Commission for the with court officials and litigation attorneys, Feasible, Illusory or a Panacea?” Paper Efficiency of Justice (CEPEJ). 2020. “Lessons November 2020. presented at the 2017 World Bank Conference Learnt and Challenges Faced by the Judiciary 136. Dutch Code of Civil Procedure (Rv), Article on Land and Poverty, Washington, DC, March During and After the Covid-19 Pandemic.” 434. 20–24. Strasbourg: CEPEJ. 137. Statistics provided by the Council for the 110. Vos, J., and B.H.J. Roes. 2020. “Introducing 122. Since April 9, 2020, users can use a digital Judiciary. The clearance rate is a ratio of the a Complete New Land Registry and platform, ZIVVER, to send procedural number of cases adjudicated to the number of E-conveyancing System.” Paper presented at documents and messages (typically sent by cases added to the docket. the 2020 World Bank Conference on Land and post or fax) to the judiciary. 138. These economies are Cyprus, Greece, Ireland, Poverty, Washington, DC, March 16–20. 123. De Rechtspraak. 2020. “The Netherlands Italy, Poland, Portugal, the Slovak Republic, and 111. Article 2 of the Kadaster's Fee Schedule. Commercial Court and COVID-19: case Slovenia. 112. Cadaster Organization Act of 2006. management, videoconference hearings and 139. Subnational Doing Business research, interviews 113. Article 1 of the Cadaster Organization Act of eNCC.” Rechtspraak.nl, May 27. with court officials and litigation attorneys, 2008. https:/ /www.rechtspraak.nl/English/NCC December 2020. 114. The Dutch authorities adopted the Temporary /news/Pages/The-Netherlands-Commercial 140. De Rechtspraak. Landelijke inloopkamer Law COVID-19 Justice and Security (Tijdelijke -Court-and-COVID19-case-management ondersteunt gerechten bij afhandelen Wet COVID-19 Justitie en Veiligheid) -videoconference-hearings-and-eNCC.aspx. werkvoorraden. allowing the signing of documents for which 124. For an overview of the enforcing contracts https:/ /www.rechtspraak.nl/Organisatie a private power of attorney does not suffice indictors and the assumptions underlying the -en-contact/Organisatie/Raad-voor-de (such as mortgage deeds) via audiovisual Doing Business case scenario, see the data -rechtspraak/Nieuws/Paginas/Landelijk communication tools. See Article 26 of notes. -inloopkamer-ondersteunt-gerechten-bij the Temporary Law COVID-19 Justice and 125. Averages for the EU or other groups of -afhandelen-werkvoorraden-.aspx. Security. This legislation is not applicable to economies are calculated using data from the 141. Government of the Netherlands. 2012. Costs of the execution of a transfer deed, for which the Doing Business database, which uses the main Judicial Proceedings. https://www.government party can issue a private power of attorney. business city as a proxy for each country or .nl/topics/administration-of-justice-and 115. According to the Doing Business methodology, economy covered by the global Doing Business. -dispute-settlement/costs-of-judicial the quality of land administration includes Averages for the Netherlands are calculated -proceedings; Beenakkers, E.M.Th., R.J.J. a fifth component which measures legal using Subnational Doing Business data for all Eshuis, and T. Geurts. 2012. “Hulp bij juridische provisions on equality of access to property cities in the study except Amsterdam. For problemen een verkennend onderzoek naar de rights for women and men. This subindicator is Amsterdam, data are sourced from the Doing kwaliteit van de dienstverlening van advocaten not discussed in Doing Business in the European Business database. en rechtsbijstandverzekeraars.” Union as women and men enjoy the same 126. Doing Business considers the applicable court https:/ /repository.wodc.nl/bitstream/handle ownership rights in all EU member states. to be the local court with jurisdiction over /20.500.12832/112/cahier-2012-3-volledige 116. These economies are Denmark, Estonia, commercial contract cases worth 200% -tekst_tcm28-71400.pdf?sequence=2&isAllowed=y. Finland, Lithuania, and the Netherlands. income per capita or $5,000, whichever is 142. See the Court Fees Law at https:/ /wetten 117. The Netherlands ranked first worldwide for greater. In the Netherlands the small claims .overheid.nl/BWBR0028899/2021-01-01. civil justice in the World Justice Project’s courts (Kantongerecht) are the lowest courts of 143. For more information on the Bailiffs’ Fee Rule of Law Index 2017–18. See the report at first instance. They have a monetary threshold Decree, see https:/ /www.kbvg.nl/cms/public https:/ /worldjusticeproject.org/sites/default of EUR 25,000. Claims above this amount /files/Btag-tarieven/btag-1-januari-2020 /files/documents/WJP-ROLI-2018-June must be filed in the district courts. -.pdf?ac76a46f40. -Online-Edition_0.pdf. 127. Supreme Court of the Netherlands. Decision of 144. According to the World Justice Project, which 118. Vijverberg, Mathilde. 2019. “KEI pilot ends: June 19, 2020 (https:/ /uitspraken provides a quantitative tool for measuring the reset of digital litigation at Dutch courts, and .rechtspraak.nl/inziendocument?id=ECLI:NL rule of law in practice. For more information new procedural rules.” Stibbe.com, August 5. :HR:2020:1088). on the Rule of Law Index, see the website https:/ /www.stibbe.com/en/news/2019 128. Dutch Code of Civil Procedure (Rv), Article of the World Justice Project at https:/ / /august/kei-pilot-ends-reset-of-digital 114. worldjusticeproject.org/sites/default/files -litigation-at-dutch-courts-and-new 129. Dutch Code of Civil Procedure (Rv), Article /documents/WJP-ROLI-2020-Online_0.pdf. -procedural-rules. 133.1. 145. For an overview of the enforcing contracts 119. Dutch Judiciary. 2019. “Rechtspraak: duur 130. Dutch Code of Civil Procedure (Rv), Article indicators and quality of judicial processes rechtszaak moet korter.” https:/ /www 87.6. index, see the data notes. .rechtspraak.nl/Organisatie-en-contact 131. In a major development in civil procedures 146. European Commission. 2020. The 2020 EU /Organisatie/Raad-voor-de-rechtspraak in the Netherlands, the parties have been Justice Scoreboard. Luxembourg: European /Nieuws/Paginas/Rechtspraak-duur required by law to appear in person before the Commission. See figure 27. -rechtszaak-moet-korter.aspx; De Rechtspraak. court since 2002. De Rechtspraak. 2020. The 147. International Bar Association. 2020. “Covid-19 2014. Judicial Reform in The Netherlands, Change Judiciary System in the Netherlands. The Hague: Pandemic: Impact of COVID-19 on Court in Broad Outline. The Hague: De Rechtspraak; De Rechtspraak. https:/ /www.rechtspraak Operations and Litigation Practice.” London: Rijksoverheid. 2019. “Kabinet investeert 95 .nl/SiteCollectionDocuments/The-Judiciary International Bar Association. miljoen euro in de rechtspraak.” Rijksoverheid.nl, -System-in-the-Netherlands.pdf. 148. Ministry of Justice of the Republic of Estonia. September 17. https:/ /www.rijksoverheid 132. European Commission. 2020. The 2020 EU 2020. “Digital Justice in Estonia.” Tallinn: .nl/actueel/nieuws/2019/09/17/kabinet Justice Scoreboard. Luxembourg: European Ministry of Justice. https:/ /www.youtube.com -investeert-95-miljoen-euro-in-de-rechtspraak. Commission. See figure 3. https://ec.europa /watch?v=K3WUzJfhYJM. 120. For more information, see “Tijdige en .eu/info/sites/info/files/justice_scoreboard 149. International Bar Association. November 5, voorspelbare rechtspraak” at https:/ /www _2020_en.pdf. 2020. An interview with Justice Quentin Loh .rechtspraak.nl/Organisatie-en-contact 133. Subnational Doing Business research, interviews of the Singapore High Court. https:/ /www. /Organisatie/Raad-voor-de-rechtspraak with court officials and litigation attorneys, ibanet.org/Article/NewDetail /Kwaliteit-van-de-rechtspraak/Paginas January 2021. .aspx?ArticleUid=8FD1B23A-9B7A-4CD9- /Tijdige-rechtspraak.aspx. 134. Subnational Doing Business research, interviews 8D2A-162EF4A12DFC. 121. International Bar Association. 2020. “Covid-19 Pandemic: Impact of COVID-19 on Court with court officials and litigation attorneys, Operations and Litigation Practice.” London: February 2021. Back to Contents 46 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS 150. Subnational Doing Business research, interviews with court officials and litigation attorneys, January 2021. 151. Bosio, Erica, and Julien Vilquin. 2013. “Improving court efficiency: the Republic of Korea’s e-court experience.” World Bank. 2013. Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises. Washington, DC: World Bank Group. 152. Botero, Juan Carlos, Rafael La Porta, Florencio López-de-Silanes, Andrei Shleifer, and Alexander Volokh. 2003. “Judicial Reform.” World Bank Research Observer 18 (1): 67–8. 153. Applebaum, Lee, Mitchell Bach, Eric Milby, and Richard L. Renck. 2020. “Through the Decades: The Development of Business Courts in the United States of America.” Business Lawyer 75 (3): 2053–76. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 47 City Snapshots and Indicator Details THE NETHERLANDS Amsterdam Starting a business (rank) 7 Dealing with construction permits (rank) 4 Score for starting a business (0–100) 91.50 Score for dealing with construction permits (0–100) 66.92 Procedures (number) 5 Procedures (number) 13 Time (days) 9 Time (days) 189 Cost (% of income per capita) 3.8 Cost (% of warehouse value) 4.0 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 4 Registering property (rank) 7 Score for getting electricity (0–100) 86.63 Score for registering property (0–100) 80.01 Procedures (number) 4 Procedures (number) 5 Time (days) 102 Time (days) 3 Cost (% of income per capita) 24.1 Cost (% of property value) 6.1 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 8 Score for enforcing contracts (0–100) 59.94 Time (days) 514 Cost (% of claim value) 23.9 Quality of judicial processes index (0–18) 7.0 Arnhem Starting a business (rank) 1 Dealing with construction permits (rank) 7 Score for starting a business (0–100) 91.70 Score for dealing with construction permits (0–100) 65.85 Procedures (number) 5 Procedures (number) 13 Time (days) 9 Time (days) 231 Cost (% of income per capita) 2.2 Cost (% of warehouse value) 2.4 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 6 Registering property (rank) 5 Score for getting electricity (0–100) 84.24 Score for registering property (0–100) 80.06 Procedures (number) 4 Procedures (number) 5 Time (days) 124 Time (days) 3 Cost (% of income per capita) 24.1 Cost (% of property value) 6.1 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 6 Score for enforcing contracts (0–100) 60.46 Time (days) 517 Cost (% of claim value) 22.3 Quality of judicial processes index (0–18) 7.0 Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Back to Contents 48 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Eindhoven Starting a business (rank) 5 Dealing with construction permits (rank) 2 Score for starting a business (0–100) 91.57 Score for dealing with construction permits (0–100) 68.89 Procedures (number) 5 Procedures (number) 13 Time (days) 9 Time (days) 202 Cost (% of income per capita) 3.3 Cost (% of warehouse value) 1.7 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 2 Registering property (rank) 1 Score for getting electricity (0–100) 87.08 Score for registering property (0–100) 80.10 Procedures (number) 4 Procedures (number) 5 Time (days) 98 Time (days) 3 Cost (% of income per capita) 18.3 Cost (% of property value) 6.0 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 1 Score for enforcing contracts (0–100) 62.24 Time (days) 471 Cost (% of claim value) 20.9 Quality of judicial processes index (0–18) 7.0 Enschede Starting a business (rank) 1 Dealing with construction permits (rank) 10 Score for starting a business (0–100) 91.70 Score for dealing with construction permits (0–100) 62.75 Procedures (number) 5 Procedures (number) 15 Time (days) 9 Time (days) 232 Cost (% of income per capita) 2.2 Cost (% of warehouse value) 3.3 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 10 Registering property (rank) 5 Score for getting electricity (0–100) 82.73 Score for registering property (0–100) 80.06 Procedures (number) 4 Procedures (number) 5 Time (days) 138 Time (days) 3 Cost (% of income per capita) 18.3 Cost (% of property value) 6.1 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 3 Score for enforcing contracts (0–100) 61.62 Time (days) 510 Cost (% of claim value) 19.7 Quality of judicial processes index (0–18) 7.0 Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 49 Groningen Starting a business (rank) 1 Dealing with construction permits (rank) 5 Score for starting a business (0–100) 91.70 Score for dealing with construction permits (0–100) 66.88 Procedures (number) 5 Procedures (number) 15 Time (days) 9 Time (days) 168 Cost (% of income per capita) 2.2 Cost (% of warehouse value) 3.6 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 9 Registering property (rank) 1 Score for getting electricity (0–100) 82.95 Score for registering property (0–100) 80.10 Procedures (number) 4 Procedures (number) 5 Time (days) 136 Time (days) 3 Cost (% of income per capita) 18.3 Cost (% of property value) 6.0 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 5 Score for enforcing contracts (0–100) 61.49 Time (days) 519 Cost (% of claim value) 19.4 Quality of judicial processes index (0–18) 7.0 The Hague Starting a business (rank) 7 Dealing with construction permits (rank) 9 Score for starting a business (0–100) 91.50 Score for dealing with construction permits (0–100) 65.11 Procedures (number) 5 Procedures (number) 13 Time (days) 9 Time (days) 233 Cost (% of income per capita) 3.8 Cost (% of warehouse value) 2.9 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 5 Registering property (rank) 7 Score for getting electricity (0–100) 85.43 Score for registering property (0–100) 80.01 Procedures (number) 4 Procedures (number) 5 Time (days) 113 Time (days) 3 Cost (% of income per capita) 24.6 Cost (% of property value) 6.1 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 7 Score for enforcing contracts (0–100) 59.99 Time (days) 519 Cost (% of claim value) 23.4 Quality of judicial processes index (0–18) 7.0 Back to Contents 50 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Maastricht Starting a business (rank) 5 Dealing with construction permits (rank) 6 Score for starting a business (0–100) 91.57 Score for dealing with construction permits (0–100) 65.95 Procedures (number) 5 Procedures (number) 16 Time (days) 9 Time (days) 204 Cost (% of income per capita) 3.3 Cost (% of warehouse value) 1.5 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 1 Registering property (rank) 1 Score for getting electricity (0–100) 87.19 Score for registering property (0–100) 80.10 Procedures (number) 4 Procedures (number) 5 Time (days) 97 Time (days) 3 Cost (% of income per capita) 18.3 Cost (% of property value) 6.0 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 10 Score for enforcing contracts (0–100) 59.09 Time (days) 561 Cost (% of claim value) 22.8 Quality of judicial processes index (0–18) 7.0 Middelburg Starting a business (rank) 1 Dealing with construction permits (rank) 1 Score for starting a business (0–100) 91.70 Score for dealing with construction permits (0–100) 69.47 Procedures (number) 5 Procedures (number) 14 Time (days) 9 Time (days) 169 Cost (% of income per capita) 2.2 Cost (% of warehouse value) 2.3 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 3 Registering property (rank) 1 Score for getting electricity (0–100) 86.63 Score for registering property (0–100) 80.10 Procedures (number) 4 Procedures (number) 5 Time (days) 102 Time (days) 3 Cost (% of income per capita) 23.7 Cost (% of property value) 6.0 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 2 Score for enforcing contracts (0–100) 61.87 Time (days) 512 Cost (% of claim value) 18.9 Quality of judicial processes index (0–18) 7.0 Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 51 Rotterdam Starting a business (rank) 7 Dealing with construction permits (rank) 3 Score for starting a business (0–100) 91.50 Score for dealing with construction permits (0–100) 68.32 Procedures (number) 5 Procedures (number) 15 Time (days) 9 Time (days) 169 Cost (% of income per capita) 3.8 Cost (% of warehouse value) 2.4 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 7 Registering property (rank) 7 Score for getting electricity (0–100) 84.24 Score for registering property (0–100) 80.01 Procedures (number) 4 Procedures (number) 5 Time (days) 124 Time (days) 3 Cost (% of income per capita) 24.6 Cost (% of property value) 6.1 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 4 Score for enforcing contracts (0–100) 61.61 Time (days) 485 Cost (% of claim value) 21.6 Quality of judicial processes index (0–18) 7.0 Utrecht Starting a business (rank) 7 Dealing with construction permits (rank) 7 Score for starting a business (0–100) 91.50 Score for dealing with construction permits (0–100) 65.60 Procedures (number) 5 Procedures (number) 13 Time (days) 9 Time (days) 231 Cost (% of income per capita) 3.8 Cost (% of warehouse value) 2.6 Paid-in minimum capital (% of income per capita) 0.0 Building quality control index (0–15) 10 Getting electricity (rank) 8 Registering property (rank) 7 Score for getting electricity (0–100) 83.37 Score for registering property (0–100) 80.01 Procedures (number) 4 Procedures (number) 5 Time (days) 132 Time (days) 3 Cost (% of income per capita) 24.6 Cost (% of property value) 6.1 Reliability of supply and transparency of tariffs index (0–8) 8 Quality of land administration index (0–30) 28.5 Enforcing contracts (rank) 9 Score for enforcing contracts (0–100) 59.89 Time (days) 526 Cost (% of claim value) 23.2 Quality of judicial processes index (0–18) 7.0 Back to Contents 52 STARTING A BUSINESS IN THE NETHERLANDS – PROCEDURES REQUIRED TO START A BUSINESS, BY CITY Standard company legal form: besloten vennootschap (bv) Paid-in minimum capital requirement: none Amsterdam Arnhem Eindhoven Enschede Groningen The Hague Maastricht Middelburg Rotterdam Utrecht Data as of: December 31, 2021 Comments 1. Check the company name for Time It is recommended that entrepreneurs check the company name before registering appropriateness and validity Less than one day (online procedure) it with the Chamber of Commerce. The company name must meet a number of (days) rules such as not using another company's brand name or avoiding confusion with existing company names. The entrepreneurs or the notary are the ones who verify Cost No No No No No No No No No No the appropriateness and validity of the company name on the Chamber of Commerce (EUR) cost cost cost cost cost cost cost cost cost cost website before notarizing the company's deed of incorporation. 2. A civil law notary drafts and Entrepreneurs can send all the necessary documentation for the notary to draft the signs the company's deed of Time deed of incorporation by email, through online software systems such as ‘Online 1 1 1 1 1 1 1 1 1 1 incorporation (days) Dossier’, in-person or via post. The deed can be executed in the physical presence of a notary either by the entrepreneur or the person granted power of attorney to act on the entrepreneur's behalf. Cost 1,750 1,000 1,492 1,000 1,000 1,750 1,492 1,000 1,750 1,750 Notary rates are negotiable and can be billed at an hourly rate or as a fixed fee. This (EUR) varies among notaries. 3. Register ultimate beneficial As of September 27, 2020, companies and other legal entities incorporated in owners in the UBO register Time the Netherlands are obliged to register their ultimate beneficial owners (UBOs) in Less than one day (online procedure) (days) the UBO register. Registration can be done online by a civil law notary. The notary submits the UBO registration application with the Chamber of Commerce through an electronic application – the NAU (Notaris Applicatie UBO). The Chamber of Cost No No No No No No No No No No Commerce approves the registration of the UBO and sends a confirmation letter (EUR) cost cost cost cost cost cost cost cost cost cost to the respective entity as well as the UBO. UBO registration is a prerequisite for registering the company at the Chamber of Commerce. 4. Register the company at the The registration at the Chamber of Commerce is done by the civil law notary, usually Chamber of Commerce and obtain through an online platform called ‘Online Registreren Notarissen’ (ORN). After the the VAT identification number Time required information is submitted, the Chamber of Commerce verifies it, together with 6 6 6 6 6 6 6 6 6 6 (days) the UBO registration information and registers the company in the Commercial Register. The company's founders are jointly and severally liable for each legal act that takes place between the execution of the deed of incorporation and the company's registration at the Chamber of Commerce. Cost The VAT registration is done along with company registration at the Chamber 50 50 50 50 50 50 50 50 50 50 of Commerce. The Chamber of Commerce automatically forwards the registered (EUR) company information to the Tax Authority, which in turn will create and deliver the VAT identification number to the entrepreneur. DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS 5. Register as employer with Time The company has to be registered with the Tax Authority in order to hire employees. the Tax Authority and the Social 1 1 1 1 1 1 1 1 1 1 There is a PDF-form available online that must be filled out and sent via post to the (days) Security Authority Tax Authority. Cost No No No No No No No No No No Within six weeks of completing registration, the company receives a payroll tax (EUR) cost cost cost cost cost cost cost cost cost cost number, a payroll tax return letter, and information on the contributions to be paid for the employed person's social security insurance scheme. Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. *Takes place simultaneously with previous procedure. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 53 Procedure 9. Receive inspection for Procedure 5*. Request water connection water and sewage connection Agency: Vitens LIST OF PROCEDURES Agency: Waternet Time: 6 days DEALING WITH CONSTRUCTION Time: 1 day Cost: No cost PERMITS Cost: No cost THE NETHERLANDS Procedure 6. Notify building inspector Procedure 10. Obtain water and sewage two days before construction begins Amsterdam connection Agency: Construction permits division region Agency: Waternet Arnhem Warehouse value: EUR 2,350,524 (USD 2,660,000) Time: 21 days Time: .5 days Data as of: December 31, 2020 Cost: EUR 2,167 Cost: No cost Procedure 1. Obtain report on the soil conditions Procedure 11. Notify building inspector Procedure 7. Receive inspection for Agency: Soil Researching Company upon completion of work water connection Agency: Municipality Agency: Vitens Time: 30 days Time: Less than one day (online procedure) Time: 1 day Cost: EUR 9,650 Cost: No cost Cost: No cost Procedure 2*. Hold a consultation with the municipal authorities Procedure 12. Receive final inspection Procedure 8. Obtain water connection Agency: Municipality Agency: Vitens Agency: Municipality Time: 1 day Time: 84 days Time: 15 days Cost: No cost Cost: EUR 762 Cost: EUR 217 Procedure 3. Submit a request for Procedure 13. Obtain occupancy permit Procedure 9. Request and receive a building permit to the Municipal Agency: Municipality inspection at foundation stage Executive (Mayor and Aldermen) Time: 14 days Agency: Construction permits division region Cost: No cost Arnhem Agency: Municipality Time: 1 day Time: 98 days Cost: No cost Cost: EUR 82,106 Arnhem Warehouse value: EUR 2,350,524 (USD 2,660,000) Procedure 10. Receive a random Procedure 4*. Apply for Bibob clearance Data as of: December 31, 2020 inspection Agency: The Public Administration Probity Agency: Construction permits division region Screening (Bureau Bibob) Procedure 1. Obtain report on the soil Arnhem Time: 7 days conditions Time: 1 day Cost: No cost Agency: Soil Researching Company Cost: No cost Time: 30 days Procedure 5. Notify building inspector Cost: EUR 9,650 Procedure 11. Notify building inspector two days before construction begins upon completion of work Agency: Municipality Procedure 2*. Hold a consultation with Agency: Construction permits division region Time: Less than one day (online procedure) the municipal authorities Arnhem Cost: No cost Agency: Municipality Time: .5 days Time: 21 days Cost: No cost Procedure 6. Request and receive Cost: EUR 561 inspection at foundation stage Procedure 12. Receive final inspection Agency: Municipality Procedure 3. Submit a request for Agency: Municipality Time: 1 day a building permit to the Municipal Time: 1 day Cost: No cost Executive (Mayor and Aldermen) Cost: No cost Agency: Municipality Procedure 7. Receive a random Procedure 13. Notification occupancy Time: 98 days inspection Cost: EUR 46,273 (2.04% of warehouse value) Agency: Municipality Agency: Municipality Time: 14 days Time: 1 day Procedure 4*. Notify municipality of Cost: No cost Cost: No cost sewage connection at least 3 weeks in advance Procedure 8. Request water and sewage Agency: Municipality connection Time: 14 days Agency: Waternet Cost: No cost Time: 21 days Cost: No cost Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. *Takes place simultaneously with previous procedure. Back to Contents 54 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Procedure 10. Receive a random Procedure 6*. Request sewage Eindhoven inspection connection Warehouse value: EUR 2,350,524 (USD 2,660,000) Agency: Municipality Agency: Municipality Data as of: December 31, 2020 Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 1. Obtain report on the soil conditions Procedure 11. Notify building inspector Procedure 7. Notify building inspector Agency: Soil Researching Company upon completion of work two days before construction begins Time: 30 days Agency: Municipality Agency: Municipality Cost: EUR 9,650 Time: .5 days Time: .5 days Cost: No cost Cost: No cost Procedure 2*. Hold a consultation with the municipal authorities Procedure 12. Receive final inspection Procedure 8. Receive inspection for Agency: Municipality Agency: Municipality water connection Time: 17 days Time: 1 day Agency: Vitens Cost: EUR 325 Cost: No cost Time: 1 day Cost: No cost Procedure 3. Submit a request for Procedure 13. Obtain occupancy permit a building permit to the Municipal Agency: Municipality Procedure 9. Obtain water connection Executive (Mayor and Aldermen) Time: 14 days Agency: Vitens Agency: Municipality Cost: No cost Time: 84 days Time: 98 days Cost: EUR 762 Cost: EUR 27,537 (EUR 21,617 for the first 2 million euro in warehouse value + 1.94% for any Enschede Procedure 10*. Obtain sewage warehouse value over 2 million euro + EUR 180 Warehouse value: EUR 2,350,524 (USD 2,660,000) for building used to store goods + EUR 536 for connection Data as of: December 31, 2020 Agency: Municipality soil study assessment) Time: 14 days Procedure 1. Obtain report on the soil Cost: EUR 2,656 Procedure 4*. Request sewage conditions connection Agency: Soil Researching Company Agency: Municipality Procedure 11. Request and receive Time: 30 days inspection at foundation stage Time: 21 days Cost: EUR 9,650 Cost: No cost Agency: Municipality Time: 1 day Procedure 2*. Hold a consultation with Cost: No cost Procedure 5*. Request water connection the municipal authorities Agency: Brabant Water Agency: Municipality Procedure 12. Receive a random Time: 5 days Time: 30 days inspection Cost: No cost Cost: No cost Agency: Municipality Time: 1 day Procedure 6. Notify building inspector Procedure 3. Submit a request for Cost: No cost two days before construction begins a building permit to the Municipal Agency: Municipality Executive (Mayor and Aldermen) Time: .5 days Procedure 13. Notify building inspector Agency: Municipality upon completion of work Cost: No cost Time: 98 days Agency: Municipality Cost: EUR 63,512 Time: .5 days Procedure 7. Obtain water connection Cost: No cost Agency: Brabant Water Procedure 4*. Apply for Bibob clearance Time: 56 days Agency: The Public Administration Probity Procedure 14. Receive final inspection Cost: EUR 1,067 Screening (Bureau Bibob) Agency: Municipality Time: 7 days Time: 1 day Procedure 8*. Obtain sewage connection Cost: No cost Cost: No cost Agency: Municipality Time: 21 days Procedure 5*. Request water connection Cost: EUR 917 Procedure 15. Obtain occupancy permit Agency: Vitens Agency: Municipality Time: 6 days Time: 14 days Procedure 9. Request and receive Cost: No cost Cost: No cost inspection at foundation stage Agency: Municipality Time: 1 day Cost: No cost *Takes place simultaneously with previous procedure. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 55 Procedure 10*. Obtain sewage Procedure 4*. Request sewage Groningen connection connection Warehouse value: EUR 2,350,524 (USD 2,660,000) Agency: Municipality Agency: Municipality Data as of: December 31, 2020 Time: 7 days Time: 42 days Cost: No cost Cost: No cost Procedure 1. Obtain report on the soil conditions Procedure 11. Request and receive Procedure 5*. Request water connection Agency: Soil Researching Company inspection at foundation stage Agency: Dunea Time: 30 days Agency: Municipality Time: 42 days Cost: EUR 9,650 Time: 1 day Cost: No cost Cost: No cost Procedure 2*. Hold a consultation with Procedure 6. Notify building inspector the municipal authorities Procedure 12. Receive a random two days before construction begins Agency: Municipality inspection Agency: Municipality Time: 28 days Agency: Municipality Time: .5 days Cost: No cost Time: 1 day Cost: No cost Cost: No cost Procedure 3. Submit a request for Procedure 7. Receive inspection for a building permit to the Municipal Procedure 13. Notify building inspector water connection Executive (Mayor and Aldermen) upon completion of work Agency: Dunea Agency: Municipality Agency: Municipality Time: 1 day Time: 98 days Time: .5 days Cost: No cost Cost: EUR 75,157 (EUR 17,585.75 for the first Cost: No cost 455,000 of warehouse value + EUR 31.75 for Procedure 8. Obtain water connection every additional 1,000 euro in warehouse value) Procedure 14. Receive final inspection Agency: Dunea Agency: Municipality Time: 56 days Procedure 4*. Request water connection Time: 1 day Cost: EUR 862 Agency: Waterbedrijf Groningen Cost: No cost Time: 21 days Procedure 9. Request and receive Cost: No cost Procedure 15. Obtain occupancy permit inspection at foundation stage Agency: Municipality Agency: Municipality Procedure 5*. Request sewage Time: 14 days Time: 1 day connection Cost: No cost Cost: No cost Agency: Municipality Time: 21 days The Hague Procedure 10. Receive a random Cost: No cost inspection Warehouse value: EUR 2,350,524 (USD 2,660,000) Agency: Municipality Procedure 6*. Apply for Bibob clearance Data as of: December 31, 2020 Time: 1 day Agency: The Public Administration Probity Cost: No cost Screening (Bureau Bibob) Procedure 1. Hold a consultation with Time: 7 days the municipal authorities Cost: No cost Procedure 11. Notify building inspector Agency: Municipality upon completion of work Time: 60 days Agency: Municipality Procedure 7. Notify building inspector Cost: EUR 100 Time: .5 days two days before construction begins Cost: No cost Agency: Municipality Procedure 2*. Obtain report on the soil Time: .5 days conditions Cost: No cost Procedure 12. Receive final inspection Agency: Soil Researching Company Agency: Municipality Time: 30 days Time: 1 day Procedure 8. Receive inspection for Cost: EUR 9,650 Cost: No cost water connection Agency: Waterbedrijf Groningen Procedure 3. Submit a request for Time: 1 day Procedure 13. Obtain occupancy permit a building permit to the Municipal Agency: Municipality Cost: No cost Executive (Mayor and Aldermen) Time: 14 days Agency: Municipality Cost: No cost Procedure 9. Obtain water connection Time: 98 days Agency: Waterbedrijf Groningen Cost: EUR 57,841 (2.55% of warehouse value) Time: 21 days Cost: EUR 810 *Takes place simultaneously with previous procedure. Back to Contents 56 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Procedure 9. Receive inspection for Procedure 2*. Hold a consultation with Maastricht sewage connection the municipal authorities Warehouse value: EUR 2,350,524 (USD 2,660,000) Agency: Municipality Agency: Municipality Data as of: December 31, 2020 Time: 1 day Time: 21 days Cost: No cost Cost: EUR 1,186 (25% of the cost of the Procedure 1. Obtain report on the soil construction permit) conditions Procedure 10. Obtain sewage Agency: Soil Researching Company connection Procedure 3. Submit a request for Time: 30 days Agency: Municipality a building permit to the Municipal Cost: EUR 9,650 Time: 56 days Executive (Mayor and Aldermen) Cost: EUR 3,660 Agency: Municipality Procedure 2*. Hold a consultation with Time: 98 days the municipal authorities Procedure 11*. Obtain water connection Cost: EUR 42,358 (EUR 334.85 for the first Agency: Municipality 15,000 in warehouse value + EUR 18.65 for every Agency: WML Time: 8 days additional 1,000 euro in warehouse value) Time: 21 days Cost: No cost Cost: EUR 1,168 Procedure 4*. Request sewage Procedure 3. Submit a request for connection permit Procedure 12. Request and receive a building permit to the Municipal Agency: Municipality inspection at foundation stage Executive (Mayor and Aldermen) Time: 21 days Agency: Municipality Agency: Municipality Cost: No cost Time: 1 day Time: 98 days Cost: No cost Cost: EUR 21,133 (The municipality estimates Procedure 5*. Request water connection the construction costs for a project based on Agency: Evides Procedure 13. Receive a random unit prices. For a warehouse of 1300.6 meters Time: 21 days inspection squared, the construction fees are estimated Cost: No cost Agency: Municipality to be 563,160 euro. When applying this to the municipal cost table, the fees for the permit Time: 1 day Cost: No cost Procedure 6. Notify building inspector would be 21,133.1 euro) two days before construction begins Agency: Municipality Procedure 4*. Request water connection Procedure 14. Notify building inspector Time: .5 days Agency: WML upon completion of work Cost: No cost Time: 21 days Agency: Municipality Cost: No cost Time: .5 days Cost: No cost Procedure 7. Receive inspection for water connection Procedure 5*. Apply for Bibob clearance Agency: Evides Agency: The Public Administration Probity Procedure 15. Receive final inspection Time: 1 day Screening (Bureau Bibob) Agency: Municipality Cost: No cost Time: 7 days Time: 1 day Cost: No cost Cost: No cost Procedure 8. Obtain sewage connection Agency: Municipality Procedure 6*. Request sewage Procedure 16. Obtain occupancy permit Time: 21 days connection permit Agency: Municipality Cost: EUR 177 Agency: Municipality Time: 14 days Time: 6 days Cost: No cost Procedure 9*. Obtain water connection Cost: No cost Agency: Evides Middelburg Time: 21 days Procedure 7. Notify building inspector Cost: EUR 978 two days before construction begins Warehouse value: EUR 2,350,524 (USD 2,660,000) Data as of: December 31, 2020 Agency: Municipality Procedure 10. Request and receive Time: .5 days inspection at foundation stage Cost: No cost Procedure 1. Obtain report on the soil Agency: Municipality conditions Time: 1 day Agency: Soil Researching Company Procedure 8. Receive inspection for Cost: No cost Time: 30 days water connection Cost: EUR 9,650 Agency: WML Procedure 11. Receive a random Time: 1 day inspection Cost: No cost Agency: Municipality Time: 1 day Cost: No cost *Takes place simultaneously with previous procedure. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 57 Procedure 12. Notify building inspector Procedure 7. Notify building inspector Utrecht upon completion of work two days before construction begins Agency: Municipality Agency: Municipality Warehouse value: EUR 2,350,524 (USD 2,660,000) Time: .5 days Time: .5 days Data as of: December 31, 2020 Cost: No cost Cost: No cost Procedure 1. Obtain report on the soil Procedure 13. Receive final inspection Procedure 8. Receive inspection for conditions Agency: Municipality sewage connection Agency: Soil Researching Company Time: 1 day Agency: Municipality Time: 30 days Cost: No cost Time: 1 day Cost: EUR 9,650 Cost: No cost Procedure 14. Obtain occupancy permit Procedure 2*. Hold a consultation with Agency: Municipality Procedure 9*. Receive inspection for the municipal authorities Time: 14 days water connection Agency: Municipality Cost: No cost Agency: Evides Time: 25 days Time: 1 day Cost: EUR 3,000 Cost: No cost Rotterdam Procedure 3. Submit a request for Warehouse value: EUR 2,350,524 (USD 2,660,000) Procedure 10. Obtain water connection a building permit to the Municipal Data as of: December 31, 2020 Agency: Evides Executive (Mayor and Aldermen) Time: 21 days Agency: Municipality Procedure 1. Obtain report on the soil Cost: EUR 978 Time: 98 days conditions Cost: EUR 48,541 (2.14% of warehouse value) Agency: Soil Researching Company Procedure 11. Request and receive Time: 30 days inspection at foundation stage Procedure 4*. Request sewage Cost: EUR 9,650 connection Agency: Municipality Time: 1 day Agency: Municipality Procedure 2*. Hold a consultation with Cost: No cost Time: 21 days the municipal authorities Cost: No cost Agency: Municipality Procedure 12. Receive a random Time: 14 days inspection Procedure 5*. Request water connection Cost: No cost Agency: Vitens Agency: Municipality Time: 1 day Time: 6 days Procedure 3. Submit a request for Cost: No cost Cost: No cost a building permit to the Municipal Executive (Mayor and Aldermen) Procedure 13. Notify building inspector Procedure 6. Notify building inspector Agency: Municipality upon completion of work two days before construction begins Time: 98 days Agency: Municipality Agency: Municipality Cost: EUR 46,500 (2.05% of warehouse value) Time: .5 days Time: .5 days Cost: No cost Cost: No cost Procedure 4*. Request sewage connection permit Procedure 14. Receive final inspection Procedure 7. Receive inspection for Agency: Municipality water connection Agency: Municipality Time: 56 days Agency: Vitens Time: 1 day Cost: EUR 33 Time: 1 day Cost: No cost Cost: No cost Procedure 5*. Request water connection Procedure 15. Obtain occupancy permit Agency: Evides Procedure 8. Obtain water connection Agency: Municipality Time: 21 days Agency: Vitens Time: 14 days Cost: No cost Time: 84 days Cost: No cost Cost: EUR 762 Procedure 6*. Apply for Bibob clearance Agency: The Public Administration Probity Procedure 9. Request and receive Screening (Bureau Bibob) inspection at foundation stage Time: 7 days Agency: Municipality Cost: No cost Time: 1 day Cost: No cost *Takes place simultaneously with previous procedure. Back to Contents 58 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Procedure 10. Receive a random inspection Agency: Municipality Time: 1 day Cost: No cost Procedure 11. Notify building inspector upon completion of work Agency: Municipality Time: .5 days Cost: No cost Procedure 12. Receive final inspection Agency: Municipality Time: 1 day Cost: No cost Procedure 13. Obtain occupancy permit Agency: Municipality Time: 14 days Cost: No cost Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 59 DEALING WITH CONSTRUCTION PERMITS IN THE NETHERLANDS – BUILDING QUALITY CONTROL INDEX All cities Answer Score Building quality control index (0–15) 10 Quality of building regulations index (0–2) 2 How accessible are building laws and regulations in your economy? (0–1) Available online; Free of charge. 1 Which requirements for obtaining a building permit are clearly specified in the building List of required documents; Fees to be paid; 1 regulations or on any accessible website, brochure or pamphlet? (0–1) Required preapprovals. Quality control before construction index (0–1) 1 Which third-party entities are required by law to verify that the building plans are in Licensed architect; Licensed engineer 1 compliance with existing building regulations? (0–1) Quality control during construction index (0–3) 3 What types of inspections (if any) are required by law to be carried out during Inspections at various phases; Risk-based inspections. 2 construction? (0–2) Do legally mandated inspections occur in practice during construction? (0–1) Mandatory inspections are always done in practice. 1 Quality control after construction index (0–3) 3 Is there a final inspection required by law to verify that the building was built in Yes, final inspection is done by government agency. 2 accordance with the approved plans and regulations? (0–2) Do legally mandated final inspections occur in practice? (0–1) Final inspection always occurs in practice. 1 Liability and insurance regimes index (0–2) 1 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or engineer; Professional in charge of the 1 once it is in use (Latent Defect Liability or Decennial Liability)? (0–1) supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is required by law to obtain insurance. 0 structural flaws or problems in the building once it is in use? (0–1) Professional certifications index (0–4) 0 What are the qualification requirements for the professional responsible for verifying Minimum number of years of experience. 0 that the architectural plans or drawings are in compliance with existing building regulations? (0–2) What are the qualification requirements for the professional who supervises the Minimum number of years of experience. 0 construction on the ground? (0–2) Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Back to Contents 60 GETTING ELECTRICITY IN THE NETHERLANDS – PROCEDURES REQUIRED TO OBTAIN A NEW ELECTRICITY CONNECTION, BY CITY Data as of: December 31, 2020 Name of utility: Enduris Enexis Liander Stedin Middelburg Eindhoven Enschede Groningen Maastricht Amsterdam Arnhem The Hague Rotterdam Utrecht Comments 1. Submit The customer applies for an electricity application Time connection with the utility. Once the utility has 12 8 12 10 7 12 12 12 12 12 to utility and (days) received a complete application it will assess if receive quote the grid in its current capacity is able to handle the requested connection capacity. The utility Cost then prepares and calculates the connection No cost fees, no site inspection is required to issue a (EUR) quote. 2. Obtain The utility will sub-contract the works to a external works private firm. In this case, the works consist from utility’s of laying out a cable from the warehouse contractor Time to the closest supply source. According to 90 90 126 126 90 90 112 101 112 120 Article 23 of the Electricity Law, utilities in (days) the Netherlands have 18 weeks (126 days) to complete the external works. Maximum connection fees are fixed and set by the ACM (Autoriteit Consument & Markt) and include Cost 11,150 [(EUR 8,591 [(EUR 3,428 for capacity between 3x160A 11,352 [(EUR 4,802 for 11,580 [(EUR 5,330 for capacity the physical works for a connection up to 25 (EUR) 4,437 for capacity and 3x250A and for the first 25 meters) + capacity between 100 between 3x125A and 175 kVA and meters. Before the electricity can be turned between 50 kVA (EUR 5,162.50 for EUR 41.30 per each additional kVA and 160 kVA for for the first 25 meters) + (EUR 6,250 on, the client will need to show the relevant and 200 kVA for the meter)] the first 25 meters) + for EUR 50 per each additional meter)] agency (the utility) a copy of the supply first 25 meters) + (EUR 6,550 for contract. Nowadays this is carried out by (EUR 6,712.50 for EUR 52.40 per each internal electronic communication between the EUR 53.70 per each additional meter)] supplier and the utility. This is done during the additional meter)] execution of the works and therefore gives no additional delay to the process. 3. Sign contract In the Netherlands, the electricity market is with electricity Time free. The utility is a distributor of electricity, but 7 7 7 7 7 7 7 7 7 7 supplier* (days) not a provider. Therefore, in order to obtain electricity, once the client has received an EAN Cost code from the utility, the client will need to No cost choose and sign a contract with one of many (EUR) suppliers. 4. Obtain meter The client must choose a meter company to DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS installation Time install the meter for them. Utilities cannot 7 7 7 7 7 7 7 7 7 7 by meter (days) install meters for clients with connections with company* a capacity larger than 3 x 80 Ampere. Before the electricity can be turned on, the client will Cost need to show the relevant agency (the utility) No cost a copy of the supply contract, via electronic (EUR) communication. Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. *Takes place simultaneously with previous procedure. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 61 GETTING ELECTRICITY IN AUSTRIA – RELIABILITY OF SUPPLY AND TRANSPARENCY OF TARIFFS INDEX Reliability of supply and transparency of tariffs index (0–8) 8 (all cities) Total duration and frequency of outages per customer a year (0–3) 3 (all cities) System average interruption duration index (SAIDI) 0.20 (Eindhoven, Enchede, Groningen, Maastricht) 0.25 (Middelburg) 0.34 (The Hague, Rotterdam, Utrecht) 0.58 (Amsterdam, Arnhem) System average interruption frequency index (SAIFI) 0.15 (Eindhoven, Enchede, Groningen, Maastricht) 0.23 (The Hague, Rotterdam, Utrecht) 0.24 (Middelburg) 0.32 (Amsterdam, Arnhem) Mechanisms for monitoring outages (0–1) 1 (all cities) Does the distribution utility use automated tools to monitor outages? Yes (all cities) Mechanisms for restoring service (0–1) 1 (all cities) Does the distribution utility use automated tools to restore service? Yes (all cities) Regulatory monitoring (0–1) 1 (all cities) Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability Yes (all cities) of supply? Financial deterrents aimed at limiting outages (0–1) 1 (all cities) Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes (all cities) exceed a certain cap? Communication of tariffs and tariff changes (0–1) 1 (all cities) Are effective tariffs available online? Yes (all cities) Are customers notified of a change in tariff ahead of the billing cycle? Yes (all cities) Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Back to Contents 62 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS REGISTERING PROPERTY IN THE NETHERLANDS – PROCEDURES REQUIRED TO REGISTER A PROPERTY, BY CITY Property value: EUR 2,350,524 Data as of: December 31, 2020 Amsterdam Arnhem Eindhoven Enschede Groningen The Hague Notary conducts a title Time Less than one day (online procedure) search at the Land (days) Registry EUR 2,258. EUR 1,508. EUR 1,008. EUR 1,508. EUR 1,008. EUR 2,258. A fraction of the A fraction of the A fraction of the A fraction of the A fraction of the A fraction of the cost is charged by cost is charged by cost is charged by cost is charged by cost is charged by cost is charged by the Land Registry to the Land Registry to the Land Registry to the Land Registry to the Land Registry to the Land Registry to issue a registered issue a registered issue a registered issue a registered issue a registered issue a registered title (EUR 2.95) title (EUR 2.95) title (EUR 2.95) title (EUR 2.95) title (EUR 2.95) title (EUR 2.95) a cadastral map a cadastral map a cadastral map a cadastral map a cadastral map a cadastral map Cost (EUR 1.80) and a (EUR 1.80) and a (EUR 1.80) and a (EUR 1.80) and a (EUR 1.80) and a (EUR 1.80) and a (EUR) cadastral extract cadastral extract cadastral extract cadastral extract cadastral extract cadastral extract (EUR 1.80). Most of (EUR 1.80). Most of (EUR 1.80). Most of (EUR 1.80). Most of (EUR 1.80). Most of (EUR 1.80). Most of the cost relates to the cost relates to the cost relates to the cost relates to the cost relates to the cost relates to the notarial fees (for the notarial fees (for the notarial fees (for the notarial fees (for the notarial fees (for the notarial fees (for the work performed the work performed the work performed the work performed the work performed the work performed under procedures 1, under procedures 1, under procedures 1, under procedures 1, under procedures 1, under procedures 1, 2 and 3): EUR 2,250 2 and 3): EUR1,500. 2 and 3): EUR1,000 2 and 3): EUR1,500. 2 and 3): EUR1,000 2 and 3): EUR2,250 Notary conducts Time Less than one day (online procedure) a search on the (days) representation of the parties* EUR 22.8. This fee is charged by the Chamber of Commerce to research the legal capacity of the seller and purchaser to represent the companies. Cost EUR 3.05 is charged to access the annual accounts (of each company); EUR 2.65 for the names of legal representatives (of each (EUR) company); EUR 2.65 for the articles of association (of each company); and EUR 3.05 for an authenticated commercial extract (of each company). Execution of the transfer deed Time 1 day (days) Cost EUR 141,031 (EUR) (Transfer Tax: 6% of property value for non-residential; 2% for residential use) Registration of deed Time Less than one day (online procedure) (days) Cost EUR 82.5 (for fully automatic registration) (EUR) Registration with Tax authority, Department Registration and Succession* Time Less than one day (online procedure) (days) Cost Included in Procedure 3 (EUR) Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. *Simultaneous with a previous procedure. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 63 Maastricht Middelburg Rotterdam Utrecht Comments According to the Dutch Civil Code it is mandatory to hire a civil law notary Less than one day (online procedure) to perform the property registration process. The notary will conduct a title search at the Land Registry to check for ownership and encumbrances before EUR 1,008. EUR 1,008. EUR 2,258. EUR 2,258. executing the deed. A notarial deed is mandatory ('authentic deed'); and the A fraction of the A fraction of the A fraction of the A fraction of the notary verifies that the seller is indeed the owner. Notaries can consult the land cost is charged by cost is charged by cost is charged by cost is charged by register remotely via the Automatic Cadastral Registration (AKR). the Land Registry to the Land Registry to the Land Registry to the Land Registry to issue a registered issue a registered issue a registered issue a registered All deeds are available online, as well as extracts from the cadastral map showing title (EUR 2.95) title (EUR 2.95) title (EUR 2.95) title (EUR 2.95) the relevant properties. The civil law notary then drafts the transfer deed. a cadastral map a cadastral map a cadastral map a cadastral map (EUR 1.80) and a (EUR 1.80) and a (EUR 1.80) and a (EUR 1.80) and a cadastral extract cadastral extract cadastral extract cadastral extract (EUR 1.80). Most of (EUR 1.80). Most of (EUR 1.80). Most of (EUR 1.80). Most of the cost relates to the cost relates to the cost relates to the cost relates to the notarial fees (for the notarial fees (for the notarial fees (for the notarial fees (for the work performed the work performed the work performed the work performed under procedures 1, under procedures 1, under procedures 1, under procedures 1, 2 and 3): EUR1,000 2 and 3): EUR1,000 2 and 3): EUR2,250 2 and 3): EUR2,250 When the parties to the transactions are companies (not individuals), the notary Less than one day (online procedure) must verify with the Commercial Register from the Chamber of Commerce specific information regarding the parties (such as address, managing directors). EUR 22.8. This fee is charged by the Chamber of Commerce to research the legal capacity The articles of association cannot be checked on-line. The civil law notary can of the seller and purchaser to represent the companies. have these sent to him by mail or fax. The notary will also check the Insolvency EUR 3.05 is charged to access the annual accounts (of each company); EUR 2.65 for Registry, to verify whether either the buyer and or the seller have been declared the names of legal representatives (of each company); EUR 2.65 for the articles of bankrupted at the time of signing the deed and the registration with the Land association (of each company); and EUR 3.05 for an authenticated commercial extract (of Registry. This is important to verify that both the seller and the buyer have the each company). right to enter into the transaction on behalf of the company. The notary obtains an excerpt from the Office of Legal Security to verify whether certain third-party rights were granted over the property, e.g. through mortgages, rights to construct. A 30-year title search is included in the documents. The notary 1 day might request a full transcription, an inscription extract or a notification extract of transfer acts over 30 years affecting the property object to the transaction. The Office of Legal Security provides (i) "full transcription" of the title or of the judgment attributing the title: the date of acquisition of the full ownership or other right over the property, the terms and conditions of the acquisition including the purchase price, the existence of lease contracts exceeding nine EUR 141,031 years and information on the rights of third parties such as judgments, servitudes/ (Transfer Tax: 6% of property value for non-residential; 2% for residential use) easements and seizures affecting the property in question for the past 30 years and (ii) by "inscription" whether the right over the property is encumbered by a mortgage or a legal lien (beneficiary, amount, costs, term). Every notary deed must be registered with the Land Registry ('ingeschreven'). Less than one day (online procedure) This can be done online. The registration fee of the Land Registry depends on the way the deed is submitted to the Land Registry: EUR 82.50 for full automatic registration (submitted essentially via KIK system and/or as XML file), EUR 144.50 for semi digital deed delivery for automatic registration (digitally EUR 82.5 (for fully automatic registration) submitted) and EUR 172.00 (144.50 + 27.50 as extra charge) for deed paper delivery for regular registration. After the execution of the notarial deed, a scan of the original deed is submitted by the civil-law notary into a secured online/digital registration system managed by the notarial professional organization (the 'KNB': https:// notarisnet.notaris.nl/cdr-centraal-digitaal-repertorium). Less than one day (online procedure) The civil-law notary also enters into the registration system whether the deed contains transfer taxable aspects. The KNB then submits the registered notarial deeds with the additional information provided by the civil-law notary to the tax authorities digitally. Registration with the Ministry of Finance, Tax Authority, Department Registration and Succession is done online: www.belastingdienst.nl. This is the official register of the Department Registration. Each notarial deed must 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 Included in Procedure 3 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. Depending on the VAT-status of the entrepreneur, VAT (21%) may be applicable in lieu of the transfer tax. The deed itself is then returned with that statement to the civil law notary. Back to Contents 64 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS REGISTERING PROPERTY IN THE NETHERLANDS – QUALITY OF LAND ADMINISTRATION INDEX (continued) Answer Score Quality of the land administration index (0–30) 28.5 (all cities) Reliability of infrastructure index (0–8) 7 In what format land title certificates are kept at the immovable property registry—in a paper format or in a Computer/Scanned 1 computerized format (scanned or fully digital)? (0–2) Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, Yes 1 restrictions and the like)? (0–1) In what format cadastral plans are kept at the mapping agency—in a paper format or in a computerized format Computer/Fully digital 2 (scanned or fully digital)? (0–2) Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1 (geographic information system)? (0–1) Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept Single database 1 in a single database, in different but linked databases, or in separate databases? (0–1) Do the immovable property registration agency and cadastral or mapping agency use the same identification number Yes 1 for properties? (0–1) Transparency of information index (0–6) 6 Whether information on land ownership is made publicly available without providing the title certificate number at Anyone who pays 1 the agency in charge of immovable property registration? (0–1) the official fee Is the list of documents that are required to complete all types of property transactions made publicly available–and Yes, online 0.5 if so, how? (0–0.5) Is the applicable fee schedule for all types of property transactions at the agency in charge of immovable property Yes, online 0.5 registration made publicly available–and if so, how? (0–0.5) Does the agency in charge of immovable property registration formally commit to deliver a legally binding document Yes, online 0.5 proving ownership within a specific timeframe–and if so, how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in Yes 1 charge of immovable property registration? (0–1) Are there publicly available official statistics tracking the number of transactions at the immovable property Yes 0.5 registration agency? (0–0.5) Are cadastral plans made publicly available? (0–0.5) Anyone who pays 0.5 the official fee Is the applicable fee schedule for accessing maps of land plots made easily publicly available—and if so, how? (0–0.5) Yes, online 0.5 Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and if so, Yes, online 0.5 how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or Yes 0.5 mapping agency? (0–0.5) Geographic coverage index (0–8) 8 Are all privately held land plots in the economy formally registered at the immovable property registry? (0–2) Yes 2 Are all privately held land plots formally registered at the immovable property registry in the measured city? (0–2) Yes 2 Are all privately held land plots in the economy mapped? (0–2) Yes 2 Are all privately held land plots mapped in the measured city? (0–2) Yes 2 Land dispute resolution index (0–8) 7.5 Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5 them opposable to third parties? (0–1.5) Is the system of immovable property registration subject to a state or private guarantee? (0–0.5) Yes 0.5 Is there a specific out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good Yes 0.5 faith in a property transaction based on erroneous information certified by the immovable property registry? (0–0.5) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5 checking the compliance of contracts with requirements of the law)? (0–0.5) Does the legal system require verification of the identity of the parties to a property transaction? (0–0.5) Yes 0.5 Is there a national database to verify the accuracy of government issued identity documents? (0–1) Yes 1 How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? (0–3) Less than a year 3 Are there publicly available statistics on the number of land disputes in the first-instance court? (0–0.5) No 0 Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 65 REGISTERING PROPERTY IN THE NETHERLANDS – QUALITY OF LAND ADMINISTRATION INDEX (continued) Answer Score Equal access to property rights index (-2–0) 0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0 Do married men and married women have equal ownership rights to property? Yes 0 Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Back to Contents 66 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS ENFORCING CONTRACTS IN THE NETHERLANDS – TIME AND COST TO RESOLVE A COMMERCIAL DISPUTE, BY CITY Time (days) Cost (% of claim) Quality of judicial processes index (0–18) Court structure and Alternative dispute proceedings (-1–5) Trial and judgment Case management Enforcement costs Court automation Filing and service Attorney fees Enforcement of judgment Court costs resolution Total (0–6) (0–4) (0–3) Total Total score City time cost (0–18) Amsterdam 10 442 62 514 13.7 5.0 5.2 23.9 3.0 0.5 2.0 1.5 7.0 Arnhem 20 435 62 517 12.4 4.8 5.2 22.4 3.0 0.5 2.0 1.5 7.0 Eindhoven 15 396 60 471 12.5 4.5 3.9 20.9 3.0 0.5 2.0 1.5 7.0 Enschede 30 390 90 510 11.2 5.0 3.5 19.7 3.0 0.5 2.0 1.5 7.0 Groningen 15 442 62 519 11.0 4.5 3.9 19.4 3.0 0.5 2.0 1.5 7.0 The Hague 15 442 62 519 13.7 4.5 5.2 23.4 3.0 0.5 2.0 1.5 7.0 Maastricht 20 475 66 561 13.0 5.0 4.8 22.8 3.0 0.5 2.0 1.5 7.0 Middelburg 30 421 61 512 10.0 5.0 3.9 18.9 3.0 0.5 2.0 1.5 7.0 Rotterdam 15 410 60 485 12.7 5.0 3.9 21.6 3.0 0.5 2.0 1.5 7.0 Utrecht 15 449 62 526 13.4 5.0 4.8 23.2 3.0 0.5 2.0 1.5 7.0 Source: Subnational Doing Business and Doing Business databases. Note: The cost values, expressed as % of claim, are rounded to the first decimal place. Data for Amsterdam are not considered official until published in the Doing Business 2021 report. Back to Contents CITY SNAPSHOTS AND INDICATOR DETAILS 67 ENFORCING CONTRACTS IN THE NETHERLANDS – QUALITY OF JUDICIAL PROCESSES INDEX Answer Score Quality of judicial processes index (0–18) 7.0 (all cities) Court structure and proceedings (-1–5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? (0–1.5) No 0.0 2. Small claims court (0–1.5) 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? (0–1) Yes 1.0 4. Are new cases assigned randomly to judges? (0–1) Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? (-1–0) Yes 0.0 Case management (0–6) 0.5 1. Time standards (0–1) 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments (0–1) 0.5 2.a. Does the law regulate the maximum number of adjournments that can be granted? No 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? Yes 3. Can two of the following four reports be generated about the competent court: No 0.0 (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? (0–1) 4. Is a pretrial conference among the case management techniques used before the competent court? (0–1) No 0.0 5. Are there any electronic case management tools in place within the competent court for use by judges? (0–1) No 0.0 6. Are there any electronic case management tools in place within the competent court for use by lawyers? (0–1) No 0.0 Court automation (0–4) 2.0 1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? (0–1) No 0.0 2. Is it possible to carry out service of process electronically for claims filed before the competent court? (0–1) No 0.0 3. Can court fees be paid electronically within the competent court? (0–1) Yes 1.0 4. Publication of judgments (0–1) 1.0 4.a. Are judgments rendered in commercial cases at all levels made available to the general public through Yes publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the Yes general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0–3) 1.5 1. Arbitration (0–1.5) 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the Yes applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—that Yes cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation (0–1.5) 0.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or section of the No applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or conciliation No is successful, a refund of court filing fees, income tax credits or the like)? Source: Subnational Doing Business and Doing Business databases. Note: Data for Amsterdam are not considered official until published in the Doing Business 2021 report. 68 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Acknowledgments Doing Business in the European Union 2021: Shrikant Bhaskar Shinde. The report was Land Registry and Mapping Agency Austria, Belgium and the Netherlands was edited by Bronwen Brown, and the layout (Kadaster), the Netherlands Authority for produced by a team led by Carlos I. Mejia, produced by Luis Liceaga. Consumers and Markets, the Council for Tommaso Rooms and Julien Vilquin. the Judiciary as well as local courts and The team comprised Razvan Gabriel The study was funded by the European municipalities in the Netherlands. Antonescu, Leo Henricus Bouma, Julia Commission, Directorate-General Regional Constanze Braunmiller, Federico Cardenas and Urban Policy. It was undertaken under Data collection was carried out in Chacon, Lilla Marta Fordos, Philipp Hlatky, the auspices of the Federal Chancellery collaboration with (i) the Austrian Valerie Erica Marechal, Maximilian Martin and the Federal Ministry of Finance Chamber of Civil Law Notaries (team Meduna, Hannelore Maria L. Niesten, of Austria; the Federal Public Service led by Stephan Verweijen and Stephan Enrique Orellana Tamez, Madalina Finance and Federal Public Service Foreign Matyk-d’Anjony), the Austrian Chamber Papahagi, Alberto Pellicanò, Kimberley Affairs, Foreign Trade and Development of Tax Advisors and Public Accountants Maria Margaretha Roeten, Ana Santillana, Cooperation in Belgium; and the Ministry (team led by Anna Weber), Brauneis Veerle Margo Verhey, Marilina Vieira and of Economic Affairs and Climate Policy of Klauser Prändl Rechtsanwälte GmbH (team Lisa Weekers. The report was prepared the Netherlands. led by Alexander Klauser), the Federal under the direction of Pilar Salgado Otónel. Chamber of Architects and Chartered The project team extends special thanks Engineering Consultants, Heinisch Weber The team is grateful for valuable peer for information and assistance provided Rechtsanwälte OG (team led by Lukas review comments provided by colleagues throughout the project to (i) the Austrian Weber), the Austrian Bar Österreichischer from across the World Bank Group. Association of Cities and Towns, the Rechtsanwaltskammertag (ÖRAK); (ii) Mohammad Amin, Isfandyar Zaman Austrian Federal Economic Chamber, Monard Law (team led by Xiufang (Ava) Khan, Austin Kilroy reviewed the full text. the Business Service Portal, the Federal Tu and Karen Braeckmans), the Royal Experts in each of the five areas mea- Ministry of Finance, the Federal Ministry Federation of Belgian Notaries and the sured were consulted when drafting the for Digital and Economic Affairs, the International Council of the Belgian notariat, individual chapters: Youmna Al Hourani, Federal Ministry of Justice, the Office of the Order of Architects (team led by Koen Jean Nicolas Arlet, Karim O. Belayachi, Metrology and Surveying, the regulator Vidts, Deborah Ashimwe and Hans Erica Bosio, Camille Bourguignon, Klaus for electricity and natural gas markets Vanden Driessche), the Walloon Union of Decker, Marie Lily Delion, Viktoriya E-Control, as well as district courts, fed- Architects (team led by Gaëtan Doquire); Ereshchenko, Maria Antonia Quesada eral states, local tax offices, municipalities, (iii) BarentsKrans (team led by Joost Fanoy Gamez, Marton Kerkapoly, Raman and regional courts across Austria; (ii) and Michiel Martin, including Karlijn Maroz, Frederic Meunier, Nadia Novik, the Wallonia Export-Investment Agency de Groes) and the BNA (team led by Oleksandra Popova, Jayashree Srinivasan, (AWEX), the Flanders Investment & Alexander Pastoors) in the Netherlands. and Alessio Zanelli. Trade (FIT), the Brussels Agency for Business Support (hub.brussels), the More than 550 lawyers, notaries, engi- Julie Biau, Catherine Doody, Veronique Federal Public Service (FPS) Economy, neers, electricians, architects, construction Jacobs, Norman Loayza, Massimiliano SMEs, Self-employed and Energy, FPS experts, utility providers, public officials, Paolucci, Ralf Retter, Linda Van Gelder Finance, FPS Justice, FPS Social Security, judges and enforcement agents contribut- and Gallina Vincelette provided guidance the Commission for Electricity and ed to Doing Business in the European Union and leadership. Antonio Borges, Daria Gas Regulation (CREG), the Brussels 2021: Austria, Belgium and the Netherlands. Goldstein, Anastasiia Iarovenko, Joyce Regulatory Commission for the Gas and The team would like to express its special A. Ibrahim, Anna Karpets, Trimor Mici, Electricity Markets (BRUGEL), the Flemish gratitude to the national and local public Monique Pelloux, Patrizia Poggi, Serge Regulator of the Electricity and Gas Market officials and members of the judiciary who Randriamiharisoa, Lada Strelkova, Goran (VREG), the Walloon Energy Commission participated in the project and who made Tinjic, Erick Tjong and Nina Vucenik pro- (CWaPE), as well as local commercial valuable comments during the consulta- vided valuable assistance at various stages courts, local tax offices and municipalities tion and data review period. The names of the project. The website (http://www across Belgium; (iii) the Invest in Holland of those wishing to be acknowledged are .doingbusiness.org/EU4) was developed Network, the Netherlands Chamber of listed on the following pages. by Manasi Amalraj, Varun V. Doiphode, Commerce (KVK), the Royal Institute of Anna Maria Kojzar, Akash Pradhan and Dutch Architects (BNA), the Cadastre, ACKNOWLEDGMENTS 69 PRIVATE SECTOR ARNHEM Egbert Willems Ter Braak Willems Notarissen Nathalie van der Zande La Gro Geelkerken Rebecca Runa Pinto-Noome NautaDutilh (New York office) Rene Rutgers CONTRIBUTORS Chance bv Helmich Spijkerboer Houtoff René Onsia Erik Duinkerke Van Goor Schuurman ONSIA aarchitectuur THE NETHERLANDS De Kempenaer Advocaten Notarissen, Wierden KraGd Notarissen Dick Vink Anouk van Bisseling Marc Wools Progam Bouwmanagement B.V. AMSTERDAM VDNDP Dirkzwager Legal & Tax MAASTRICHT Adriana Geertrui Helena Petra van Diemen Archivolt Architecten bv Jan Smelt Roel Graven Hansum Tony van Wijk VWZ network notarissen AMA GROUP Associated RoX Legal B.V. Dirkzwager Legal & Tax Ramon Pater Architects Archivolt Architecten bv Guido Stuyt Daniels Huisman Advocaten Rogier Jozef Maria van Helen Houben Heeswijk Hekkelman David van Kessel Boels Zanders Advocaten RoX Legal B.V. Florent Judith Schröder GRONINGEN Lisanne van Driel Hens Meengs Hekkelman Alex Grobbee Heleen Biesheuvel Boels Zanders Advocaten Schaap Advocaten Notarissen Florent Agin Pranger Gerechtsdeurwaarders Pim Plattel Mike Smeets Jos Pennings Stellicher Advocaten Piet Stehouwer Hans E. Urlus Boels Zanders Advocaten Schaap Advocaten Notarissen Greenberg Traurig, LLP Amsterdam Bout Advocaten Frans Clifford Frans Kersten Arent Jan Oskam VanGoud Advocaten Bert Gunnink Maquina Lamé Metis Notarissen Wybenga Advocaten Greenberg Traurig, LLP Amsterdam DeHaan Advocaten en Notarissen Roland Verweij Roel Mertens Verweij Advocaten Rienk Talstra Bas Evers Paulussen Advocaten NV UTRECHT Groot & Evers Gerechtsdeurwaarders DeHaan Advocaten en Notarissen Koen Arts Aukje Haan Sylvana Vijn Wiegerinck L.E. Abbring CMS Derks Star Busmann Noor Hogerzeil Thuis Partners Advocaten Hogan Lovells Nijeboer-Hage Dirkzwager Legal & Tax  Jurriaan Verduijn Irene Willemsen Surya Steijlen Jan Leo de Hoop VHN Notarissen KBS Advocaten Hekkelman notarissen PlasBossinade Advocaten Notarissen LEVS architecten Ivo van der Zijl Rob Steegmans Maarten Tinnemans Koosje Looijenga-van Veen VHN Notarissen Van Grafhorst Notarissen Loyens & Loeff N.V. EINDHOVEN PlasBossinade Advocaten Notarissen Vincent van Heinigen Maartje van Rhee Jeroen Tulfer Marten Wijma Stevens Idema VHN Notarissen VanGoud Advocaten Boels Zanders Advocaten Loyens & Loeff N.V. Stevens Idema Notariaat Leendert Kruidenier Thom Beukers Mijke Sinninghe Damsté Arie Mes MIDDELBURG Wijn en Stael Advocaten N.V. Boels Zanders Advocaten Loyens & Loeff N.V. Trip Advocaten en Notarissen Hanneke de Danschutter Hermans & Schuttevaer Tom Kuipers Adriaanse van der Weel Niels van Weerdenburg Gilian Renkema Diederendirrix bv Loyens & Loeff N.V. Trip Advocaten en Notarissen Herwig Minnen Ben Wijnands Architecten Alliantie bv Zuzana Jurdik David Wumkes Huisman & van Muijen Trip Advocaten en Notarissen PUBLIC SECTOR NautaDutilh N.V. Gert-Jan van den Berge Wim Weijers KPB Architecten BuroSalt BV CONTRIBUTORS Florine Kuipéri Keizers Advocaten NautaDutilh N.V. Maria Heuvelmans Jeroen Louwers Notariskantoor Mr. T.A. De Notariswinkel THE NETHERLANDS Marieke Faber Taylor Wessing N.V. Dantuma NautaDutilh N.V. Willem van Voorst Vader AMSTERDAM Nick Kampschreur PlasBossinade Advocaten De Rechters Advocaten Michiel Huitema Rebecca Runa Pinto-Noome Taylor Wessing N.V. Notarissen en Mediators Chamber of Commerce NautaDutilh N.V. Paul Boetselaers Henriette Visser Dr. Van de Griend Willo Eurlings Taylor Wessing N.V. THE HAGUE De Zeeuwse Alliantie Notarissen NotarisWeesp Chamber of Commerce Remco Schoe Adriaan Jurriëns Adriaan Jurriëns architecten Rini Moeliker Han Jongeneel Harvey Otten Taylor Wessing N.V. Moeliker en Platteeuw Advocaten Otten Holding Rechtbank Amsterdam Benno Gossink Joost Fanoy BarentsKrans Ruud van Dongen Dutch Tax and Customs Kenneth van Loon WOG Registeraccountants BV Notarispraktijk Van Dongen Schot Van Loon Notariaat Administration Compen Architecten Karlijn de Groes BarentsKrans Jeroen Poerstamper Municipality of Amsterdam Olivier Spier PoerstamperBouw Spier & Hazelberg Marks Wachters notarissen Koen van Wijk Statistics Netherlands BarentsKrans Architecten Alliantie bv Anne Josephus Jitta Taylor Wessing N.V. Rothuizen architecten ENSCHEDE Marjolein van Rest BarentsKrans stedenbouwkundigen bv ARNHEM Elmar Dijkstra Rob Leijssen Taylor Wessing N.V. Damsté advocaten en notarissen Bianco Witjes Michiel Martin Sauer en Oonk Adviseurs en Liander Lynn van Zaanen Hubert te Woerd BarentsKrans Notarissen Taylor Wessing N.V. Daniels Huisman Advocaten Sherwin van Zandwijken Richard Verbeek Municipality of Arnhem Mevr. Maja Bolè Ruud Kotylak BarentsKrans ROTTERDAM Taylor Wessing N.V. DWA Jeannette Verspui Janbert Heemstra Sanne Geldof Rechtbank Gelderland (Arnhem) Paul Orij Jeroen Nijmeijer De Clercq Advocaten Notariaat Base Advocaten Taylor Wessing N.V. IAA Architecten Joost Veerman Gert-Jan Wesenbeek Alexander van Deudekom Rechtbank Gelderland (Arnhem) Sjef van der Putten John van Schendel DGMR Bouw B.V Lex-Architecten Vurich Gerechtsdeurwaarders KienhuisHoving Advocaten Municipality of Arnhem Jan de Haan Robert Platje Mark Huizenga Geurs & Schulze architecten Mei architects and planners KienhuisHoving Advocaten Marit Vink EINDHOVEN Mechteld van Veen-Oudenaarden NautaDutilh Peter Janssens Hans van den Dobbelsteen GMW Advocaten Enexis LKSVDD architecten 70 DOING BUSINESS IN THE EUROPEAN UNION 2021: AUSTRIA, BELGIUM AND THE NETHERLANDS Ellen van Hout Marjolein van der Kolk Rechtbank Oost-Brabant Rechtbank Rotterdam (Eindhoven) Enis Yilmaz Stedin ENSCHEDE Emil Mooibroek UTRECHT Chamber of Commerce Joost Hesseling Joop Dahlmans IVO Rechtspraak Chamber of Commerce Willem Visser Lukas Tammenga Rechtbank Midden- Enexis Nederland (Utrecht) Satinder Baladien Melinda Schuurmans Enexis Tijdige Rechtspraak Mark Heethaar Prof. Frans van Dijk Municipality of Enschede Universiteit Utrecht Paul Jansman Prof. Remme Verkerk Municipality of Enschede Universiteit Utrecht William Bos Municipality of Enschede Evelien Rozeboom Rechtbank Overijssel (Enschede) GRONINGEN Lukas Tammenga Enexis Titus Hoogslag Rechtbank Noord-Nederland (Groningen) THE HAGUE Menno Roos City of The Hague Jasmin Lagziel Raad voor de rechtspraak Nicole Bijsterveld-Taal Raad voor de rechtspraak Hans Vetter Rechtbank Den Haag Autoriteit Consument & Markt MAASTRICHT Hugo Stevens Enexis Marc Croijmans Gemeente Maastricht Kim Hoofs Rechtbank Limburg (Maastricht) Municipality of Maastricht MIDDELBURG Salomon Hamelink Enduris Pieter Meulmeester Municipality of Middelburg Klaus Koch Rechtbank Zeeland-West- Brabant (Middelburg) Rosa Hermans Rechtbank Zeeland-West- Brabant (Middelburg) ROTTERDAM Gertjan Wouters Rechtbank Rotterdam Harmjan Bootsma Rechtbank Rotterdam www.doingbusiness.org/EU4 with funding by the European Union