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Written by:
Bas Hollenberg


Law and legislation from July 1

Law and legislation from July 1

Summary of legislative changes for businesses

The Kamer van Koophandel has published a summary of the most important law changes for businesses as from July 1, 2011.

Overview of new rules:

Statement of no objection with establishment of company abolished
Do you want to set up a company? Or change the statutes of your company? You do not have to have to apply for a statement of no objection from the Ministry of Security and Justice. The service assesses the individual integrity of directors, legal entities and the governing bodies.

Reduced VAT for housing renovation until October 1
The low VAT rate for renovation and repair of housing will remain until October 1st, 2011 for some houses. Conditional on this is that the house is older than two years old and that it is apparent from your records that the work on the house was started before July 1st, 2011 and is completed before October 1st. Therefore the low rate does not apply if you only have a contract for a job. For more information see the Government website.

Business owners are less likely to need a lawyer
The Upper House has approved the amendment modernising judicial organisation. The district court, according to the new rules, may  handle cases up to € 25,000 instead of € 5,000. This means you can explain your case to the court without the assistance of a lawyer in more cases. This could possibly mean lower rates from lawyers, who must compete with other legal service providers, such as corporate lawyers and legal expenses insurers.
More information can be found on the Upper House website and on

Minimum Wage raised
The gross amount of the statutory minimum (youth) wage was raised from July 1, 2011. The statutory minimum wage for workers above 23 years of age in full employment is now € 1,435.20 per month, or € 331.20 per week, or € 66.24 per day.

Employment of foreign workers more difficult
From July 1st you can only get a work permit for workers outside the European Economic Area (EER) or from Bulgaria or Romania in exceptional circumstances. The government wants people on benefits to be the first in line to be employed. The period that somebody from outside the EER or from Bulgaria or Romania needs a work permit for is 3 to 5 years. You do not need a permit for workers from Switzerland.

Part-time unemployment not extended
During the current economic crisis, companies were looking for a way to keep professionals in service for whom there was actually no work anymore. To support these companies the government brought part-time unemployment to life. The scheme will not be extended and ends on July 1.

Partnerships and company law reform delayed
The introduction of the Partnerships Act and the reform of the company laws are not expected before January 1, 2012. The Upper Chamber will jointly examine the legislative proposals. This means that the treatment of the Partnerships bill must wait until the Company Law reform has reached the Upper Chamber. This still with the Lower Chamber.

Source: Kamer van Koophandel

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