You’ve just incorporated your Dutch BV. You’re ready to bring team members from your home country to set up operations in the Netherlands. But there’s a problem: your company isn’t legally allowed to sponsor employees yet.
This surprises many foreign entrepreneurs who assume company formation automatically includes the right to sponsor work permits. It doesn’t.
The IND Recognition Requirement
Before you can sponsor any non-EU employees, your Dutch company must become a recognized sponsor with the IND (Immigration and Naturalisation Service). This is a separate application process that happens after company formation.
Recognition isn’t automatic. The IND evaluates whether your company meets specific requirements for sponsoring foreign workers. This includes demonstrating you’re a legitimate business with proper operations in the Netherlands. The legal decision period is up to 90 days, though established companies often see quicker processing.
The application fee depends on your company size. Small businesses with up to 50 employees worldwide pay €2,432. Larger organizations pay €4,866. This is a one-time application fee, not an annual cost.
Two Main Sponsorship Routes
Once recognized, you can sponsor employees through two primary permit types:
Intra-Corporate Transfer (ICT) – For transferring existing employees from your foreign offices to your Dutch subsidiary. This requires proving an existing employment relationship and meeting specific salary thresholds.
Highly Skilled Migrant – For hiring new employees or existing staff who don’t qualify for ICT. This is the most common route for new hires and has strict, non-negotiable salary requirements. For 2025, employees aged 30 and older must earn at least €5,688 gross monthly (excluding the 8% holiday allowance). For employees younger than 30, the minimum is €4,171. A reduced threshold of €2,989 applies in specific cases, such as following an Orientation Year permit.
The salary must be fixed, guaranteed, and transferred monthly directly into the employee’s Dutch bank account. Irregular payments like bonuses, tips, or expense allowances don’t count toward meeting the threshold. Each individual permit application costs €405, and the processing target for recognized sponsors is two weeks, though it can legally take up to 90 days.
Plan Your Timeline Accordingly
Don’t promise employees a start date in the Netherlands until you understand the full timeline. A realistic timeline includes company formation (4-6 weeks), IND recognition application (up to 90 days), and individual work permit processing (target 2 weeks, legally up to 90 days).
If you’re planning to bring team members from India, Dubai, or other non-EU locations to launch your Dutch operations, start the IND recognition process immediately after company formation – not when you’re ready to hire. The multi-stage delay can easily add five to six months to your expansion plans if not properly anticipated.
