Become a recognized sponsor to facilitate residency and work permit procedures

In the Netherlands there are various types of residency permits and work permits. Some residency- and work permit procedures are easier and much shorter if the employer is registered as a recognized sponsor with Public Register of Recognized Sponsors. For application of an employee as a highly skilled migrant this registration is even obligatory. In a couple of articles we will inform you about different types of residency and work permits related to the employment in the Netherlands.

This article concerns the process of becoming a recognized sponsor.

Requirements for becoming a recognized sponsor

Each company that is registered at the Dutch Commercial Register can file an application to become a recognized sponsor. A young company (companies that are less than 1,5 year active in the Netherlands) will be asked to draw up a business plan, which will be assessed by the Netherlands Enterprise Agency (RVO). The RVO will check if the continuity and solvency of the company is sufficiently guaranteed. If that is the case, The RVO will provide the Dutch Immigration Services (IND) with a positive advice and usually the company will be registered as a sponsor.

If a company is active (and registered) in the Netherlands for more than 1,5 year, then normally no business plan will be required. In this situation it will be sufficient to apply a payment behavior statement from the Dutch Tax Authorities. If the company has no tax debts the Dutch Tax Authorities will provide the company with the aforementioned statement and the recognition will be approved.

Costs registration of recognized sponsor

The Dutch Immigration service charges a one off fee of € 3.927 for the registration of a recognized sponsor. This fee can be reduced by 50% if the company or the group has no more than 50 employees employed (worldwide). The company will need to show proof regarding the number of employees.

Advantages residency and work permit procedures

Apart from the fact that for a highly skilled migrant procedure the recognition as a sponsor is required, the main advantage for most residency and work permit procedures is that the decision term is much shorter. The IND aim to take a decision within 2 weeks instead of the regular term of 3 months.

Another advantage is that less documentation is required.

Refusal of registration of recognized sponsor

In some situations the IND may refuse the registration of recognized sponsor if:

• the company is in suspension of payment or bankruptcy;
• the company or associated persons or companies have gone bankrupt in the 3 years prior to the application;
• the recognition has been revoked in the 5 years prior to the last application;
• the company has received a tax negligence penalty in the 4 years prior to the application;
• the company has received 3 or more penalties under the Aliens Act, Foreign Nationals (Employment) Act or Minimum Wage and Minimum Holiday Allowance Act in the 3 year prior to the application.

If you are considering to employ several (highly educated) foreign nationals, we advise to register the company as a recognized sponsor so that the required permits can be applied within a short term.

In case of any related questions, please feel free to contact our Global Mobility team.