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Netherlands - Amended regulations for recognized sponsors

On April 1, changes were introduced for recognized sponsors that might impact their ability to sponsor foreign workers. The Dutch Immigration Authority (IND) can now withdraw the recognized sponsorship status for companies no longer sponsoring foreign workers. Certain exceptions will apply for new prospective employers eligible for recognized sponsorship status.

The State Secretary of Security and Justice implemented some changes regarding the Recognized Sponsors scheme – for those employers who can sponsor highly-skilled migrants. A new exemption from the points-based system was introduced for prospective sponsors established for less than 18 months. Withdrawal was also introduced where the employer does not employ any foreign citizens.

Regulations for business plan submission

Employers interested in the Recognized Sponsorship scheme, established for less than 18 months, are expected to submit a business plan in the following circumstances:

  • Change of legal status – notarial deeds should prove that the nature of the activities has not expended and that the management remains without changes
  • Mergers and acquisitions (two companies – recognized sponsors merge and an acquisition of a corporation by a recognized sponsor)
  • Subsidiary is fully owned by a corporation that is not required to submit a business plan (a special tax statement should be included)

Additional evidence (deeds, statutes and/or agreements) may also be required for backing the exemption.  

Furthermore, if the IND questions the company's solvability and continuity, it may require prospective recognized sponsors to provide the additional documentation for the points-based analysis performed by the Netherlands Enterprise Agency.

Withdrawal rules

The status for recognized sponsors can be withdrawn by IND if the sponsoring company did not apply for any permits within the last three years and there are no active cases sponsored by this employer. Employers whose sponsorship has been withdrawn can reapply for recognized sponsorship, should they wish to benefit from the recognized status again.

This summary was prepared using information obtained from the Immigration and Naturalisation Service.

Disclaimer: The above information is provided for general information purposes only and should not be construed as legal advice. If you have any further inquiries regarding the applicability of this information, please contact the Regional Immigration Manager, EMEA, Vladimir Dziak:

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