Recognition as a sponsor: conditions, procedure and obligations

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If your company wants to bring a highly skilled migrant, a researcher, a student, an au pair or an exchange participant to the Netherlands, it must first be recognised as a sponsor (erkend referent) by the IND. For other work-related permits, such as regular paid employment, seasonal work, intra-company transfer or the European Blue Card, recognition is optional but often makes the process faster.

When does your company need recognition as a sponsor?

Recognition is mandatory for five purposes of stay: highly skilled migrant, researcher within the meaning of Directive (EU) 2016/801, study, au pair and exchange. One exception applies: for Turkish nationals in the highly skilled migrant and researcher categories, recognition is not required.

The IND groups recognition into four categories: labour, research, study and exchange. You apply for recognition in the category that matches the employees or participants you want to bring over.

The labour category covers residence permits such as highly skilled migrant, regular paid employment, seasonal work, gaining work experience, intra-company transfer and the European Blue Card. Only for the highly skilled migrant is recognition compulsory; for the other labour purposes you may choose to apply as a recognised sponsor or as an ordinary sponsor.

The research category concerns residence permits for research within the meaning of Directive (EU) 2016/801. The study category concerns residence permits for study. The exchange category covers residence permits for cultural exchange and for au pairs.

Which conditions does the IND apply?

The IND checks whether your organisation is registered, financially sound and reliable. It also checks whether you meet the specific requirements for the purpose of stay, which can include a code of conduct. The conditions are set out below.

Is your company registered in the Commercial Register?

Your organisation must be registered in the Commercial Register (Handelsregister) of the Netherlands Chamber of Commerce (KvK). The law allows a limited number of exceptions for organisations that are not required to register.

Are continuity and solvency sufficiently guaranteed?

Your company must be able to meet its financial obligations over a longer period (continuity) and absorb financial setbacks (solvency). Your company may also not be bankrupt or have been granted a suspension of payments (surseance van betaling).

To assess continuity and solvency, the IND may ask the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland, RVO) for advice. This mainly happens with start-ups: companies that have existed for less than one and a half years, or that have not yet carried out business activities for one and a half years. The RVO then assesses the company on a scale of up to 100 points. A start-up needs at least 50 points for a positive advice.

The RVO then assesses the business plan on three criteria: market potential, organisation and financing.

  • Market potential. The RVO looks at the product or service: its characteristics, application, market need and unique selling points. It also assesses your market analysis, which should be both qualitative and quantitative. That analysis covers, among other things, potential customers, competitors, entry barriers, pricing and risks.
  • Organisation. The RVO considers the organisational structure of your company and how competencies are divided among the people involved.
  • Financing. The RVO assesses solvency, turnover forecast and liquidity forecast. Your company must be able to absorb financial setbacks during the coming three years. The turnover forecast must be plausible and consistent with the market potential. Within three years, the cash flow from your actual business activities should be positive.

Is your organisation reliable?

Your organisation, its directors and officers and the other natural persons and legal entities involved must be reliable. The IND tests this against Articles 2e and 2f of the Aliens Act 2000 (Vreemdelingenwet 2000). Situations that can lead to a finding of unreliability include:

  • recent bankruptcies of the organisation or of the (legal) persons involved;
  • a tax penalty for an offence (fiscale vergrijpboete);
  • repeated fines under the Aliens Act, the Foreign Nationals Employment Act (Wet arbeid vreemdelingen) or the Minimum Wage and Minimum Holiday Allowance Act (Wet minimumloon en minimumvakantiebijslag);
  • criminal convictions of the organisation, its directors or other persons involved.

In addition, the IND can ask for a Certificate of Conduct (Verklaring Omtrent het Gedrag, VOG) to assess reliability.

Has your recognition been withdrawn before?

If the recognition of your organisation, or of a legal entity or company directly or indirectly involved, was withdrawn in recent years, the IND can refuse recognition. A withdrawal therefore affects your company long after the sanction itself.

Do you meet the requirements for the purpose of stay?

You must also meet the requirements that belong to the purpose of stay of the foreign national. For some purposes this includes complying with a code of conduct. For example, organisations that supply staff for payment must be registered with the Labour Standards Foundation (Stichting Normering Arbeid, SNA). For the categories research, study and exchange, additional conditions apply.

How do you apply for recognition as a sponsor?

You apply with the IND application form (form 7501) for recognition as a sponsor and send it, with all required documents, to the IND by post. Collect all documents before you send the form, because an incomplete application delays the decision.

You must pay a one-off application fee (leges). The amount depends on the category and on the size of your organisation, is adjusted every year and is published on the IND website. The fee is not refunded if the application is refused.

The IND has 90 days to decide, counted from receipt of the fee. That period can be extended if your application is incomplete or if further research is needed, for example an RVO advice on continuity and solvency.

If the IND rejects your application, you can file an objection (bezwaar) within six weeks of the decision. If you are recognised, your organisation is listed in the Public Register of Recognised Sponsors on the IND website. You remain a recognised sponsor until you end the recognition yourself, or until the IND suspends or withdraws it, for example because you no longer meet the conditions.

Which obligations do you have as a recognised sponsor?

As a recognised sponsor you have four main obligations: a duty to inform, an administration and retention duty, a duty of care and responsibility for the foreign national’s return. The IND monitors compliance.

What must you report to the IND?

You must notify the IND of changes that affect the residence permit or your recognition. In most cases you must do so within four weeks. Examples are the foreign national leaving the Netherlands, ending the work or study, or your organisation being dissolved or granted a suspension of payments. You report these changes with the IND reporting forms.

Which records must you keep?

You must keep information about the foreign national in your records and be able to provide it to the IND on request. You must keep this information until five years after you are no longer the foreign national’s sponsor. Since 1 January 2026, sponsors must also keep additional documents, such as proof that the salary has actually been paid.

What does your duty of care involve?

You must recruit and select foreign nationals carefully. You must also inform them about the conditions for entry and residence and about other relevant rules.

Are you responsible for the foreign national’s return?

Yes. As the sponsor, you are responsible for the foreign national’s return. You are not responsible for the return of family members: the foreign national is the sponsor of his or her own family members.

What happens if you do not comply?

The IND checks whether recognised sponsors comply with their obligations. If you do not, the IND can impose an administrative fine, or suspend or withdraw your recognition.

What are the benefits of being a recognised sponsor?

Recognition makes applications faster and simpler. The IND aims to decide on applications from recognised sponsors within two weeks, or within seven weeks if a work permit is also required.

You also need to submit fewer supporting documents with each application, and you can apply for residence permits online through the IND Business Portal. There is no minimum or maximum number of applications you have to file per year.

What should you check as an employer?

  • Is recognition mandatory for the purpose of stay of the employee you want to hire, or optional?
  • Is your company registered with the KvK, and can you show continuity and solvency for the next three years?
  • Do your directors and the company have a clean record on bankruptcies, tax penalties and labour fines?
  • Does the salary you offer meet the IND income requirement for the purpose of stay?
  • Have you set up a system to report changes to the IND within four weeks and keep records for five years?

What should you check as a foreign employee?

  • Is your employer listed in the Public Register of Recognised Sponsors on the IND website?
  • Does your employment contract state the salary on which the residence permit application is based?
  • Has your employer told you which changes, such as dismissal or a new job, it must report to the IND?
  • Do you know that your residence permit is linked to this sponsor and that a change of employer has consequences?

What can we do for you with recognition as a sponsor?

Our immigration lawyers assist companies before, during and after the application:

  • We check whether recognition is mandatory for your intended hires and in which category you should apply.
  • We review your file for the reliability and continuity requirements before you send form 7501.
  • We help a start-up prepare the business plan for the RVO assessment.
  • We draft and file the objection (bezwaar) within six weeks if the IND refuses recognition.
  • We set up an internal procedure for the duty to inform and the retention duty.
  • We represent you when the IND announces a fine, suspension or withdrawal.

Summary

  • Recognition as a sponsor is mandatory for highly skilled migrants, researchers (Directive (EU) 2016/801), students, au pairs and exchange participants; for other labour purposes it is optional.
  • Your organisation must be registered with the KvK, financially sound (continuity and solvency, for start-ups often assessed by the RVO) and reliable.
  • You apply by post with IND form 7501 and pay a fee that depends on your size; the IND decides within 90 days, which can be extended.
  • As a recognised sponsor you must report changes, mostly within four weeks, and keep records until five years after the sponsorship ends.
  • In return, the IND aims to decide on your applications within two weeks and you can apply online with fewer documents.

Frequently asked questions

Do I always need recognition to hire a foreign employee?

No. Recognition is mandatory for highly skilled migrants and researchers within the meaning of Directive (EU) 2016/801, and for study, au pair and exchange. For regular paid employment, seasonal work, intra-company transfer and the European Blue Card it is optional.

Can a start-up become a recognised sponsor?

Yes, but the IND will often ask the RVO to assess continuity and solvency. The RVO scores the business plan on market potential, organisation and financing; a start-up needs at least 50 of 100 points.

How long does recognition last?

Recognition has no fixed end date. It lasts until you end it yourself or until the IND suspends or withdraws it.

Ruby van Kersbergen
Ruby van Kersbergen is an attorney-at-law at Law & More in Eindhoven and Amsterdam. She specialises in contract law, corporate law and corporate legal services, and also works in migration law.

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This article provides general information and is not a substitute for advice on your specific situation.

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