SME business support – legal advice for SMEs

As an SME entrepreneur, sooner or later you will have to deal with environmental law: a collective term for a wide range of legislation governing where a particular type of business may be established, the prevention of environmental problems, the limitation of nuisance to the surrounding area, and construction activities. New developments in the local area can also hinder future business development.

All these regulations were consolidated into the Environment Act on 1 January 2024. HABITAT Advocates specialises in environmental law and provides legal advice tailored to your SME practice – from planning permission and environmental regulations to enforcement and business acquisitions.

Your business location: the local development plan

The local development plan determines which business activities are permitted at which locations. If, as a business owner, you require a permit or wish to deviate from the current local development plan for your business activity or premises, you will need to deal with the local council, the water board and/or the county council. Consultancy firms are usually engaged to assess spatial impacts, noise, parking facilities and traffic flows. Political support from the councillor and the local council is often essential if your SME activity deviates from a current environmental plan. At HABITAT lawyers, we guide you from the initial contacts with the authorities through to obtaining the necessary permits.

Find out more about amending a local development plan.

Advice on environmental regulations for your business: the Bal

The Activities in the Living Environment Decree (Bal) sets out the rules regarding the environmental impact of a business. Standard rules from the Bal apply to SMEs; these include standards for noise and light pollution, waste management, renewable energy and the discharge of waste water. Only large companies still require a separate environmental permit. In addition to the Bal, local rules in the environmental plan may also apply, such as noise or odour standards.

Building and renovating: the planning permission

Building and renovation work is only permitted if it complies with the local development plan and if an environmental permit has been applied for in advance. If your project does not comply with the local development plan, you may apply for an exemption. Whether that application is granted depends on local council policy.

The Environment Act and the environmental plan also cover construction activities that do not require an environmental permit, but please note: if you believe something is exempt from a permit and it turns out not to be the case during an inspection, you will face enforcement action. Knowing exactly what is and isn’t permitted in advance prevents problems later on. It would not be the first time that something built illegally has had to be demolished. We are here to help you avoid situations like this.

Enforcement: what happens if the local authority takes action?

If your SME does not comply with the applicable regulations, you run the risk of enforcement action. In the majority of enforcement cases we handle, a (partial) solution is ultimately found without it leading to demolition, major alterations or even the closure of the business. Even in cases that appear to have no legal prospect of success, solutions often prove possible. A good starting point is a preliminary investigation, during which we examine the situation and correspondence from the local authority and provide you with clear advice on how to proceed. Objection and appeal procedures are our daily bread; we are happy to assist you.

Have you received an enforcement letter or a warning? If so, please contact us immediately on 088 2400700. A swift response is essential in cases like this.

Assumption, lease and subrogation

As an SME entrepreneur, you may find yourself dealing with a commercial lease agreement: the legal basis for the use of commercial premises. There are various types: sometimes only the shell of the premises is leased, and sometimes a fully fitted-out commercial space (such as a shop or catering establishment). Although both cases involve a lease agreement for commercial premises, the tenant’s obligations can vary significantly. For instance, in one agreement the tenant may be responsible for pipes and leaks, whilst in another agreement the landlord bears that responsibility. Knowing exactly what has been agreed in advance prevents problems later on.

A special case is subletting: the transfer of a tenancy agreement when, for example, a shop or restaurant is sold. Instead of entering into a new tenancy agreement, it is possible, subject to legal conditions, to take over the existing tenancy agreement. The new tenant is then ‘substituted’ for the old tenant. Although the landlord’s cooperation is required, the law gives the landlord little scope to refuse this. The main conditions are that the new tenant can afford the rent and continues to run the same type of business.

If the landlord still refuses to cooperate, the tenant may summon the landlord to appear before the small claims court and bring an action for subrogation. This could mean that the transfer of the business is not actually possible on the agreed date. It is therefore advisable, in the event of a business takeover, to include the tenancy agreement and subrogation in the takeover contract in good time.

Hospitality sector: additional licences and the Bibob assessment

In addition to general business regulations, hospitality operators are subject to additional requirements, such as an operating licence, a licence under the Alcohol Act and a Bibob assessment. Local authorities actively enforce regulations regarding violations and public nuisance.

Find out more about licences and obligations for the hospitality industry.

Takeover or merger: know what you’re getting

Due diligence in a business acquisition is a legal review of the (environmental) permits and private-law consents held by the target company. The aim is to identify which permits are in place, which are missing, and what risks are associated with them. The outcome of the review can influence both the decision to acquire a business and its financial valuation.

How can HABITAT Lawyers help you as an SME entrepreneur?

HABITAT Advocaten is a law firm specialising in planning and environmental law, assisting dozens of SME entrepreneurs each year with legal issues relating to their business operations. We operate from Groningen to Maastricht and have experience across a wide range of sectors that deal with planning schemes, permits and letting/rental matters. This includes project developers, retail and service concepts, the hospitality sector, nurseries, leisure and other business activities where the location or construction/renovation raises legal questions for the developer or local stakeholders.

HABITAT Advocates’ strength lies at the intersection of administrative law and private law. For example, a private-law tenancy agreement can have direct implications for the usability of commercial premises under administrative law rules such as the local development plan, granted permits and enforcement risks. We can see these interconnections at a glance.

As an SME business owner, we can assist you with the following matters, amongst others

Identifying the regulations that apply to you and the necessary permits
Managing technical specialists
Consulting with the local council, county council or water board
Permit applications and exemption procedures
Drafting or reviewing tenancy agreements and other contracts
Legal advice in the event of disputes
Submitting a statement of views in the event of imminent enforcement action
Objection and appeal procedures relating to enforcement decisions
Due diligence in the event of an acquisition or merger

Frequently asked questions about legal support for SMEs

What does legal support for SMEs involve?

Legal support for SMEs provided by a solicitor means that a specialist firm such as HABITAT Solicitors will assist you with all the legal aspects of running your business. This includes matters such as permit applications, environmental regulations, tenancy agreements, local authority enforcement and business acquisitions.

What is the environmental plan and what does it mean for my business?

The Environmental Plan is the successor to the Zoning Plan and determines which business activities are permitted at which locations. Since 1 January 2024, the Environmental Plan has been governed by the Environment Act. Are you looking to start, expand or relocate a business? If so, the environmental plan is the legal starting point. A solicitor specialising in environmental law will assess whether your plans comply with the current environmental plan and what steps are required if they do not.

As a small business owner, do I need a planning permission?

Whether you, as an SME owner, require an environmental permit depends on three factors: the type of business activity, the location, and the regulations set out in the local environmental plan and the Activities in the Living Environment Decree (BAL). Many SMEs are subject to standard regulations and do not require a separate planning permission, but they must comply with notification requirements and general environmental regulations. We would be happy to assess which permits or notifications are required in your specific situation.

What should I do if I receive an enforcement notice from the local council?

An enforcement letter is an official notification from the local authority stating that it considers your business to be in breach of the applicable regulations. Never respond without seeking legal advice. Once you have received such a letter, it is often still possible to engage in discussions, and in many cases solutions can still be found. Please contact us immediately on 088-2400700 upon receipt of an enforcement letter.

What is a Bibob assessment?

A Bibob assessment is an integrity check that local authorities may carry out when a licence application is submitted. The Bibob Act empowers local authorities to refuse a licence if there is a risk that it will be used for criminal activities or money laundering. In the hospitality sector, the Bibob assessment is standard practice, but local authorities may also request it in other sectors.

What is due diligence in a business acquisition?

Due diligence is a legal and financial investigation carried out prior to the acquisition of a company. The aim is to identify which planning permissions are in place, which are missing, and what legal risks are associated with them. The findings may influence the decision to acquire a company as well as its financial valuation.

How much does legal advice cost for my SME?

We offer both hourly rates and fixed-price packages, depending on the nature and scope of the case. Please contact us for a no-obligation, bespoke quote.