Ending your business: a checklist

Stage 1: prepare to end your business

You should carry out the following actions before ending your business and deregistering from KVK.

1. Arrange money matters

Bookkeeping

Determine your financial position. Do this together with your bookkeeper or accountant. If you have debts, see step 2.

Check for hidden reserves

Check for hidden reserves. A hidden reserve is the difference between the value of, for example, your premises on your balance sheet and the actual value. You have to pay tax on this when the business stops. Also check the fiscal retirement reserve (FOR) you may have built up before 1 January 2023. Discuss this with your accountant or bookkeeper.

Checking assets

Transfer any company assets to a buyer or to yourself before deregistering from KVK. In the case of a bv, these are assets that are 'in the name of the bv' (op naam van de bv staan). For other legal structures, these are assets 'labelled in the name of the company' (zakelijk geëtiketteerd). Remember that this includes intellectual property rights, such as design or trademark rights, and even your website’s domain name. You can only transfer these assets before stopping.

Inventory

Decide what to do with your company's stock and inventory.

Pension

Find out from your pension fund what you need to arrange now that you are going to end your business.

Bank

Contact your bank about cancelling or converting your business accounts and settling business financing. For example, your business mortgage.

Liability

After ending your business, you are still liable for what you did when running it. Check whether there are any claims still open and settle them. With some insurers, liability after ending is co-insured in a business liability insurance policy. This is called run-out risk. It covers the risk of any claims that may be made after you end your business.

Contracts, subscriptions, and permits

Check whether you can stop ongoing contracts before the agreed date. For example, your rental agreement, lease contract, insurance, internet subscription, telephone subscription, your gas, water and electricity contracts, and your fuel card. Cancel your (business) subscriptions at the earliest opportunity. Also contact your municipality to find out what you need to do about your business permits.

2. Debts

Dealing with debts

Do you have debts? Resolve them using the step-by step guide to dealing with debts  For example, you may be able to use a WHOA or Wsnp procedure. You begin these procedures while still running your business. You can first ask for a suspension of payment. If debts remain then you must petition for bankruptcy.

3. Applying for benefits

Financial assistance

Are you ending your business because it is not financially viable? Until you stop, you may be eligible for a supplement to your income under the Besluit bijstandverlening zelfstandigen (Bbz).

Bbz

Check whether you are eligible for a Bbz (in Dutch) or IOAZ benefit when your business ends and apply for a benefit at your local municipality. Note: you must apply for IOAZ support before deregistering from KVK.

Unemployment benefits (WW)

Did you start your business while receiving unemployment benefits (WW) less than 2 years ago? In some situations, your unemployment benefit can be restored.

4. Dismissing staff

Apply for a dismissal permit

Do you need to dismiss staff? Then apply for a dismissal permit and calculate the transition payment (severance pay).

Transition payments

Check with the Employee Insurance Agency (UWV) if you are eligible for compensation for the transition payments (in Dutch).

Pension fund

Check with your pension fund what you need to arrange for your staff now that the company is ending.

5. Inform staff and clients

Staff

Tell your staff as soon as possible that you are going to stop your business. Then they can look for other work in time.

Customers and suppliers

Inform your customers and suppliers that your business is ending.

Stage 2: deregistration from  KVK

Deregister your company from KVK. How you do this depends on your  legal structure.

Sole proprietorship

Deregister your company from KVK. KVK will pass on the deregistration to the Tax Administration.

Vof, maatschap, cv, rederij

You can deregister a vof, professional partnership, cv or shipping company using form 17a. Check which steps you need to take.

Bv, nv, stichting, vereniging, coöperatie, onderlinge waarborgmaatschappij

First you must dissolve the organisation. Report the dissolution to the KVK with form 17a. Pay any debts and divide the assets. Then deregister the legal entity from the KVK.

Stage 3: closing down your business

You have deregistered from KVK. There are a few final actions to complete the closure of your company.

1. Bookkeeping

Finalise the accounts

Finalise your bookkeeping and record keeping. You can do this with the help of your bookkeeper or accountant.

Store your records

Keep your business records for at least 7 years.

2. Tax

VAT return

File your final VAT return. After deregistering, you will receive a letter from the Netherlands Tax Administration for this purpose.

Income tax

File your income tax return as usual.

Discontinuation profit

Do you have a sole proprietorship, vof, maatschap, or cv, and is there discontinuation profit (stakingswinst)? You must include this in your income tax return for the year in which you stop. You may be eligible for discontinuation relief. You can only apply this deduction once.

Corporate income tax

Do you have a bv? File your final corporate income tax return and your final financial statements. 

3. Employment Insurance Agency

Register

If applicable, register as a job-seeker with UWV (in Dutch). You may be able to apply for benefits.

Assistance

If necessary, apply for social benefits at UWV. If you think you qualify for social benefits but cannot apply via UWV, contact your local municipality.

4. Insurance

Cancellation

Check which business insurance policies can be cancelled. You often need proof of deregistration to end these policies.

5. Website and social media

Website

Indicate on your website that you have ended your business and take your website offline eventually.

Update your profile

Update your social media profiles.