Stopping means failing and other misunderstandings about deregistration

More and more entrepreneurs are closing their businesses. In the first quarter of 2025, 60,964 entrepreneurs deregistered. In the same quarter in 2024, there were 44,590. This is a 37% increase, the biggest rise in the number of stoppers in a decade. Despite this increase, there are still many misunderstandings about ending your business. And that is not without consequences. Time, then, to break the taboo around stopping.

1. Stopping means I have failed

Whether you stop because of retirement, money worries, changing ambitions, or a different market: stopping, just like starting, is part of doing business. It is powerful and entrepreneurial if you are able to recognise when enough is enough. For example, when your costs permanently exceed your income or when you realise that doing business costs you more energy than it generates.

Talk about your doubts and worries

If you are not sure whether you want to continue or end your business, talk about it with your friends, family, an adviser, or your accountant and discuss your options. If you deal with the situation in time, you will avoid running up debts or breaking commitments.

The road to successfully closing your business

Not everyone has to be forced to end their business. Some entrepreneurs end their own business willingly. For them, stopping is not a failure, but a conscious step forward. A new direction often gives new energy. Read the stories of 9 entrepreneurs who willingly closed their business (in Dutch).

2. I deregister first, then I will take care of the rest

Many entrepreneurs think that deregistering with KVK is the first step to ending your business. “But it is actually one of the last steps,” says Hazelaar. He recommends understanding what the state of your business is before you deregister. Also think about finalising your business activities, your bookkeeping, and dealing with your liabilities and obligations. And, for example, keeping your staff and customers properly informed.

Check your obligations

“Sometimes entrepreneurs think stopping solves their problems immediately. But your obligations do not just disappear,” says Hazelaar. “Even after you have stopped, you can still be held liable for damages, for instance. So, always check whether the so-called run-off risk on your liability insurance is properly arranged. And if you have staff, first calculate how much you will have to pay in transition payments. In short, stopping your business can give you peace of mind and space, but you have to get it right."

Do not deregister too early, as many things still require an active KVK number. If you qualify for benefits from the municipality, for example, you can no longer arrange this if you have already deregistered.

Avoid blocking of your business bank account

"If you have a business bank account, it is always linked to your business's KVK registration,” says Hazelaar. “Your business bank account may also be blocked after deregistration. And that is annoying because if you still have payments pending or you are entitled to refunds from the Netherlands Tax Administration, you may no longer be able to access them.”

"So, check with your bank how long your business account is still available after deregistration and what happens to payments that come in after that deregistration. And if you do close your business account, provide your new bank account number to all authorities, such as the Tax Administration. To make sure payments can continue as normal."

Use the Checklist for closing your business to make sure you do not forget anything.

3. I do not have to deal with taxes anymore

When you have deregistered, KVK passes this information on to the Tax Administration. However, this does not mean that you are automatically done with your taxes.

Taxes after deregistration

You must continue to file your VAT return until you receive a confirmation letter from the Tax Administration about your final VAT return. You will receive this within 8 weeks at the latest. You must also pay income tax for the year you deregister. Hazelaar: "And do you take over goods from the business for private use, such as a laptop or phone? Then you must pay VAT on those."

Retention obligation

There are also other administrative issues to think about. “Keep in mind the mandatory retention period,” says Hazelaar. “If you stop running a business, you have to keep your bank statements for at least 7 years.” Read more about settling with the Netherlands Tax Administration.

4. I can temporarily pause my business

Sometimes, as an entrepreneur, you may find yourself in a situation where you are temporarily unable to work. Due to illness, for example, or caregiving commitments. Or to go on sabbatical for a year. Sometimes entrepreneurs think it would then be a good idea to deregister from KVK for that period. However, you cannot deregister your business for a time, then re-register and continue where you left off.

Deregistration from KVK is final

“When you deregister your business, it is final,” says Hazelaar. That means you must complete all ongoing matters such as your finances and taxes and close your business bank account. In short, there is a lot of administration involved.

"It is possible to pause your activities for up to a maximum of 6 months. However, you must keep filing your VAT returns, even if you have nothing to declare. Then you do a so-called zero declaration."

Read per situation what you need to arrange if you temporarily stop your business.

5. I have to wait until the end of the quarter or financial year

It may seem logical to deregister your business at the same time a quarter or year ends, but you do not have to. When deciding on a deregistration date, it is especially important to choose a date after your last business activity, such as your last invoice or sale.

Look at contracts and notice periods

"Also look at what is financially convenient and practical,” advises Hazelaar. “Think, for instance, about when your rent, insurance, or loans expire. Because if you deregister too early, these obligations often continue. Match your deregistration date to the end date of contracts or notice periods. That way, you avoid unnecessary costs."

Read more about how to choose a deregistration date.

6. I can only deregister if I have no debts or outstanding invoices

Do you have debts? Check what solutions are available for your legal structure. If you have a sole proprietorship, which is not a legal entity, you can deregister without all debts having been paid. However, you remain personally liable for debts incurred during your business activities.

If you want to dissolve and deregister a legal entity, such as a BV, you first must check what assets and debts the legal entity currently has. "With a BV, you can be liable both privately and commercially in a number of cases. For example, if you have co-signed for some things as a private person. When deregistering a BV, I recommend using an accountant," says Hazelaar.

If you still have outstanding invoices, process them in your records and include them in your final VAT return.