Checklist for closing your business: what you need to do first

How to prepare for deregistration

Follow these steps to prepare for deregistration with KVK.

Step 1: Tell your customers and staff

Tell your staff, customers, suppliers, and business relations that you are closing.
> How do I tell my customers that I am closing?

Step 2: Finish your business activities

• Complete your last assignments or orders.
• Send your last invoices and payment reminders.
• Pay any outstanding invoices.

Step 3: Arrange matters properly for your staff

• Apply for a dismissal permit from the Employee Insurance Agency (UWV). With a dismissal permit you can terminate the employment contract. Take the notice period into account. Your staff are entitled to a transition payment (severance pay) and can apply for unemployment benefits.
• Check whether you are entitled to compensation for any of the transition payments. Small businesses that are closing due to the retirement (or death) of the entrepreneur may be able to apply to the UWV for compensation for the transition payments (in Dutch).
• Contact your pension fund. Your pension fund can provide you with more information about what you need to arrange for your staff when your business closes.
• Be mindful of emotions. You may want to say goodbye together, or you could set up a walk-in hour for questions from your staff about the closure.

Step 4: Terminate contracts and insurance policies

• Check the term and notice period.
• Business insurance. Wait until step 8 to terminate your liability and legal assistance insurance.
• Permits
• Lease agreements (office, retail space, storage)
• Lease agreements (cars, machinery, equipment)
• Subscriptions (such as internet, telephone, software packages, your website, fuel cards, trade journals)
• Supplier contracts
• Maintenance contracts (equipment, installations, IT systems)
• Energy contracts (gas, water, electricity)

Step 5: Check whether you have hidden reserves

Hidden reserves are a business's assets that have increased in value or that could yield more than their stated value if sold. For example, the value of your premises on your balance sheet and the actual value. You will have to pay tax on these amounts (termination gains) if your business ceases trading. Your bookkeeper or accountant can give you more information.

• Make an overview of your hidden reserves.
• Check how much tax you must pay on your hidden reserves and take this into account in your accounting.

Step 6: Sell or transfer your stock and assets

This also includes intellectual property rights, such as design or trademark rights, and your domain name. If you have a VOF or BV, you can only transfer the assets before you cease trading.

• Do you have a sole proprietorship? Keep track of the transfer(s) in your records. If you do not transfer your assets or stock (if any), they will automatically become your private property. If you deducted VAT from the business when purchasing the assets or stock, you will pay the VAT from your private account in your final tax return. Base this on the current market value of the goods at the time of ending.
• Do you have a VOF? Then you and your partners must make agreements about the sale and distribution of stock and assets. Set this out in a termination agreement and in your records. Any remaining stock and assets will become the private property of the partners. If you have deducted VAT when purchasing products, you will pay VAT on the current market value of those products in your final tax return.
• Do you have a BV? Then you will need to liquidate.
  > More information about liquidation of a legal entity

Step 7: Close your business bank account

• Contact your bank and tell them that you are closing your business. The bank will inform you about closing or converting your business accounts. And about settling business financing or your business mortgage.
• Download all your account statements and annual financial statements.
• Stop any current direct debits and periodic transfers.
• Cancel your business credit cards.
• Do you have a G account? Cancel it with the Netherlands Tax Administration.

Step 8: Settle your liabilities (debts and damages)

After closing your business, you remain liable for debts and damages resulting from your business activities.

• Check whether anyone can still make a claim against you and settle it.
• Settle your debts using the step-by-step guide for settling debts. This shows you how to do this for each legal structure.
• Call the KVK Advice Team if you have any questions or would like to discuss this with an adviser.
• Check the terms and conditions of your business liability insurance. Some insurers include liability after closure in their coverage. This is called run-off risk.

Step 9: Close your accounts

Closing your accounts can be complicated. We recommend that you do this with an accountant or bookkeeper.

• Calculate yourdiscontinuation profit. You report your discontinuation profit after deregistration. However, it is a good idea to calculate this now. This is because your discontinuation profit means you may have a higher income than in previous years. As a result, it may be wise to change your provisional assessment (in Dutch) and any allowances (in Dutch) now.
• Draw up a financial statement, including a balance sheet and profit and loss account.
• Continue to file your VAT return until you have deregistered and you have received a letter from the Netherlands Tax Administration saying that they have processed your deregistration.

Step 10: See if you can get financial assistance for (former) entrepreneurs

• Are you closing your business because it is not generating enough income? The municipality may be able to help you with a BBZ income supplement, BBZ business credit, or an a IOAZ benefit. You must apply for support before you deregister with KVK.
• Did you start your business while receiving WW, WIA, WAO, WAZ, or Wajong benefits? Contact the UWV. You may be able to receive your old WW benefits or invalidity benefit again. Apply before you deregister with KVK.

Step 11: Deregister with KVK

After these preparations, you are ready to deregister your business. How deregistration works depends on the legal structure.

• Deregistering a sole proprietorship
• Deregistering a BV
• Deregistering a VOF
• Deregistering other legal structures