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

How to prepare for deregistration

If you follow these steps, you will be well-prepared.

Step 1: Find out what stopping means for your finances

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 on the balance sheet, if sold. You will have to pay tax on these amounts (discontinuation profit) if your business ends. 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.
  Read more about putting your premises on your balance sheet.

Step 2: See if you can get financial assistance

It is possible for (ex) entrepreneurs to claim financial assistance in some cases.

• There is not enough income to go on

  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.

• You started your business while receiving a benefit

  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 3: Arrange matters properly for your staff

• Apply for a dismissal permit from the Employee Insurance Agency (UWV)

  With a UWV 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.
  > Read how to apply for a dismissal permit on the UWV website.

• Check whether you are entitled to transition payment compensation

  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 part of the transition payments.
  > Find out if you can apply 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.

Step 4: Tell your customers, staff, and other business relations

Be prepared for emotional responses from your loyal clients and staff. 

• You may want to say goodbye together with your staff. Or you could set up a walk-in hour for questions from your staff about the closure.
• Tell your staff, customers, suppliers, and business relations that you are closing.
  > How do I tell my customers that I am closing?

Step 5:  Finish your business activities

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

Step 6: Cancel contracts and insurance policies

Check the term and notice period. Think of:

• Business insurance. Wait until step 9 to cancel your liability and legal assistance insurance.
• Permits
• Property rental or 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 7: 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.

• Eenmanszaak: 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.

• VOF: lay down the transfer in an agreement and your records

   Make agreements with your partners about the sale and distribution of stock and assets. Any remaining stock and assets will become the private property of the partners.

• Calculate VAT on the current value

  If you have deducted VAT when purchasing products or stock, you will pay VAT on the value of these products in your last VAT return from private money. Calculate the VAT using the current market value of those products.

• BV: liquidate

  When you liquidate assets, you sell them for money. The BV uses this money to pay off any debts. If there is any money left, it is divided.
  > More information about liquidation

Step 8: 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 9: Settle your 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.
• In the case of an eenmanszaak and a VOF, the warranty agreements remain in force. Even after deregistration, you remain personally liable for the obligations that applied when you owned the business. Run-off risk cover can help you with this. 

Step 10: Close your accounts

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

• Calculate your discontinuation 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 11: Deregister with KVK

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

• Deregistering an eenmanszaak
• Deregistering a BV
• Deregistering a VOF
• Deregistering a vereniging or stichting
• Deregistering other legal structures (in Dutch)