Checklist ending your business: arrange this first

Prepare to deregister

By following these steps, you will be well prepared.

1. Find out what stopping means for your finances

   Stopping could have financial implications. Check whether it will free up any extra money, as this will affect your taxes. For example, 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 > Premises on the balance sheet, risk or opportunity?

   • If you have built up a retirement reserve, you will receive it (in part) when you stop running your business. You will pay income tax on this amount. 

   Did you build up an FOR? Check out your options

   With a good plan, you can avoid having to pay a lot of income tax unexpectedly.
   > Fiscale Oudedagsreserve (FOR) when you end your business (in Dutch)

2. See if you can get financial assistance

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

   • Check if you can get BBZ or IOAZ benefits.
     Are you stopping because you cannot earn enough to live 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.
     > krijgikbbz.nl

   • Check with UWV if you can get your former benefit again

     Did you start your business while receiving WW, WIA, WAO, WAZ, or Wajong benefits? Contact the Employee Insurance Agency UWV. You may be able to receive your old WW benefits or invalidity benefit again. Apply before you deregister with KVK.
     > Contact UWV
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.

   • 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.
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?
5. Finish your business activities

   • Complete your last assignments or orders.
   • Send your last invoices and payment reminders.
   • Pay any outstanding invoices.
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)
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.
     > Liquidation of a legal entity

   Did you receive a small-scale investment deduction (KIA)?

   If you have received a small-scale investment deduction (KIA) to buy business assets in the past 5 years, you may have to repay part of it. This is done via the disinvestment addition (in Dutch).

8. Cancel 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.

   Check the consequences for your bank account

   Your business bank account is always linked to your business’s KVK registration. Check with your bank to find out how long your account will remain active after deregistration.

9. Settle your debts and damages

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

   • 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.
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 returns, if there are any still in the Mijn Belastingdienst Zakelijk portal. 
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)