Step 3 of 5: Prepare for your business closing
- Gé Sletterink
- Step-by-step plan
- 30 Mar 2023
- Edited 3 Dec 2022
- 2 min
List out all the things you need to arrange before you end your business. For example, notifying staff and taking care of tax matters.
Keep your business records in good order. Clear and easy insight ensures you have the best overview. You can get a lot of information from your administration that you will need in the coming period. For example, who owes you money (your creditors) and who you owe money to (your debtors). Also consider ongoing payment obligations, such as lease or rental agreements.
Do you have employees? Then you have to meet your obligations to your employees. If they will be dismissed, your employee is often entitled to a transition payment. Use the transition payment calculator (in Dutch) to learn if you have to pay transition compensation and how much. Have you reached the Dutch pension age ('AOW-leeftijd') or will you reach it within 6 months? If so, the transition payments may be compensated for by the Employee Insurance Agency (‘Uitvoeringsinstituut Werknemersverzekeringen’, UWV).
Start the request for ‘dismissal for economic reasons’ with the UWV before informing your employees about the upcoming dismissal. You should inform your staff immediately afterwards. This way, you avoid the situation that an employee becomes sick and long-term sick leave could make it difficult to end your business.
Your own income
Consider the possibilities for your own income after your business stops. Various schemes can help you with your income when you stop running your business.
Decree on Social Assistance to the Self-employed (Bbz)
You can get financial support as a self-employed person via the decree on social assistance to the self-employed (Bbz). With this scheme, you may be eligible to supplement your income up to the social assistance level during the closure of your business. Apply for Bbz at your local municipality before you end your business. An important condition is that you were born before 1960.
Are you older than 55? Then the Older and Partially Disabled Self-Employed Income Support scheme (IOAZ) is also an option. Conditions include that you have not yet reached the AOW pension age. And that you have worked at least 1,225 hours per year in your business. That is an average of 24 hours per week.
Note: apply for this scheme at the municipality where you live before you deregister your business at the Netherlands Chamber of Commerce KVK. That way, you will not miss out on financial help.
You can use the Bbz check (in Dutch) to find out if you are eligible for Bbz or IOAZ benefits.
Apply for social assistance
Do you not qualify for the above measures? Then apply for social assistance after you have stopped trading. Your total family income will determine your eligibility and the amount you receive.
Switch to paid employment
If you are considering switching to a salaried job with another employer, you can get guidance from a regional mobility team (RMT). This can include career advice, training, and on-the-job learning. There are 35 RMTs in the Netherlands.
KVK Advice Team
Do you have questions about preparing for your business closure? Then contact the KVK Advice Team and call 0800 21 17.