Fast-track liquidation: the process at KVK
- KVK Redactie
- Step-by-step plan
- 11 Oct 2023
- Edited 30 Oct 2023
- 1 min
As of 15 November 2023, you have to provide KVK with more information if you want to terminate your legal entity quickly, the process known as known as a fast-track liquidation or turbo liquidation. The additional information will make clear to creditors how the financial settlement of the legal entity has been arranged.
A turbo or fast-track liquidation is a quick way to end a legal entity such as a besloten vennootschap (bv), naamloze vennootschap (nv), coöperatie (cooperative), onderlinge waarborgmaatschappij (mutual insurance society) ,stichting (foundation), or vereniging (association). You can only use this way if the legal entity has no assets ('baten' in Dutch) left at the time of dissolution.
You use form 17a to report the dissolution of the legal entity to KVK. Make sure you have filed all the required financial annual statements of previous financial years with KVK before you send in form 17a.
Send in documents
Once the decision to dissolve the legal entity has been taken, you need to send in several documents to the KVK Business Register within 14 days. These are the documents you have to provide:
- A balance sheet and an income and expenses overview for the current financial year. And of the previous financial year, if you have not yet filed a financial statement for that financial year with KVK yet.
- Explanatory notes. They must explain:
- why the legal entity has no assets left at the time of dissolution.
- how much money the assets were sold for, and how this sum has been divided (if applicable).
- why creditors have not been paid (if that is the case).
To help you gather and send in the right documents, you can use the KVK form Temporary Act Transparency Fast-track Liquidation. You do not have to use this form, but you can use it as an aid.
Send the form and the relevant documents to KVK in one envelope. Do so within 14 days of the date of dissolution of the legal entity.
Notify by letter
The board of the legal entity must notify its creditors that the fast-track liquidation documents have been filed with KVK by letter.
Failure to file, or filing incomplete information
If you fail to file the required documents, or if you omit one or more documents, a creditor can apply to court to view the legal entity's financial details.
Failure to file the required information (on time) is punishable as an economic offence. The Tax Administration's Bureau Economische Handhaving can create an official report on the basis of which the public prosecutor can impose a fine. Or can take the case to court.
The Openbaar Ministerie (Public Prosecution Service) can ask the court to impose an interdiction on the board. That means you are not allowed to be a board member of a legal entity for a certain period of time. This happens if you as a board member of the legal entity:
- do not follow the fast-track liquidation rules,
- or knowingly disadvantage creditors,
- or were involved at least twice in the last 2 years in a bankruptcy or fast-track liquidation where creditors were not (fully) paid, and you can be held personally liable.