Are you ending your sole proprietorship?
Start by taking care of your financial matters.
For example, if you want to apply for benefits.
You must do so before you deregister from KVK Business Register.
And you need to settle your taxes.
In this video, I will briefly take you through
the most important steps in ending your ‘eenmanszaak’.
This way you will see what you need to know and arrange.
Let's start with step one: Prepare.
Arrange your financial matters.
To end your business
you must first take care of various financial matters.
For example, matters such as your stock, company assets and company cars.
Because you stop doing business
the remaining goods become your private property.
So you're actually selling the goods to yourself as a private individual.
If you deducted VAT when you bought the goods.
You must now pay VAT on them.
You do this in the final VAT return.
Do you have any loans or lease agreements?
Check what agreements you have made and how long the contract runs.
Are you unable to meet your payment obligations?
Then contact the financier to find a solution.
After you have closed down your business, you remain liable for risks.
For example, you still have to pay off your debts.
With some insurers you can include the risks
of closing down a business in a business liability insurance.
This is called a run-off risk.
This ensures you against claims after you have closed down your business.
Do not forget to cancel your contracts and insurance policies,
such as your business insurance policies, subscriptions, permits,
and rental agreements.
Consider the consequences of deregistration.
Deregistering your business can have consequences for your bank account,
financing, pension fund, permits, and insurance policies.
For example, you may no longer have access to your business bank account.
So, before you deregister with KVK, check the websites
of the relevant organisations to see what the consequences will be.
Cancelling a business bank account.
First download all bank statements...
and the annual financial statement before you cancel your bank account.
Stop any direct debit arrangements and periodic payments,
and cancel any business credit cards and insurance policies.
Find out what to do if you have debts.
Do you have to end your business because you are in debt?
Investigate your options.
For temporary debts you can request a postponement first.
This is called a suspension of payment.
Are there still debts left?
Then you must file for bankruptcy.
Dismissing staff.
Will you need to dismiss staff?
Then you must apply for a dismissal permit from the employee insurance agency UWV.
You can lay down agreements in a social plan.
For example, about a transition payment and help with finding new work.
Also inform the Netherlands Tax Administration of the dismissal.
They will then determine that you no longer have to withhold payroll taxes,
and you are no longer required to file tax returns for your staff.
Inform your staff and customers.
Closing down your business will also have
financial consequences for your staff.
So tell your staff as soon as possible that you are going to end your business
so that they can look for other work in time.
Also, carefully review any contracts or agreements you have with customers.
Let your customers and suppliers know that you are ending your business.
We now move on to step two: Deregister your sole proprietorship.
On the KVK website
go to opheffen and type in your business name.
Select deregister sole proprietorship and fill in the form.
KVK will inform The Tax Administration that your business
is closing down.
The Tax Administration will send you a letter about the consequences
for income tax and VAT.
Do you want to apply for benefits?
Then wait a little while before deregistering.
You must apply for benefits before you close down.
Pay the turnover tax (VAT).
After The Tax Administration has received notification from KVK
that your sole proprietorship has been deregistered,
you will receive a letter from them.
You may need to file a final VAT return.
Only once you have done so
will the Tax Administration send you a final confirmation
of deregistration as an entrepreneur for VAT purposes.
We continue to step three: Take laws and regulations into account.
Pay your income tax.
You must file a final income tax return.
Please note you will not receive a notification about this.
Save your business administration.
After closing your sole proprietorship
you must save your business administration for at least
seven years and some data even longer.
The Tax Administration website, belastingdienst.nl,
lists the data you must keep for longer.
You may also scan your paper records and keep them digitally only.
Then we move on to the last step: Good to know.
See if you can apply for benefits.
Is your business no longer viable?
Then you may be able to apply for benefits from your municipality
Depending on your situation
you may be able to apply for social assistance benefits,
or an IOAZ benefit.
Ask your municipality what the possibilities are for you.
You now know the most
important steps to take to end your sole proprietorship.
Would you like to know more?
Then go to Business.gov.nl.