Good to know
In the Netherlands, a sole proprietorship or sole tradership is called an eenmanszaak. Many so-called zzp'ers choose this legal structure.
1. Check the financial consequences
When you end your sole proprietorship, you have to deal with several financial matters. Pay attention to the following points:
2. Inform your staff and customers
Do you employ staff? Tell them in time that you are going to end your business. This way your staff can look for different work in the meantime. Also check which contracts or agreements you have with customers. After that, inform your customers and suppliers that you are ending your business. Read more about informing your customers on the KVK website.
3. Dismissing staff
There are rules that you must adhere to if you employ staff. If you need to dismiss staff, you must apply for a dismissal permit. You must also lay down agreements in a social plan, such as a transition payment and job counseling. Also notify the Dutch tax authorities of the dismissal.
4. Deregister your sole proprietorship from the Business Register
Deregister your sole proprietorship from the Dutch Business Register. Deregistration is free of charge. You can deregister online or by mail. The Netherlands Chamber of Commerce KVK will inform the Dutch Tax and Customs Administration about the termination. You will receive a letter from the Dutch tax authorities about the consequences for income tax and VAT. Do you want to apply for a benefit? Do this before deregistering (see step 1).
5. Submit your final VAT return
After the Dutch Tax and Customs Administration has been informed that your sole proprietorship has been deregistered, you will receive a letter stating that you must submit a final VAT return.
6. Pay income tax
The Dutch Tax and Customs Administration will send you a letter confirming the deregistration from the Business Register and the tax settlement. You must file a final income tax return.
7. Check what to cancel
Make sure you cancel contracts and insurance policies of your sole proprietorship. For instance:
Canceling your business bank account
Before you close your business bank account, take care of the following:
- Download all bank statements and/or the annual financial statement.
- Stop current debit agreements and periodic transfers.
- Cancel linked credit cards and insurance.
- Do you have a G-account? Contact the Dutch tax authorities to cancel it.
Ask your bank about the procedure for canceling a business bank account.
8. Keep your records
After ending your sole proprietorship, you must keep business records for at least 7 years. You may also scan the records to keep them digitally.