With a fast-track liquidation, no liquidation (financial settlement) is required, and you can quickly settle the dissolution of a legal entity. That saves costs. You only need a decision from the general meeting of shareholders or board. As a result of this decision, the legal entity immediately ceases to exist. You must complete and file the KVK form 17a on KVK.nl, 'Dissolution of a company, legal person or partnership'.
What are the conditions?
In most cases, fast-track liquidation (also known as turbo liquidation) takes place at empty bvs that have no capital and therefore no income. Income consists of all assets on the balance sheet of a legal entity. For example, real estate, liquid assets, inventory, stock, and receivables.
Is there any income? Then a fast-track liquidation is not allowed. A liquidator must divide the assets.
Consider the financial implications
If you dissolve your business, you will need to draw up a final balance sheet. This is a final overview of your company's assets. Afterwards, these assets must be liquidated (financially settled) and distributed. So, check the following:
Consequences of deregistration
Deregistering your business may affect your bank account, financing, insurance, pension fund, or municipal permits. For example, if you are deregistered from KVK, you can no longer access your business bank account. So before you deregister from KVK, consider what you need and what it could mean for you.
What are the risks?
If it turns out that there were assets in the legal entity after the dissolution decision, a creditor may ask the court to reverse the termination and still liquidate. Or they may file for bankruptcy. If you do not carry out the turboliquidation properly, this could be a risk for you as a director.
Better protection in turboliquidation
The Lower House has agreed to new legislation to better protect creditors in turboliquidation cases. Companies must be able to clearly demonstrate that a turboliquidation was necessary. The board of an organisation will be required to prepare a closing balance sheet. This amendment will take effect on 15 November 2023.