Fast-track liquidation

Published by:
Netherlands Chamber of Commerce, KVK
Netherlands Chamber of Commerce, KVK

Fast-track liquidation is a quick way to dissolve and liquidate your bv, nv, foundation or other legal entity. Read more about fast-track liquidation on this page.

What is a fast-track liquidation?

A fast-track or turbo liquidation is a way to quickly end a legal entity. 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.

In most cases, fast-track 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.

What are the conditions for a fast-track liquidation?

  • There must be no more income. Is there still income? Then a fast-track liquidation is not allowed. A liquidator must divide the assets.
  • You must complete and file KVK form 17a: 'Dissolution of a legal entity' on the KVK website.

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:

Your company should no longer have any assets such as inventory or other business assets. Check what assets you still have, such as:

  • debtors
  • money in the bank account
  • stocks
  • cars and equipment
  • intellectual property rights

If any money remains in the bank account after dissolution and liquidation, in principle it goes to the shareholders. Unless there is a different agreement in the articles of association.

Transferring vehicle registration to your own name

Do you have a vehicle in your company's name? Then do not forget to transfer the vehicle registration number to your own name when you deregister your company.

Does your company have any loans? Check what agreements have been made about them. Are you unable to meet your payment obligations? Then contact the financier. Try to find a solution together.

Does your company have lease agreements? For example, for a van or equipment. Check how long the contract still runs. Contact the leasing company to find out what the options are.

After you have stopped, you remain liable for risks. For example, you still have to pay off your debts. Therefore, make sure you handle everything properly. Some insurers allow you to include discontinuation risks in a business liability insurance policy. This is called run-off risk and is the risk of claims after you have stopped.

Make sure you stop your limited company's contracts and insurance policies. A checklist:

Arrange the following before cancelling your business bank account

  • Download all account statements and/or the annual financial statement.
  • Stop any direct debit arrangements and periodic transfers.
  • Cancel linked credit cards and insurance policies.
  • Do you have a G-rekening? Cancel it with the Tax Administration.

Ask your bank about their procedure for cancelling a business bank account.

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 fast-track liquidation properly, this could be a risk for you as a director.

Questions relating to this article?

Please contact theNetherlands Chamber of Commerce, KVK