Fast-track liquidation
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?
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 inform KVK of the dissolution. You do so by filling in KVK form 17a: 'Dissolution of a legal entity’. You must also give insight into the legal entity’s financial position. Use the form Temporary Act Transparency Fast-track Liquidation to gather the right information and documents. Send both forms, and the necessary attachments, to KVK by post.
What are the conditions for a fast-track liquidation?
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.
Is there still income? Then a fast-track liquidation is not allowed. A liquidator must divide the assets.
Consider the financial implications
There must be no more assets in the company, if you want to use the fast-track liquidation. 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.
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.
If a creditor can prove that the conditions for a fast-track liquidation were not met, you as former director can be held liable. So make sure you handle everything correctly.
Make sure you stop your limited company's contracts and insurance policies. A checklist:
- telephone numbers
- subscriptions
- contracts
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.
Owners' association
The dissolution of an owners’ association is done by dissolving the division. This requires a notarial deed of dissolution of division. The rules of the Temporary Transparency Act Fast-track Liquidation do not apply here.
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK