Entrepreneurship is wonderful. It offers freedom, responsibility, and the opportunity to shape your own path. But the life of an entrepreneur isn’t only about growth, opportunities, and success. Sometimes things happen that make it temporarily impossible to keep running your business. Think of illness, caregiving responsibilities, personal circumstances, or a period in which you need to make different choices.
That can be a difficult situation. Because what do you do with your business when you’re unable to work for a while?
Entrepreneurship and life don’t always align
As an entrepreneur, you are often the driving force behind your business. When you stop, your business may slow down or stop as well. However, there are many situations where entrepreneurs temporarily have to stop working or reduce their activities. For example:
- illness or recovery after surgery
- pregnancy or parenthood
- caring for a family member
- personal circumstances or the need for mental rest
- temporarily working as an employee
- studying or retraining
In situations like these, it’s important to know that you don’t necessarily have to permanently close your business. However, there are a few important things to understand.
Officially “pausing” your business isn’t possible
Many entrepreneurs think they can temporarily pause their business with the Chamber of Commerce (KvK). In practice, there isn’t a pause button. Your business is either registered in the Business Register or it’s deregistered.
That doesn’t mean you can’t temporarily reduce or stop your activities. The way you approach this mainly depends on how long you expect to be unable to run your business.
Stopping for less than about six months
Do you expect to be active again within a few months? In that case, you can usually remain registered with the Chamber of Commerce.
In that situation:
- you temporarily stop taking on new assignments
- you inform clients or your network that you’re temporarily unavailable
- you continue keeping your administration up to date
- you still submit VAT returns (even if they are zero returns)
Your business still exists, but it’s temporarily operating at a lower level.
Not running your business for more than six months
If you expect your business to be inactive for a longer period or if you don’t know when you’ll start again deregistering from the KvK may be the more logical choice.
When you deregister your business:
- your KvK registration ends
- you lose your VAT number
- you will need to register again if you want to start your business later
This doesn’t necessarily mean the end of your entrepreneurial journey. Many entrepreneurs register again later when their circumstances change.
A “dormant” business
Some entrepreneurs choose to keep their business registered but temporarily carry out no activities. This is sometimes referred to as a dormant business. The advantage is that it can be easier to restart later. However, keep in mind that you remain responsible for administrative obligations and tax filings.
Take the time to make the right decision
You might ask yourself questions such as:
- How long do I expect to be unable to work?
- Do I want to continue my business later?
- What financial obligations will continue during this time?
- Could temporarily working less also be an option?
Taking time to reflect on these questions can help you make a decision that fits your situation.
Entrepreneurship also means making difficult choices
Many entrepreneurs see stopping or pausing as a form of failure. But it isn’t. Sometimes it’s actually a smart and healthy decision to create space for other things that are important at that moment. After all, entrepreneurship isn’t only about growth. It’s also about adjusting, adapting, and sometimes taking a step back. And the good news is: when circumstances change, you can often start again.
Tip: Unsure what the best choice is for your situation? Consider speaking with an accountant, advisor, or business coach. They can help you understand the financial and practical implications and guide you in making the right decision.
