CLOSING SOLVENT COMPANIES
When shareholders or directors are looking to cease to trade or close down a solvent company, there are two options: Members Voluntary Liquidations (MVL’s) or Strike Off.
Strike off may be appropriate for companies that have less than £25K remaining in hand, little or no creditors, and minimal tax matters to be resolved. Strike off is a quick process, and if there are no objections, the company will be dissolved two months from the date of application.
MVL is the solvent winding up of a company in order to distribute the company’s assets to the shareholders. An MVL may be appropriate for companies with more than £25K cash to distribute or have physical assets to be distributed directly to the shareholders. It also offers tax efficiencies for the shareholders. The Liquidator will deal with all matters related to the MVL, including any creditors, and the company will receive HMRC clearance giving the directors and shareholders peace of mind. There is no limit on distributions, and we are focused on distributing the assets to the shareholders as quickly as possible.