Members’ Voluntary Liquidation or MVL
If you want to close your company and it’s solvent – which means it can pay back any creditors and meet any outstanding debts – a Members’ Voluntary Liquidation – MVL – could be the most tax-efficient way of doing it. We’re also able to extract 100% of your profits on day 1. So there’s no waiting around for weeks to get paid.
What’s a Members’ Voluntary Liquidation or MVL?
A Members’ Voluntary Liquidation – MVL – is a way of liquidating a company that’s solvent and profitable but is no longer needed. For companies with retained profits of over £25,000, it’s often the most tax-efficient way of extracting this money.
If there’s little or no funds to take out of your company, a voluntary ‘strike off’ to dissolve it is usually the best option and a process we can help you with.
What happens in a Members’ Voluntary Liquidation or MVL?
The first step is to appoint a licensed insolvency practitioner, who will then take charge of the company and oversee the liquidation process. As our client, we’ll also take on the responsibility of arranging the statutory meetings and filing all the necessary paperwork.
We begin by organising a shareholders’ meeting so that you can get shareholder approval for the liquidation. Once we have this, we’ll send a winding-up resolution to Companies House and place the mandatory notice in The Gazette. We’ll also take care of the distribution of funds to your creditors, shareholders and directors. This solvent liquidation process is explained in more detail here.
Because an MVL is managed by a licensed insolvency practitioner, you can be assured that no outstanding commitments or debts will be left after your company is closed.
What happens after solvent liquidation?
Whatever your plans are next, by using a Members’ Voluntary Liquidation to close your profitable company there will be no loose ends or nasty surprises. And with our ability to pay out your money immediately, you can start enjoying the profits of your business from day 1.
Speak to one of our licensed insolvency practitioners to find out if a Members’ Voluntary Liquidation – MVL – could be the right solution for your company.