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.
Are you looking for an efficient, low cost and effective way to close your company, then members’ voluntary liquidation (MVL) could be the best answer for you.
Members' Voluntary Liquidation is a legal process, and entrepreneurs' relief reduces the amount of Capital Gains Tax (CGT).
So if you face business liability issues, then must visit “Leading UK”.
To look at solvent liquidation vs insolvent liquidation, we first need to look at a commonly asked question: ‘What’s the difference between solvent and insolvent liquidation?’ The main difference between solvent and insolvent liquidation is that each is used in a different circumstance, depending on the financial status of your company.
Solvent liquidation is the liquidation of a company that is solvent.
Which means that it can pay its debts on time and in full.
There might also be profits inside the company.
If this applies to your company, it can be liquidated through a formal process called a Members’ Voluntary Liquidation (MVL).
Insolvent liquidation is the liquidation of a company that is insolvent.
Sometimes you can face the situation where it is not feasible to carry on the business activities even when a company is a solvent.
In such circumstances, MVL is one of the best options in the hands of the directors of such companies.
It is a useful tool that can help you shut the operations of limited companies or limited liability partnerships.We can also refer to MVL as solvent liquidation where the company is not facing any financial distress or pressure from the creditors to pay debts.
The reason for such liquidation can be future technologies, outdated processes, or even no time with management to focus on the company’s affairs.
Directors and shareholders can work to extract the maximum assets or cash from the business without paying huge taxes to the state.When Might you Consider a Members’ Voluntary Liquidation?MVL can be used as a way to extract maximum fortunes from a closing business in a very tax-efficient manner.
It is one of the most suitable ways that can also help you get eligible for the member's voluntary liquidation entrepreneurs relief.
The word liquidation just describes the action of companies exchanging goods they have on hand in to ready money.
That's why one will hear of stores obtaining "liquidation sales" or "all out liquidations "frequently.
Firms from time to time will mark a going out of business sales, this really is an additional form of liquidation, and alternatively it is a lot more of a final liquidation.
This might be accomplished for a number of causes and usually instances are to free-up returns in addition to spend bills or to free up a company's currency stream.
These sorts of companies are some instances known as liquidators or some instances traders.Envisage which you can spend money for things that typically are priced at 1/2 and even 1/4th off the regular dealer pricing than which will be huge precise?
Which is why several instances the case in the event you get involved using the precise liquidator.
