Economy Closing my Solvent Company – what are my options?

By Jim Goudie Assistant Insolvency Manager.

As a company director you have two options if you wish to close your solvent company. These options are a voluntary strike off or a members’ voluntary liquidation (“MVL”).

BRI Business Recovery and Insolvency can assist you in exploring your options, often in conjunction with your accountant.

Strike Off

Striking off a solvent company is a straightforward process and is usually associated costs, pay all liabilities, deal with any remaining assets, distribute reserves to shareholders and submit final accounts to HM Revenue & Customs (“HMRC”). You need to inform HMRC of your intention to strike off then make the application to Companies House. If there are no objections then the company will likely be struck off after two months.

Mvl

An MVL can be a more tax efficient way of distributing the company’s assets than a strike off even with the costs involved. At BRI Business Recovery and Insolvency we charge a fixed fee for our work and hold your hand throughout the process. An MVL is a more formal process where a directors’ meeting is held followed by a shareholders’ meeting. It is the shareholders that resolve that the company be wound up and appoint an insolvency practitioner like BRI Business Recovery and Insolvency to oversee the liquidation.

If you would like to discuss this in further detail or if your company is perhaps insolvent and unable to pay its debts please do contact me or any of the management team at BRI Business Recovery and Insolvency on 02476 226839 or jgoudie@briuk.co.uk.

We offer an initial meeting without obligation and free of charge. The above is general commentary and should not be taken as formal advice.