Published: 03/02/2022 By Hannah McCormack
Wondering what an MVL is and how it is used to close down a business?Here are the basics to a members voluntary liquidation otherwise known as an mvl:
You can only apply for an MVL if your company is solvent, as in it can pay all its debts.
If this is the case you will need to declare solvency, which you can do by writing an official statement confirming how your company will pay off all its debts (we can assist you with this).
Once you’ve done the declaration of solvency, it must be approved by the majority of directors at the company.
You must then appoint a liquidator - like turpin barker armstrong.
The liquidator will take control and realise any of the company’s assets, pay off creditors in full and deal with any final tax matters. The remaining funds are then distributed to shareholders accordingly.
Once this is all taken care of by the liquidator a final report is issued and within 3 months the company is dissolved i.e. officially closed.
An mvl is quick and reasonably cheap so why not give us a call today to see how we could assist you with an mvl