Unfortunately, it is not always prudent or financially viable to keep your business going. To assist you if this is the case, we will today be discussing two ways in which your company can be formally closed down. We will be focusing on Voluntary Company Strike Off and Members Voluntary Liquidation – two very different processes which should not be confused. Rather than incurring the on-going costs of continuing to file annual returns, you can choose to either liquidate or strike the company off. It is inadvisable to simply abandon your company as this can incur ongoing costs as well as causing legal trouble down the line.
Voluntary Company Strike off is the process wherein a company is formally de-registered from the Register of Companies and the Revenue Commissioner. The liquidation process involves the appointment of a liquidator to collect and assign any existing assets.
Voluntary Strike Off is often seen as a quicker and more cost effective option than liquidation. This option is available to companies which have had little or no activity and have no more than €150 in assets or liabilities. Voluntary Strike Off leaves an option to restore the business open for a period of 20 years following the date of dissolution.
Members Voluntary Liquidation is the alternative option for companies which have had activity and remain solvent at the time of cessation. Members Voluntary Liquidation is often seen as the more correct way to dispose of a company as it is not possible to resurrect the company after liquidation.
Voluntary Strike Off is also a cheaper option than Members Voluntary Liquidation despite its inherent lack of finality,
If you require any further information on either Voluntary Strike Off or Members Voluntary Liquidation or indeed any business or financial matters please don’t hesitate to contact us. We are always happy to help.