Liquidate Your Limited Company in Ireland
Members Voluntary Liquidation (MVL) offers a tax-efficient way to close your solvent company and extract retained profits. Save thousands compared to dividend extraction.
What is Limited Company Liquidation in Ireland?
Limited company liquidation is the formal winding-up process where a licensed liquidator is appointed to sell company assets, pay creditors, and distribute remaining funds to shareholders. Members' Voluntary Liquidation (MVL) is for solvent companies, Creditors' Voluntary Liquidation (CVL) for insolvent companies. The process costs €3,000-€10,000+ and takes 6-18 months depending on complexity.
Good Company Group coordinates liquidation processes including liquidator appointment, declaration of solvency preparation, shareholder resolutions, asset valuations and sales, creditor claims management, final accounts and tax returns, Revenue clearance, CRO filings, and distribution of surplus funds. We work with licensed insolvency practitioners to ensure compliant liquidation under the Companies Act 2014.
Why Choose MVL?
Members Voluntary Liquidation offers significant advantages over other methods of closing a company.
Tax-Efficient Distributions
Capital gains treatment on distributions vs income tax on dividends - potentially saving significant tax.
Clean Break
Formally close your company with no future liabilities or compliance obligations.
Director Protection
Proper liquidation protects directors from future claims and demonstrates good governance.
Extract Retained Profits
Distribute accumulated profits to shareholders in a structured, compliant manner.
Tax Savings Example
Extracting €100,000 of retained profits - MVL vs Dividend
Via Dividend
- Gross Amount€100,000
- Income Tax (40%)-€40,000
- USC (8%)-€8,000
- PRSI (4%)-€4,000
Via MVL (with Entrepreneur Relief)
- Gross Amount€100,000
- CGT at 10%-€10,000
- No USC€0
- No PRSI€0
Save €42,000 in tax!
*Example for illustrative purposes. Entrepreneur Relief subject to qualifying conditions. Seek professional tax advice.
The MVL Process
Initial Assessment
We review your company's position and confirm solvency for MVL.
Declaration of Solvency
Directors sign statutory declaration that debts can be paid within 12 months.
Shareholder Resolution
Special resolution passed to place company into voluntary liquidation.
Liquidator Appointed
Licensed insolvency practitioner appointed as liquidator.
Assets Realised
Company assets sold and converted to cash.
Distributions Made
Creditors paid, then remaining funds distributed to shareholders.
Final Meeting
Liquidator holds final meeting and files final returns with CRO.
FAQs
Ready to Explore MVL?
Get a free assessment to see if MVL is right for your situation and how much you could save.