Dissolving an Irish Registered Company

Members Voluntary Liquidation v Voluntary Strike Off

When an Irish registered company reaches the end of its natural existence, loses its original purpose within a group structure, or perhaps never commenced any activity, the Directors should take steps to formally dissolve and remove it from the register.

This can be achieved by either placing the company in a Members Voluntary Liquidation (MVL) or by engaging in what is called a Voluntary Strike Off (VSO).

Members Voluntary Liquidation (MVL)

This is a process where the company’s assets are liquidated and distributed to its members (once any debts have been discharged). This method is typically chosen when the company is solvent and can pay off its debts.

It involves appointing a liquidator who oversees the winding-up process, ensuring all legal and financial obligations are met.

Voluntary Strike Off (VSO)

VSO, on the other hand, is a simpler and more cost-effective method. It involves the company applying to the Companies Registration Office (CRO) to be struck off the register. This process is suitable for companies that have ceased trading, are up-to-date with their filings with both the CRO and Revenue and have no outstanding assets or liabilities (exceeding €150).

Popularity of VSO vs. MVL

As can be seen from the table below, the VSO process is consistently by far the more popular approach:

Choosing which method to dissolve your company depends on the specific circumstances of the company. Directors should carefully consider the company’s financial status and future obligations before deciding on the most appropriate method for dissolution.

CFI can assist in managing both the Voluntary Strike off or Members Voluntary Liquidation process.

Further information on each topic can be downloaded here