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:
Year |
Voluntary Strike Off |
Members Voluntary Liquidation |
|---|---|---|
| 2025 | 6,929 | 1,988 |
| 2024 | 6,727 | 1,826 |
| 2023 | 6,218 | 1,505 |
| 2022 | 6,355 | 1,327 |
| 2021 | 6,942 | 1,393 |
| 2020 | 5,493 | 1,314 |
| 2019 | 6,406 | 1,470 |
| 2018 | 5,529 | 1,265 |
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.
If you would like more details on either of the processes above, please contact us at [email protected] or give us a call on 01 6641177
Disclaimer: This article is for general informational purposes only. All content is provided in good faith; however, we make no representation or warranty of any kind regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information. All or any information is subject to change. This post does not constitute legal, financial, or professional advice. Always seek the advice of a qualified professional or legal advisor with any questions you may have. CFI are not liable for any loss or damage arising from your use of the information contained in this Article.
For More Information:
Company Formations |
Company Secretarial |
Annual Returns |
Register of Beneficial Owners |
