Members Voluntary Liquidation (MVL) Process
In this video, we explain how a Members Voluntary Liquidation works and what directors and shareholders should expect when closing a solvent company.
An MVL is a formal process used where a company is able to repay its debts in full, typically within 12 months. It is often used as a structured and tax-efficient way to extract retained profits and bring a company to an orderly close.
If your company is no longer required and holds retained reserves or assets, it is important to understand the process fully before taking the next step.
How does an MVL work?
A Members Voluntary Liquidation involves a number of structured stages, including preparing the company for liquidation, signing a Declaration of Solvency, appointing a liquidator and distributing assets to shareholders.
Before entering an MVL, it is important that all liabilities are settled, including any outstanding tax positions with HMRC. This helps ensure the process runs smoothly and avoids delays.
Once the company enters liquidation, the liquidator is responsible for distributing the company’s assets and bringing the company to a formal close.
Read our full MVL guide
For more detailed guidance on Members Voluntary Liquidation, including the process, tax considerations and whether it is the right option, read our full guide.
