Company winding up

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Woodpark07

Guest
I have a company which has no debts and has not traded in 2 years which i want to disolve. what is the difference and the implications between winding down a company through the liquidation process and having the company voluntary struck off?
 
You say the company has no debts, but has it assets ? If not then the voluntary strike off procedure is the way to go. see the CRO website for details on how to do this.
 
The company has no assets and no liabilities except for €500 sitting in a bank account. Will a voluntary strike off have any impact on me as a director in another trading company I have at the moment?
 
ubiquitous said:
about €10,000-€15,000 in liquidators fees for a start...
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Not correct.

You can go down the route of a Members' Voluntary Liquidation which can cost from 3.5k plus VAT and Liquidator outlays. (Naturally, each assignment differs depending on work load)

A Members' Voluntary Liquidation is where the Company is solvent and able to pay its debts. The Company's Directors prepare a statement of affairs of the Company and also have this sworn before a Commissioner of Oaths etc. The liquidator, when appointed winds the Company up, pays any remaining creditors, deals with the tax authorities, etc. When the liquidation is finished, a final meeting of the Shareholders is held at which point the liquidator applies for the Company to be dissolved.

The method of solvent wind up is very tax efficient in that assets/cash/property can be distributed in specie and can avail of lower tax rates than if the assets were taken out of the Company while trading.
 
If there are no assets or liabilities, a dissolution is way more cost effective than a Liquidation.
 
Woodpark07 said:
The company has no assets and no liabilities except for €500 sitting in a bank account. Will a voluntary strike off have any impact on me as a director in another trading company I have at the moment?
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Use the money to pay for the newspaper ad (least cost about €200 + VAT) and perhaps a small fee to someone to do the VSO for you. No, the VSO will not have any impact on you as a director in any other company.
 
Make sure you confirm to Revenue that you have ceased trading (w.e.f........), and that the company has no assets or liabilities. Request a letter of no objection to VSO of the company, which they will only issue when all outstanding returns and payments/receipts are completed. DO NOT place your newspaper ad until you receive this letter.
 
bond-007 said:
Also make sure that all CRO annual returns are up to date.
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Sorry, dead right, should have pointed that out too. A very important point too, cos if not up to date at the CRO, significant late filing fees may apply, and VSO is not available to a company that is not up to date with the CRO.
 
You should get the Strike Off done for about €400 plus outlays(newspaper ads) but this will not include doing any tax returns to bring the company up to date, nor include costs of any outstanding annual returns or late filing fees if applicable.
 
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