Company Liquidation Fees

StephenJ

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What are the typical fees for liquidating a limited company? It's a simple limited company with cash and no liabilities, and I want the cash paid out as a capital distribution.
 
What are the typical fees for liquidating a limited company? It's a simple limited company with cash and no liabilities, and I want the cash paid out as a capital distribution.
Just a ballpark figure would be great!
 
The fees for Members Voluntary Liquidations are very competitive. Back in 2000, we were quoting fees of £5,000 + VAT to liquidate a company with, say, €200,000 in cash. When the Euro came in 2001, our fees were effectively reduced by 22% to €5,000 + VAT. Now. 20 years later, we are quoting around €4,000 - €5,000 for a company with €200,000 of cash. In that time, MVL's have become more regulated, with AML issues, RBO issues etc

Our minimum MVL fee for companies with smaller cash balances, say, €40,000, would be about €3,000 + VAT. Expenses come to about €300.

There is exactly the same amount of work to be carried out in doing an MVL for a company with just €40,000 of cash or €4,000,0000. The link below will provide some flavour of the work involved.


We justify higher fees for bigger cash balances, as there is more risk involved. A liquidator can be held personally liable if he distributes all the cash and creditors then subsequently emerge looking for payment. He can also be held personally liable for other issues arising.

Before liquidating your company one of the confirmations that the liquidator will require (if he is complying with the legislation!) is that you have properly registered the Beneficial Ownership of the company with www.rbo.gov.ie It is only a matter of time that fines will be levied on companies that have not registered.

Jim Stafford
 
The fees for Members Voluntary Liquidations are very competitive. Back in 2000, we were quoting fees of £5,000 + VAT to liquidate a company with, say, €200,000 in cash. When the Euro came in 2001, our fees were effectively reduced by 22% to €5,000 + VAT. Now. 20 years later, we are quoting around €4,000 - €5,000 for a company with €200,000 of cash. In that time, MVL's have become more regulated, with AML issues, RBO issues etc

Our minimum MVL fee for companies with smaller cash balances, say, €40,000, would be about €3,000 + VAT. Expenses come to about €300.

There is exactly the same amount of work to be carried out in doing an MVL for a company with just €40,000 of cash or €4,000,0000. The link below will provide some flavour of the work involved.


We justify higher fees for bigger cash balances, as there is more risk involved. A liquidator can be held personally liable if he distributes all the cash and creditors then subsequently emerge looking for payment. He can also be held personally liable for other issues arising.

Before liquidating your company one of the confirmations that the liquidator will require (if he is complying with the legislation!) is that you have properly registered the Beneficial Ownership of the company with www.rbo.gov.ie It is only a matter of time that fines will be levied on companies that have not registered.

Jim Stafford

Hi Jim, thanks for responding to my post and for the comprehensive summary. I'm not quite there yet (re building up sufficient funds in the company), but I'll be sure to ask you for a quote when I do. I would satisfy the Revised Entrepreneurial Relief Scheme rules so would be attaining a 10% CGT rate on the capital distribution.
 
The fees for Members Voluntary Liquidations are very competitive. Back in 2000, we were quoting fees of £5,000 + VAT to liquidate a company with, say, €200,000 in cash. When the Euro came in 2001, our fees were effectively reduced by 22% to €5,000 + VAT. Now. 20 years later, we are quoting around €4,000 - €5,000 for a company with €200,000 of cash. In that time, MVL's have become more regulated, with AML issues, RBO issues etc

Our minimum MVL fee for companies with smaller cash balances, say, €40,000, would be about €3,000 + VAT. Expenses come to about €300.

There is exactly the same amount of work to be carried out in doing an MVL for a company with just €40,000 of cash or €4,000,0000. The link below will provide some flavour of the work involved.

Jim Stafford

Out of interest how long on average does a MVL take?
 
Out of interest how long on average does a MVL take?
The Liquidation section of Revenue are very efficient in obtaining tax clearance from the various Inspectors of Taxes for PAYE/VAT and CT. Obtaining tax clearance generally takes about 6 months, at which stage the liquidator can make the final distribution to shareholders.

Jim Stafford
 
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