In our experience, in order to successfully wind down the trade of a UK entity, four key phases as identified below should be followed to progress the company from the point at which the decision is taken to cease trading, through to elimination. The four key phases are as follows:
This document deals with some of the technical and statutory issues when a client is looking to wind up a UK entity, specifically in the closure phase.
In the UK, there are two processes to eliminate a solvent UK corporate entity:
An MVL is one of the processes available to bring the life of a company and LLP to an end, following which it is termed ‘dissolved’ and no longer exists as a legal entity.
Only solvent companies can enter into an MVL, all other types of liquidation relate to insolvent companies.