Voluntary strike-off or liquidation: which is right?
If the company has stopped trading and has €150 or less in assets and in debts, a voluntary strike-off is the simplest and cheapest route. If it has more than that to distribute and can pay its debts, use a members' voluntary liquidation. If it can't pay its debts, it needs a creditors' voluntary liquidation.
Start with the €150 test
Look at the company's assets and its liabilities separately. If both are €150 or less, a strike-off is usually possible. If either is over €150, a strike-off isn't available until that changes. More in the €150 rule.
| Strike-off | MVL | CVL | |
|---|---|---|---|
| Company is | Stopped trading, €150 or less in assets and debts | Solvent | Insolvent |
| Liquidator | Not needed | Needed | Needed |
| Money left goes to | Nothing left | Shareholders | Creditors |
| Cost | Lowest | Higher | Higher |
Members' voluntary liquidation (MVL)
For a solvent company with value left in it, often after selling its business. The directors declare the company can pay its debts within 12 months, the shareholders pass a special resolution, and a liquidator pays any creditors and distributes the rest. Distributions in a liquidation may be taxed as capital rather than income, so take tax advice before choosing.
Creditors' voluntary liquidation (CVL)
For a company that can't pay its debts. Creditors are consulted and can confirm or replace the liquidator, who sells the assets, pays creditors in the order the law sets, and reports on the directors' conduct. Acting early protects directors.
What about leaving it to be struck off?
It's tempting, but directors of a company struck off for not filing annual returns can be disqualified, and assets pass to the State. See voluntary vs involuntary strike-off.
Last checked 13 November 2026 against CRO and Revenue guidance. This is general information, not legal advice for your company.