There is a general perception in the market that deregistration is a simpler, quicker and less expensive option. But in practice, the best method can be different for each situation, as there are advantages and drawbacks for each option.
Deregistration cannot help return of paid-up share capital to members and the company is still obliged to comply with all relevant statutory requirements unless it has been formally deregistered.
Deregistration causes great concern due to having a long tail of 20 years within which an aggrieved person can apply to the court to reinstate the company.
Although MVL is comparatively more costly, it is a clear-cut disposal method and is usually more preferred when the company has trading history.