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                                          Dormant Companies

                                          What is a Dormant Company?


                                          The term dormant applies to a company that has no significant accounting transactions during a financial year. No significant accounting transactions means no entries in the companys accounting records other than the initial payment made by the shareholders for the shares issued on incorporation and other minor expenses incurred to keep the company registered at Companies House (e.g. the annual fee of £15.00 for filing the return).

                                          Why have a dormant company?


                                          There are various reasons why some companies remain dormant, perhaps the most common reason is to protect a company name in readiness for a future project. A company can remain dormant for as long as necessary or indefinitely.

                                          How do I register a dormant company?


                                          There is no special process for registering a dormant company, the procedure is the same as any other limited company. The company will be regarded as dormant for as long as the above condition is met.

                                          Click here to register a Dormant Company

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                                          Do I need to inform Companies House that the company is dormant?


                                          No you do not need to inform Companies House when you incorporate a new dormant company. It is advisable however to inform the Inland Revenue of the dormant status for corporation tax purposes.

                                          Do I need to inform Companies House if a dormant company starts trading?


                                          No, as Companies House will be aware you are trading once you have filed your next annual accounts . Ordinarily at the end of each financial year you will submit Dormant Company Accounts (form DCA) if the company has remained dormant for the corresponding period. As soon as the company starts trading your next set of accounts will be required to meet normal Companies House standards (this varies depending on the size of the company).

                                          WE DO NOT CHARGE A HIDDEN ACTIVATION FEE FOR DORMANT COMPANIES
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