A dormant company is simply a registered company that is currently not trading and a company can be left dormant for years as long as a confirmation statement and annual accounts are filed each year. Many people register a company with the intention to remain dormant to protect a chosen company name - as no other company can use that name once registered.
A company only becomes either officially dormant or trading when the first confirmation statement or accounts are filed at the end of the first year.
If you are setting up your Limited Company with the intention of it remaining dormant then we highly recommend our basic or seed package - we can provide services to file your annual accounts and confirmation statement yearly.
A limited company is required to file annual accounts with both Companies House and the HMRC. If your company has not traded then you will need to file Dormant Accounts with Companies House rather than active ones. You will also need to file your confirmation statement and at this time you may also change the SIC code of your company to 'dormant' and this will then show on the public record.
Dormant Accounts will also need to be filed with HMRC (this is a nil return) if the company has not traded and no transactions show on the business bank account. You will need your Unique Tax Reference number (UTR), company number and authentication code.
In place of trading accounts, if the company hasn’t done anything, you need to submit Dormant Accounts.
If the company hasn’t traded, we can let HMRC know for you with a ‘nil return’ filed on your behalf.