Dormant Accounts

A 'Dormant' company is one which, in legal terms, has 'no significant accounting transactions' during a financial year (not the same as a 'non-trading company'). It can remain dormant for as long as is necessary.

A private dormant company must have at least one director however a sole director cannot also be the company secretary, both of which have the same obligations as any trading private company - otherwise, they risk an automatic civil penalty for late filing of accounts.

It should have no entries in its accounting records, including any director's or employees' wages.

Only the amount paid for shares when incorporating the company and the costs incurred to keep the company registered at Companies House are allowed.

Companies are kept dormant for several reasons:

To protect a company name
In readiness for a future project
To hold an asset
To hold intellectual property

A company can remain dormant for as long as necessary. However, while the company is dormant, various other documents and annual company balance sheets must still be prepared and filed at Companies House.

Dormant Accounts Service: £45 + VAT