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Definition: Dormant Companies

Companies can elect to file dormant accounts at Companies House if they had no significant accounting transactions (that is, they made no entries into their accounting records) during the past financial year. It’s a voluntary step that indicates the company did no actual business. Dormant companies must still file financial statements, cannot have any paid employees, and like any other UK-registered company must have at least a company director and secretary. Note that the dormant label does not mean a company’s Companies House filings are overdue; that is a separate issue related solely to the timeliness of a company’s annual report filings. There is no limit on how long a company can exist in a dormant state, and companies can shift into or out of dormant status each time they file accounts at Companies House.

For further information, please see the Companies House description of dormant companies at: 

http://www.companieshouse.gov.uk/about/gbhtml/gba10.shtml#one.

 

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