GlossaryUK
What is a dormant company?
UK company that is not trading
Short answer
A dormant company is a UK company that is not trading and has no other income. “Dormant” means different things to Companies House and HMRC, and dormant companies still meet their annual obligations.
Explained
For HMRC a company is usually dormant if it has stopped trading and has no other income, or is a new company that has not started trading; buying, selling, renting property, advertising, employing someone or getting interest all count as trading. For Companies House the company must have no significant transactions in the year; filing fees, late filing penalties and money paid for shares at incorporation do not count.
Dormant companies must still file annual accounts and a confirmation statement, and small dormant companies can file simpler dormant accounts. A VAT-registered company that will not trade again deregisters for VAT; otherwise it keeps filing nil returns.
Good to know
- Dormant does not mean there is nothing to file.
- A dormant company still has a SIC code.
This page is general information, not legal or tax advice. Rules change; check the official source for the latest position or talk to us.
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