What is a dormant company? Per the Companies House, a company is dormant if it had no significant accounting transactions during an accounting period. A ‘significant accounting transaction’ is one which a company would usually enter in its accounting records except for the following:
o Annual return fee; fees paid to the Registrar of companies for a name change or for re-registration
o Payment of penalty for late filing of previous accounts
o Receipt for payment for shares taken by members
There must be no significant transactions for the entire accounting period. This means that a company is not dormant if for example - it received interest on the company bank account or paid accounting fees. Any such transactions will mean that the company has to file accounts and corporation tax returns in the normal way.
HMRC’s definition of a dormant company is slightly different -per HMRC,“… a company that’s not active, not liable for Corporation Tax or not within the charge to Corporation Tax is a dormant company"
Filing requirements :
All dormant companies, even those who have not traded, must file annual accounts at Companies House. However, the big advantage of being dormant is that you don’t need to provide as much information as you do for an active company.
The dormant company would need to continue filing annual return with the Companies House every year. In addition, it would need to notify HMRC separately of dormancy by submission of CT41G Dormant Company Insert.
A company can remain dormant indefinitely so long as Companies House filing regulations are adhered to.
o Annual return fee; fees paid to the Registrar of companies for a name change or for re-registration
o Payment of penalty for late filing of previous accounts
o Receipt for payment for shares taken by members
There must be no significant transactions for the entire accounting period. This means that a company is not dormant if for example - it received interest on the company bank account or paid accounting fees. Any such transactions will mean that the company has to file accounts and corporation tax returns in the normal way.
HMRC’s definition of a dormant company is slightly different -per HMRC,“… a company that’s not active, not liable for Corporation Tax or not within the charge to Corporation Tax is a dormant company"
Filing requirements :
All dormant companies, even those who have not traded, must file annual accounts at Companies House. However, the big advantage of being dormant is that you don’t need to provide as much information as you do for an active company.
The dormant company would need to continue filing annual return with the Companies House every year. In addition, it would need to notify HMRC separately of dormancy by submission of CT41G Dormant Company Insert.
A company can remain dormant indefinitely so long as Companies House filing regulations are adhered to.
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