How to register a Dormant Company
The process for setting up a dormant company is exactly the same as registering any limited company.
You still need to follow the same formalities as you would if you were setting up a company to start trading.
You can find a simple checklist of the requirements here.
For a more complete guide providing an in-depth explanation of each of the steps involved in the simple checklist you can read our guide to setting up a limited company.
Part of the requirements involves selecting an "SIC code" for your company. Dormant companies have their own SIC code.
You can indicate your are setting up a company that intends to remain dormant by entering SIC code "99999" when you fill out our registration forms.
When the company is registered the SIC code will be publically available on the company's record at Companies House, showing that the company is dormant.
What Is a Dormant Company?
A dormant company is a limited company that has previously been registered with Companies House but for one reason or another has never traded or was set up with no intention to trade.
Typically, a dormant company is registered either to protect the name (stopping someone else from registering it) or perhaps by a sole trader who may want to "incorporate" their business at a later date.
A Dormant Company will have no "significant accounting transactions" and
What are Dormant Company filing requirements?
A dormant company must still file annual accounts and a confirmation statement each year.
However, a dormant company is able to file "Dormant Companies Accounts" with Companies House which will show up on the companies filing history like this:
Dormant company accounts are very simple, just 2 pages. This doesn't stop a lot of accountants charging over £200 for them.
Starting a New Dormant Company
If starting a new dormant company is for you, then simply enter your chosen company name into the search box (remembering to select your preference of “Limited” or “Ltd”) and hit enter.
If you are registering the company to protect the name, don't forget to register the domain name for the business too.
Dormant Company Checklist
- Carry out a Company name search.
- Register your limited company name.
- Inform HMRC of your intention to keep the company dormant
- Submit dormant company accounts and confirmation statements where necessary
- Then when you're ready – start trading
- (Don't forget to inform HMRC when you do).
What Do You Need To Do?
After company registration, if you plan to keep your company dormant, you simply need to ensure that your company dormant accounts and annual confirmation statement are filed on time.
Our dormant accountancy service is ideal for ensuring your company is legally compliant and submits the proper accounts even before you begin trading.
It is also a good idea to let HMRC know that you will not be trading with the business. This can be done when you start your company and receive a CT41G form directly from them.
Alternatives to registering a dormant company
Historically, we have registered a number of companies this way and offered them as vintage Companies for transfer – allowing us to offer a fast, simple registration service which gives new business owners the chance to benefit from the advantages of previously registered companies over brand new ones.
These benefits included:
- Creditworthiness – dormant companies with properly submitted accounts which have been registered for a certain period of time are more likely to have a better credit rating and find it easier to acquire investment.
- Trustworthiness – older companies are likely to be seen as more trustworthy by potential customers and the public.