Dormant Company Accounts
A dormant company doesn’t trade and involves no accounting transactions. Trading companies elect to become dormant if they cease trading. They may wish to trade again in the future.
For further details of dormant company accounts, keep reading or if you require assistance, we’re here for you. We even look after your Dormant Company Accounts for you.
Why a company is dormant?
1. Sometimes you register a trader mark or a brand name you wish to protect. By registering a Dormant company you can secure that name. So no one else will be able to use the same name.
2. By securing a dormant Company name, you can protect that dormant company name for future. Sometimes you’re not ready to start the project. Still, you want to prepare for the future. There is no time limit to keeping a company status dormant. However, the directors of dormant companies must perform some administrative duties each year, as explained below:
Get Started on a Dormant Company.
File Annual Return of the Company each year.
File dormant accounts every year to Companies House and inform HM Revenue & Customs.
Companies that have never traded can file their annual accounts via Form AA02 (PDF). Companies who traded in the past, but have become dormant use Form AA02 (DCA). This happens when no transactions have been recorded in the current financial year and no residual balances exist.
A company must not generate any transaction during the year. Otherwise, you will be liable to file a full set of Accounts. Dormant companies may only have a few specific allowable transactions, but no accounting transactions.
The only allowed transactions of a dormant company include:
Payment for shares taken by subscribers to the memorandum of association;
Fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
Payment of a civil penalty for late filing of accounts.
Fee for Dormant Company
We only charge £100 a year for Dormant Company Accounts. please give us a call on 0800 6441 258 to find out more. You can even chat with us on our online chat or just drop us a message. We are here to help you with your finances and accounts.
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