Setup A Dormant Company In Minutes.
Register Your Dormant Limited Company Online in 4 Easy Steps! Benefit From Reduced Administrative Requirements. Check if your company name is available
- Registration Number in 1 business day
- Authorised Formation Agent
- Pricing Starts at £49+VAT
How to Start a Limited Company ?
Check your company name availability
Instantly verify the availability of your preferred company name and choose a suitable company incorporation package and option for your needs.
Fill out our short application in 5min
Please fill out our concise online forms, entirely web-based. Rest assured, we handle the submission of your application to Companies House and HMRC on your behalf.
Receive your company registration #
Get your filings completed within a few hours. Your documents will be accessible on your dashboard, and printed copies will be sent out the following day.
Frequently Asked Questions
Like any limited company, you have an annual obligation to submit a confirmation statement along with the company’s dormant account. For your convenience, we strongly recommend choosing the “Compliance Package” during the registration process, as it encompasses all your necessary yearly statutory filings.
Both Companies House and HMRC have their own definition of what is a dormant company.
HMRC defines a dormant company as a company which:
- Is a newly incorporated limited company that has not yet started trading;
- Has stopped trading and has no other income (such as investments);
- Is an ‘unincorporated association’ or club owing less than £100 Corporation Tax;
- Is a flat management company (also know as ‘right to manage’)
Companies House define a dormant company a company which SIC code (Standard Industrial Code) is 99999. Such company Companies House has had ‘no significant accounting transactions’ during its financial year, i.e. any transaction which should be entered in a company’s accounting records. For a company to be dormant for Companies House, its transactions must be limited to:
- Payment for shares;
- Fees paid to Companies House for a change of company name;
- Re-registration of a company;
- Filing confirmation statements (formally known as annual returns) and annual accounts;
- Payment of penalties imposed by Companies House
To transition a dormant company into an active one, the simplest approach is to alter its activity by changing the SIC code from “99999” to any other active SIC code. This status adjustment should be made within 3 months of the company becoming active. Alternatively, you can achieve this by logging into your company’s HMRC gov gateway account and updating the company’s status to ‘active’ for Corporation Tax purposes.
Both Companies House and HMRC have distinct definitions for a dormant company.
HMRC defines a dormant company as a company which:
Is being established for future use or preparation before trading begins. This means you might have a new business idea and want to get everything set up in advance, or you may have tasks to complete before you can start trading. By creating a dormant company, you can be well-prepared to commence trading at short notice while the company remains inactive.
Is registered to safeguard a business name. If you wish to ensure that your company name is officially registered and protected from potential competitors, forming a dormant company can serve this purpose. Without registering a dormant company, there’s nothing preventing someone else from establishing a limited company with the same name as your business. This is why many sole traders choose to create a dormant company, even if they prefer to operate as self-employed.
Is intended to hold a fixed asset, such as property. Limited companies, often referred to as “Right to Manage” or flat management companies, can be set up to enable residents to jointly manage a property. In such cases, a separate Residents’ Association Company typically handles management income, expenses, and legal matters. As a result, the flat management company itself is designed to meet the criteria of a dormant company.
These distinct purposes illustrate how a dormant company can serve various functions, from business preparedness and name protection to the management of specific assets like properties.
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