| A dormant company is that has no significant | | | | 2) All dormant companies are compelled to file annual |
| accounting transactions during a financial year. In case | | | | accounts at companies' house. Those dormant |
| of a dormant company there are no entries in the | | | | companies which are not doing any trade are also |
| companies accounting records. Te most common | | | | liable to file annual accounts at companies' house. |
| reason of forming a dormant company is to secure | | | | 3) Form DCA can be used by the dormant companies |
| the name and prevent it from others to use it. The | | | | never traded to file their account information. |
| trading companies may choose to be dormant if they | | | | 4) Any change of registered address must be sent to |
| stop trading and may wish to start their business again | | | | the companies house. |
| in future. | | | | 5) During the time of annual account submission the |
| Why you should go for a dormant company? | | | | dormant company shouldn't generate any transaction. |
| Various causes are there to use a dormant company | | | | Making any transaction during this time will force you to |
| such as: it protects the brand name or trade mark you | | | | submit your full accounts information to the company |
| wish to have. Securing a dormant company is very | | | | house. |
| help full in preventing the competitors from using the | | | | The Dormant companies are allowed to have few |
| same brand name that you may wish to use for | | | | transactions in a restrict zone such as: civil penalty |
| future business purpose. A company can remain | | | | payment for late filling accounts, paid to the registrar of |
| dormant for a very long time or for an indefinite period. | | | | company for company name change, company |
| There is no time frame to keep a company in dormant | | | | registration and filing of annual returns, payment for |
| status. | | | | shares taken by subscribers to the memorandum of |
| Few companies are there which are running, but want | | | | associations |
| to make their company dormant due to various | | | | You don't have to report the companies' house if a |
| reasons such as: they may not be in a condition to run | | | | dormant company starts trading, as the companies |
| their company in current situation or they want to give | | | | house will be aware once you filled your next annual |
| a break to their business to start it again in future. You | | | | accounts. Usually you have to submit the annual |
| can start your business at a later stage whenever you | | | | dormant company account at the end of the each |
| want according to your suitability | | | | financial year. |
| Even if you are having a dormant company and you | | | | The directors will be answerable if they won't be able |
| are not trading through it, but the directors of the | | | | to submit the documents to the companies house on |
| dormant companies must have to perform some | | | | time. By not submitting the document in companies |
| administrative duties every year | | | | house on time is regarded as criminal offense. For late |
| 1) You are liable to complete an annual return to | | | | submission of annual accounts there is a provision of |
| companies house, even if your company has the | | | | automated civil penalty. |
| dormant status. | | | | |