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Limited Companies

What if my company does not trade for a long time?

A company that doesn’t trade is known as a “dormant” company. You are allowed to form a UK company and keep it dormant for months, or even years. In fact, many people form companies that will never trade, but have been registered to protect a trading name or back up a trademark. Other people form companies to cover projects that may not come to fruition for a long time (for example, to create their future business while they are at university or in full-time employment).

Dormant companies need to have one or more company directors and file up-to-date records at Companies House. Provided you fulfill these obligations you can continue to own a dormant company. Remember that dormant companies are still obliged to complete a confirmation statement and submit accounts to Companies House each year. Dormant companies must submit their accounts on a DCA (Dormant Company Accounts) form. Failure to submit accounts result in a penalty being levied on the company whether they are active or dormant.

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