A dormant UK company is one that is officially registered with Companies House but is not actively trading or carrying out any business activities. These companies have no significant transactions during a financial year, aside from certain allowed exceptions, such as paying fees to maintain the company’s status or receiving interest on a bank account.
What Makes a UK Company Dormant?
A UK company is considered dormant if it meets the following criteria:
No Significant Business Activity: A dormant company does not carry out any trading, provide services, or generate income from business activities. This includes things like selling products, invoicing clients, or providing consultancy.
No Substantial Transactions: The company should not have any significant financial transactions during the year, except for those required to keep the company in good standing. For example, paying an annual confirmation statement fee to Companies House or keeping the company's bank account active without transactions.
