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Business Tips

Do I have any responsibilities for my dormant company?

A common misconception is that if a company is dormant, it has no obligations until it begins trading. In fact a dormant company has similar responsibilities to a trading company with Companies House and HMRC. These include:

Keeping HMRC informed

You should inform HMRC upon your incorporation that your company is dormant. You may then need to continue confirming this on an annual basis, particularly if you receive a corporation tax return reminder.

Filing an Annual Return with Companies House

All companies must file an Annual Return with Companies House each year to ensure that their records hold accurate information about the company. The Annual Return contains information including that about the officers, members and share capital of the company, meaning that all companies are in a position to complete it, including those that are dormant.

Letting Companies House know of any changes to the company

As with any company, Companies House should be informed of any changes to the structure of the company, for example a change of director or secretary, registered office address or increase in share capital. This is essential to ensure that the company remains compliant with the Companies Act 2006 and that Companies House maintains accurate information for your company.

Completing Dormant Company Accounts to file with Companies House

Some directors believe that as the company has been dormant and has no transactions it is not necessary for the company to file accounts, however this is not the case. Dormant companies must also file accounts although Companies House provides an abridged form for use by dormant companies.

All companies must ensure that they complete their annual obligations to remain compliant and avoid potential penalties. If you need advice or assistance with your dormant company obligations please get in touch with us.