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How do I form a Dormant Company?
“A company is dormant if it has had no ‘significant accounting transactions’ during the accounting period. A significant accounting transaction is one which the company should enter in its accounting records.”
To form a dormant company (private company limited by shares):
- Form the company (as you normally would).
- Roughly 3 weeks after incorporation, HMRC will send a letter to your registered office. Once you get this, you'll need to inform HMRC that your company is dormant.
- File confirmation statement annually (a trading company has to file these too).
- File dormant company accounts annually (a trading company has to file these too; just not the dormant version).
- Don’t trade!
If and when your company does start trading, let HMRC know immediately.
If you have any questions regarding this process, please contact us.