The benefits of establishing a dormant company are numerous. However, many entrepreneurs and small business owners who want to set up dormant companies in the UK are unsure how to get started. Assume you know how to set up a limited liability company in the UK. In that case, you might be interested to know that, with a few exceptions, the process for establishing a
dormant company is the same.
Though dormant accounts advisers are available in the UK, it is also beneficial to understand minor details such as what causes a dormant company in the UK, the information required, and why you might want to register a dormant company. So keep reading to find out more about registering a dormant company in the UK.
What is a Dormant Company?
Companies House may have marked some companies as dormant, which you may have heard about or seen. Dormant companies are those that have been registered but have not been used. Even if the company is dormant and has no current business activities, it is still required to file certain documents.
A dormant company is simply a standard limited company that does not conduct business and has no accounting transactions. Dormant corporations can also be used to hold assets such as freehold real estate. This purpose, however, is of limited interest to small business owners.
How to File for a Dormant Company?
Do you want to know how to form a dormant company in the UK? If your company is no longer trading for whatever reason, but you do not want to close it permanently, you have this option. Those interested in how to register a dormant company, on the other hand, should familiarise themselves with the country’s legislation. Every year, a dormant company must file annual
accounts and a confirmation statement.
After a period of inactivity, a dormant limited company can be registered. You also have the option of establishing a dormant company from the start. You can change its status whenever you want to resume trading. Similarly, you must notify Companies House and HMRC of this change.
If you decide to stop trading, you must notify HMRC immediately and register your company as dormant. If your company has previously been active and traded, they will notify you and notify you that you must file a Corporation Tax Return for that period. If your company is VAT registered, you must cancel this registration as well as any payroll operations and settle any
outstanding debts. If you have already registered your company as dormant and begin trading, it will automatically
lose its dormancy status.
Looking to Relax a Bit?
There are many reasons why you might want to leave their company for a while: perhaps you are taking a break from your duties as a director, or perhaps you’re returning to permanent employment. Whatever your reason, making your company dormant is a quick and easy way to put a halt to your operations for a while. Icon Offices can assist you if you are considering dormancy in the UK. We can assist in keeping your dormant company’s filing requirements current while you arent using it, allowing you to focus on your business. Get in touch with us today to learn more!