Business Setup & Legalintermediate
Dormant Company
Definition
A limited company that is registered at Companies House but has had no significant accounting transactions during a given period. It still must file accounts and confirmation statements.
Why it matters
Founders often keep dormant companies registered to hold a name or brand. Even dormant companies have legal filing obligations, failing to comply results in fines and potential strike-off.
Example
A founder forms a limited company for a future project. While she is not yet trading, the company is dormant. She files abbreviated accounts and a confirmation statement annually.
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