If you’re running a dormant company, or thinking about making your business dormant, there are some key things you need to understand. Dormancy is a status for companies that aren’t actively trading. While it might seem like a low-maintenance option, there are still important requirements to meet.
A dormant company is one that’s not engaging in regular business activities. That means it’s not generating income, paying employees, or making significant transactions. Even if your company isn’t trading, you still have obligations to both Companies House and HMRC to keep the business in good standing.
One reason business owners choose dormancy is to save costs and reduce administrative tasks if they’re taking a break from trading. Others may register a dormant company to secure a business name until they’re ready to launch. Whatever the reason, dormancy can offer flexibility, but it doesn’t free you from all responsibilities.
Here’s what to do if you’re running a dormant company
I’ve prepared a video where you’ll learn everything about running a dormant company, from defining dormancy to filing requirements. It also includes the exact steps to take to stay if you decide to go dormant and stay compliant with Companies House and HMRC.
Click the link below to watch the video.
Conclusion
Running a dormant company comes with its own set of responsibilities, even if the business isn’t actively trading. Dormancy can be a useful status for businesses that want to take a break or save costs. But understanding the obligations that come with it is key.
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