What Is a Dormant Company on Companies House?

If you are reviewing company information on Companies House, you might come across the term dormant company. This can lead to confusion, especially for new business owners or those considering setting up a limited company. What does it actually mean when a company is listed as dormant, and what are the legal and tax implications?

House. From filing annual confirmation statements to submitting dormant accounts on time, the process can be deceptively easy to overlook. Our team of limited company accountants offers reliable support to ensure everything is handled correctly. Whether your company is dormant temporarily or part of a broader group structure, we will take care of all the statutory filings, maintain your company registers, and ensure your dormant status is preserved until you are ready to trade.

In this article, we explain what a dormant company is, how it is recorded at Companies House, what filings are still required, and whether dormancy might be a good option for your business.

What Does Dormant Mean?

A dormant company is a limited company that is not currently trading and has no significant accounting transactions during the financial year.

According to HMRC, a company is dormant if it is not:

• Carrying on any business activity

• Trading

• Receiving income or bank interest

• Making payments (except for very limited permitted transactions)

It may still exist legally and appear on Companies House, but it is essentially inactive in the eyes of HMRC and other authorities.

Why Would a Company Be Dormant?

There are several reasons a company might be dormant:

• The directors have set up the company for future use

• The company has stopped trading temporarily

• The company is being kept to protect a business name

• It is part of a group structure but not currently active

• It is holding assets such as intellectual property or property for strategic purposes

Some business owners also form dormant companies as a protective measure while they prepare to launch or restructure.

What Filings Are Still Required for Dormant Companies?

Even if your company is dormant, you must still meet certain filing obligations with Companies House:

• Confirmation Statement: Must be filed at least once every 12 months

• Dormant Company Accounts: Simplified accounts showing the company is not trading

• Director Details: Keep your officer records up to date

• Company Changes: Any updates to registered address, shareholders, or PSCs must be reported

There is no need to file a full set of accounts or Corporation Tax return with HMRC if HMRC has agreed that your company is dormant for tax purposes.

What Counts as a Significant Accounting Transaction?

Companies House considers a transaction significant if it must be entered into the company’s accounting records. Examples of significant transactions include:

• Paying staff wages

• Issuing invoices or receiving payments

• Paying suppliers or settling debts

Permitted transactions for dormant companies include:

• Paying the initial share capital

• Paying Companies House the annual filing fee for the confirmation statement

Anything beyond these could mean your company is no longer dormant.

How to Tell If a Company Is Dormant on Companies House

When viewing a company on the Companies House register, its status will show as dormant if it has filed dormant accounts and met the conditions for dormancy. This is a public record, and anyone can check a company's status online.

If your company has started trading again, you must notify HMRC within three months of restarting business activity, and switch back to filing full accounts.

You may also be interested in reading our guidance article on how to read accounts on Companies House.

Real-World Example

A tech entrepreneur forms a company called FutureApps Ltd in January 2024 with the intention of launching a software product in 2025. While no trading takes place in 2024, she files dormant accounts with Companies House and avoids unnecessary Corporation Tax filings. Once trading begins the following year, she informs HMRC and starts submitting full accounts and tax returns.

Final Thoughts

A dormant company on Companies House is one that exists but is not currently trading or engaging in significant financial activity. While the administrative burden is lighter than for active companies, it is not a complete free pass. You still need to file confirmation statements, dormant accounts and keep director and shareholder records up to date.

Whether you are preparing to launch, pausing activity or holding a company for future use, dormancy can be a useful tool when managed correctly. For sole directors and micro-business owners, managing a dormant company might feel like an unnecessary burden—especially when the business is not actively generating income. That is where our small company accountant service comes in. We provide straightforward, cost-effective support for small business owners who want to keep a dormant company ticking over without dealing with the paperwork. We will remind you when filings are due, complete all Companies House submissions for you, and keep your records accurate, giving you peace of mind while your company remains inactive.

Unsure what to file, when to file it or how to stay compliant? Our Companies House Help hub walks you through it all.

You might also be interested in how to make a company dormant on companies house.