What is a dormant company?
A dormant company is a new company that has not started trading, or a company that has not traded within the current financial year, i.e. it has had ‘no significant accounting transactions’ during the financial year.
What is classified as a significant accounting transaction?
If a company has had no significant accounting transactions in the financial year, it can be classified as dormant; however, if it has settled an invoice, paid bank charges, bank interest, paid employees, or paid dividends to shareholders, it will lose its dormant status, as these are all examples of significant accounting transactions.
Exclusions to the rule are: payment for shares issued at the time of incorporation, late filing penalties, and filing fees paid to Companies House.
What are dormant company accounts?
Companies with dormant company status only need to file a simplified form of accounts with Companies House. These simplified accounts are known as dormant company accounts, and they represent a considerable benefit, as they reduce the statutory burden of filing profit and loss accounts and a director’s report.
How often do I need to file accounts?
Accounts must be filed at Companies House at least once every 12 months.
This service is renewable annually, at a cost of £49.99 +VAT, ensuring you do not miss a filing date in the future.
Who can use this service?
This service can be used by limited companies with dormant status. The company does not need to have been formed using 1st Formations' website.
What's included in this filing service?
- Completion and filing of form AA02 dormant company accounts (DCA)
- Fast turnaround - great for customers whose filing deadline is approaching
- Confirmation of acceptance of accounts by Companies House
What information is required to file dormant company accounts?
If you formed your company using our website, then we will only need to know your company name and number, and if your shares are paid or unpaid, i.e. have the shareholders paid the company for the shares issued to them?
If you did not form your company using our website, we will require to know your company name and number, webfiling authentication code, shares paid or unpaid, and the name of one director.
How long does it take?
Using our Express Service it takes 24 hours (1 working day) to prepare and file dormant company accounts with Companies House (subject to receiving the required information).
If you are not in a rush, our Standard Service takes up to 3 working days (subject to receiving the required information).
We recommend you order the service at least 5 working days prior to the due date.
Please note: We cannot take responsibility for any late filing penalties or fines if your order or required information is not received in a timely manner.
