Dormant companies

Fotis Grontas & Assosiates on February 18, 2019

A company is dormant during a period in which no significant accounting transaction occurs, that is, no transaction which is required to be entered in the company’s accounting records, and a company ceases to be dormant on the occurrence of such a transaction. Whether a company is dormant or not is a matter of fact, which may change if the company starts to have accounting transactions. Information at Companies House may show that the company was dormant during a period for which it has registered dormant accounts, but will not show whether or not a company is currently dormant.

A company may be kept dormant indefinitely provided the statutory requirements for the registration of annual accounts and annual returns are complied with. This is useful in a number of circumstances, e.g. to protect a distinctive company name from registration by others and for the smaller kind of property management company.

FOTIS GRONTAS &ASSOCIATES provides an expert service for all types of company formation and company law requirements. They can register and keep a dormant company, acting as company secretary and attending to all routine Companies Act requirements. This is quite often done as a way of protecting the name from registration by someone else.

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