A dormant limited company is a company that has no trading activities, no income or activity of any type, either since it was formed or later on if it has ceased all trading activity.  People form dormant limited companies for numerous reasons, such as in order to have their company formed ready for when they will begin trading or in order to prevent others from registering the name they want as a limited company.

To complete a dormant company formation you simply need to complete the same form that you would for a normal company formation.  Therefore if you were to form a company with Wisteria Formations you would simply have to complete the online company formation application just as you would for a trading company formation.

The company will naturally be dormant if no trading or other activity takes place.  However you are required to inform HMRC formally that the company is  dormant after it has been formed.  If the intention is that the company is to be dormant from incorporation then you will need to fill in a dormant CT41G form and file it with HMRC.  This form will normally be sent to the company’s registered office automatically a couple of weeks after the formation of the company.  You will then have to ensure that the company has no transactions in order for it to stay dormant; as soon as it undertakes any transaction, acquires any asset or holds any title it is no longer dormant.  You will also have to make sure you complete the necessary filing with Companies House, such as dormant accounts and completing the relevant information on the annual return.

For help with dormant company accounts and requirements, contact Wisteria Chartered Accountants or view their site here: http://www.wisteria.co.uk/?q=small-business-accountant-business-plans

To form your limited company online with Wisteria Formations begin here: http://www.wisteriaformations.co.uk