A company may be dormant if it's not doing business or trading and doesn't have any other income, such as investments or tangible or intangible assets. According to the Companies Act 2006, a company which has no significant accounting transactions (transactions required to be entered in the company's accounting records under section 386 of the Companies Act 2006) (section 1169, Companies Act 2006). For more information, please follow the link.
https://www.legislation.gov.uk/ukpga/2006/46/section/1169
Accounting Section 1169(3), Companies Act 2006, when determining when or whether a company is dormant, the following financial transactions may be disregarded:
- Payment for shares taken by subscribers to the memorandum of association.
- A fee paid to the Registrar of Companies on a change of company name, the re-registration of a company, or filing of a confirmation statement.
- Payment made to the Registrar of Companies as a penalty for failure to deliver accounts.
