A dormant company is a company that is not actively doing business or trading and does not have any other sources of income, such as investments or tangible assets. According to the Companies Act 2006, a company is considered dormant if it has no significant accounting transactions (transactions required to be recorded in the company's accounting records under section 386 of the Companies Act 2006). For more information, please follow the link
https://www.legislation.gov.uk/ukpga/2006/46/section/1169
When determining whether a company is dormant, certain financial transactions may be disregarded, including payment for shares taken by subscribers to the memorandum of association, fees paid to the Registrar of Companies for certain changes or filings, and penalties for failure to deliver accounts.