How to make a limited company dormant with Companies House

Learn the necessary steps to make your company dormant and comply with Companies House regulations.

Steps to Make a Limited Company Dormant:

1. Close the Company's Business Bank Account: Close the bank account used for business purposes. If there are any transactions or charges associated with the account, the company won't qualify as dormant.
2. Close VAT and PAYE Scheme: If the company was previously registered for VAT or had a PAYE (Pay As You Earn) scheme, these registrations must be closed.
3. Change Company's SIC Code to Dormant (99999): Update the company's Standard Industrial Classification (SIC) code to reflect its dormant status. This administrative task can be done by submitting a confirmation statement to Companies House.
4. Pay Company's Confirmation Statement Fees: Pay the fees required for submitting the confirmation statement to Companies House. These fees should be covered using the director's personal bank account.
5. Transfer or Sell Business Tangible and Intangible Assets: If the company owns any physical assets or intellectual property, such as equipment or patents, make arrangements to transfer or sell them. Retaining such assets would disqualify the company from being considered dormant.
6. Submit Dormant Accounts to Companies house: You can file dormant company accounts to Companies House directly using Companies House online portal or get a professional to assist you with dormant company accounts preparation and submission.
7. Inform HMRC that the company is dormant: You need to inform HMRC that your company is dormant by filling out this form online so that you do not need to submit a corporation tax return to HMRC.

What if My Company Has Few Transactions?

If the company conducts a limited number of transactions during the year, it cannot be classified as dormant. In such cases, the company director must submit regular annual reports to Companies House instead of special dormant reports. Regardless of its status, all companies are required to submit reports to Companies House.

If you require assistance, please feel free to contact us.