Dormant Company definition

What does Dormant Company mean?

A company is dormant when it has no significant accounting transaction.

For purposes of determining whether a company is dormant, a 'significant accounting transaction' means a transaction required by Companies Act 2006 (CA 2006), s 386 that must be entered in the company's accounting records. To determine whether the company is dormant, the following must be disregarded:

(1) any transaction from the taking of shares in the company by a subscriber to the memorandum resulting from an undertaking of his with regard to the formation of the company;

(2) any transaction comprising the payment of: (a) a fee to the registrar of companies [for 'registrar of companies' for a change of the company's name; (b) a fee to the registrar for the re-registration of the company; (c) a penalty for failing to file company accounts; or (d) a fee to the registrar for the registration of an annual return.

Any reference in CA 2006 to a body corporate other than a company being dormant has a corresponding meaning. CA 2006, s 1169(4).

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Dormant Company is referenced 1 in UK Parliament Acts

Dormant Company is referenced 1 in Halsbury's Laws of England

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