What Is a Dormant Company? Benefits & Tax Guide [2025]

13 June, 2025 · 9 min read

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Discover what is a dormant company and learn how to keep it compliant, avoid common pitfalls, and protect your business while not trading.

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Frequently asked questions

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Frequently asked questions

1. Is there a time limit on how long a company can remain dormant?

No, there is no statutory time limit on how long a company can remain dormant in the UK. A company can stay dormant indefinitely as long as it continues to meet all its filing obligations with Companies House and HMRC, such as submitting dormant accounts and confirmation statements on time.

2. What record-keeping requirements apply to dormant companies?

Even if a company is dormant and not trading, it must still maintain statutory records. This includes keeping minutes of meetings, registers of members and directors, and other company records as required by law. Proper record-keeping ensures compliance and readiness in case of inspections or if the company resumes trading.

3. Are there any tools to help with filing dormant company documents?

Yes, several tools can simplify the filing process. Companies House offers a free online web filing service for submitting dormant company accounts and confirmation statements. Additionally, third-party services like ANNA provide automated reminders and filing assistance to help ensure deadlines are met and filings are accurate.

4. How do I notify HMRC that my company is dormant?

You can notify HMRC of your company’s dormant status in several ways:

Online via the HMRC website or your business tax account
By phone, contacting HMRC’s Corporation Tax helpline
In writing, by sending a letter to HMRC with your company details and confirmation of dormancy

5. Can I sell a dormant company?

Yes. Update Companies House with the new director/shareholder details.

6. Can a dormant company own property?

Yes, a dormant company can own property, but any ongoing expenses (e.g., insurance, utilities, maintenance) or rental income will break dormancy for both Companies House and HMRC. However, simply holding an asset without any transactions is rare in practice.