Is a company considered 'dormant' if I am still paying money into it?

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I registered a company as dormant not long ago, and I was just wondering whether it would be possible for me to place money into its accounts. I’m not stupid, I know what “dormant” means, and it certainly sounds like putting money into the company might qualify as business activity. But can you tell me whether the law views it that way?

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A dormant company is one which has no significant accounting transactions that must be entered into its accounts. This is not the same as a non-trading company that may be involved in day-to-day transactions like paying suppliers and service providers even whilst it is not selling goods or services - a non-trading company is not a dormant company, so do not confuse the two.

If you pay any money into or through your business bank account, your company will immediately cease to be dormant. The only exceptions are:

  • Payment for shares by the subscribers named on the memorandum of association
  • Payment of filing fees to Companies House, except the cost of company formation
  • Payment of late filing fees to HMRC

Even if your company does not spend any of the capital you pay into your business bank account, or it only uses the money to pay for business set-up costs, your company will not be classed as dormant. The only way to retain a dormant status is to pay for all incidental costs (other than those listed above) through your personal bank account. To be on the safe side, it is best to avoid opening a business bank account until you are ready to make your company active.

a year ago
 

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