Can a dormant company employ people?


A few years ago, I set up a dormant company. It’s been extremely useful, but a thought just occurred to me: can my dormant company have registered employees? Or would that count as “business activity” in the eyes of Companies House? Just curious, really.




Your company will not be considered dormant if it employs people and provides payment for their services - this is viewed as a business activity, so the company would have to register for Corporation Tax and submit accounts and tax returns to HMRC.

A company that employs people but does not currently sell any goods or services is classed as a non-trading company, not a dormant company.

2 years ago

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