Can a dormant company buy and sell goods?



I opened a dormant company last year, but I would now like to sell products using this company. Could one of you clever cookies please give me a shout and let me know whether this would be legal? I don’t want to cross the law man.

Spencer Taylor



Dormant companies are ready to trade, so you can start buying and selling goods through your company whenever you like. A company is ‘active’ from the moment it is incorporated at Companies House because it exists as a legal individual - it is the trading status of a company that determines whether it is ‘dormant’ or ‘active’ for the purposes of Corporation Tax.

As soon as you start buying and selling goods, or doing any kind of business through your company, it will cease to be dormant - it will be active for Corporation Tax, so you must register your company for Corporation Tax within 3 months of doing any business. You can complete your registration in a few minutes online through HMRC.

2 years ago

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