What is a non-trading company?

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My name is Finley, I am a writer from London. I would like to get together with a couple of friends to start a media company. I am trying to work out how things work when your company isn’t active. What is a non-trading company in legal terms? Thank you for your help, I need it!

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A non-trading company is a limited company that has been registered at Companies House but is not presently engaged in normal trading activities. The company is ready to trade at any time because it has been incorporated, but the only transactions it has are from pre-trading activities like paying rent or employees’ wages, paying accountancy fees, and setting up the business for future trading.

If your company is non-trading, you must tell HMRC by contacting your local Corporation Tax office. Your company will be listed as non-trading until you register it with HMRC as active for Corporation Tax purposes.

a year ago
 

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