Can a "dormant" company hold a business bank account?

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Hey, my company isn’t trading anymore. If we register as dormant, can we maintain our business bank account? I’d like to keep it open if we can, but there won’t be any money coming in or out for a while.

Answers

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Yes, you can open a business bank account for a dormant limited company but I wouldn’t recommend it. There is no need for a business bank account if your company is not trading - it will simply increase your chances of forfeiting your dormant status.

If any transactions go through your company’s bank account - aside from payments for shares from the first shareholders, your annual return filing fee, or late filing fees for Companies House - you will lose your dormant status and be required to submit normal accounts instead of dormant accounts.

It’s really not worth the hassle - just hold off opening a business bank account until you’re about to start trading. If you have any incidental business costs in the meantime - accountancy fees, set-up costs, etc - just use your personal bank account.

a year ago
 

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