FID Trust International

A dormant company is one that has had no significant accounting transactions during the accounting period. A significant accounting transaction is defined as one that the company should enter in its accounting records. Provided no such transactions occur then the company can have dormant company status.

A benefit of having dormant company status is that it reduces the statutory burden on a company. A private company that qualifies needs only to submit to Companies House an abbreviated balance sheet and notes. It is not required to file a profit and loss account or directors’ report – although the company may still be required to prepare these for presentation to shareholders. Dormant companies are also exempt from the requirement to file a corporation tax return.

If you wish to Protect a Company Name or just create a Non-Trading or Dormant Company then our Name Reserve Package is just for you.

For our Name Reserve Package we will incorporate a company with your choice of name. The company will be incorporated using our Registered Office address in Doncaster and with FTI acting as Director, Secretary and Shareholder. There will be nothing more to pay.

This "Sleeping | Dormant" Company will be ready to use at any time. You can advise us to open a bank account. By your command any of your contracts will be signed and mailed to you, under the nominee names and can be legalised by notary and Foreign Office in the United Kingdom. Transfer will be approved and you will receive Due Diligence Documents. The changes can be made for a small charge directly on our Company Secretarial Services. Once you have made your changes on our Secretarial Services all changes will be sent and recorded at Companies House.

If, after a year, you do not require the company then simply let us know and we will close the company down for you.

If you require the name to continue to be registered, an annual fee of £85.00 will become due. We will then file the Annual Return and Dormant Accounts. Alternatively you can take over the company at any time. Just advise us and we can change the details over to you.

There will be an administration charge of £75.00 to change the ownership over to you. All prices quoted are plus VAT.

Secretarial Services which can be activated by your command include:

  1. Annual Return.
  2. Dormant Company Accounts.
  3. Appointment of a Director.
  4. Appointment of a Secretary.
  5. Termination of a Director.
  6. Termination of a Secretary.
  7. Change in a Director`s details.
  8. Change in a Secretary`s details.
  9. Change of Accounting Reference Date.
  10. Change of Registered Office Address.
  11. Increase in Share Capital.
  12. Cancellation of Shares.
  13. By your request - any other Secretarial Services / Trips/ Meetings...

Dormant company status can be great at cost saving to the owners of a company but great care must be taken as just about any financial transactions must be reported in the company accounts. In fact, Companies House has defined only the following few, very specific transactions that the company may put through their records and still submit dormant accounts:

  1. Payment for shares by the subscribers to the memorandum of association - When a company is incorporated, the very first shareholders – often called the subscribers – will usually pay or agree to pay something for their shares. The company needs to account for this. So, if four initial subscribers each paid £1.00 for a £1.00 share then the company would have a paid up capital of £4.00. This would be represented by an asset, generally recorded as Cash in Hand of £4.00. The receipt of this £4.00 would not be a significant accounting transaction and dormant company status would not be jeopardised.
  2. Fees paid to Companies House - Every company must file an Annual Return at least once every 12 months. For this, Companies House charges a fee – currently £13. The payment of this fee, by the company from its own resources, would again not be classified as a significant accounting transaction. In addition to the Annual Return fee, companies can also pay a fee on changing the company name and/or a re-registration fee: these too can be put through the company accounts without loss of dormant company status.

Please contact us by telephone 0207 439 3400 (0044 207 439 3400 – International) or E-mail if you wish to incorporate Dormant Company.