A company with no sales is not necessarily a company with no transactions or obligations. Directors should make an intentional decision about keeping, restarting or closing it.
Check what “dormant” means in your situation
Review bank charges, share capital, director funding, rental, loan balances and any other transactions. Dormant status for an audit exemption or accounting assessment can involve specific definitions.
Understand continuing company obligations
Company records, director details, SSM filings and other applicable responsibilities may continue. Audit exemption, if available, is not an exemption from preparing accounts or all other compliance work.
Consider the cost of keeping the entity
Estimate company-secretarial charges, accounting updates, tax administration and banking costs. Compare this with the likely value of reusing the entity for planned operations.
Plan a restart or orderly closure
If restarting, update the company details and check licences, staffing and accounting processes. If closing, investigate whether strike-off or another legal procedure fits after resolving balances and liabilities.
Practical example
A company with no customer invoices may still pay bank fees and receive director funding. These transactions matter when determining accounts and the most suitable next step.
Your practical checklist
- Check the last twelve months of bank transactions
- List outstanding annual and tax compliance matters
- Compare annual running cost with future plans
- Confirm whether reactivation or closure is more practical
Frequently asked question
Can a dormant company ignore its company secretary?
No. Relevant statutory records, updates and filings may continue even without trading.
General information only. Requirements depend on your circumstances and may change. Regulated tax-agent, audit, legal or liquidation work is handled by appropriately qualified professionals.