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Is my company dormant if I don’t have a company bank account?

Question

I’ve an offshore company registered in the UK. But I’ve been unable to open a proper bank account since I’ve not been in the UK. Does it make my company dormant?

Answer

Not having a bank account does not by itself mean that the company is dormant.

For a company to be dormant it must have no ‘significant accounting transactions’ during the accounting period.

A significant accounting transaction is one which the company should enter in its accounting records.

When determining whether a company is dormant you can disregard the following transactions:

  • payment for shares taken by subscribers to the memorandum of association;
  • fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
  • payment of a civil penalty for late filing of accounts.

See here for more details:

http://www.cheapaccounting.co.uk/blog/index.php/what-exactly-is-a-dormant-company/

Ask Away

Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.

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