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.