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When can a Company be deemed as a Dormant Company?

A dormant company can be defined as which has no significant accounting transactions during the accounting period. A significant accounting transaction is described as one that the company should enter in its accounting records.  If such transactions occur, then the company can have a dormant company status. Companies House has defined very specific transactions that the company can be liable to put through their records and still submit dormant accounts:

– Payment for shares by the benefactor to the memorandum of association.

– Fees reimbursed to Companies House

– Recompense of a civil penalty for late filing of accounts

 

Transactions like bank charges, earning interest on a bank account, Buying and selling or paying for any other will create a company to lose dormant status since this too will be taken as a significant accounting transaction.