Dormant Companies – Fixed Fees -from £100 + VAT Per annum.
|A company is dormant if it has had no ‘significant accounting transactions’ during the accounting period. A ‘significant accounting transaction’ is one which the company should enter in its accounting records. The amount paid for shares on the formation of a company and a few costs that the company may incur in order to keep the company registered at Companies House do not count as significant accounting transactions|
Why Have Dormant Companies
There can be any number of reasons why people choose to register a Limited Company but not use it. These include, for example, to protect a company name, in readiness for a future project, or to hold an asset or intellectual property. Some flat management companies whose main purpose is to own the head lease or the freehold of a property choose to become dormant by setting up a residents’ association to deal with any expenses.
A company can remain dormant for as long as necessary – indefinitely if, for example, its purpose is just to prevent the name being used by another company.
Even if a company is dormant, the directors have a responsibility to submit Annual Return to Companies House and to submit Dormant Accounts.
The accounts will also need to be submitted to HMRC which from April 2011 must be in the IXBRL online format.
Directors have certain legal obligations to comply with when operating a Dormant Company. If they don’t comply with them, there could be serious consequences. The company’s officers could be prosecuted because they are personally responsible for ensuring that they submit company information on time. Failing to do so is a criminal offence. In addition, there will always be an automatic civil penalty for submitting accounts late.
Although the official line from Companies House is that they can prosecute directors, in practice this is rarely used. However it is important for directors to be aware of their responsibilities and to comply with them
At Price Hill & Co Ltd, we assist directors to comply with both Companies House and HMRC obligations to submit Annual Accounts in the required formats.
We offer a very competitive fee of £100 + VAT to monitor the deadlines and to submit the accounts to Companies House and HMRC.