Dormant / Trading company

[Rick]

I would be very grateful if a member of the forum could explain the difference between a dormant and trading company. ie at what point does a dormant company become a trading company. Or are they two different types of formation.

Thanking you
Rick

 

[DotNetWebs]

Hi Rick

All of this information is available on the Companies House website. Try this link for starters.

http://www.companieshouse.gov.uk/about/gbhtml/gba10.shtml

 

[Ozzy]

Hi Rick,
A company is "trading" until it files its first annual return when it officially is a logged as either dormant, or its business activity is declared if it is trading.

Technically from a sales tactic perspective, the concept of registering a dormant company is a term used by some agents to sell a maintain product to those who do not know the difference. ie. These "dormant" companies need to be maintain at a cost per year to that agent where they make their money after selling a company for peanuts initially.

In real terms all companies are trading when registered and every limited company must have an annual return filed with Companies House every year that costs between £15 and £30 each year (plus your annual accounts).

 

[Rick]

Thanking you Dotnetwebs and Ozzy you have been a great help, all is clear now.
once again thanking you have a merry xmas and a prosperous new year.
Regards
Rick