What is Dormant Account Declaration?

In the UK, the term "Dormant Account Statement" or "Dormant Company Accounts" typically refers to a situation where a company has not engaged in any significant financial transactions or activities during a specific period. If a company has not generated income or incurred expenses for a certain financial period, it may be required to submit a Dormant Account Statement.

Here are the key elements of a Dormant Account Statement:

1. Definition of a Dormant Company:

   • A company is considered dormant if it has not carried out any significant trading activities, generated income, or incurred expenses during a specific financial period.

2. Requirement for a Dormant Account Statement:

   • A dormant company is required to submit a Dormant Account Statement to Companies House and other relevant authorities at the end of each financial year. This statement declares that the company has been dormant and has not engaged in trading activities during the specified period.

3. Information Included in the Statement:

   • The Dormant Account Statement includes details such as the company's name, registration number, the period covered by the statement, and information confirming that the company has been dormant. It may also provide certain financial details about the company.

4. Dormant Company Fees:

   • Dormant companies are often associated with lower fees since they are not actively trading. However, there may be an obligation to pay a fee for submitting the Dormant Account Statement to Companies House each year.

The Dormant Account Statement is used to document periods when a company has been inactive and to formally declare that the company has not engaged in trading activities during a specified period. It is a way for companies to communicate to regulatory authorities that they have temporarily ceased operations or have not recorded any financial transactions for a specific period.