How Do I Make My Company Dormant?

There's no form to file with Companies House or HMRC to make your company dormant. You simply write to HMRC letting them know you don't intend to trade yet, and you still file a Confirmation Statement and dormant accounts every year regardless. Here's exactly what's involved.

Key Takeaways

• A dormant company is one with no "significant accounting transactions" during its accounting period, according to Companies House.
• There's no dormancy form. You tell HMRC directly by writing to your local tax office.
• You still must file a Confirmation Statement and dormant company accounts every year, even while dormant.
• Since November 2025, dormant companies aren't exempt from director and PSC identity verification requirements either.
• Your company's status on the public register will show as "active," never "dormant," even once HMRC and Companies House both know it isn't trading.

What Actually Counts as a Dormant Company?

A company is dormant if it hasn't had any "significant accounting transactions" during its accounting period, according to Companies House's own definition. A significant accounting transaction is one the company would normally have to record in its accounts.

This is a common route for people who've found a company name they want to lock in before they're ready to actually start trading. Registering the company keeps the name reserved, even if you're not doing business yet.

How Do I Actually Make My Company Dormant?

You don't file a form to make your company dormant. Instead, write to HMRC directly, ideally right after forming your company, telling them you don't intend to trade yet.

A quick search will tell you your local tax office. HMRC is generally good at recognising you're not trading, but it's still worth notifying them directly, so you don't end up chased for tax returns you don't owe. Nothing else is required from you in your company's first year beyond this.

What Do I Still Need to File While Dormant?

You still need to file a Confirmation Statement and dormant company accounts every year, even while your company isn't trading. This surprises a lot of people who assume dormancy means no paperwork at all.

Your Confirmation Statement asks for a SIC code describing your company's nature of business. For a dormant company, you use code 99999. Your first Confirmation Statement is due within a 12-month review period from incorporation, plus 14 days to actually file it, not later in your second year as some guidance suggests. Getting this date wrong is one of the most common mistakes dormant company owners make.

If your company is still dormant when accounts are due, you'll file Dormant Company Accounts, a simplified version of the standard filing. Miss the deadline and Companies House issues a fine regardless of whether you're trading, so it's worth treating this as seriously as an active company would.

You'll file these every year for as long as your company exists, whether dormant or trading, and HMRC won't ask for Corporation Tax until you actually start trading.

Does Identity Verification Apply to Dormant Companies Too?

Yes. Since November 2025, dormant companies get no exemption from the director and PSC identity verification requirements that apply to every UK company. Being dormant doesn't reduce your compliance obligations here.

Our identity verification service and our dormant company accounts service can help keep both sides of this sorted while your company isn't trading.

Why Does My Dormant Company Still Show as "Active"?

Your company's status on Companies House, and on our system, will show as "active" even while it's dormant. This status describes whether the company legally exists, not whether it's trading.

Companies House only uses a handful of specific statuses: "active," "dissolved" once closed, or "active – proposal to strike off" during closure. There's no separate "dormant" or "non-trading" status shown publicly, so don't be alarmed if your dormant company still says "active" everywhere you check.

FAQs

Do I need to file a form to make my company dormant?

No. There's no dormancy form. You simply write to HMRC telling them you don't intend to trade, and Companies House filings continue as normal.

Do dormant companies still need to file a Confirmation Statement?

Yes, every year, using SIC code 99999 to reflect dormant status. There's no exemption from this filing just because you're not trading.

When is a dormant company's first Confirmation Statement due?

Within the 12-month review period from incorporation, plus 14 days to file, the same timeline that applies to active companies.

Do dormant companies pay Corporation Tax?

No, not until you actually start trading. HMRC won't require Corporation Tax payments or returns while the company remains genuinely dormant.

Why does my dormant company show as "active" on Companies House?

Because "active" only reflects that the company legally exists, not whether it's trading. There's no separate public status for dormant companies.

Do directors of dormant companies still need to verify their identity?

Yes. Since November 2025, identity verification applies to directors and PSCs regardless of whether the company is trading.

This article is for general information only and does not constitute legal or tax advice. Companies House and HMRC requirements can change, so it's worth checking current guidance on GOV.UK or speaking to a qualified professional before making decisions about your company's status.