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11 December 2018 You are not logged in. Login now.

What is a dormant company?

It is important to understand that a dormant company is simply a company that has not traded. All companies are dormant when first registered and only become active or trading when the company buys or sells goods or services in the company name.

We often talk to customers that want to ‘form a dormant company’. The reality is that you form a company in exactly the same way as a customer that intends to start trading immediately. Unfortunately the term ‘dormant company formation’ has been in part created by company formation agents and is perpetuated by agents that continue to package company formations as a special dormant company.

Please allow us clarify this point once again. If you need a dormant company or wish to register a company that you will not trade with then simply form your company online using our company formation website. The company will be a dormant non trading company until you start making transaction in the company name.