How to File Accounts for a Dormant Company? A Detailed Guide

Having a dormant UK company allows you to manage administrative requirements at a minimal level. Ensuring accurate and timely filing of dormant company accounts stands as a fundamental responsibility among all obligations. If you’re wondering how to file accounts for a dormant company, this blog will provide you with complete information about submitting accounts for dormant businesses.

What is a Dormant Company?

A dormant company is defined as a company with no financial dealings throughout its fiscal year. It gets to stay registered with Companies House while avoiding all trading and earning activities. The company can perform certain financial operations such as fee payments to Companies House, yet does not take part in trading or business activities. A dormant business needs to meet official filing requirements to remain legally compliant.

Do You Need to File Accounts for a Dormant Company?

Before learning how to file accounts for a dormant company, it is vital to understand whether you need to file them.  The answer is yes! Although your business remains inactive, you must submit yearly financial reports to Companies House and a confirmation update. Furthermore, to prevent fines, the company must maintain its legal status by submitting the required financial data.

Which Organisations Are Authorised to File Dormant Accounts?

A business meets dormant account filing requirements when:

• It did not carry out any trading operations during the previous fiscal year.
• It has no required reports except for Companies House fees because it performed zero transactions.
• It does not belong to a business network that needs to combine its financial information under IAS requirements.

How to File Accounts for a Dormant Company?

You can easily submit your dormant company accounts using the Companies House online platform. Here’s a step-by-step guide:

• Check Your Company’s Status:

For how to file accounts for a dormant company, you have to make sure, your company matches all conditions for being classified as dormant, before starting the filing process. An enterprise qualifies as dormant when it handles only necessary reporting duties such as:

• Payment of Companies House fees
• Penalties for late filings
• Share issuance fees

If your business engages in trade activities, you must submit full financial reports because they do not fulfil dormant company criteria.

• Gather the Necessary Information:

To register for a dormant business, you need the following information.

• Your company authentication code (for online filing)
• Company registration number
• Basic details such as company name and registered office address 
• Choose a Filing Method:

You have two options to file your inactive accounts.

• Companies House offers the fastest way to submit dormant accounts through their online platform (File dormant accounts online).
• You can prepare your dormant accounts using the AA02 form known as DCA and submit it to Companies House through the post service. 
• Complete and Submit the Accounts:

Open your Companies House account and click on the 'File Dormant Company Accounts' menu. You will complete a basic form that verifies, that your company has been dormant. After completing the form you should submit it for confirmation. To file documents on paper, you need to use AA02 and submit the form correctly to Companies House at their designated post address.

• Meet the Deadline:

You need to submit the dormant accounts records by the 9-month mark after your company ends its financial cycle. Companies that miss their filing deadline must pay official fines.

• Up to 1 month late – £150 fine
• 1 to 3 months late – £375 fine
• 3 to 6 months late – £750 fine
• If your account filing is over 6 months late, you will need to pay £1,500.

For further clarity visit the government website:

Common Mistakes to Avoid

If you are unsure how to file accounts for a dormant company, It takes little effort to file dormant business accounts, but even minor errors may bring compliance problems and monetary fees. you need to understand these typical difficulties when filing accounts for dormant companies:

• Missing the filing deadline:

Filing after the deadline becomes effective will trigger financial consequences.  Begin your preparations in advance to maintain your submission timeline by uploading files through the online system.

• Filing incorrect accounts:

Only submit dormant company accounts once your business remains inactive. When a company engages in unauthorized operations you must submit complete account data instead of inactive account records.

• Forgetting to file a confirmation statement:

After filing dormant company accounts, you must still submit a confirmation statement yearly to validate your business records. Companies House can take action against you and may remove your company from the register when you forget to submit this document. Following this procedure will help you to stay compliant while minimising the penalty risk. Moreover, a business needs to understand how to file accounts for a dormant company to preserve its legal standing. Meeting deadlines and fulfilling all requirements will keep your company in good standing with Companies House, whether you choose online filing or paper submission.

 Final Thoughts

Wondering how to file accounts for a dormant company, the process is simpler than you think. You can complete dormant company account filing through an easy procedure. Furthermore, following Companies House providing an online system and the correct procedures, enables you to maintain compliance while avoiding penalties. Moreover, maintaining proper company status depends on your timely submission of documents to UK authorities. As a result, your business will maintain standard compliance, if you submit timely requirements which prevents potential monetary penalties. To learn more about Micro-Entity Accounts, you can read our these guides:

• What are Micro Entity Accounts? A Beginner’s Guide
• How to File Micro-Entity Accounts? A Complete Guide
• How To Prepare Micro-entity Accounts? A Step by Step Guide

  The content provided on Micro-Entity Accounts, including our blog and articles, is for general informational purposes only and does not constitute financial, accounting, or legal advice.