A dormant company can have a bank account, but it just cannot have any transactions going through it to keep its dormant status (not even small interest and bank fees!). Otherwise the company will become active and lose its dormant status, disqualifying it from the benefit of being able to file dormant company accounts.
The only transactions a dormant company have have going through its bank account, and keep its dormant status according to Companies House, are:
filing fees paid to Companies House
penalties for late filing of accounts
money paid for shares when the company was incorporated
So, if your company only had the transactions above for a financial year, then it was dormant for that year according to Companies House. For more information, visit the Companies House website.
If there are any other small anticipated costs for the dormant company, you may consider paying them yourself out of your own pocket. This would include paying for services to file your dormant accounts, such as ours.
So why would a dormant company have a bank account if it cannot use it? There are a couple of scenarios in which this might happen:
The company may have opened up a bank account in the past and used it when it was trading, but is now not using it as the company is now dormant. So the business has decided to keep the bank account in case it begins trading again in the future.
The company may have recently incorporated and opened up a bank account in anticipation of trading soon, but has not yet started according to plan.
The best safeguard in ensuring your dormant company does not lose its dormant status due to unforeseen transactions in its bank account is to not have one in the first place, or closing it down - although this may pose a somewhat administrative burden in having to open one up again in the future if necessary.
Also, simply opening up a bank account does not disqualify a company from being dormant (but watch out for any potential set-up fees by the bank that would cause a transaction to go through). Opening up or having the bank account does not in itself mean the company is trading.
In summary, a dormant company can have a bank account, but directors must be vigilant to ensure that no transactions occur through the account that would affect the dormant status. By carefully managing the account, adhering to permissible transactions, and possibly contacting the bank to request notice of any planned transactions, a company can maintain its dormant status while holding a bank account.
Here at Just Dormant Accounts we make the process of filing your dormant accounts as simple as possible and for a very low fee - just ensure you pay the fee with your personal card!
Comments