Forming your dormant company
Common reasons for forming a dormant company include:
- To get the ball rolling while still perfecting your business plan – particularly handy if you’re still employed but want to start your entrepreneurial career in secret.
- To protect your company name and hold intellectual property – once we’ve registered your business, your company name and all trademarks are retained so no one else can use the same.
At the time of incorporation your business will automatically be seen as a dormant company until it starts trading. It can remain dormant indefinitely, although you’re still required to file an annual return and your dormant company accounts showing assets and shares. And once you do start trading it’s important to tell HMRC within three months so that they know Corporation Tax may be due.
How to buy a dormant company
You can buy an existing dormant company through an authorised agent. This will include the name, and trading history if there is any. You may also register a new company and let HMRC know that it is dormant if you would like to protect a company name.
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- Set up a basic Limited Company that’s ready to trade and choose anything else you need as extra.
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What is a company formation agent?
Formation agents perform company registrations in partnership with Companies House. We’re one of the largest, and also the cheapest. We don’t just get your company registered then leave you to it – we use our experience to help you start your business properly. There are plenty of reasons to use a formation agent rather than go directly to Companies House. If you ask us, though, the best thing is that we go through the whole process with you, and get your application submitted securely online. We provide expert advice on the legal hurdles while you incorporate, and recommend good quality solutions that you might need after you’ve formed.
What’s the difference between sole trader and limited company?
Think of it this way: when you form a limited company, you put a protective shield between you and your business. Being a sole trader is the opposite – you have no protection. As a sole trader, you are responsible for any debt you might come into while you’re in business. When you register and become the director of your own limited company, you have less personal responsibility. The benefits are that you can claim back expenses, and add to your salary with dividend payments at the end of the year. For more information, see our Help Centre article about limited companies and sole traders.
How do I register a company?
Easy, we’ll do it for you. Check out our formation bundles to learn more about our different products. They start at £9.99, and go all the way up to our Super bundle. Limited company formation is a straightforward business if you’re as well-versed with the process as we are. If you’re not sure where to start, check out our company formation guides for an introduction and some insider tips.
Why The Formations Company?
We’re dedicated to British business, and love nothing more than seeing new companies flourish. 750,000 UK companies have trusted us to help them register, and we have thousands of happy customers who’ve seen how simple the formations process can be. We’re cheaper than going to Companies House directly, and cost less than most accountants. Our online application is incredibly simple, and if you’ve got all your documents handy it shouldn’t take more than 10 minutes to complete. So what are you waiting for? Start your business today.