Dormant account refers to the company that is not trading or generating revenue. In the United Kingdom, a company is regarded as dormant by Companies House if in the course of the financial year, there have been no significant transactions apart from filing fees or statutory payments. Dormant companies are forgiven of full financial reporting, but they are required to file dormant company accounts with Companies House and, under certain circumstances, must notify HMRC that they are dormant. No documents required and no documents filed will lead to penalties of non return of papers or late return of paperwork.
