Trading Whilst Dormant?

[Student]

Can a company carry out business whilst dormant? I know certain things can be undertaken whilst dormant, but it appears that this company is running as a company would. How likely is the information held at Companies House up to date?

Thanks.

[atticus]

The information held at Companies House is at best up to date to the date of the period to which it relates.

If on 31 December, a company files its accounts as at 31 Maech that year, the snapshot of the company is already 9 months out of date.

[Student]

Thanks Atticus. Is there any issues with not keeping CH informed as to the status of company, such as changing from dormant to active and so on?

[dls]

It must make an accurate report at the time it makes that report. There may therefore properly be a delay of several months after beginning to trade before CH are informed.

[jantra]

if a company is trading it is not dormant. the only requirement is to state in the annual statements that the company does not present a P&L due to it not trading. The statements have to be submitted within 9 months and 1 day of the balance sheet date (year end).

the company can be trading even if the latest information at CH shows it is dormant

[perelandra]

The companies annual return also requires it to disclose it's SIC code. This will also inform a viewer of it's potential trading status as 'non-trading' has it's own code.

Also, the poster that postulated that a company needs to file accounts within 9 months and 1 day of it's accounting reference date is technically incorrect. It is now a calendar 9 months. But if a company reaches 9 months and has not filed it's accounts at CH, it can apply to shorten/extend (extend only once every five years) it's ARD, even by one day. In the case of shortening this will then give the company a further three months to file the accounts. In the case of extending you get 9 months from the extended date. It is something that we have to do occasionally for 'those' clients who are habitually tardy.