When managing a UK limited company, one important decision is whether to keep it active or make it dormant. Choosing wisely affects your filing obligations, costs, and administrative duties.

Dormant vs Active Companies: Key Differences

File Confirmation Statement

“A significant accounting transaction” excludes transactions like:

If you plan to keep your company dormant—perhaps for future use or to preserve a name—you must still:

An active company is one that’s trading, holding assets, hiring staff, or undertaking any business activity.

An active company must comply with full administrative duties:

And, of course, both company types must submit a 

Trading activity None Yes Statutory accounts Dormant accounts Full statutory accounts Corporation Tax return Usually not required Mandatory (CT600)VAT registration Not needed Required if turnover exceeds threshold PAYE obligations Not needed Required if salary or staff are involved Confirmation Statement Required Required Costs & complexity Minimal Higher (accounts, tax, payroll software)

➡️ Don’t Forget to File the Confirmation Statement

Whether your company is dormant or active, don’t overlook the annual 

. It keeps your public record up to date, avoiding potential penalties or even strike-off.

 today to ensure compliance and maintain good standing.

If your dormant company begins trading, category changes, and you must:

Conversely, an active company can be made dormant if it ceases activity and has no outstanding filings or obligations.

➡️ Keep your company records accurate and legal—

Share - Dormant vs Active Companies: Key Differences