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Trading Whilst Dormant?

Trading Whilst Dormant?

Postby Student » Mon Dec 24, 2012 3:55 pm

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.
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Re: Trading Whilst Dormant?

Postby atticus » Mon Dec 24, 2012 5:55 pm

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on 31 December, a company files its accounts as at 31 Maech that year, the snapshot of the company is already 9 months out of date.
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Re: Trading Whilst Dormant?

Postby Student » Mon Dec 24, 2012 6:22 pm

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?
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Re: Trading Whilst Dormant?

Postby dls » Tue Dec 25, 2012 6:29 am

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.
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Re: Trading Whilst Dormant?

Postby jantra » Sat Feb 02, 2013 1:18 pm

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
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Re: Trading Whilst Dormant?

Postby perelandra » Thu Mar 07, 2013 3:07 pm

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.
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Re: Trading Whilst Dormant?

Postby daffy » Sat Feb 28, 2015 6:05 pm

In my travels to find a reliable double glazing company I came across this scenario

A company XXX Ltd was recommended to me. It has a showroom with salespersons, and a company website. On Compnies house it has Status "Active" and Nature of business 99999 Dormant. Their accounts show that they are worth £2. They claim to be Fensa registered but are not. The company's proposed contract is a contract between the customer and XXX Ltd.

Their explanation is this:

Dear daffy,

There is nothing amiss, it’s a strategic move into the Retail sector as our Sister Company [Similar name to XXX Ltd] has a Healthy relationship with Fensa and 5 Years’ worth of accounts at Companies House. The move into the Retail Market has stemmed from strong recommendations from our previous Clients as we would install windows, doors, Bi-folds, Conservatories etc. under a Building Contractors umbrella. The name [Similar Name to XXX Ltd] did stop for example; Mr & Mrs Smith approaching us because of our name having [a term with commercial association] in it and we felt we had to make ourselves available to everybody and this is where XXX Ltd was born. XXX has a fully functional Showroom with the latest products and friendly sales staff to help start customer relationships and the location of the Showroom helps us show off all our local installations in adjacent streets too. I would strongly urge you for your peace of mind to look into our Sister Company at Companies House and at Fensa to reinforce we are reputable Company. The first 3 Years of any new Company will always be a struggle as to gain affiliation with any governing body the Company would require 3 Years’ worth of Accounts to even deal with Suppliers. If you can wait until the Summer for your windows or doors by then we would have our 1st Year of Trading Accounts at Companies House and the Dormant Banner Lifted. Hope this helps explain our babies 1st steps.

XXX Ltd share two of their three directors with [Similar Name to XXX Ltd.]

Is this a usual/viable arrangement and if so, is the potential customer protected in any way if the XXX Ltd. fails to carry out the window installation work or does not provide a Fensa certificate? The deposit alone would be >£1000. What is the meaning of "sister company"

Thank you for any help
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Re: Trading Whilst Dormant?

Postby atticus » Sat Feb 28, 2015 6:10 pm

It is meaningless. Pure BS.
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Re: Trading Whilst Dormant?

Postby daffy » Sat Feb 28, 2015 10:38 pm

Thanks Atticus

I was afraid it might be
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