Dormant companies — those that have never traded or have been inactive for a long period — are often straightforward to close. Because there is typically no trading activity, outstanding debts, or complex tax affairs, the voluntary strike-off process can be relatively simple. Here is how to do it.
What counts as a dormant company?
For Companies House purposes, a company is dormant if it has had no significant accounting transactions during the accounting period. A significant transaction is one that must be entered in the company's accounting records — so filing fees, subscription payments, and bank interest may still allow dormant status.
For HMRC purposes, a company is dormant if it has not been active — i.e., it is not carrying on a business or receiving income.
Do you still need to file accounts?
Yes, unless you apply for strike-off first. A dormant company must still:
File annual accounts at Companies House (dormant company accounts are a simplified format)
Confirm the confirmation statement (annual return) each year
If you are behind on your accounts, file them before applying for strike-off to avoid penalties and to clear the path for dissolution.
Is there anything to pay HMRC?
If the company has never traded and has had no income, HMRC will have notified you that the company is not required to pay Corporation Tax. You do not need to file a CT600 for a genuinely dormant period.
However, if the company was once active before going dormant, make sure:
All historic Corporation Tax returns are filed and paid
There are no outstanding HMRC queries
It is worth writing to HMRC Corporation Tax Services to confirm the company has been dormant and that there are no outstanding liabilities before applying for strike-off.
Step-by-step: closing a dormant company
1. Check you are eligible for strike-off
You can apply for voluntary strike-off if the company has:
Not traded or changed its name in the last 3 months
Not disposed of any property or rights in the last 3 months
No outstanding legal proceedings
Dormant companies typically meet all of these criteria easily.
2. Confirm no HMRC liabilities
Even if the company has been dormant, check with HMRC that there are no outstanding queries. If the company was previously active, file any overdue returns and settle any tax owed.
3. Settle any remaining costs
Check for:
Any annual Companies House filing fees paid by the company (these are fine — they do not affect dormant status for most purposes)
Any dormant bank account fees
Any small liabilities incurred to keep the company registered
Pay and close these before proceeding.
4. File final accounts (if not already up to date)
If your dormant accounts are not filed up to date, file them now. Dormant company accounts are simple — a one-page balance sheet showing £nil assets and liabilities (or a small share capital amount) is typical.
5. Notify relevant parties
Even for a dormant company, you must notify:
All shareholders (if there is more than one)
Any creditors (even if none, it is good practice to confirm)
HMRC (to confirm no outstanding liabilities)
6. Complete and submit DS01
Download form DS01 from Companies House. For a company with a sole director, this is straightforward:
Complete the company details
Sign the form (as the director)
Pay the £33 filing fee
Submit online or by post
7. Wait for dissolution
Companies House will publish a notice in the Gazette. After a two-month objection period, the company will be struck off and dissolved.
What if there are assets?
Dormant companies often have a small amount of share capital (e.g., £1 or £100) recorded on the balance sheet. This must be dealt with before dissolution — or it will pass to the Crown as bona vacantia.
For trivial amounts, this is rarely a practical concern. But if you want to recover even a small amount, ensure any remaining funds are distributed to shareholders before applying for strike-off.
Common questions
Can I close a dormant company myself?
Yes. Because there are no complex trading or tax affairs, most dormant companies can be struck off without professional help. The DS01 form is straightforward and costs £33.
Do I need an accountant?
Not usually. If the company has never traded and you are up to date with filings, you can handle the process yourself.
How long does it take?
Typically 3–4 months from submitting DS01 to the company being removed from the register.
Use our free eligibility checker to confirm you are ready to proceed.