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Post Info TOPIC: Dormat or dissolve
JRA


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Dormat or dissolve
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I have a client who wishes to dissolve a few companies he registered a few years ago that never traded. I wonder if the 'dissolved' flag on Companies House still has negative associations rather than just keep dormant. I am aware of the cost of 'servicing' a dormant company.
Welcome thoughts of this group



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FoxAccountancyServices


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What are the costs of servicing a dormant company?

Anyone looking into the dissolution can see it never traded and was probably just held as a shelf company

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Cheshire


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Even in a former life (finance), I can only recall a negative association if a company was dissolved through, how shall I say it - 'abandonement' (such as not filing annual returns, but its was clear there was a debt there!) or via administration etc, rather than just dissolved with no trading.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
JRA


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Thanks for your comments - the costs for a dormant are the annual return charge and time spent sending dormant acts



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FoxAccountancyServices


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£13 and a quick form fill out once a year... not really costs if you want to keep the business looking good.. tho to be fair dormant or dissolved, anyone can see nothings happening. I doubt its as important these days with so many companies about. back in the day, when we had to balance to even 1p, it meant something. I guess its a case of who is going to be looking?

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Cheshire


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FoxAccountancyServices wrote:

back in the day, when we had to balance to even 1p, it meant something. 

 

Was like this where I used to work!  Such a pain sometimes but complete job satisfaction when you find it.....or is that just me being a saddo?!!



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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