• PTA

What Is An AA02 Form?

AA02 form is used to file accounts for a dormant limited liability company that has never traded with Companies House.

Why is a Company Inactive?

There are a number of reasons to have a dormant company that has never worked, although it is common to avoid using another company's name for the company you plan to use (or hope to use in the future).

AA02 Form

How Long Can a Company Remain Inactive?

A corporation can remain inactive indefinitely, which is very useful if the reason for this is to prevent another corporation from using the name. However, you still need to submit a few documents and there are costs involved. The company must decide how any fees are to be paid and who is to be responsible for submitting the necessary documents.

Should a Non-Commercial Company Open Accounts?

The GOV of the UK website uses the term "Sleep for corporation tax", but is technically now "non-commercial". HMRC allows a company to be classified as a non-commercial company for a period of up to 5 years. The Company is not required to submit any invoices or tax returns to HMRC for this non-trading period.

How do I Set Up a Sleeping Business?

You do not technically create such a dormant company, but most often you create a limited company and do not start trading there. As long as a company does not buy, sell, or otherwise trade in goods or services, it is inactive.

What Should be Included in Sleeping Accounts?

Sleeping accounts are a simplified version of the accounts that all companies must submit.

Sleeping business accounts must include:

● Balance sheet (which does not show company-wide activity)

● Last year's data (for comparison)

● Waiver of control (if justified)

What is My Responsibility for a Sleeping Company?

You must notify HMRC that the company is inactive by completing and submitting Form CT41G. If it becomes active or begins to act, you must notify HMRC within three months.

Even if the company is inactive, you are not required to file a tax return or pay corporation tax, but you must submit annual accounts and a certified return to Companies House using Form AA02. You can file your dormant accounts online at AA02 form or by submitting a hard copy, and even though the company may be inactive, you should still submit them on time to avoid fines!

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