22nd June 2026
Many business owners think that once a company stops trading, all paperwork and responsibilities stop too. In reality, a company that is not actively trading still has legal obligations. A dormant company remains a registered business, and directors must continue to keep it compliant.
What is a dormant company?
A dormant company is a company that has had no significant business activity during the year. It may be kept open for future plans, to hold assets, or simply because the owners may want to use it again later.
What obligations still apply?
Even if the company is not trading, you must still:
The company must file its annual return with the Companies Registration Office (CRO) on time each year. Late filing can lead to penalties and unnecessary costs.
Dormant companies may qualify for simplified accounts, but financial statements are still required and must be submitted with the annual return.
Basic company records should always be maintained, including details of directors, shareholders, and the registered office address.
If Revenue contacts the company, it is important to respond promptly. Even where there is no trading activity, the company may still need to confirm its tax position.
Directors remain legally responsible for making sure the company complies with company law and maintains proper records.
A few practical points
Final thoughts
Keeping a company dormant can be useful, but it is not completely maintenance-free. A dormant company still requires annual filings, basic record-keeping, and ongoing attention from its directors. Staying on top of these obligations can help avoid penalties and ensure the company is ready for future use when needed.
For more tips and updates on company compliance and dormant company obligations, please contact our team.
