Dormant Company

Hi,

I set up a limited company last year for consultancy purposes but business has not been as plentiful as I had forecasted. I have traded for 4 months (making a loss - all creditors are paid though) and would like to leave the company active but not continue trading this year (and maybe next year). I would prefer to leave the company dormant instead of closing it off completely as I would like to hold onto the company name and bank account for when I trade again in 2012.

If I leave the company dormant, will I still have to submit ARD's and tax returns to continue to be compliant?

Any advice would be greatly received.

you will still have to file accounts ets as if it were a trading company. Provided you are up to date with cro you should be able to avail of audit exemption and look after all of this wiithout an accountant in order to keep costs at a minimimum otherwise keeping the dormant company could be expensive.

You have the following obligations:
1. Revenue - CT1 tax return within 8 months and 21 days of your year end
2. Revenue - 46G return, deadline as with CT1
3. CRO - abridged accounts, B1 and €20 cheque within 28 days of your ARD (or 56 days if you file online)
4. AGM within 18 months of incorporation. But as accounts have to be approved at an AGM and you have to file your abridged a/cs with CRO by your ARD date, AGM will be determined by your ARD date.
5. Oblidged to have at least one directors meeting per annum.

Regards

Thanks for the advice Jack2009 and Paddy199.

If I do wind up the company, is it possible to 'reactivate' it in a couple of years with the same Reg No and Tax No?

I wouldn't wind it up.

You say you made a loss but all creditors are paid up? So is the bank overdrawn or are you owed money? Anyway, it sounds like the company has net liabilities and unfortunately liquidation is the only option open to you to dissolve this company. This will cost you in the region of €4k - €5k.

You can deregister from tax once you cease to trade using a form TRCN1 from the Revenue website. This will cease all your obligations to Revenue (CT1 & 46G).

You can register again using a TR1 form when you re-commence to trade again.

I would document this in a directors meeting that the company has ceased trading and lays dormant for the forseeable future.

Regarding the CRO, submit the B1 and abridged accounts each year with a cheque for €20. The accounts shouldn't change alot on prior years with the exception of bank fees. Maybe you should consider closing the bank account for now?? Again you can open it again in the future using the cert of incorporation.

Remember, the only true way to hold a business name is to incorporate it. Registering a business name does not prohibit someone else from incorporating it. I note this is key to your decision here.