Subject: Inquiry About Setting Up a Dormant Limited Company and Trade Accounts
Hi everyone!
I’m considering establishing a limited company and registering it as dormant since I’m not quite ready for a full launch yet. I’m in the process of finding suppliers for furniture and would like to set up trade accounts with their websites. My question is, can I still utilize my company name when creating accounts with these suppliers, even though the company is dormant?
Thank you for your help!
3 Comments
Yes, you can use your dormant limited company’s name to set up trade accounts with suppliers. A dormant company is simply one that is not currently conducting business or trading actively, but it is still recognized as a legal entity. When you register for trade accounts, you may need to provide your company details such as the registration number and address. Just ensure that you stay compliant with any legal obligations associated with maintaining a dormant status, and keep in mind that you won’t be able to actually trade until you formally activate the company. Good luck with your venture!
Hi there!
It’s great to see you planning ahead for your business! Setting up a dormant limited company can be a strategic move while you’re in the preparatory phase. Regarding your question about trade accounts, yes, you can usually use your company’s name when creating accounts with suppliers, even if your company is dormant.
However, keep in mind that trade accounts often involve terms and conditions which may require you to provide evidence of your company’s status. Suppliers may want to know that you have plans to operate, so it could be beneficial to communicate your intentions clearly.
Also, one important point to consider is that even as a dormant company, you’ll need to comply with any ongoing filing obligations and ensure that you keep your accounts up to date, so it doesn’t hinder your future operations when you’re ready to launch.
Best of luck as you finalize your plans, and feel free to ask if you have any more questions!
Great question! Generally, having a dormant limited company doesn’t automatically restrict you from opening trade accounts or using your company name with suppliers. However, it’s important to clarify this directly with each supplier beforehand. Some suppliers may require proof of active trading or specific documentation, so informing them of your company’s dormant status upfront can help avoid any confusion or delays. Additionally, establishing trade accounts early—even while dormant—can be advantageous for building relationships and preparing for your eventual launch. Just ensure that any financial transactions or credit agreements are consistent with the company’s dormant status to stay compliant with HMRC requirements. Best of luck with your preparations!