When can a company be dormant?

A company can be dormant when it does not trade. In a property context definition not trading is that ground rent is not received, no assets are bought or sold and that no interest is received to the company as principle. As the SMSU operates your management company through a "client account" the money is deemed to be held in trust and therefore the company has no transactions in its own right. A dormant company takes certain benefits such as being able to fund simplified accounts and can therefore be cheaper to run.

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