It’s a common question: Can I just leave my company dormant and wait for it to be shut down? Technically, yes but it’s not always the best or safest option.
If your company is no longer trading and has no outstanding debts, you can apply to strike it off the Companies House register. However, simply leaving a company dormant and hoping it will be automatically shut down over time can lead to unnecessary complications, such as late filing penalties, compliance breaches, or even legal action if creditors are involved.
A dormant company must still meet its legal responsibilities — including submitting annual accounts and confirmation statements — even if it’s no longer trading. Ignoring these duties doesn’t automatically close the business; instead, it can damage your reputation as a director and leave you exposed to fines or disqualification.
If the company has debts or unpaid liabilities, you must not leave it dormant in the hope that it disappears. In these cases, the correct route is usually a voluntary liquidation, where the company is formally closed through a structured insolvency process.
At The Insolvency People, we provide honest, straightforward advice on the best way to close a limited company, whether it’s through a strike off or a formal liquidation. If you’re unsure about what to do with a dormant company, we’re here to help you make the right move — safely, legally, and with confidence.