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What is the best way to reserve a Limited company name?

Reserving a company name before trading

Many customers want to reserve a name, what’s the best way?

We would recommend that the best way would be through a dormant company. A dormant company is a business that is not trading and has not significant transactions during. When significant is used we would normally suggest no more then £1000 per accounting period. If there are larger transactions the company would be classed as active. A dormant company is inactive and thus a reserving a company name is best used under the dormant method.

What is the purpose of forming a dormant company?

Again this would be for reserving a company name for future reference. An business owner may wish to secure the name for future use if they intend to start trading soon under a new brand. A sole trader may wish to secure the name if they would want to prevent someone else using the Limited Company name. A sole trader may wish to go Limited sometime in the future and the company name runs risk of being taken if it`s not secure.

How long can the company remain dormant?

A company can remain dormant for an indefinite time period, the company does not have to trade, however they company owner would be required to make sure all responsibilities are undertaken.

What if any responsibilities do I have for my dormant company?

A dormant company is required to file a set of a required annual return and file a set of dormant accounts to companies` house every year. You will also need to inform HMRC that the company is dormant and not trading and that is not planning to trade any time soon. If you do start to trade, you will need to inform HMRC, Companies House will know through the filing of annual returns and accounts.


Your Virtual Office London provide a wide range of Company services and virtual office solutions. If you are looking to reserve a company name please do give us a call we will be happy to setup a dormant company for a very reasonable price. If you found this blog useful please do read more here.

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