Accounts and audit exemption - Company Formation Related Services

Companies House now offer a dormant company form for filing accounts. This is referred to as the DCA and can be freely downloaded from our website The form enables the submission of dormant accounts to Companies House in an easy to use format which most people can comprehend.

The Dormant company accounts form does have some limitations in that certain transaction can not be entered on it. The directors must therefore exercise their judgment on whether the form is appropriate or whether the more extensive formats typically prepared by accountants should be used.

Companies should generally use the dormant company accounts form if the company has never traded. The only entries which will therefore appear in the accounting records will be those relating to company formation, share issues and those which involve Companies House.

In cases where a company has previously traded, it can become dormant if it does not have any non qualifying transactions in the accounting period in question. Whilst such a business can submit dormant accounts, the use of the DCA form would not be able to convey the previous trading history and therefore should not be used.

When using the DCA form the company's share structure will need to be entered and therefore some analysis of share capital may be necessary:

the number of shares a company is permitted to issue - authorised share capital
The number of shares which have been issued - issued share capital
Issued shares capital for which money is still owed.
increase in shares in the accounting year in question.
Total nominal share value
Monies received on share issues

Do call us if you would like further help or advice on this subject.