What is the difference between dissolved and dormant?

By Ben Davies · Updated 26 September 2026

"Dormant" and "dissolved" are very different things, though they are often confused. The distinction matters because it determines whether you still need to file.

Dormant

A dormant company is still active on the Companies House register but has no significant accounting transactions. It exists as a legal entity — it has a company number, registered office, and directors. It just is not trading.

Filing obligations: A dormant company must still file annual accounts and a confirmation statement to Companies House every year, and a CT600 to HMRC whenever HMRC sends a notice to deliver one.

Dissolved

A dissolved company has been removed from the Companies House register. It no longer exists as a legal entity. Its company number is marked as dissolved, and it has no directors, no registered office, and no obligations.

Filing obligations: None. A dissolved company has no filing requirements.

How a company gets dissolved

1. Voluntary strike-off (DS01): The directors apply to Companies House to have the company struck off. This takes about 3 months and costs £13 online (£18 by post).
2. Compulsory strike-off: Companies House strikes off the company, usually because it failed to file for an extended period.

Which should you choose?

If you want to keep the company for future use or to protect the name, keep it dormant and file each year. We file the accounts and CT600, and remind you when the confirmation statement is due, from £19/year. If you are certain you will never need the company again, you can apply to have it struck off with a DS01, which ends its filing obligations for good. A company that has been dormant for the last three months will usually qualify.

Read the full guide: How to close a dormant company (and when to keep it open)