Dormant Account: Ltd set up in Feb'18 and start trading in Oct'18

[Aliveli]

Hi All,

Background:
The company has been set up in February 2018 and took us some time to find the right premises. The lease of the premises has been transferred in September'18 and after some renovation we will start trading. One way for me to reduce accountancy cost will be to change the change company's year-end to August'18 and submit Dormant accounts from Feb'18 to August'18. For this I would not need an account.

I checked this with an accountant and he advised me that this is normal procedure. I wanted to double check that this will not be an issue when I apply for an extension of my visa in 3 years time.

Thank you

[marcnath]

Hi All,

Background:
The company has been set up in February 2018 and took us some time to find the right premises. The lease of the premises has been transferred in September'18 and after some renovation we will start trading. One way for me to reduce accountancy cost will be to change the change company's year-end to August'18 and submit Dormant accounts from Feb'18 to August'18. For this I would not need an account.

I checked this with an accountant and he advised me that this is normal procedure. I wanted to double check that this will not be an issue when I apply for an extension of my visa in 3 years time.

Thank you

There should be no issue from an immigration point of view

[Aliveli]

Thank you marcnath

This is great news

[marcnath]

Just one clarification.

There is a requirement that you should have registered as self-employed or as a Director within the first six months of arrival. It was not clear whether the period you talk about was within the six months.

If you are dependant on this company for meeting that requirement, it may be safer not to declare it as Dormant.

[jafersadeq]

Hi All,

Background:
The company has been set up in February 2018 and took us some time to find the right premises. The lease of the premises has been transferred in September'18 and after some renovation we will start trading. One way for me to reduce accountancy cost will be to change the change company's year-end to August'18 and submit Dormant accounts from Feb'18 to August'18. For this I would not need an account.

I checked this with an accountant and he advised me that this is normal procedure. I wanted to double check that this will not be an issue when I apply for an extension of my visa in 3 years time.

Thank you

There are two cases:
1-Starting a company as a dormant company, that is during the incorporation process. In that case, the HO refuse the visa application because the company should not be dormant.
2-During the accountancy period, sometimes the company passes with dormant accounts, this is possible and there is no problem.

My advice, do not show the first year annual account, send the last year annual accounts for your investment evidence.
HO will check the current appointment report to see the point 1 above only.

Your case is fine.

Thanks

[Aabdulwaheed]

As immigration point of view there is no problem if it was dormant few months.
you were the director of the dormant company that mean company has no clients at that time as it was not trading but you were still the directors and engaged yourself in business activities to get a lease and negotiate the business contracts etc. It wouldn't effect you application. That is why Ho asked one year employment not 3 years as it give you time to settle down, do market research, negotiate the lease and business contracts and employed staff accordingly .