If a company is registered with the Companies House but carries out no business activities within a year, it is considered dormant.
Dormant companies are often new. They are registered when, for example, businesspeople try to secure a unique name. However, a dormant company does not always mean a new business. Sometimes a company is made dormant to restructure a formerly active business, or when an owner requires an extended period off due to illness. Pay attention to this when buying a dormant business in the UK.