A dormant company is one that has had no significant accounting transactions during the accounting period. A significant accounting transaction is defined as one that the company should enter in its accounting records.  Provided no such transactions occur, then the company can have a dormant company status. Companies House has defined only the following few, very specific transactions that the company may put through their records and still submit dormant accounts:

• Payment for shares by the subscribers to the memorandum of association.
• Fees paid to Companies House
• Payment of a civil penalty for late filing of accounts

If the company has any other transactions during the year, it will lose the dormant status.

Transactions like bank charges, earning interest on a bank account, Buying and selling or paying for any other will cause a company to lose dormant status since this too will be considered a
significant accounting transactions.