Forming a Dormant Company while on Incapacity Benefit

bert5

I am currently receiving Incapacity Benefit and would like to form a company with me as director and then make it dormant until I am ready to make it active in the future. Should this be a problem?

martindow

What is your reason for doing this? Why not wait until you are ready to start up and then form a company?

It may be worth having a chat with an accountant to see what they say and possibly to discuss whether you need a company at all as opposed to operating as a sole trader. Many offer initial free consultations.

Aquamania

bert5 wrote: »

I am currently receiving Incapacity Benefit and would like to form a company with me as director and then make it dormant until I am ready to make it active in the future. Should this be a problem?

I don't see why it should create any problem

Aquamania

martindow wrote: »

What is your reason for doing this? Why not wait until you are ready to start up and then form a company?...

One of the common reasons that people create a company and keep it dormant is to protect the name (stop anyone else registering it).
They do this even if they have no intention of ever trading under that company (e.g. because they trade as a sole trader under a similar business name)