Dormant company for legal agreements - sole trader for financial transactions Does anyone know if there is any reason why I would not be able to incorporate a private limited company, maintain it as a dormant company, and then use that entity to enter into legal agreements/contracts with customers, but conduct financial transactions as a sole trader? If dormant company just means that the company has no significant accounting transactions during a financial year, then the company is still a legal entity (just like any other company) and therefore it is able to enter into agreements with other people/companies. Thus, I could take advantage of the name (e.g. My Company Limited) and limited liability if someone sues the company.. without the hassle of the extensive accounting requirements and paperwork (for the time being - until I'm making enough profit).
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- Kris