Hi, I would like to know if the holding company in this example is considered dormant in its first year. Two new companies are set up on the same date. They are part of a large group. The two companies are a holding company ("holdco") and its subsidiary ("projectco"). Projectco has no trading history. All the holding company has done is acquire the shares in the projectco. It has no other transactions or assets. The shares are of low value (£100), not that this is relevant. No cash is paid because neither company has a bank account. The holdco shows an investment of £100 and a liability to projectco (unpaid share capital) of £100. The projectco has £100 share capital and £100 receivable from holdco (unpaid share capital). Are either of these companies considered dormant in this first accounting period? Or does the share acquisition constitute an accounting transaction and mean that one or both are not dormant?