COMPANY FORMATION HOUSE LIMITED

Executive Summary

Company Formation House Limited is a non-trading private limited company with minimal financial activity and nominal net assets over several years. While compliant with filing requirements, the absence of operational substance and cash flow generation presents high risk from a solvency and liquidity perspective. Further investigation is recommended to understand the company's purpose and any off-record liabilities.

COMPANY FORMATION HOUSE LIMITED - Analysis Report

Company Number: 13148523

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits extremely limited financial activity and resources, with nominal current assets and net assets consistently at £1 over multiple years. The classification as a "Non-trading company" and absence of employees indicate no operational business activity. This raises significant concerns regarding the company's ability to meet obligations or sustain operations.

2. Key Concerns:

• Minimal Financial Substance: The balance sheet shows current assets, cash, net current assets, and net assets all at £1 for the past five years, signaling negligible financial activity or capital.
• Non-trading Status: The SIC code 74990 explicitly identifies the company as a non-trading entity, suggesting no revenue generation or commercial operations.
• Lack of Operational Activity: No employees reported, no profit and loss account filed, and no indication of business transactions, which imply the company may not be operational or generating cash flows.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, with no overdue filings or penalties noted.
• Stable Corporate Governance: The director and PSC information is up to date, with no disqualifications or governance warnings.
• Exemption from Audit: The company takes advantage of small company audit exemptions, consistent with its size and activity level.

4. Due Diligence Notes:

• Verify the purpose of maintaining this company given its non-trading status and negligible financials—whether it is a holding vehicle, dormant entity, or intended for future use.
• Investigate any related party transactions or off-balance sheet activities not reflected in the accounts.
• Confirm potential liabilities or commitments not disclosed in the filings, which could affect solvency.
• Review any contracts, licenses, or regulatory obligations to assess ongoing compliance and risk exposure.