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Diligence guideLast updated 1 January 1970

How to check a UK company is trading (not just registered)

TL;DR
Registered is the floor, not the ceiling. Nine public signals — accounts, VAT registration, employees, PSC, website, LinkedIn, business rates, filings cadence and bank statements — separate trading businesses from shells and dormants.

The nine trading signals

  1. Recent accounts with turnover
  2. VAT registration (if over £90k)
  3. Employees above one
  4. PSC properly disclosed
  5. Website with real content
  6. LinkedIn presence + staff
  7. Business rates at premises
  8. Regular filing cadence
  9. Live bank statements (private ask)

Why 'registered' is a low bar

Any adult with £12 and a British address can register a UK limited company in fifteen minutes. That's the register's job — it doesn't validate whether the company will actually do anything. Roughly half of UK limited companies at any moment are dormant, holding vehicles, or so small they file micro-entity accounts with barely any activity.

Signal 1 — Recent accounts with turnover

Turnover is the single most powerful trading signal. Micro-entity filers don't publish it publicly, but small-company and above do. If accounts don't show turnover, ask for the members' pack. If they still won't produce it, that's information.

Signal 2 — VAT registration

A trading business over £90k turnover a year must be VAT-registered. Use the HMRC checker — see our VAT check guide.

Signal 3 — Employees above one

The average-number-of-employees note is required at every filing level, even micro-entity. If the story is "fifteen-person consultancy" and the note says one, the story is wrong.

Signal 4 — PSC disclosure

"No PSC identified" on a trading company more than a year old is the strongest single shell signal on the register. See how to check company ownership.

Signal 5 — Website

A real trading business has a website. Not a landing page — a site with product/service detail, an About page, contact information, and case studies. Businesses over £1m revenue with a WordPress placeholder are rare enough to warrant a question.

Signal 6 — LinkedIn

LinkedIn's employee count is directional (some staff won't be on it) but a serious B2B business will have identifiable employees you can cross-reference. A claimed 30-person business with two LinkedIn profiles is inconsistent.

Signal 7 — Business rates at premises

The Valuation Office Agency publishes non-domestic rates data. If a company claims a trading premises, that premises will usually appear in the VOA record with a rateable value. This is one of the strongest independent trading confirmations available for free.

Signal 8 — Filing cadence

Real trading businesses file on time. Cadence tells you about operational discipline — a company that repeatedly files at the last minute or after deadline is running hot on admin, which usually means it's running hot on everything.

Signal 9 — Bank statements (private request)

The ultimate confirmation. Any serious buyer or supplier can request the last three months of statements. Real businesses have recurring customer receipts, payroll runs, VAT payments, and supplier debits. Shells have almost nothing.

Putting it together

You don't need all nine. Four to five green signals with no red flags on the shell-company checklist is enough for most decisions. Zero on any three of accounts, VAT, employees and PSC is a hard stop.

Related reading

Frequently asked questions

How can I tell if a UK company is actually trading?

Look for three signals: recent accounts showing turnover, VAT registration, and a filled-out 'average number of employees' note above one. If all three are present, the company is trading. Zero on any two of them and it's dormant or a shell.

Is 'active' on Companies House proof of trading?

No. 'Active' only means the company isn't dissolved or being struck off. Millions of active companies file dormant or micro-entity accounts with zero turnover.

What if the accounts are old?

Small companies file 9 months after year-end, so 'recent' means the last 15 months. Older than 18 months and you're missing a chunk of the picture — check management accounts or ask directly.

Can I ask the company for proof of trading?

Yes — request last three months of sales invoices, a payroll summary, and a VAT return. Real trading businesses hand this over in a day.

How do I check for a website and staff?

Google the company name, check LinkedIn for employees, cross-reference the domain WHOIS with the registered office. Real businesses leave digital breadcrumbs.

Do dormant companies count as trading?

No. Dormant means no significant accounting transactions. See our dormant company guide.

What if the accounts say zero turnover but the company claims sales?

Either the accounts are wrong (offence) or the company isn't the trading entity — sometimes group structures put sales through a sister company. Ask for the group accounts.

Does the SIC code confirm trading activity?

No. SIC codes are self-declared and often stale. A company registered under 'other business support' might do anything or nothing.

How can I check employees?

Look at the 'average number of employees' in the accounts. Cross-check LinkedIn count. Payroll data isn't publicly checkable but a big divergence between claim and note is a signal.

What about tax registration?

VAT is publicly checkable via HMRC. PAYE isn't. Use the VAT lookup — see our VAT registration check guide.

Can Companies House tell me the customer list?

No — customer detail is confidential. Group accounts sometimes segment revenue by customer class or geography, but individual customers are not disclosed.

Are business rates evidence of trading?

Sometimes — if you can identify the trading premises, business rates records are public via the Valuation Office Agency (VOA). It's a useful indirect signal.

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