Annual compliance for a dormant company is essential to maintain its legal status and avoid penalties. Despite inactivity, dormant companies must file an annual return and financial statements with the Registrar of Companies (ROC). These documents confirm that the company remains compliant with regulatory requirements and has not conducted any significant business activities. Additionally, the company must file a declaration of inactivity and ensure that statutory registers are up-to-date. Non-compliance can lead to penalties, fines, or even the company being struck off the register. Regular compliance helps preserve the company’s status and readiness for future activities.