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Starting a company in the UK is pretty easy since the regulations are a bit friendly and welcoming. However, this only applies if you are willing and ready to comply with the legal requirements. You will have to do things regularly as a legal requirement, failure which may attract government penalties or even lead to the closure of business. If you do not want to lose a company that you have spent years building, it is best to follow all the rules. Note that ignorance is not an excuse in most of these cases.
As a business owner, it is your responsibility to find out what is required of you and follow through. This may mean hiring a competent lawyer to help you figure some of these things out. One of the things you will find out that must be done in good time is to file a confirmation statement. But what is this, and how is it done? Read on to discover more.
1. Understand What a Confirmation Statement Is First
While it is essential to understand how to file a confirmation statement in the UK, first, know what this confirmation statement is for your business. Confirmation statement refers to a filing document that contains essential information about ownership, management, activities, as well as the capital positioning of the company. Other people often refer to it as the Companies House form CS01 and is a mandatory requirement for all limited companies and limited liability partnerships, whether active or dormant.
This should be filed to the Companies House at least every 12 months. The statement was introduced back in 2016, June 30th, to replace the Companies House form AR01 or annual return.
It offers updated information about the company for the public register. This statement differs from the annual return due to its simplified and straightforward format. It was essential to provide the company details every time you filed the annual report, even when no changes have happened since your last report. On the other hand, the confirmation statement is slightly different since all you have to do is update the changed information.
2. Know What to Include or Find in the Confirmation Statement
A typical confirmation statement has specific details about the company. It includes:
- The company’s name as well as its registration number
- The company’s registered office address details
- It may have the SAIL address where applicable
- It has all the details of all directors and secretaries
- It covers the shareholders’ details
- It covers the issued share capital
- It has the LLP members’ details if applicable
- It stipulates the nature of business activities/SIC codes
- It contains information about People with Significant Control (PSC)
- It shows the location of statutory registers
3. Getting Started with Confirmation Statement Filing – Where to Begin
As mentioned earlier, the confirmation statement is a form that company owners fill. However, before filing it, it is essential to check your company’s current information at the Companies House using their online platform. The changes you are expected to supply to the companies house, if any, should cover the following:
- Update new appointments in the company, resignations that may have occurred, and changes of personal details for any director or company secretary.
- Company name changes
- Changes that target the registered office address
- Changes about the accounting reference date
- PSC details changes
- Share structure changes.
As for the first confirmation statement, companies must file and include the list of People with Significant Control (PSCs). APSC individual is a person who:
- Has over 25% of the company’s shares
- Has over 25% voting rights in the company
- Has power to appoint or even terminate an excellent number of the company’s board
- Can exercise significant company influence/ control
- Has a right to exercise significant influence or control over a trust or a firm that is not a legal entity that itself satisfies any of the first four conditions
There is a possibility for companies not to have PSCs. This can happen when no one person is holding more than 25 percent of the company’s shares. In such a case, it is still important to state that on the register. It is still mandatory to notify the state.
4. Understand when to File a Confirmation Statement
One of the things you must learn is to get the timings right. Every government procedure has timelines that must be adhered to be safe. According to legal requirements, companies must file confirmation statements every 12 months. Note that it does not matter if you are an active company or not. New companies have at least up to a year from inception to submit their first confirmation statement.
Once it does, a new timeframe is set, and this is what will determine when the company should be filing the statement each following year after that. For instance, if the first confirmation statement was filed in July, the company must file the statement every July. Also, note that you can always submit the confirmation statement at any other time of the year before the review period elapses.
When you do this, a new timeframe is set and adjusted to suit the latest changes. And that is not all. It is possible to submit as many confirmation statements as you want within one year. The only thing you must know is to ensure that you are not submitting more than one statement in 24 hours.
5. Actual Filing and Cost Implications – Be in the Know
Once you know how things work, proceed to the web filing section at the Companies House website service to do the actual filing. To use this, you need to register. Alternatively, send the filed paper forms by mail/post. Most companies may not understand all these. They should work with competent and registered company agents who handle the whole process at a fee.
When you choose to deliver the confirmation statement by post, you will be charged £40. On the other hand, the price charged for submitting the forms online is £13. Choose a procedure that suits and is practical for you. Make sure to find out about the payment period because it differs from the review date, although it also lasts a year, meaning that you do not have to pay many times if you file the confirmation statement more than once.
It is essential to submit your confirmation statement in good time, lest you attract penalties. Note that failing to file within 14 days of the elapse of review date then you become criminally liable. Set reminders if you must, but just don’t skip the filing process.