If you start a company in the UK, Confirmation statement Companies House is a term you must be aware of very well. In fact, confirmation statement is the simplified and effective substitution for AR01 (Annual Return) since 30th June 2016. With the Confirmation statement Companies House, you will be providing crucial information about the company like you had to do with Annual Return form every year.
What is the procedure of filing Confirmation statement Companies House?
Filing a Confirmation statement Companies House should be done each year. The process should be handled just like you did with the Annual Returns file. No matter if you are a dormant company or an active company that is in operation currently, it is mandatory for you to fill Confirmation statement Companies House. Nevertheless, if your business falls into a category like Sole traders or ordinary partnership, you will not be asked to file this document with the Companies House.
There are some differences between confirmation statement and Annual Return
The main purpose of introducing Confirmation statement Companies House is to simplify the process. Over the past years, Companies House notified that the information of most of the small businesses doesn’t necessarily change. So, filing the same information again is a time-consuming task for many small businesses. With the Confirmation statement Companies House don’t demand small companies to fill the information again from the scratch; instead, if information remains unchanged, businesses can simply mention that there are no changes in the previous year’s information and the Companies House will accept it!
Still, the process demands some important information from Limited Companies in the UK. As per the new process, every company should produce information of important individuals to the business (who hold key positions of the business and can influence the operation of the company). Examples of such key positions are;
- Shareholders who own at least 25% of the company shares
- Those who have at least 25% of voting rights
- Those who can replace or appoint board members
- Those who can cause significant impact to the company using a partnership or a trust etc.
Type of information you are asked to provide
- If the registered address of the company is changed
- If the SIC codes of the company has changed
- If the information of one or more directors has changed
- If the share capital has changed
- If there is a change in the list of shareholders
- If there is any change in the share ownership
And several other key changes.
In general, most of this information demanded with Confirmation statement Companies House is pretty similar to the previously used Annual return file. Therefore, most of the companies find it easy to deal with this new system. However, if a Limited Company fails to submit the information within the due date, the respective company will be fined or sometimes be removed from the Register of the Companies House.