The confirmation statement is a mandatory document that must be filed by every company at least once a year. If you do not file or follow deadlines when filing the confirmation statement, your company will be closed. Sounds terrible, doesn’t it? If you wish to avoid the worst-case scenario, avail competent confirmation statement filing services so you won’t miss any deadline.
Following are 5 tips that can help you better understand and efficiently file your confirmation statement for your business.
1. A Confirmation Statement Contains Key Information About Your Company
A confirmation statement is a filing document that contains information about the firm’s management, ownership, activities and capital position. All companies must file it at least once every 12 months. It must contain;
- Company name
- Registration number
- SAIL address (only when applicable)
- Details of owners, shareholders, partners, directors, secretaries, and other people with significant control (PSC)
- Shared capital
- Applicable SIC codes
- Location of statutory registers
2. The Confirmation Statement Replaced the Annual Return in 2016
Filing a confirmation statement came into law on 30th June 2016. It has a relatively straightforward format compared to the old annual return model. The most significant difference between them is that a filer had to provide the complete details of their company every time, even if no details have changed since the last annual return filing date. You don’t have to endure the same tedious procedure every time with a confirmation statement. You must only ensure that the given info is accurate and up to date.
3. Add the Changes in Your Company to the Confirmation Statement
Before filing your confirmation statement, you must check your company’s registered information at Companies House and ensure it is up to date. Keep track of any changes and immediately change them, especially;
- Changes to appointments, hirings, resignations or personal details of directors, owners, shareholders, secretaries or other people with significant control (PSC)
- Changes in your company’s name, logo, or brand
- Changes in your registered office address
- Changes to the accounting reference date (s)
- Changes in the structure of company shares
4. Your Confirmation Statement Must Include a List of People With Significant Control (PSC)
PSC or people with significant control are those who;
- Hold greater than 25% shares in the company
- Hold greater than 25% voting rights in the company
- Have the control of hiring or firing a majority of the company’s board members
- Have the authority to exercise a significant influence over the company
Even if you have no PSCs in your company, you must still notify the Companies House on the register.
5. Not Filing the Confirmation Statement Constitutes a Criminal Offence
Companies have to file a confirmation statement every year. The first time is 12 months after incorporation, which means you have until your anniversary to file the first statement. After that, the following statement must be filed each year by the next anniversary.
Please keep in mind that if you file your review statement earlier, the review period starts again. You can send as many statements in a year as you like, but no more than once every 24 hours.
If you forget to file the confirmation statement, it may cause great trouble for your company. You may be charged with a criminal offence by the government. The directors and secretaries of a company are also liable to prosecution. In addition, the company can be struck off the register, which means it may have to close its operations.