In 2016, the UK government streamlined company reporting by replacing the cumbersome annual return (AR01) with a simpler and more efficient confirmation statement. While both serve the same purpose – verifying company information for public records – the new format offers a quicker and smoother filing experience.

Your Company Formations is here to help you understand your confirmation statement with this helpful guide. However, feel free to contact us if you need further assistance.

The purpose of confirmation statements

Confirmation statements are crucial for ensuring transparency and accuracy in company records. They are essential to verifying and updating critical information about your limited company or LLP with Companies House.

It is an annual snapshot confirming that your registered address, officers, business description, and share capital are current and correct. This helps:

• Maintain public trust: Accurate records ensure stakeholders and the public have reliable information about your company.
• Prevent fraud: Up-to-date details make it harder for unauthorized individuals to impersonate your company.
• Simplify compliance: Confirmation statements are designed to be quicker and easier to file than their predecessors, saving time and effort.

Important updates coming soon:

• From early 2024, confirmation statements will require an email address and a declaration confirming your company's lawful activities.
• Stay tuned for the exact implementation date to ensure a smooth transition.

While confirmation statements don't directly report changes in your company, remember to update details separately if things like your address or officers differ.

So, remember: confirmation statements are not just paperwork; they are a vital part of maintaining transparency, building trust, and streamlining compliance for your business.

Registering a Person with Significant Control

A crucial element lies within the realm of confirmation statements: identifying and registering People with Significant Control (PSCs). These individuals wield substantial influence or ownership within your company, and their details must be transparent to the public.

What information needs to be registered?

• Personal details: Full name, month and year of birth, nationality, country of residence, and both service and residential addresses.
• Control details: Date they assumed a significant control position within the company.
• Explanation of control: Clearly outline their role and influence within the organization, justifying their classification as a PSC.

Regularly review and update registered PSC information whenever changes occur. This includes any alterations to:

• Personal details (name, address, etc.)
• Control details (change in position or influence)
• Cessation of significant control

Why is this important?

Transparency surrounding PSCs benefits various stakeholders:

• Investors: Gain valuable insights into company ownership and control structures.
• Authorities: Combat financial crime and money laundering by identifying beneficial owners.
• Public: Fosters trust in companies by ensuring clear ownership information.

Remember: Failure to comply with PSC registration and reporting requirements can result in penalties and damage your company's reputation. You contribute to a more transparent and accountable business landscape by diligently upholding these obligations.

Do all businesses need to complete a confirmation statement?

Whether your business is just starting or is an established company, filing a confirmation statement with Companies House is mandatory for all UK-limited companies and LLPs, even if they are dormant.

Submitting one at least once a year keeps your company details current and transparent. You have flexibility, too - file anytime within your 12-month review period, which starts on your incorporation date for new companies or ends 12 months after your last statement for existing ones.

Early filing lets you reset the clock and start a new review period. Remember, staying compliant promotes trust and avoids potential penalties, so get your confirmation statement in order!

What if I don’t have any changes to report?

Even if your company details have stayed the same since the last statement, make sure to complete the confirmation time! You can still fulfil your obligation by simply "checking and confirming" the existing information. This ensures accuracy and keeps things on track.

Remember, the deadline isn't flexible - you have 14 days to file it after your review period ends. Missing that window can lead to prosecution or even your company being struck off the register.

Sign up for the free Companies House email reminder service to avoid any last-minute scrambles. With up to four email recipients, forgetting becomes a thing of the past! So, relax, confirm, and stay compliant.

How do I submit a confirmation statement?

You can skip the hassle of submitting manual paper forms and embrace the swiftness of the Companies House online service. It's the fastest and most convenient way to file your confirmation statement, with built-in features to streamline the process.

Benefits of going online:

• Pre-populated information: Say goodbye to starting from scratch. Most details are already filled in, saving you time and effort. Simply review and update any changes.
• Seamless updates: Need to modify information like your SIC code, share details, or capital statement? The online form's "additional information" section handles it all.
• Convenience at your fingertips: Access and submit your statement anytime, anywhere with an internet connection.

Is there a fee for filing a confirmation statement?

Filing your confirmation statement online is not only convenient, but it's also cost-effective! Submitting it electronically incurs a one-time fee of just £13 within your 12-month review period. So, no need to worry about extra charges if you need to file another within that timeframe.

On the other hand, opting for the paper form bumps the price up to £40 and requires manual completion without pre-filled information. Don't forget the time and effort spent printing, filling, and mailing it! So, for a smoother, more budget-friendly experience, definitely choose the online route.

Responsibilities for filing your confirmation statement

Filing your confirmation statement isn't just an annoying chore – it is a legal obligation, and ensuring it is done correctly rests on several shoulders.

Larger companies with a dedicated company secretary typically handle the filing process. However, the ultimate responsibility for ensuring timely and accurate submission always lies with the directors.

For smaller companies without a secretary, the responsibility falls to any of the directors or a designated company member. Similarly, a nominated partner usually manages the paperwork in LLPs, but all partners share the responsibility.

Remember, even if you delegate the filing to an accountant, the buck ultimately stops with you, the director(s). Failing to file on time can lead to fines, prosecution, and even removal from the company register.

Recommended further reading:

Do you want to secure your company name before you launch your business? Read our post, Dormant Companies Guide For Beginners, for more information.

Our guide, Companies House’s Role in Company Formations in the United Kingdom, is valuable for new entrepreneurs wanting to make their business official.