From 30th June 2016 a limited company’s annual return was changed to its current form with the introduction of the confirmation statement. The change intended to make filing company information just a little easier.
Under the annual returns process, limited companies and limited liability partnerships had a statutory obligation to file a return with Companies House each year, confirming various information such as the names of the company’s officers, whether the company is private or public, what the company does, the company’s registered address and a Statement of Capital and details of shareholders if it’s a company limited by shares.
The new confirmation statement will instead allow companies and LLPs to confirm that the details on record are still correct. And only provide specific information about any changes rather than repeating the same information each time.
People with Significant Control (PSC)
A further change introduced with confirmation statements was the obligation to also provide Companies House with a PSC Register (People with Significant Control), in order to publicly disclose who owns and controls the company.
A definition of a ‘person with significant control’ is an individual or corporate entity who meets at least one of the following conditions:
Owns more than 25% of the company’s issued shares
Holds more than 25% of the company’s voting rights
Holds the power to appoint or remove the majority of the board of directors
Has the right to exercise significant influence or control over the company
Has the right to exercise control over a company or trust that meets one of the other 4 conditions.
The deadline for filing a confirmation statement
In contrast to annual returns, confirmation statements do not carry fixed deadlines. Instead, a confirmation statement at least once every 12 months, but they can choose their own date for doing so.
The filing fee
The filing fee for a confirmation statement is an annual charge, currently set at £13.