If you have recently got your limited company registered or have started a limited liability partnership firm, you should know that it is mandatory to file a confirmation statement every year. Earlier, the directors and partners had to file an annual return. In 2016, the concept of annual return was revoked, and the confirmation statement was introduced. Read on to know what a confirmation statement is, how you can file it and its various provisions.
What is a confirmation statement?
As the name suggests, a confirmation statement means that companies and LLPs must confirm that their information with the Companies House is correct and up to date. The information that you need to confirm is the company directors and shareholders’ details, share capital, information about the registered office of the company and more.
The reason behind filing the confirmation statement is to ensure that your organization’s information with the Companies House is up to date.
Limited companies and LLPs have to file a confirmation statement at least once every 12 months. If you want, you can also file more than one confirmation statement during the review period. It commences on the date of incorporation of your company or on which you have filed the last confirmation statement. The review period remains valid for up to 12 months.
Who needs to file a confirmation statement?
It is mandatory for all limited companies and limited liability partnership firms in the UK to file a confirmation statement. Even if you are a non-trading or dormant company or partnership firm, you would still have to file a confirmation statement once a year.
How do you have to file a confirmation statement and things to keep in mind before filing it.
The process of filing a confirmation statement is much more simplified than filing an annual return. In the annual return, you would have to fill in your company details. On the other hand, in a confirmation statement, the company or LLP’s information is already available. You just need to go through the details, make sure that they are correct and file the statement. Let us see how the filing of a confirmation statement works!
There are two ways through which you can file a confirmation statement (CS01) at the Companies House.
- Online Filing- You can easily file an online confirmation statement on the Companies House website. If you are filing the statement for the first time, you will have to first register on the website. After registration, you will get a password and authentication code. Now, you simply have to click on the ‘File Your Confirmation Statement Online’ tab available on the website and enter your registered email id and password. All you have to do is confirm the details. If there is some new information, you can update it. For online filing of financial statements, you have to pay £13.
- Posting the Confirmation Statement to the Companies House- If you are unable to file the confirmation statement online, there is another way. You can download the CS01 form, check the details and post it to the Companies House. You will find the address on the form itself. For this, you will have to pay £40 fees.
Before you file the confirmation statement, you must ensure that each detail is correct. If there are any changes, you can update the information in the form.
There is one thing that you must keep in mind at the time of filing a confirmation statement. You can update information related to shareholder capital, the trading status of shares, the Standard Industrial Classification (SIC) code, and statement capital at the time of filing. However, if there is a change in the directors of the company or the partners of an LLP, or there is any crucial change, then you have to update such information to the Companies house a few days before the filing of the confirmation statement.
What happens if you fail to file a confirmation statement within the stipulated time?
It is mandatory for companies to file a confirmation statement once within a span of 12 months. There is also a 14-day window on the expiry of the review period during which you can file a confirmation statement. If you fail to file it, both the company or LLP and their officers can be held liable. There are two possible consequences if your confirmation statement is overdue. First, you, being an officer of the company or a partner of the firm, can be prosecuted. The Companies Act, 2006 makes it compulsory for companies and LLPs to file confirmation statements. Failure to file a confirmation statement is a criminal offence in the UK. The second consequence is that the company’s name could be struck off. To prevent any such consequences, file the confirmation statement well in advance.
A confirmation statement is a form where the directors of a limited company or the partners of a limited liability partnership have to review their organization’s details and affirm that the Companies House has correct details. It is necessary to file a confirmation statement once every 12 months.