What is a Confirmation Statement? A Comprehensive Guide

Running a business comes with a multitude of responsibilities, especially when it comes to compliance and regulatory requirements. One such requirement for UK companies is the submission of a confirmation statement. Whether you’re a seasoned business owner or a newcomer to the entrepreneurial world, understanding the importance and intricacies of the confirmation statement is crucial. This blog post will delve into what is a confirmation statement , why it is necessary, and how to file it correctly.

What is a Confirmation Statement?

A confirmation statement, known as Form CS01, is a document that every UK limited company and limited liability partnership (LLP) must file annually with Companies House. The purpose of the confirmation statement is to verify that the information Companies House has about your company is accurate and up-to-date.

Key Components of a Confirmation Statement

The confirmation statement requires you to review and confirm several details about your company, including:

Registered Office Address: This is the official address of your company where all official correspondence is sent.

Principal Business Activities: You must provide the standard industrial classification (SIC) codes that describe your company’s main business activities
Company Officers: Details of directors, secretaries, and LLP members must be confirmed.
People with Significant Control (PSC): Information about individuals or entities that have significant control over the company needs to be accurate.
Share Capital: For companies limited by shares, you must confirm details about the share capital and the shareholders.
Trading Status: The statement should reflect whether the company is trading or dormant.

Why is the Confirmation Statement Important?

Filing a confirmation statement is a legal requirement under the Companies Act 2006. Failing to submit it on time can result in penalties and potentially severe consequences, such as the company being struck off the register. The confirmation statement ensures transparency and accuracy of information in the public domain, which is crucial for stakeholders, including investors, creditors, and customers.

When to File a Confirmation Statement

You must file a confirmation statement at least once every 12 months. The due date for filing is known as the “confirmation date,” which is usually the anniversary of the incorporation of your company or the date of the last confirmation statement. Companies House sends a reminder, but it’s wise to mark this date in your calendar to avoid any oversight.

How to File a Confirmation Statement

Filing a confirmation statement is a straightforward process that can be done online or by post. Here’s a step-by-step guide:

Filing Online:

1. Log in to Companies House WebFiling: Access the WebFiling service using your company’s authentication code.
2. Review Information: Check and update the details about your company as required.
3. Submit and Pay: Submit the confirmation statement and pay the filing fee, which is £13 if filed online.

Filing by Post:

1. Download Form CS01: Obtain the form from the Companies House website.
2. Complete the Form: Fill in the necessary details and review for accuracy.
3. Mail the Form: Send the completed form along with a cheque for the £40 filing fee to Companies House.

Tips for Accurate Filing

• Double-Check Information: Ensure all details are accurate before submission to avoid any issues.
• Update Records Promptly: If there have been changes in your company’s details, update them as soon as possible to ensure the confirmation statement is correct.
• Seek Professional Help: If you’re unsure about any aspect of the confirmation statement, consider consulting with an accountant or a company secretary.

Consequences of Non-Compliance

Failing to file your confirmation statement on time can result in penalties and legal complications. Companies House may impose fines and, in severe cases, strike the company off the register. This means the company would cease to exist legally, which can have significant repercussions for the business owners and directors.

Conclusion

A confirmation statement is a vital document that ensures the information Companies House holds about your company is current and accurate. By understanding its importance, knowing what details to confirm, and ensuring timely and correct filing, you can maintain compliance and avoid any potential penalties. Always keep your records up-to-date and consider professional advice if needed to navigate this annual requirement smoothly.