A Complete Guide to Confirmation Statements and How to File a Confirmation Statement

Confirmation statements are an essential aspect of company compliance, ensuring your business’s records are accurate and up to date with the official registry. For new business owners, the process of filing a confirmation statement might seem daunting, but it’s straightforward once you understand the steps involved. In this guide, we’ll explain everything you need to know about confirmation statements and how to file a confirmation statement efficiently.

What are Confirmation Statements?

A confirmation statement is a legal document that companies must file with the relevant authority (e.g., Companies House in the UK) to confirm that the details held about the company are correct.

This statement is not used to submit financial information but instead updates or verifies key details about your business. Filing confirmation statements ensures transparency and compliance with corporate laws.

Key Information in a Confirmation Statement

A confirmation statement typically includes the following details:

• Company name and registration number
• Registered office address
• Directors and company secretary details
• People with Significant Control (PSC): Individuals or entities that own or control the company.
• Shareholders and shareholdings: Updates on any changes to shares or ownership structure.
• Nature of business (SIC codes): A description of the company’s business activities.

Why are Confirmation Statements Important?

Filing confirmation statements is crucial for several reasons:

1. Legal Obligation: It is a statutory requirement under corporate law.
2. Transparency: It ensures that accurate company information is available to stakeholders and the public.
3. Compliance: Failure to file on time can lead to penalties and possible removal of your company from the register.

When Should You File a Confirmation Statement?

A confirmation statement must be filed annually. The deadline is usually based on the “confirmation date,” which is the anniversary of your company’s incorporation or the date of the last statement.

You can file a confirmation statement more frequently if any significant changes occur, such as updates to shareholders, PSCs, or the business structure. However, the confirmation date remains unchanged.

How to File a Confirmation Statement: Step-by-Step Guide

Step 1: Log into the Filing System

Visit the official portal of your local company registry (e.g., Companies House WebFiling in the UK). Use your company’s authentication code to access your account.

Step 2: Review Current Information

Before submitting a confirmation statement, check the company details currently held on the register. Verify:

• Company name and number
• Registered office address
• Directors and PSC details
• Shareholding structure

Step 3: Update Changes (if any)

If there have been any changes, update them before completing the confirmation statement. For example:

• Add new shareholders or update share allocations.
• Update director or PSC information.
• Change the registered office address, if necessary.

Step 4: Complete the Confirmation Statement Form

Fill out the confirmation statement form, which is often labeled CS01 (in the UK). Most online systems guide you step-by-step through the process.

Step 5: Pay the Filing Fee

Pay the required fee to complete the filing. This fee may vary depending on your jurisdiction:

• For online filings in the UK, the fee is £13.
• For paper filings, the fee is £40.

Step 6: Submit the Statement

Once the form is complete and payment is made, submit the confirmation statement. You’ll receive a confirmation of submission and acknowledgment from the registry.

Common Mistakes to Avoid When Filing Confirmation Statements

1. Missing the Deadline: Late submissions can result in penalties or legal action.
2. Submitting Incorrect Information: Ensure all details are accurate and up to date before filing.
3. Forgetting Updates: Failing to update changes in PSCs, shareholders, or directors can cause compliance issues.
4. Overlooking Fees: Ensure the filing fee is paid to avoid delays or rejections.

Tips for Filing Confirmation Statements Efficiently

• Set Reminders: Use digital tools to track your confirmation statement filing date.
• Keep Records Updated: Regularly update your company’s information to make the filing process smoother.
• File Online: Online filings are faster, more convenient, and cheaper than paper submissions.
• Seek Professional Help: If you’re unsure about the process, a company secretary or accountant can assist with accurate filing.

Consequences of Failing to File a Confirmation Statement

Failing to file your confirmation statement can have serious consequences:

• Fines and Penalties: Late filings may result in financial penalties.
• Legal Action: Non-compliance could lead to legal action against the company or its directors.
• Strike Off: Companies House may remove your business from the register, effectively dissolving it.

Conclusion

Filing confirmation statements is a straightforward yet essential task for every registered company. By understanding how to file a confirmation statement, you can ensure compliance, avoid penalties, and maintain your company’s good standing.

Keep your business information accurate, meet filing deadlines, and take advantage of online filing systems to streamline the process. With proper planning and attention to detail, you can make this annual obligation hassle-free.