From 30 June 2016 a change to company reporting procedures will mean that all companies, including charitable companies limited by guarantee and CICs, need to be ready to file their register of people with significant control – or PSC register - with Companies House.
The new Confirmation Statement
Currently, companies file annual returns with Companies House. From 30 June annual returns are being replaced by a new confirmation statement. The confirmation statement is intended to lighten the burden on companies, giving them the option of confirming that Companies House has been notified of all changes (such as director appointments, registered office and change of director particulars) within each 12 month period.
Confirmation statements will be due in the same timeframe as annual returns, although they can be filed at any time before the due date; this will reset the clock and the company will have a further 12 months before it needs to file a further statement.
One crucial difference from the annual return is that in the confirmation statement, companies will need for the first time to submit details of their register of people with significant control to Companies House. Companies House will then add the details of individuals and legal entities with significant influence or control over the company to its public register. All companies have been obliged to maintain a PSC register since 6 April 2016. It will be an offence to fail to supply the necessary information to Companies House, so companies need to ensure that they are in a position to provide details of their PSCs when the time comes to file the confirmation statement. For more information please see our report on the PSC rules.
Note that charitable companies with an income over £10,000 will still need to file an annual return at the Charity Commission.
From 30 June it will also be possible for companies to choose to keep their statutory registers – or company books - on a central register maintained at Companies House rather than keeping them available for inspection internally. The registers will be searchable online. Our view is that this option is unlikely to be attractive to charitable companies, as it will mean disclosing the register of members to Companies House, which is not otherwise required, but please contact your usual BWB contact if you would like more information.
Posted on 21/06/2016 in Legal UpdatesBack to Knowledge