BlogThursday 30th June 2016
New legal requirements for small businesses
From 1 July 2016, limited companies and LLPs will now need to file an annual Confirmation Statement. This is essentially a simplified process where companies and LLPs only need to check and confirm details already held at Companies House.
However, there is an additional register that needs to be kept of People with Significant Control (PSC). A PSC is anyone who meets one or more of the following conditions:
- owns more than 25% of the company’s shares
- holds more than 25% of the company’s voting rights
- holds the right to appoint or remove the majority of directors
- has the right to, or actually exercises significant influence or control
- holds the right to exercise or actually exercises significant control over a trust or company that meets one of the first 4 conditions
What do you need to do?
1. The simplest and cheapest method to keep your organisation information updated with Companies House is to do it online. You can register here: https://ewf.companieshouse.gov.uk/runpage?page=webfilingRegister&signUpPage.lang=en
2. Log in to Companies House and update your information when changes to any of the following take place:
- business activities
- statement of capital (i.e. shares issued or transferred)
- shareholder information (such as name, address etc)
- people with significant control
3. Once a year, log in to Companies House and file a statement confirming the information held about your organisation.