All limited companies communicate with Companies House in various ways, such as submitting their Confirmation Statements and Annual Accounts and notifying the registrar of any company personnel or share structure changes.
This article provides a brief overview of Companies House, its services, and your obligations as a company director.
What does Companies House do?
Companies House is the official central register of UK companies. All new companies are registered via Companies House, and data on existing (and past) companies is maintained there.
It is an executive agency of the Department for Business Enterprise and Regulatory Reform (BERR).
Although there has been a registration system since 1844, company registrations are now covered by various releases of the Companies Act—1985, 1989, and, most recently, changes contained in the 2006 Act.
Companies House’s main functions are to:
Incorporate and dissolve UK limited companies.
Examine and maintain company information as required under the Companies Act.
Make this information available to the public.
How many limited companies are there in the UK?
Around 500,000 new companies are formed each year, adding to the total of around 2.1m actively trading limited companies in the UK at the start of 2023.
The majority are private limited companies (such as those used by contractors), public limited companies (PLCs) and limited liability partnerships (LLPs).
Your dealings with Companies House as a director
As a company director, you have certain obligations to keep Companies House updated with changes you make to your company.
This can be done directly via Companies House (for a £50 fee) or through a company formation agent or accountant.
During this incorporation process, you have to provide information about your new company and its officers, such as the proposed company name, registered office address, and details of directors and shareholders.
Many contractors rely on an accountant or company formation service take care of the initial setup. However, as a director, you are ultimately responsible for ensuring the accuracy of the information submitted.
After you have formed your new company, you need to keep the registrar of companies updated. There are several pieces of information you need to provide each year, together with some event-driven filings.
1. Confirmation Statement
All companies must submit a Confirmation Statement at least once every 12 months. It provides a snapshot of your company’s structure at a given time, including shareholder details, people with significant control (PSCs), and the registered office address.
2. Annual Accounts
You must file your company’s annual accounts with Companies House within nine months of your company’s financial year-end.
3. Event-Driven Filings
Some specific changes within your company have to be reported to the registrar right away. For example:
Changes to information related to directors, company secretaries, or shareholders.
If you change your company’s registered office address.
Changes to the company’s articles of association or share capital.
WebFiling and Authentication Codes
Most submissions and changes can be submitted online via WebFiling – a relatively user-friendly way of digitally filing documents.
Companies House also provides an API that allows integration with other third-party systems.
As a director, you are assigned an authentication code, which functions like a digital signature for online filings. If you have an accountant, they can also access your Companies House account.
Maintain Your Company Records and Registers
As a director, you are responsible for maintaining your company records, including:
Register of Directors
Register of Shareholders, and
Register of People with Significant Control (PSC).
These records must be updated and made available (in theory) for inspection if requested by HMRC or other relevant authorities.
All limited companies must also retain key documents, such as minutes of board meetings, resolutions, and accounting records, for at least six years.
Keep Companies House updated and avoid penalties
As a company director, you’re responsible for meeting your filing obligations. Failure to submit accurate documents on time can result in fines, penalties, and even the possibility of the company being struck off the register.
Fines for late accounts can range from £150 to £1,500, depending on how late the filing is.
Directors can also face personal liability for failing to meet these obligations.
It is worth reminding that while most contractors hire an accountant to handle administrative tasks, the legal responsibility remains with the directors.
