April Newsletter

A Guide to Your Company Authentication Code

For those of you who have a limited company, your company authentication code is a six character alpha-numeric code provided by Companies House when your company is first formed. This code acts as an electronic signature and has to be provided each time you wish to file electronic documents or make online changes to your company’s details.

Your company authentication code is very important and should be kept as secure as you would your bank card PIN. You must also ensure that it can only be accessed by people who have the authority to change your company’s details (for example, your accountant).

Regardless of how you formed your company, your company authentication code will be sent to you in the post from Companies House and will be sent to the registered office address of the company. For security reasons, Companies House will never send an authentication code by email or disclose it to you over the phone.

Lost Your Company Authentication Code?

Don’t worry, via the Companies House WebFiling service you can request your company authentication code and it will be sent by post to the registered office address. Companies House currently advise that it can take up to five days for your code reminder letter to arrive.

PSC Register Explained

The requirement for companies/LLPs to  keep and maintain a register of people (or legal entities) who have significant control or influence over them, known as a ‘PSC Register’ came into force on 6 April 2016.

What is a Person with Significant Control?

A Person with Significant Control (PSC) is an individual who exercises a significant level of influence or control over a company and meets one or more of the following conditions:

1. Holds more than 25% of the company’s shares
2. Holds more than 25% of the company’s voting rights
3. Has the power to appoint or remove a majority of the company’s board
4. Has the right to exercise or actually exercise significant influence or control over the company
5. Has the right to exercise or actually exercise significant influence or control over a trust or a firm that is not a legal entity which itself satisfies any of the first four conditions

What Information about an Individual PSC Goes in the Register?

For an individual PSC, the register must contain the person’s:

• Name
• Service address (an address to receive official mail and notices from Companies House, HMRC and other government bodies)
• Nationality
• Country of residence
• Date of birth
• Usual residential address
• The date on which the individual became registrable
• The nature of their control over the company
• Any restrictions on disclosure of the PSC’s information that are effective

What is a Relevant Legal Entity (RLE)?

A Relevant Legal Entity (RLE) is a corporate body, like a limited company, that would qualify as a PSC of another company if it were an individual. It’s not unusual for corporate bodies to also own or control other companies, (for example, a parent company that owns and controls a subsidiary).

The qualifying conditions for an RLE are the same as an individual PSC (see above).

What Information about an RLE Goes in the Register?

For a corporate PSC, the register must contain the RLE’s:

• Official name
• Date on which it became registrable in relation to the company
• Principal or registered office address
• Law by which it is governed (e.g. Companies Act 2006)
• Legal form (e.g. Company limited by shares)
• Register in which the entity appears, including the country or state where the register is held (e.g. Register of Companies, Charity Commission Register etc)
• Company registration number
• Company where incorporated
• Nature of control over the company

Any changes to a PSC Register should be reported to Companies House, as and when they happen.

Common changes are:

• PSC’s change of address
• Changes in shareholdings

Confirmation Statement Explained

Companies House introduced the annual Confirmation Statement (Form CS01) in June 2016, to replace the Annual Return.

All limited companies and LLPs need to file a Confirmation Statement with Companies House once every 12 months, even if the company/LLP is dormant.

Put simply, the Confirmation Statement exists to verify that company data shown at Companies House is accurate and up to date. Even if your company details are the same as last year, you just need to ‘check and confirm’ this by submitting the statement.

What Information is Included in a Confirmation Statement?

To complete a Confirmation Statement, you must check the following details that Companies House holds for your company to ensure they are correct and up to date:

• Registered office address
• Details of current company offices (e.g. directors, company secretary)
• Location of the company’s statutory registered (e.g. the registered office or single alternative inspection location/SAIL address)
• Standard Industrial Classification (SIC) code(s) describing the company’s principal business activities
• Shareholder information (name of each shareholder and details of the shares they hold)
• Statement of capital (overview of the company’s issued shares)
• Trading status of shares
• People with Significant Control (PSCs/RLEs)
• Registered email address
• Whether of not the company is exempt from keeping a PSC Register

For all of our company clients, we offer a PSC Register/Confirmation Statement service for a nominal charge. For more information, please contact Jo at jo.lewendon@cvag.co.uk.

How We Can Help

At Clear Vision, we’re always eager to guide and assist our clients – how ever you need us to support you through your journey as a business owner, we’re here for you!

If you have specific questions about any matters within this month’s newsletter and how they may affect you or your business, do please get in touch with us.