Just bought a ready made company

Things you must do when you just bought a ready made company from a company formation agent. A ready made company is a limited company incorporated by company formation agents for sale. Generally, people buy a ready made company because they either like the company name or the age of the company.

Preliminary check

Go to Companies House website to check the filing history of the ready-made company you would like to buy. To ensure that the company’s filing is up to date with Companies House and it has never traded since it’s incorporation.

Transfer company ownership and control

Usually, after you bought your ready made company, the company formation agent will transfer the company’s ownership and control to you. They would carry out the following to transfer the company’s ownership and control to you.

Appoint your director and company secretary

Generally, the company formation agent would ask you to provide details of at least one company director to them for your ready made company. They would submit the form AP01 to add a new director to your company. If the new director is you, after the appointment, you would be legally responsible for the company.

Thereafter, you can add more directors or a company secretary if you wish.

Terminate the existing director and company secretary

Subsequently, the company formation agent would terminate the existing director by submitting the form TM01 with Companies House. If there is a company secretary appointed, the appointment will be terminated too using the form TM02.

Shareholders information

Concurrently, you would also be required to give details of the person who will be holding your ready made company shares. Your director can also be the shareholder in this instance. The company formation agent would transfer the ownership of the existing shares to your shareholder. This would be done by filing a confirmation statement.

Company’s principal activity

Normally, a ready-made company’s is registered with a dormant company SIC code. You may let your company formation agent know what would be your company’s principal business activity so that they can update the SIC code for you. Alternatively, If the company formation agent did not change the SIC code, you can change it yourself afterwards. It is very easy to add and remove SIC code when completing your confirmation statement later on.

Registered office address

Let the company formation agent know if you are not going to use their registered office address and you have your own address. They would update the registered office address with Companies House for you.

The person with Significant Control (PSC)

You would be required to provide details of the person with significant control (PSC) of your ready-made company. The agent would submit the form PSC01 to register your PSC details with Companies House. At the same time, they would submit the form PSC07 to remove their PSC from your ready-made company.

Your Company authentication code

Do not forget to ask for your company authentication code from your agent. This code is important when comes to using Companies House web filing service to submit your confirmation statement, company accounts, appoint directors and so on.

Your Unique Tax Reference (UTR) number

Also, ask your agent for the UTR number issued by HM Revenue and Customs (HMRC) for your ready-made company. You need this UTR number when corresponding with HMRC every time.

Why update your company details then submit your confirmation statement

Why update your company details then submit your confirmation statement is to avoid Companies House reject your confirmation statement submission.

Generally, you must check and update the following company information registered with Companies House before you submit your confirmation statement.

  • Ensure that your directors’ personal information is up to date. If there are any new appointment and termination during the last 12 months, relevant companies house forms must be filed.
  • If you have a company secretary, perform a similar check as your company director.
  • Likewise, you would ensure people with significant control (PSC) details are up to date.
  • Don’t forget to update your company’s registered office address and also your service addresses if there were changes within the last 12 months.

The common mistakes were usually people forgot to notify Companies House of changes took place within the company.

For example, a new director was appointed during the year. Legally, you must notify Companies House of this event by submitting the form AP01. Somehow this was forgotten. Subsequently, the new director signed the confirmation statement form and delivered it to Companies House. In this situation, Companies House would reject and return your confirmation statement for amendment.

This type of error is easily oversight especially filing a printed paper confirmation statement.

Normally, you must notify Companies House of a new director appointment within 14 days of the event took place.

Other information you must update while completing your confirmation statement include the following:

PSC04 to change details of the person with significant control

Generally, your company is required to keep and maintain the Register of Person with Significant Control by law. You may use the form PSC04 to change details of the person with significant control with Companies House.

Common examples, if you have recently moved to a new home or you have changed your name by marriage. In these situations, you would require to provide your new home address or new family surname. You must specify the date of the change too.

Change name by marriage

If you have changed your name either by marriage or by law, you must inform Companies House of your new name. You must provide the date of change took place.

Home address same as the service address

If your home address is also your service address, you would require to state that fact. A service address is published on the public register where anyone can see it whereas home address is kept confidential. However, Companies House would not make it obvious to the public if you are to use your home address as your service address.

For this purpose, many people use their company’s registered office address as their service address. Both registered office and service address must not be a P O BOX address.

Update the Register of Person with Significant control

Thereafter, remember to update your Register of the person with significant control.

How to complete PSC04

Contact us If you require help to complete the form PSC04 to change details of the person with significant control with Companies House. Verify your PSC details when completing your Confirmation statement to ensure everything is up to date.

Confirmation Statement for dormant company

Confirmation Statement for a dormant company is compulsory for a company registered with Companies House in the United Kingdom.

Your company is classified as a dormant company under the Companies Act 2006 if there are no significant transactions during the financial period.

You have 14 days to deliver your Confirmation Statement for your dormant. Both your confirmation statement date and filing due date are prominently published on Companies House website.

First time submit Confirmation Statement

First time filing your Confirmation Statement required a bit of due diligence to ensure the information given to Companies House for a public record is complete and accurate and still valid as at the date of your Confirmation Statement.

You must provide the following information with Companies House:

Changes to your company information

Any changes to your company’s information from the date of incorporation or your last annual return date or your last confirmation statement date, relevant Companies House forms must be delivered before or at the same time filing your Confirmation Statement.

For examples, if you have changed your registered office address from your home address to an address service provider you would require to deliver the form AD01 with Companies House. You can file the AD01 online or on paper.

You may also require to file the form AD02 if you continue to keep your company registers at your home address. The form AD02 is to register your home address as your SAIL address. However, you do not have to file the form AD02 if your company registers would be kept at your company’s registered office address.

You can change your director’s personal information with Companies House by filing the form CH01. Whilst use the form TM01 to remove a director and the form AP01 to appoint a new director.

Another change could be that when your dormant company was set up a secretary was appointed and you are using nominee service. The appointment of secretary for a private limited company is now optional. You can remove your company secretary by filing the form TM02.

Nothing has changed since the last Confirmation Statement

If there are no changes to your company’s information since your last Confirmation Statement date. You would only need to confirm this fact by filing the confirmation statement main form CS01, If you are filing the CS01 on paper, your company director or sectary must sign and date the form.

You would require your authentication code if you are filing your Confirmation Statement online. The code is the electronic equivalent of your company director’s or secretary’s signature.

Confirmation statement fee

There is a fee payable to Companies House for filing your Confirmation Statement CS01 form. £40 for paper filing and £13 for online filing. You have the options to pay by Paypal, UK debit cards or credit cards.

Dormant company account

Beside filing confirmation statement for your dormant company with Companies House, the other document your dormant company must file with Companies House other than Confirmation Statement is the dormant account. There is a late filing penalty for late filing of your dormant account late even just by one day.

You may file your dormant account online, again to do this you would require your authentication code again or you may deliver your dormant account on paper in this case your director must sign and date it.

HM Revenue and Customs and CT600

Even though your company is dormant, you must inform HM Revenue and Customs that your trading status is dormant so that they could update your company’s record accordingly and would not chase you to file CT600.

You will get late filing penalty for failing to deliver your CT600 to HM Revenue and Customs on time.

Use your Unique Tax Reference number when you write to HM Revenue and Customs about your trading status.

No longer want to keep your dormant company

You may apply to Companies House to dissolve your dormant company if you no longer want to keep it. The dissolution process will take about two months to complete. Our accountants can help you with this application.

You would no longer require to file any documents with Companies House after your dormant company has been dissolved. No more company accounts or confirmation statements.

Once your company is voluntarily dissolved, you may not restore your company through administrative restoration after this. You must restore your company through the court process and this can be an expensive and time-consuming process.

Consider carefully how important is it your company name to you. Anyone can take over your company name by registering it with Companies House as a new company after you dissolved it. This includes your future competitors.

If you have any questions about your dormant company, contact Companies House or speak with our accountants.

How to complete Confirmation Statement

How to complete Confirmation Statement CS01 form for Companies House. You may submit your CS01 form online using Companies House web filing service or on paper by post.

The Confirmation statement replaces the annual return filing.

File Confirmation statement CS01 online

You would require your company authentication code to be able to file online. You follow on screen instructions to complete your CS01.

The online CS01 form populate your company information already on Companies House record. All you have to do is to check if the information is still valid. If there was changes since your last confirmation statement date, you would be able to file the relevant Companies House form straight away.

Say you have appointed a new company director, you would be able to file your AP01 form and the new director’s appointment will be updated on your CS01 form. It is that simple.

Likewise if certain compulsory information is omitted from your CS01 form, for example, if you have not yet submitted your Person with Significant Control (PSC) particulars, the system will prompt you to enter the information and it would not allow you to submit the CS01 form until you do.

Before you click submit, you must tick the box to declare all the information is accurate to the best of your knowledge. You would have to pay the statutory filing fee of £13 to Companies House online to complete your filing. Companies House will email you to confirm receipt of your submission and also to confirm if your filing has been accepted or rejected.

File CS01 on paper

More manual check is required when you file your Confirmation statement on paper.

Companies House will return your confirmation statement form if the CS01 form is incomplete and the information is incorrect. This is likely to happen if you put your new registered office address on your CS01 form but you did not file your AD01 form to change your registered office address with Companies House at the same time or beforehand.

Tips to help you

Company name and number

Make sure your company name and incorporation number match the information on Companies House website.

Business activity

You have provided the description of your company’s principal business activity and specify a SIC code. Choose the SIC code closely described your company’s business activity.

Registered office

The address entered in your confirmation statement CS01 form must match the registered office address held by Companies House.

If you are changing your company’s registered office address, you must complete the form called AD01 and send in together with your confirmation statement form.

Statement of capital

You must provide Shareholders details, classes of shares together with the voting right attached to each share.

Company directors and secretary

If there were changes in your company officers since the last confirmation statement date and you have not yet informed Companies House, you must fill in the appropriate forms below.

  • Use form AP01 if new director was appointed.
  • Use form CH01 if there was changes to director’s personal details.
  • For corporate director’s appointment, please use form AP02 and changes in details please use the form CH02.

Person with significant control (PSC)

You must disclose the person with significant control of your company and update Companies House if there were changes during the past 12 months.

Finally you must sign your confirmation statement form and enclosed the correct filing fee.

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