Annual Accounts for Residents Company

[jnewns]

Hi, I live in a small block of flats (8 units) and we had to register a company with Companies House.for the residents association as we bought the freehold etc.

Each year we have to have our accounts (expenditure etc) done and the information is sent to Companies House and this costs money that could used elsewhere.

What I would like to know is, as we are not a profit making company do I really have to produce annual accounts for Companies House ?

Any advise would be greatly welcomed.

Thanks,
Justin

[dzug]

Yes you do - as a minimum each year you must submit a set of accounts and also confirm the list of shareholders when asked.

You don't have to pay to have the accounts done though - DIY is acceptable if you are confident enough to do it.

[Buenchico]

From the Companies House website:

"We are a small company / dormant company (GBA3) / flat management (GBA9) / golf club etc. Why do I need to file documents?

The Companies Act does not distinguish between the sizes or types of private limited companies. All directors benefit from limited liability if the company folds. If a person wishes to register a company with limited liability to gain protection under the Companies Act, he must also comply with all the filing requirements of the Act.

These filing requirements enable anybody interested in the company to find out any relevant statutory information before becoming involved with a company. They will be able to find out how a company and/or its directors have performed in the past. This gives investors and customers a certain amount of protection before money changes hands."

See here for further relevant information:
http://www.companieshouse.gov.uk/about/gbhtml/gba3.shtml

Chris

[dzug]

And you also need to set up a relationship with the taxman - you may be liable for corporation tax (on any profits - though there could well not be any) and/or income tax (on any interest on funds held in trust)