The Economic Crime and Corporate Transparency Act received royal assent on October 26, 2023, ushering in a transformative phase for Companies House. With a focus on tackling economic crime and fostering economic growth, this act empowers Companies House to play a more significant role. The measures introduced aim to enhance transparency, ensuring more accurate and trusted information on company registers.
Key Changes:
- Responsibilities for Individuals:
- All new and existing company directors
- People with significant control of a company (PSCs)
- Anyone filing on behalf of a company
- What’s Changing:
- New measures will be introduced gradually over the next few years.
- The focus is on improving the quality of data on company registers.
- Improving Data Quality:
- From March 4, 2024, Companies House gains enhanced powers to query information.
- Stronger checks on company names.
- New rules for registered office addresses.
- Introduction of new lawful purpose statements.
- Identity Verification:
- Individuals involved in setting up, running, owning, or controlling a UK company must verify their identity.
- Changes to Accounts:
- Transitioning towards filing accounts by software only.
- Changes to small company accounts filing options.
- Confirmation Statement Changes (From March 4, 2024):
- New requirements to provide a registered email address.
- Confirmation that the intended future activities of the company will be lawful.
- Companies House Fees:
- Increased fees to consider new future expenditure.
- Ensuring costs are recovered from existing expenditure.
- Protecting Information:
- Individuals can apply to suppress personal information from historical documents.
- Applying to protect personal information from public view due to the risk of harm.
- Changes to Limited Partnerships:
- Limited partnerships must file information through authorised agents.
- Increased information filing requirements with Companies House.
- Enhanced Transparency of Company Ownership:
- New requirements to provide additional shareholder information.
- Restrictions on the use of corporate directors.
- Investigation, Enforcement, and Data Sharing:
- Companies House gains more effective investigation and enforcement powers.
- New powers to share data with law enforcement agencies and other government departments.
This landmark legislation marks a new era for Companies House, setting the stage for improved governance, increased transparency, and a robust framework for combating economic crime. Stay informed about these changes to ensure your company complies with the evolving regulatory landscape. The future holds a more transparent and accountable business environment for all.
source: Changes to UK company law – Changes to UK company law