In March 2024, changes will come into UK Company Law as part of the Economic Crime and Corporate Transparency Act. In this article, we will outline these updates and how we can assist you and your business.
Companies House:
If you manage or hold shares in a company, you will likely be aware of the registrar of companies (or Companies House). However, with this new act, the objectives and powers of the registrar will be altered, which may have affects on your responsibilities as a business owner. Firstly, there are changing regulation on what constitutes an appropriate office address. For example, you will be expected to have an address where documents can be sent and signed for. Importantly, You will also no longer be allowed to use a PO Box as your registered office address. The registrar will also have greater powers to query and challenge information that seems inconsistent with their records. Information that may be checked & challenged may include company names and the nature of the business.
Identity Verification:
There are plans to introduce further identity verification for all directors and persons with significant control of a company. This will also apply to companies registered under different registration types, including limited liability partnerships (LLPs). As of now, you will not have to do this, but further information will be released in the coming months to clarify how you should provide this ID information.
Digital-Only Accounts Filing:
In order to streamline their process for filing accounts, and gain more cost-effective and accurate information on their records, Companies House will be transitioning to only accepting annual accounts filing through software formats. They suggest that, in order to comply with these changes, all companies are advised to find suitable software for filing before web-based and paper filing options are phased out. This also applies to directors who file accounts themselves, and companies who use third parties to file their annual accounts. Small and micro-entity companies will need to file their profit and loss accounts. Companies house will also be removing the option to submit “abridged accounts”.
Changes to Companies House Fees:
While exact figures are not yet set in stone, the government have stated that the increased powers and responsibilities of the registrar will necessitate increased fees. This is currently being reviewed and more information will be released soon regarding these changes.
Transparency of Company Ownership:
When these changes come into place, companies will be required to record the full names of shareholders in their registers. Companies will also have to provide a full shareholder list so Companies House can display shareholder information.
How We Can Help:
Failure to comply with these regulations may result in financial penalties, an annotation on the company’s record or prosecution. Our highly experienced advisors will always stay up-to-date with these legal/regulatory changes. If you require expert legal advice on how to comply with these changes, we are on hand to help. With our extensive experience in corporate governance, we can ensure all relevant regulations are followed, and that your business’ potential is maximised.
Find out how at:
Email: Hello@Alison-Law.co.uk (Manchester, Bradford, Sheffield)
Hello@ParkerThomas.co.uk (London)
Tel: 0161 674 0166 (Manchester, Bradford, Sheffield)
0207 242 5462 (London)
