The Economic Crime and Corporate Transparency Act 2023 has recently achieved Royal Assent and become law in the UK. This is one of the most significant moments for Companies House in it’s long history as the Act will allow the Registrar of Companies to play a greater role in tackling economic crime, improving transparency over corporate entities and preventing abuse of the register by giving Companies House new and enhanced powers to improve the quality and reliability of data included on public record.
A number of additional requirements will come into force as the Act has introduced four new objectives for the Registrar of Companies for England and Wales. The new objectives are as follows:
- To ensure that anyone who is required to deliver a document to the registrar does so properly.
- To ensure information contained in the register is accurate and complete.
- To ensure that records kept by the registrar do not create a false or misleading impression to members of the public.
- To prevent companies and others from carrying out or facilitating unlawful activities.
An overview of the proposed changes introduced by the Act is given below:
Improving the quality of data on the register
From 4 March 2024, Companies House have greater powers to query information and perform stronger checks on company names. New rules have been introduced for registered office addresses, and there is now a requirement for new lawful purpose statements.
Confirmation statement changes
From 4 March 2024, there are requirements for all companies to supply a registered email address and provide a statement to confirm that the intended future activities of the company will be lawful. Companies House will use this email address to communicate with the company, it will not be available to the public. Further details of the confirmation statement changes can be found on the Gov.UK website at https://changestoukcompanylaw.campaign.gov.uk/confirmation-statement-changes/
Changes to Companies House fees
From 1 May 2024, Companies House filing fees will be increased. A list of the revised fee structure can be found on the Gov.UK website at
https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/
Identity verification
Anyone setting up, running, owning, or controlling a company in the UK will need to verify their identity. An individual must not act as a director of a company unless their identity has been verified. Individuals or firms delivering documents to Companies House must also have had their own identity verified.
Changes to accounts
Transitioning towards filing accounts by software only, and changes to small company accounts filing options/requirements.
Protecting your information
Individuals will be able to apply to suppress personal information from historical documents and apply to have personal information protected from public view because of risk of harm.
Changes to limited partnerships
Limited partnerships will need to file their information through authorised agents, and they’ll need to file more information with Companies House.
Improving transparency of company ownership
New requirements to provide additional shareholder information, and restrictions on the use of corporate directors.
Investigation, enforcement and data sharing
More effective investigation and enforcement powers for Companies House, and new powers to share data with law enforcement agencies and other government departments.
Changes to our responsibilities
As well as changes for all new and existing companies, company directors and people with significant control of a company (PSCs), the Act also introduces new responsibilities for agents, advisors and anyone who files documents at Companies House on behalf of the Company, to ensure the data submitted to Companies House and included on public record is accurate and reliable.
Some of the measures in the Act, such as identity verification, will not be introduced straight away as many of the proposed changes need system development and secondary legislation before they’re introduced however, other measures will come into force sooner. We will keep you updated on the timing of other proposed changes and the latest developments as they arise.
Further information regarding the Act and proposed changes can be found on the Gov.UK website at https://changestoukcompanylaw.campaign.gov.uk/
Need additional support preparing your company confirmation statements? Contact us today and speak to a member of our team.
