Major changes at Companies House from March 2024
From 04 March 2024, Companies House is set to usher in a series of impactful changes aimed at fortifying regulatory oversight and transparency in corporate operations.The Economic Crime and Corporate Transparency Act became law in October 2023. Since then, Companies House have been getting ready to introduce the measures brought in by the act. These changes mark a significant step towards enhancing corporate governance and protecting stakeholders’ interests. Here’s a comprehensive overview of the key modifications you need to know:
1. Enhanced Data Verification and Removal Powers
Companies House will wield amplified authority to scrutinsze and rectify potentially misleading or erroneous company data. This includes appending notes to company records when information seems ambiguous and expediting the removal of blatantly fraudulent data to thwart identity theft or misrepresentation.
2. Mandatory Identity Verification for Company Officers
To bolster security and accountability, all directors and People with Significant Control (PSCs) are now required to undergo identity verification. This verification process can be facilitated through Companies House directly or via an accredited intermediary like an Authorised Corporate Service Provider (ACSP).
3. Requirement for an “Appropriate” Registered Office Address
Effective March 4th, limited companies must designate a registered office address that meets specific criteria beyond merely being a PO Box. The address should be capable of receiving mail relevant to the company’s affairs, with provisions for proof of delivery where necessary, PO Box addresses will no longer be allowed.
4. Restrictions on Company Names
To combat illicit activities, the legislation imposes restrictions on company names intended for criminal conduct, containing embedded computer code, or suggesting an affiliation with a foreign government.
5. Introduction of a Statement of Lawful Purpose
During company formation, subscribers must declare explicitly that the company is established for a lawful purpose. Existing companies must furnish this affirmation with subsequent confirmation statement submissions.
6. Mandatory Registered Email Address
All companies are now mandated to provide a registered email address for correspondence with Companies House. Failure to maintain a registered email address is considered an offense.
7. Removal of Sensitive Information from Pre-2015 Records
Acknowledging privacy concerns, provisions have been made to redact sensitive personal information from pre-2015 company records upon request.
8. Heightened Transparency of Ownership
Commencing 04 March, companies must disclose the full names of individual shareholders in their statutory registers. Detailed information regarding corporate members and nominee firms must also be provided to ensure transparency of ownership.
9. Changes to Companies House Fees
Effective May 1, 2024, Companies House will adjust its fee structure to align with service costs. Notable fee revisions include those for incorporation and confirmation statements, the full list of new fees can be found here
Staying Compliant with AO Accountants
These regulatory changes underscore the importance of staying informed and compliant to safeguard your business’s interests. At AO Accountants, we’re here to guide you through these transitions with confidence and expertise. Contact us today for tailored support in navigating these new regulations and ensuring compliance every step of the way.
As these regulations come into effect, it’s essential for businesses to adapt promptly and ensure compliance to avoid any penalties or disruptions. Stay ahead of the curve by staying informed and seeking professional guidance when needed.
