The first changes to UK company law have now come into force and it’s important that company directors understand these in order to comply with the new requirements.
What is the Economic Crime and Corporate Transparency Act?
The Economic Crime and Corporate Transparency Act 2023 enhances the powers of Companies House and law enforcement agencies to fight fraud, corruption and money laundering.
Described as the most significant change for Companies House in its 180-year history, the act introduces new statutory objectives for the Registrar of Companies, and provides the registrar with a suite of new and enhanced powers, to enable them to meet their objectives.
Key changes for companies
The first measures came into force on March 4, and aim to improve the quality and reliability of data on the companies register and tackle misuse in order to remove details of those appointed without consent.
Registered offices
All companies must, at all times, have an appropriate address. A PO Box can no longer be used as a registered address.
An appropriate address is described as:
- Any documents having been sent to the registered office should be expected to come to the attention of a person acting on behalf of the company, and:
- Any documents sent to that address can be recorded by an acknowledgement of delivery.
If companies fail to comply with the above, there may be a financial penalty, an annotation on the company’s record and/or prosecution.
Confirmation statements and registered email address
All companies must provide a registered email address.
Any new companies wishing to incorporate, will need to give a registered email address when they file their next confirmation statement, with a confirmation statement date from March 5 2024 onwards.
All companies will need to confirm that the intended future activities of the company will be lawful and will not be able to file a confirmation statement without this statement being made.
Enhanced powers
Companies House also has greater powers to query information, request supporting evidence, remove factually inaccurate information and share data with government departments and law enforcement agencies.
Further measures, such as identity verification and accounts reform, will be introduced over a longer period.
Companies House says the phased rollout of new powers and requirements is designed to minimise hassle for legitimate businesses.
If you would like advice and support about how these changes could impact your business, please get in touch.
Call 0808 144 5575 or email help@armstrongwatson.co.uk
