The Economic Crime & Corporate Transparency Act became law in October 2023. It was introduced to improve the accuracy and quality of the data held by Companies House, to ultimately help tackle economic crime and boost confidence in the UK economy.
It’s one of the biggest shake-ups in Companies House’s history. Many people feel it’s long overdue. And it means keeping accurate company records is more important than ever.
The first changes were introduced on 4 March 2024, but what are they? And what do they mean for your business?
New rules for registered office addresses
Companies must always have an ‘appropriate address’ as their registered office. That means a document delivered there by post is expected to be brought to the attention of a person acting on behalf of the company, and a document delivered there can be recorded via an acknowledgment of delivery.
So, you won’t be able to use a PO Box as your registered office address in the future. And if you do currently, it will need to be changed.
Statement of lawful purpose
Every company incorporated from 4 March 2024 will need to confirm it’s being formed for a lawful purpose, and confirm its future activities will be lawful on the confirmation statement.
Registered email address
Every company will need to provide a registered email address with their next confirmation statements. You will be asked to provide this the next time you file an eligible confirmation statement.
New Registrar powers
The Registrar now has greater powers to query and challenge information that appears to be incorrect or inconsistent. In some cases, the Registrar will be able to remove information more quickly, if that information is inaccurate, incomplete, false or fraudulent, to clean up the register.
There will also be stronger checks on company names which may give a false or misleading impression to the public.
Increased enforcement and sanctions
If you fail to respond to a formal request from Companies House for more information, or meet any of the new requirements above, there could be serious consequences. They may include a financial penalty, an annotation on the company’s record, or a prosecution. Companies House will also be sharing data with other government departments and law enforcement agencies, where relevant.
NEED A HELPING HAND?
It pays to use your accountant to help you stay on top of these changes and complete your secretarial and regulatory tasks. The team at Cooper Parry can help you do just that, guaranteeing:
- Accuracy: Data is being more highly scrutinised, and there are plenty more changes in the pipeline for this year. We’ll take care of the detail, track the developments, and make sure your reports are accurate, so you can stay one step ahead in a fast-moving space.
- Compliance: By handing these tasks over to us, you can make sure you never miss a deadline, and free up your time to focus on growing your business.
- Value for money: Many businesses use a solicitor for this. We’re a cheaper alternative. And we’ll bundle all the tasks together into one payment.
If you’d like to find out more about the changes to UK Company Law, or how we can support you, get in touch with Genti Krasniqi.
