Ensuring Transparency: Key Changes to Company Registration and Filings

The Economic Crime and Corporate Transparency Act strengthens the integrity of Companies House data through several key measures. These changes focus on ensuring the accuracy, completeness, and reliability of registered information, ultimately bolstering confidence in the UK economy. Key updates include:

• Registrar’s Objectives: The Registrar of Companies now has statutory objectives to maintain accurate and complete register information, prevent misleading filings, and deter unlawful activities.
• Registered Office Addresses: Companies must maintain an “appropriate address” as their registered office, capable of receiving and acknowledging document delivery. Non-compliant addresses may be changed to a default address by Companies House.
• Statement of Lawful Purpose: Company subscribers must affirm the lawful purpose of the company at registration. Furthermore, companies must confirm the legality of their intended future activities within their annual confirmation statement.

 Key Changes to Confirmation Statements

The Economic Crime and Corporate Transparency Act introduces significant changes to the UK company confirmation statement process, enhancing transparency and data accuracy. Key updates include:

• Registered Email Address: All companies must provide a registered email address for Companies House communication. This address will not be publicly accessible. New incorporations from March 4, 2024, onwards must provide this email at incorporation. Existing companies must include it in their next confirmation statement due from March 5, 2024.
• Statement of Lawful Purpose: Companies must annually confirm the lawfulness of their intended future activities within their confirmation statement. This requirement applies to all statements dated March 5, 2024, onwards.
• Enforcement and Sanctions: Failure to file the confirmation statement on time may result in financial penalties. Detailed enforcement guidance is available to assist companies with compliance.

Updated Companies House Fees Effective May 1, 2024

The Economic Crime and Corporate Transparency Act has resulted in revised Companies House fees, effective from May 1, 2024. These adjustments support Companies House’s expanded powers and responsibilities, enabling effective management and enforcement of updated regulations. Key fee changes include:

• Incorporation Fees: Digital incorporation is now £50, same-day digital incorporation is £78, and paper incorporation is £71.
• Confirmation Statement Fees: Digital filing is £34, and paper filing is £62.
• Change of Name Fees: Digital changes are £20, same-day digital changes are £83, and paper changes are £30.
• Registration of Charges: Digital registration is £15, and paper registration is £24.
• Voluntary Strike Off Fees: Digital filing is £33, and paper filing is £44.
• Other Fees: Adjustments have also been made to various other fees, including re-registration, administrative restoration, and address unavailability for public inspection.

These revised fees ensure Companies House can maintain high-quality services and the integrity of the company register.

New Requirements for Authorised Corporate Service Providers (ACSPs)

The Economic Crime and Corporate Transparency Act introduces new requirements for Authorised Corporate Service Providers (ACSPs) to enhance the accuracy and transparency of company information. Effective from February 25, 2025, these changes ensure third-party identity verification providers are registered and supervised. Key updates include:

• Definition and Role: ACSPs are individuals or organizations conducting Anti-Money Laundering (AML) supervised activities, such as company formation agents, solicitors, accountants, and chartered secretaries.
• Registration Requirements: From February 25, 2025, third-party providers must register as an ACSP with Companies House, including identity verification and business information.
• Supervisory Bodies: ACSPs must be supervised by a relevant UK AML supervisory body, such as HMRC, the Financial Conduct Authority, or the Insolvency Practitioners Association.
• Application Process: Registration involves applying via the new “Apply to register as a Companies House authorised agent” service, paying a £55 fee, and obtaining a unique identification number.
• Responsibilities and Compliance: Registered ACSPs can file information and perform client identity verification. Companies House will provide guidance on ACSP responsibilities and regulatory compliance.

These changes aim to improve company register integrity and ensure only verified and lawful activities are conducted on behalf of companies.

New Identity Verification Requirements for UK Companies

The Economic Crime and Corporate Transparency Act introduces a new identity verification process to bolster the integrity of company information and deter illegal activity. Effective from March 25, 2025, these changes aim to accurately identify individuals involved with UK companies. Key updates include:

• Who Needs to Verify: Anyone establishing, operating, owning, or controlling a UK company must verify their identity. This includes new and existing directors, Persons with Significant Control (PSCs), and those acting on behalf of a company.
• Verification Methods: Individuals can verify directly with Companies House using GOV.UK One Login (using ID documents like a passport) or through an Authorised Corporate Service Provider (ACSP).
• Phased Introduction: Identity verification will be phased in. Voluntary verification begins March 25, 2025, eventually becoming mandatory for all relevant parties.
• Consequences of Non-Compliance: Failure to comply is an offense, resulting in financial penalties and restrictions on company filings.

These changes enhance the accuracy and reliability of company information, building trust in the UK business environment.

Enhanced Protection for Personal Information at Companies House

The Economic Crime and Corporate Transparency Act introduces measures to protect personal information on the Companies House register, balancing corporate transparency with individual data protection. Key updates include:

• Suppression of Personal Information: From January 27, 2025, individuals can apply to suppress certain personal information from historical documents. This includes registered office addresses (if it’s their home address), residential addresses, day of birth (for documents registered before October 10, 2015), signatures, and business occupations.
• Protection Due to Risk of Harm: Individuals at risk of harm or violence (e.g., domestic abuse survivors) can apply for information protection, including names (or previous names), sensitive addresses, and, in severe cases, all other details like service addresses and partial dates of birth.

These measures aim to prevent personal information abuse while maintaining necessary corporate transparency.

Strengthening Regulation of UK Limited Partnerships

The Economic Crime and Corporate Transparency Act introduces significant changes to UK limited partnership (LP) regulation. Effective from Spring 2026, these updates enhance transparency and ensure accurate, reliable LP information. Key changes include:

• Partner Information: LPs must provide the names, dates of birth, and usual residential addresses of all partners. General partners must also verify their identity.
• Registered Office Address: LPs must have a UK registered office address in the same country where the LP is registered (e.g., a Scottish LP must have a Scottish registered office).
• Standard Industrial Classification (SIC) Code: LPs must provide an SIC code describing their business activities.
• Annual Confirmation Statement: LPs must file an annual confirmation statement to ensure register information is up-to-date.
• Filing Through Authorised Agents: LPs must file information through a Companies House-registered Authorised Corporate Service Provider (ACSP).
• New Powers: Companies House gains new powers to close and restore LPs, apply sanctions, protect partner information, and operate a statutory compliance process.

These measures improve the transparency and reliability of LP information, enhancing trust in the UK business environment.

Enhancing Transparency of UK Company Ownership

The Economic Crime and Corporate Transparency Act introduces measures to improve UK company ownership transparency. These changes aim to ensure clear and accessible ownership information, enhancing trust in the business environment. Key updates include:

• Full Names of Shareholders: Companies must record the full names of individual shareholders or the full names of corporate members and firms in their registers.
• One-Off Full Shareholder List: Companies must provide a one-off full shareholder list to Companies House for more user-friendly display.
• Exemptions and Conditions: Companies House will collect and display more information from companies claiming exemption from providing Person with Significant Control (PSC) details, including the reason for the exemption. Conditions allowing a Relevant Legal Entity (RLE) to be recorded as a PSC will also be collected and displayed.
• Restrictions on Corporate Directors: Only UK corporate entities with “legal personality” can be appointed as corporate directors. The directors of these corporate directors must be natural persons who have verified their identity.

These measures aim to enhance the transparency and reliability of company ownership information, boosting confidence in the UK business environment.

Modernizing Company Accounts Filing at Companies House

The Economic Crime and Corporate Transparency Act introduces significant changes to company accounts filing at Companies House. These updates aim to improve transparency and ensure accurate, accessible financial information. Key changes include:

• Software-Only Filing: Companies will transition to exclusively filing accounts via software within the next 2-3 years. Web-based and paper filing will no longer be available. Companies will need to acquire suitable software.
• Small Company Filing Options: Small and micro-entity companies must file their profit and loss accounts. Small companies (excluding micro-entities) must also file a directors’ report. The option to file abridged accounts will be removed.
• Audit Exemption Claims: Companies claiming an audit exemption must provide an additional director’s statement on the balance sheet, specifying the claimed exemption and confirming eligibility.

These measures enhance the quality and reliability of financial information, boosting confidence in the UK business environment.

Summary of The Economic Crime and Corporate Transparency Act changes with Companies House

The Economic Crime and Corporate Transparency Act brings sweeping changes to Companies House and UK company regulation, impacting various aspects of company operations. These changes, rolled out over the coming years, aim to enhance transparency, improve data accuracy, and strengthen the integrity of the UK business register.

Key areas of change include:

• Data Integrity: The Registrar of Companies has new statutory objectives to ensure accurate register information, prevent misleading filings, and deter unlawful activities. Registered office address requirements are stricter, and companies must declare the lawfulness of their purpose and intended activities.
• Confirmation Statement: The confirmation statement process is significantly updated, requiring a registered email address, a confirmation of lawful purpose, and facing potential penalties for non-compliance.
• Fees: Companies House fees have been revised to support its expanded powers and responsibilities.
• Authorised Corporate Service Providers (ACSPs): ACSPs, including company formation agents, solicitors, and accountants, face new registration and supervision requirements to ensure proper identity verification practices.
• Identity Verification: A new identity verification process will be phased in, requiring individuals involved with UK companies (directors, PSCs, etc.) to verify their identities, either directly with Companies House or through an ACSP.
• Personal Information Protection: Measures are introduced to protect personal information held on the Companies House register, allowing for suppression of certain details and enhanced protection for individuals at risk of harm.
• Limited Partnerships (LPs): LP regulations are updated with stricter requirements for partner information, registered office addresses, SIC codes, annual confirmation statements, and mandatory filing through ACSPs. Companies House also gains new powers regarding LPs.
• Company Ownership Transparency: Measures are introduced to improve transparency of company ownership, requiring full shareholder names, a one-off full shareholder list, more detailed information on PSC exemptions, and restrictions on corporate directors.
• Accounts Filing: Companies will transition to software-only accounts filing. Small company filing requirements are revised, including the removal of abridged accounts, and audit exemption claims require additional statements.

These changes collectively represent a significant shift in UK company regulation, designed to create a more transparent and trustworthy business environment. Businesses should prepare for these changes by familiarizing themselves with the new requirements and updating their internal processes accordingly.

Information and source taken from https://changestoukcompanylaw.campaign.gov.uk/changes-at-a-glance/

Stay compliant and ensure your company is up-to-date with these new regulations. Our professionals at 1Office are here to help you with all your accounting and tax needs. Contact us today to learn more about how we can support your business.