Companies House Upcoming Changes and Proposed Identification Requirements
The Economic Crime and Corporate Transparency Act became law and received Royal Assent in October 2023. The act has introduced numerous changes to UK company law, some of which have already taken effect and others which will take effect in the next upcoming years, resulting in a complete transformation of Companies House.
What changes have already been made?
The governments initial wave of changes includes some of the following:
- All companies must have an 'appropriate address' as their stated registered office. An appropriate address is one in which a document can be sent to and be received directly by the individual acting on behalf of the company and/or where a document can be sent recorded with an acknowledgement of delivery.
- A PO Box is therefore not deemed as an 'appropriate address' and if this is currently being used as your registered address, by law you must change this.
- The requirement for all companies to provide a registered email address to Companies House.
- New companies must provide a registered email address when they incorporate, whilst existing companies must provide one when filing their next confirmation statement. Any company who fails to do so will be committing an offence. These email addresses will not become public information obtainable on the register.
- Greater powers for Companies House to query information provided and request any additional evidence from companies where the information appears to be incomplete, false or inaccurate without needing to obtain an order from the Court to do so.
- Increased Companies House fees as of 1 May 2024.
- Requirement for companies to make a statement of lawful purpose confirming that they are forming/operating the company for lawful reasons.
- New companies will be required to make this statement when they incorporate, whilst existing companies will be required to do so when filing their next confirmation statement.
Identity verification
In the upcoming years, Companies House will be introducing a new identity verification process which anyone setting up or operating a company in the UK will be required to complete.
All new and existing company directors, PSC's (persons of significant control), members of LLP's and those filing on behalf of a company, will need to verify their identity at Companies House. The verification process itself will be completed digitally using a device with a camera or may be done via an Authorised Corporate Service Provider ('ACSP'), who are individuals/organisations such as solicitors, accountants and company formation agents.
When should you take action?
It is vital that you are aware of the new and upcoming changes to allow yourself sufficient time to prepare and take action to comply with any new requirements. We would advise that all directors begin to consider what changes need to be made, who will need to have their identity verified and ensure that suitable identification documentation is readily available in preparation for these incoming changes.
You can monitor these changes by regularly checking the governments new "Changes to UK Company Law" website dedicated to providing additional information on these incoming changes being introduced under the Economic Crime and Corporate Transparency Act.
