8 important changes to UK company law, and when they are taking place
The Economic Crime and Corporate Transparency Act 2023, included major reforms which were introduced to help improve transparency, tackle economic crime, and support GDP growth. Companies House are now required to play a greater role in disrupting economic crime and preventing abuse of the company register. Many changes to company law are afoot, some of which have already been introduced. It is important to ensure that as a company director, you are keeping compliant; in this article, we are going to outline some of the key changes to company law that directors need to be aware of, and when they are likely to happen.
Companies required to have an appropriate registered office addressCompanies must now ensure that their registered office is at an appropriate address, therefore, you will not be able to use a PO box as your registered office address. However, certain other third-party addresses will be acceptable, for example, accountants or solicitors.
When will this happen? This has been effective as of 4th March 2024
Enhanced powers for the Registrar of CompaniesAny information which appears to be incorrect or inconsistent can be expected to be queried or challenged. Company names will also face stronger checks if they give a false or misleading impression to the public.
When will this happen? Currently effective
Increase in filing feesMost notably confirmation statement fees are increasing to £34 from £13. Full details on the changes and new fees can be found here - https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/
When will this happen? This has been effective as of 1st May 2024
Duty to provide a registered email addressCompanies are now required to provide a valid email address with their next confirmation statements. New companies will have to provide a valid email address during the incorporation process.
When will this happen? Became effective from 4th March 2024 for new company incorporations, and from 5th March 2024 for confirmation statements.
Introduction of softwareIn order to streamline filings for companies, and to make this a more efficient and secure process, Companies House will require companies to file accounts in digital format only, meaning web-based and paper filing options will no longer be available.
When will this happen? This is going to be phased in over the next two to three years, however, the software is already available so it is recommended that companies start making the change now.
New identity verification requirementAnyone registering, running, or owning a business, or controlling a company or incorporated partnership in the UK will be required to verify their identity directly via Companies House, or through an authorised agent such as an accountant, solicitor, or company formation agent.
When will this happen? Currently, there is no confirmed date
Suppression of personal information at Companies HouseIndividuals at risk of harm will be able to apply to have their information on Companies House protected from public view. This information includes their name, address, and other personal details. Please note supporting evidence will need to be provided to Companies House.
When will this happen? This will be phased in over the next two years.
Statement of lawful purposeCompanies will have to confirm that all intended future activities of the company are lawful.
When will this happen? Became effective from 4th March 2024.
Get in touch
If you have any queries or concerns about these changes to company law, then you should speak to your advisers who can help you navigate the changes and help you to ensure you are compliant with them. For more information on how we could help you and your business, please contact us at info@oldfieldadvisory.com or call 02476673160 and we will be happy to help.
Please note: This article is provided for information only and was correct as at time of writing (05/06/24). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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