2024 Changes to Companies House requirements
You may have seen in the media yesterday (4th March 2024) a lot of talk about the new and enhanced powers given to Companies House. These 2024 changes to Companies House are in response to the UK’s growing exposure to fraud, corruption and money laundering and are the most significant change for Companies House in its 180-year history.
The Government introduced the Economic Crime and Corporate Transparency Act 2023 (ECCTA) last October. The first set of this phased rollout of new powers for Companies House came into force yesterday, Monday 4th March 2024.
According to a press release on its website, Companies House states that these new powers will “improve the quality and reliability of its data and tackle misuse of the companies register”.
It is hoped that these reforms to Companies House and the changes to legislation will tackle money laundering and other economic crimes. These 2024 changes to Companies House will also trickle down to UK companies who will need to improve their business transparency through their reporting. It is something that will affect all businesses, and business owners and operators should be aware of these changes and what they mean.
What changes are taking place?
The Registrar will now have broader powers to improve the accuracy and reliability of information filed at Companies House. They will also have the ability to check, remove or decline the information that companies attempt to file and, importantly, information which has already been filed.
Using digital technology, investigations (such as cross-checking and sharing data with other public and private sector bodies) will become more regular in an attempt to identify suspicious or anomalous filings.
What will the 2024 changes to Companies House mean for your business?
- Identity verification
From March 4th, 2024, all new and existing registered company directors, people with significant control (PSCs) and those delivering documents to the Registrar for filing will need to complete identity verification. There will be a transition period, but you should start to gather information about those individuals affected in your business now.
- Company email address
Companies will be required to maintain an email address that Companies House can use to communicate with it.
- Registered office address
Companies can no longer use a PO Box for their registered office address.
- Company formation and names
Applications for company incorporation will include one additional step. This step requires the individuals forming the company to confirm that it is being formed for a ‘lawful purpose’ and that its future intended activities are lawful.
- Statutory registers
Companies will be able to record electronically at Companies House. The reforms introduce further duties on companies to collect and share accurate statutory registers.
It has been noted that new criminal offences and civil penalties will complement the measures introduced on 4th March 2024.
What should I look out for?
Key provisions will be rolled out throughout the rest of this year, the timing of which is to be confirmed. We will be monitoring these changes closely and will update our clients and our website with this information.
Please look out for our mini-series of articles on the upcoming changes and how we can work with and support you.
What next?
If you are a business owner and are concerned about the 2024 changes to Companies House and how it may affect your business, then please call our specialist company commercial solicitors on 01752 203520 or email me directly via james.peterson@gasolicitors.com. We can also help if you do not have current and accurate statutory books.
GA Solicitors in Plymouth has a highly established and regarded commercial team. It is ranked in Chambers UK and The Legal 500. We can guide you through all the upcoming changes and ensure your business is protected.
You can read our article about sole directors and model articles here.
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