A major change has occurred in UK company law with the royal assent of the Economic Crime and Corporate Transparency Act on October 26, 2023. By enacting this legislation, Companies House is given the authority to actively fight against economic crime and promote economic progress. The purpose of the amendments made by this law is to make the company registries more open and trustworthy by improving their accuracy and dependability.
Important Points from the Law:
1. Increased Responsibilities Directors of companies, persons with substantial control over a business (PSCs), and anyone submitting paperwork on a firm’s behalf are all hit with new obligations under the legislation. It is critical that those with a stake in the matter comprehend these changes and act accordingly.
2. Improved Data Quality Measures aimed at improving the quality of data on company registers are established in the act. Some of the changes include updated regulations for registered office addresses, new goals for the registrar, and procedures for querying and challenging information.
3. Identity Verification: Anyone who helps establish, manage, own, or control a business in the UK must prove their identification. The ownership of a corporation must be open and accountable, and this is a crucial step in that direction.
4. Changes to Reporting The act modifies the reporting requirements for submitting confirmation statements and annual accounts. Among these changes is the requirement that all yearly accounts be filed electronically and the requirement that all confirmation statements be sent to a registered email address.
5. Fees to Companies House: Stakeholders need to know that in 2024, some of the fees to Companies House will go up. For efficient financial planning, it is crucial to comprehend these developments.
6. Data Protection The act aims to prevent the misuse of personal information maintained on the Companies House register by including safeguards to ensure its protection.
7. Register of Overseas Entities As part of its plan to combat economic crime, the government has prioritized the creation of the Register of Overseas Entities, which brings us to point number seven.
Finally, the Economic Crime and Corporate Transparency Act has made several major reforms that will affect many people and businesses in the United Kingdom. At its heart, these reforms aim to boost confidence in the UK economy by increasing accountability, improving data quality, and increasing openness. Stakeholders are invited to visit Companies House on GOV.UK for further information and to stay updated on these changes. There is comprehensive information and tools available there.