Are you prepared for the upcoming changes at Companies House?
26/02/2024
If your business is registered in the UK, you need to prepare for the Companies House changes that are coming into effect on 4 March 2024.
Following on from the enactment of the Economic Crime and Corporate Transparency Act last year, these changes mark a significant moment in the evolution of company registration and management across the country.
Our team has outlined the key reforms set to reshape the landscape of corporate governance and reporting and bolster data quality, transparency, and accountability:
Improving the quality of data on our registers
One of the primary focuses of the upcoming changes is to enhance the quality of information held by Companies House.
Companies House will have greater authority to query data including implementing stringent checks on company names.
As part of this, you will need to have an ‘appropriate’ registered office address.
Companies House has defined this as a location where documents sent are expected to be received by a person acting on behalf of the company, meaning the use of PO Box addresses will not be accepted.
If your company uses a PO Box, this must be updated to a compliant address by 4 March.
Confirmation statement modifications
Companies will also face new obligations regarding their confirmation statements from 4 March.
These include:
- Providing a statement of lawful purpose: From 4 March, you must provide a statement to confirm you are forming the company for a lawful purpose registering or incorporating a company. You will also need to confirm that future activities will be lawful on your annual confirmation statement.
- Having a registered email address: You must provide a registered email address to facilitate communication with Companies House. If your company is registered with Companies House, you must provide this with the first confirmation statement after 4 March.
Ensure your company’s details are regularly updated to avoid falling foul of the law.
Companies House fee adjustments
Companies House is set to adjust its fee structure from 1 May 2024 to accommodate new expenditures and ensure existing costs are adequately covered.
It has indicated that these adjustments are essential for sustaining the effective operation of Companies House and maintaining the integrity of its services.
Identity verification
A significant change involves the requirement for individuals involved in setting up, running, owning, or controlling a company to undergo identity verification.
As part of this measure, Companies House will implement a service for you to verify your identity directly with Companies House or through an authorised agent.
Changes to accounts filing
Following the digitisation trend, Companies House is transitioning towards mandatory electronic filing of accounts, emphasising the use of software.
This move to online filing will be phased over two to three years, with the set timetable yet to be confirmed. Alterations to filing options for small company accounts are also on the agenda.
Protecting personal information
In line with the Economic Crime and Corporate Transparency Act, individuals will have the right to apply for the suppression of personal information from historical documents held by Companies House.
Additionally, provisions will be made to shield personal information from public view in cases where there is a risk of harm.
Limited partnership reforms
As part of the move to improve transparency and accountability, limited partnerships will be required to file information through authorised agents and provide additional data to Companies House.
Further information on what is required can be found here.
Enhancing company ownership transparency
Another measure to improve transparency is that you must provide additional shareholder information in registers, including:
- The full names of individuals or corporate members and their firms
- A one-off full list of shareholders
There will also be restrictions on the use of corporate directors, which are detailed here.
New powers for Companies House
As outlined, Companies House will have enhanced investigative and enforcement powers, empowering it to take decisive action against non-compliant entities.
Additionally, new provisions for data sharing with law enforcement agencies and government departments will bolster efforts to combat financial crime and uphold regulatory standards.
Whilst your business will need to adapt to these reforms, the efforts are instrumental to modernise corporate governance and promote transparency for UK businesses.
Make the transition easier by gathering the data for these changes now. Our team is on hand to provide support and additional information on how these changes will impact you as we approach 4 March.
Get in touch with our team today for guidance on adapting to these changes.
