Company Law Update

A number of changes to company law have been or are being introduced by the Economic Crime and Corporate Transparency Act 2023.

Some of the changes which might be relevant to our clients are set out below.

Greater Powers for Companies House to query information

Companies House now has greater powers to query information which is filed with it. The aim is to improve the accuracy and quality of that information.

Appropriate Registered Office and E-mail address

Companies will be required to have an appropriate registered office address. This is an address where documents may be served on the company. If Companies House decides that address is not appropriate then it can move the address to a default address. If that happens, then the company will have 28 days to provide an appropriate registered office address and, if it fails to do so, Companies House may start strike off proceedings.

Companies House are also now required to provide an appropriate e-mail address to Companies House.

Lawful Purpose Confirmation

Those wishing to form a company are now required to confirm that the company is formed for a lawful purpose and they will be required to repeat that confirmation annually in their confirmation statements.

Fees going up

From 1st May this year, Companies House are putting their fees up.

I.D Verification

From Spring this year, Companies House are phasing in identity verification. This means that anyone who wants to set up or run a company will have to verify their identity. This will be mandatory for:

• new directors and people with significant control (PSCs)
• existing directors and PSCs
• anyone acting on behalf of a company (when filing documents)

Identity verification will also apply to other corporate entities. For example, any members of a limited liability partnership (LLP) must also verify their identity.

Failure to provide the appropriate identity verification will mean that you cannot form any new companies or files any information for your existing companies. You should be able to verify your identity directly with Companies House or through an Authorised Corporate Services Provider such as a solicitor.

Greater Privacy 

Also from Spring this year, you should be able to apply to supress personal information held on public record.

More obligations on Limited Partnership

From Spring next year, Limited Partnerships (formed under the Limited Partnerships Act 1907) must file more information with Companies House and will be required to use an Authorised Corporate Services Provider to file that information.

Greater Transparency in relation to company ownership

From Spring next year, companies will be required to provide more information about their owners. Including providing a full list of shareholders.

Limited use of corporate directors

There will also be restrictions placed on the use of corporate directors. Only UK corporate entities whose directors are natural people who have verified their identity may be corporate directors.

For more information on these changes or help with any other aspect of company law please contact Victoria Spellman on 01473 350 573 or [email protected]