March 4, 2024, marks a pivotal moment for UK company law. The Economic Crime and Corporate Transparency Act, signed into law in October 2023, is ushering in a series of significant changes. As Companies House prepares to roll out these updates, it’s essential for everyone involved to grasp the impact and prepare for the adjustments ahead.

Who’s Affected?

• Company Directors: Whether you’re a seasoned director or just stepping into the role, the new rules apply.
• People with Significant Control (PSCs): Those holding substantial control within a company face new responsibilities.
• Filers on Behalf of a Company: Entities filing documents for a company will also feel the effects.

Initial Changes Starting March 4, 2024

1. Registered Office Addresses:
   • Companies are required to maintain an ‘appropriate address’ as their registered office.
   • This address must ensure that company correspondence reaches someone acting on its behalf, with proof of delivery.
   • PO Box addresses will no longer suffice, so companies must update to an appropriate address.
2. Registered Email Addresses:
   • Every company must provide a registered email address to Companies House.
   • New companies need to include this during incorporation, while existing ones should update it in their confirmation statements.
3. Lawful Purpose Statements:
   • Companies must confirm their intended future activities are lawful.
   • This confirmation is part of the annual confirmation statement and company registration applications.
4. Enhanced Powers for Companies House:
   • Companies House gains authority to query and challenge information, with stricter checks on company names.
   • The registrar can now reject inaccurate or inconsistent data, swiftly removing false information.

Future Changes on the Horizon

1. Accounts Filing Requirements:
   • Companies will shift to filing annual accounts through software for efficiency and security.
   • Changes include small and micro-entity companies filing profit and loss accounts.
   • Small companies will file directors’ reports, with the removal of ‘abridged’ accounts as an option.
2. Improvements to Companies House Register:
   • Companies House ensures data integrity with tougher checks on misleading names.
   • Annotations on the public register will highlight potential issues.
   • Data matching will swiftly remove inaccuracies from records.
3. Identity Verification:
   • A new process will verify identities to deter illegal activities within companies.
   • Applies to anyone setting up, owning, running, or controlling a UK company or LLP.
4. Enforcement and Sanctions:
   • Companies House gains the power to impose penalties for non-compliance.
   • Annotations, fines, and legal action may follow failure to provide requested information.
5. Removal of Statutory Company Registers:
   • Internal company registers for directors, secretaries, and PSCs will move to the public register.
   • Private companies must maintain an internal register of members alongside the Companies House register.
6. Enhanced Data Protection:
   • Individuals on the register can request removal of sensitive personal information.
   • This includes residential addresses, dates of birth, occupations, and signatures.

Getting Ready for Change

As the UK prepares for these comprehensive adjustments, being informed and proactive is key. Companies, directors, PSCs, and all stakeholders must understand the new landscape to ensure compliance and a smooth transition. Stay updated through official channels and be prepared for the evolving regulatory environment.