The UK’s company law landscape underwent significant changes with the enactment of the Economic Crime and Corporate Transparency Act, effective from 4th March 2024. These amendments mark a pivotal shift, aiming to enhance transparency, combat economic crime, and foster sustainable economic growth.
Here is a summary of what you need to know about the new measures.
Empowering Companies House
The Economic Crime and Corporate Transparency Act empowers Companies House to play a more proactive role in combating economic crime and supporting economic growth. Companies House will now have greater authority to scrutinise information, impose stricter regulations on company names, and enforce new rules for registered office addresses.
Directorial duties and accountability
The legislation introduces new responsibilities for company directors, individuals with significant control (PSCs), and those filing on behalf of companies. This necessitates a proactive approach from both new and existing company directors to ensure compliance with evolving regulatory requirements.
Confirmation statement reforms
From 4th March 2024, companies were required to provide a registered email address and confirm the legality of their intended future activities, enhancing the accuracy of information provided to Companies House.
Fee adjustments and expenditure considerations
Starting 1st May 2024, adjustments to Companies House fees are implemented to align with projected future expenditure and ensure cost recovery from existing operations.
Identity verification
All individuals involved in setting up, managing, or owning a company in the UK must undergo identity verification, enhancing the integrity of corporate entities.
Enhanced data protection measures
The Act introduces robust data protection measures, allowing individuals to apply for the suppression of personal information from historical documents and shield their data from public exposure due to potential risks.
Modernising account filing practices
A transition towards only software-based account filing, and revisions to filing options for small company accounts.
Limited partnership amendments
Limited partnerships are required to submit their information through authorised agents and provide additional details to Companies House, enhancing transparency and accountability within the sector.
Strengthening company ownership transparency
New regulations mandate the provision of additional shareholder information and impose restrictions on the utilisation of corporate directors to bolster transparency in company ownership structures.
Ramped-up enforcement mechanisms
Companies House enhances its investigative and enforcement capabilities, equipped with newfound powers to share data with law enforcement agencies and government bodies, fortifying regulatory oversight.
For detailed information on these changes and their implications for companies, visit the Companies House website here.
How Neopay can help
Neopay is ready to assist in ensuring that internal due diligence processes pertaining to the identification and verification of legal entities are robust and aligned with the recent changes to UK Company Law. With our expertise, we can support your firm in navigating these regulatory adjustments seamlessly, ensuring compliance and fortifying your business operations.
To find out how we can support your business, contact our team here.
