The Economic Crime and Corporate Transparency Act

February 2024

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As a result, there are several areas around company reporting which may be impacted, most notably around the confirmation statement filing, the electronic filing of accounts and the new identity verification requirement for directors and people with significant control (PSCs). Essentially companies will need to supply a registered email address on the next CS01 and complete a statement confirming that intended future activities of the company are lawful.

The Company Law changes also mean that:

From 4 March 2024, companies will no longer be able to use a PO Box address as their registered office address;

Companies will need to undertake identity verification requirement through an Authorised Corporate Service Provider(ACSP).

The Economic Crime and Corporate Transparency Act will introduce a number of changes over the next few years, with the first changes expected to be implemented from 4 March 2024. The introduction of the changes requires secondary legislation so it remains possible that the March date may change depending on parliamentary processes. However, Bridgehouse is recommending that clients do not delay.

The government has summarised the changes as follows:

Improving the quality of data on Companies House registers

From 4 March 2024, Companies House will have greater powers to query information, will implement stronger checks on company names, and there will be new rules for registered office addresses, and new lawful purpose statements.

Bridgehouse:

Companies House will require a statement to confirm the company is lawful – clients will need to confirm that the intended future activities of the company will be lawful (there will be a box to tick on the confirmation statement).

Identity verification

Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity.

Bridgehouse:

It’s worth noting that this does not yet have an implementation date, but will be important for our clients to prepare for.

Changes to accounts

Transitioning towards filing accounts by software only, and changes to small company accounts filing options.

Bridgehouse:

Again, this does not yet have an implementation date, but will be important for our clients to prepare for.

Confirmation statement changes

From 4 March 2024, new requirements will be introduced requiring a registered email address and to confirm that the intended future activities of the company will be lawful.

Bridgehouse:

Companies must, at all times, have an ‘appropriate address’ as their registered office. This means that companies will not be able to use a PO Box as their registered office address in the future.

Changes to Companies House fees

Fees will increase to take new future expenditure into account, as well as making sure costs are recovered from existing expenditure.

Protecting your information

Individuals will be able to apply to suppress personal information from historical documents, and apply to have personal information protected from public view because of risk of harm.

Bridgehouse:

This has been available for several years already by using a Service address (a home address must also be supplied). Removing information from published historical forms is quite expensive. Apply to protect your details on the Companies House register.

Changes to limited partnerships

Limited partnerships will need to file their information through authorised agents, and they will need to file more information with Companies House.

Improving transparency of company ownership

There will be new requirements to provide additional shareholder information, and restrictions on the use of corporate directors.

Investigation, enforcement and data sharing

Companies House will have more effective investigation and enforcement powers, plus new powers to share data with law enforcement agencies and other government departments