Companies House Changes Law For Companies
New measures have been brought in by The Economic Crime and Corporate Transparency Act meaning Companies House will play a much greater role in disrupting economic crime and preventing abuse of the register. The first changes come in to effect on 4th March,2024.
The measures set out in the act give Companies House new and enhanced powers to improve the quality and reliability of their data.
Registered Office Address
Companies must have an ‘appropriate address’ as their registered office at all times. This means any documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the company and any documents sent to that address can be recorded by an acknowledgement of delivery.
This means companies will not be able to use PO boxes as their registered address from 4th March, 2024. However, third-party agent’s address like Cashtrak’s registered office service can still be used. Our registered office service starts at just £5 + VAT per month, concentrate on your business and stay compliant knowing we are managing your official documents. Click here for more information.
Companies House can strike Companies off the register if they don’t have an appropriate registered office address, they have advised when they identify a registered office address not following the new rules, they will change it to a default address held at Companies House. The company must then provide an appropriate address with evidence of a link to that address within 28 days.
If they do not receive this evidence, they’ll start the process to strike the company off the register.
Registered Email Address
Another new law that comes in to effect is a registered email address. New companies will need to give a registered email address when they incorporate, this can be easily changed at a later date. Existing companies will need to give a registered email address when they file their next confirmation statement with a statement date from 5th March, 2024.
You will be able to change the email address through Companies House new 'update a registered e-mail address service', companies will have a duty to maintain an appropriate registered e-mail address in the same way as their Registered Office Address. You will have to be signed in to Companies House and authenticated to do this. Cashtrak offer this service starting from £5 + VAT a month, this will be discounted if taken with our Registered Office Address service, click here for more information. Avoid unnecessary penalties and the possibility of strike off action with Cashtrak managing your electronic communication.
Statement Of Lawful Purpose
When a new company incorporates, shareholders will need to confirm they’re forming the company for a lawful purpose. Existing businesses will need to confirm the company’s intended future activities are lawful on the confirmation statement.
Companies House have said the new statement of lawful purpose is to ‘to make it clear that all companies on the register, new and existing, have a duty to operate in a lawful way’ and advise they may take action against the company if they become aware of any information that confirms the company isn’t operating lawfully.
The intention of these statements is to make it clear that all companies on the register, new and existing, have a duty to operate in a lawful way, the documents will not be accepted if this has not been confirmed.
From the 4th March, 2024, Companies House registrars will have greater powers to query and challenge information that appears to be incorrect or inconsistent with information they hold.
There'll be stronger checks on company names which may give a false or misleading impression to the public. This will help improve the accuracy and quality of data held and help tackle the misuse of company names.
Fees
Companies House fees are increasing from 1st May, 2024, the increase will fund the costs of the new powers and reforms in the economic crime and corporate transparency act.
Further Changes
Other changes coming but no effective date yet include:
New responsibilities for:
all new and existing company directors
people with significant control of a company (PSCs)
anyone who files on behalf of a company
Accounts
Transitioning to filing accounts by software only
Small company accounts filing options
Limited partnerships will
need to use authorised agents to file information
file more information with Companies House
ID
introduction of compulsory identity verification for anyone setting up, running, owning, or controlling a company
For more information or to talk to us about how we can help you and your business with these reforms, you can contact us using any of the following:
Phone 01865 522785
Email info@cashtrak.co.uk
Book a free consultation by clicking here
Visit our contact us page by clicking here