The Economic Crime and Corporate Transparency Act (ECCTA), aimed at enhancing the accuracy and quality of data within company registers, is set to introduce pivotal alterations on 4 March 2024, that may impact your business operations. The Act establishes new statutory objectives for the Registrar of Companies (Companies House), reinforcing its role in combating economic crime and fostering confidence in the UK economy.
Whilst the ECCTA is now law, most changes will be introduced over the course of the coming two years through secondary legislation and following significant reform of the systems within Companies House to enable them to discharge their new duties under the ECCTA.
Effective March 4, 2024, the legislation will necessitate adjustments to your company's administrative practices. Here's a brief overview of the forthcoming modifications:
Registered Office Addresses:
Companies must maintain an 'appropriate address' as their registered office, precluding the use of PO Boxes. An appropriate address ensures that documents can be delivered and acknowledged promptly.
Registered Email Address:
Companies must supply a registered email address with their next Confirmation Statement. This email address will not be published on the public register.
Statement of Lawful Purpose:
Upon incorporation, companies must confirm that their formations’ purpose and intended future activities are lawful. This confirmation extends to annual confirmation statements, reinforcing compliance with legal standards.
Registrar's Powers:
Under the new regulations, the Companies House will possess greater powers to query information, request supporting evidence, and perform stronger checks on company names. Additionally, Companies House will have the ability to annotate the register when information appears confusing or misleading, and take steps to clean up the register by using data matching to identify and remove inaccurate information. Furthermore, data sharing with other government departments and law enforcement agencies will be facilitated to bolster regulatory enforcement efforts.
Non-compliance with these regulations may result in significant consequences, including financial penalties, annotations on company records, and potential prosecution.
We understand that these changes may pose challenges, particularly from a company secretarial point of view, given the elevated administrative burdens. As your trusted service provider, we are committed to assisting you through this transition and ensuring your compliance with regulatory requirements.
Due to the expanded role of Companies House, it has been confirmed that Companies House fees will rise from 1 May 2024. We will deal with any future request from Companies House on an ad hoc basis as may be required.
Please feel free to reach out to us with any questions or concerns regarding these regulatory changes. We are here to support you every step of the way.
