From 4 March 2024, rafts of (largely administrative) reforms were made at Companies House. These reforms were introduced as a result of the Economic Crime and Corporate Transparency Act 2023 which came into force on 26 October 2023.
The aim of this Act is to tackle economic crime and improve transparency over corporate entities to ultimately strengthen the UK’s business environment.
Companies House reforms
Among other things, companies, LLPs and limited partnerships must now:
- Ensure that their registered office is located at an “appropriate address” which is suitable for service of documents. Any companies who currently use a PO Box address as their registered office will be required to change this;
- Supply Companies House with a registered email address. This email address won’t be publicly visible, but Companies House will use it to communicate with the company, LLP or limited partnership should the need arise; and
- Confirm that its intended future activities will be lawful. For existing corporate entities, this must be confirmed in the next confirmation statement to be filed from 5 March 2024 onwards. A similar “lawful purpose” statement must also now be provided when incorporating a new company.
There’s little use in having increased transparency if the information available is inaccurate. To help address this, Companies House now has greater powers to query information submitted to it for filing.
It can also request supporting evidence to check the accuracy of information submitted to it. If new filings appear to be inconsistent with information already filed, Companies House may now reject that filing and/or direct that the inconsistencies are resolved.
Company names which comprise or contain a computer code may now be rejected. Those company names which suggest a non-existent connection with a foreign Government, or an international institution are also prohibited. Companies already registered with such names may be directed to change their names, failing which, the Registrar of Companies may remove such names from Companies House.
The changing role of Companies House – from record-keeper to gatekeeper – will invariably result in increased costs. As a result, many Companies House filing fees will be increasing from 1 May 2024. The increase of filing fees payable on incorporation, changes of name and confirmation statements (to name but a few) can be seen here.
Need advice? Contact us
If you have any questions about how these changes affect you, or want to find out more about our services, please contact Angela Shandacumar Gnanapiragasam or another member of our experienced Corporate team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.