Since the Economic Crime and Corporate Transparency Act became law in October 2023, changes and processes are currently being put in place at Companies House with the first tranche of changes intended to take place as from 4 March 2024. It should be noted that this requires secondary legislation to bring it into force however companies should be aware and ready for any changes required.
This blog is one of a series which will highlight the forthcoming reforms that the new Act will bring into effect. It should however be noted that the provisions within the Act will not become effective at the same time. Further legislation will be required to bring them into force. The Act has been put in place to tackle money laundering in the UK. There are major changes coming to Companies House in terms of the Act, which will change Companies House role from a recipient of information to a more active gatekeeper in the fight against financial crime.
Our earlier blogs cover the elements of Verification of directors and PSCs, Filing at Companies House and ID Verification and Companies House Enhanced Powers. This blog will highlight the Changes at Companies House from 4 March 2024.
There are three significant changes which Companies House are intending to introduce on 4 March 2024 and all existing companies, and proposed new companies, should be preparing in time for the impending changes. The changes are:
- New rules for registered office address
- Registered statutory email address
- New lawful purpose statements
New rules for registered office address
From 4 March 2024, each company must ensure that their registered office address is an “appropriate address” where documents can be delivered to the company and be expected to come to the attention of a person acting on behalf of the company; and that the company can acknowledge delivery.
You will no longer be able to use a PO box and if you are currently using a PO box, you will need to change it by 4 March 2024. If Companies House identify that you do not have an “appropriate address” you could potentially be struck off the register.
Companies House will have greater powers which will allow them to remove any inaccuracies which they find on the register, including if an inappropriate address is discovered. If they discover an inappropriate address, they have the power to amend to a default address and ask the company to change the registered office address to an appropriate address within 28 days.
Registered statutory email address
There will also be a requirement for companies to maintain an “appropriate email address” with Companies House. Emails sent to the appropriate email address will be expected to come to the attention of a person acting on behalf of the company. Companies have a duty to maintain an appropriate registered email address and any company that does not comply will be committing an offence.
When a new company is incorporated from 4 March 2024, it will require to give a registered email address at the time of application to incorporate the company. Existing companies will need to provide a registered email address when they next file a confirmation statement from 5 March 2024. It should be noted that the email address provided to Companies House will only be used for Companies House purposes and will not be visible on the public register.
New lawful purpose statements
In addition to the above changes, when a new company is incorporated, the subscribers will need to confirm that the company is being formed for a lawful purpose. Going forward, the new company and all existing companies will also be required to confirm the company’s intended future activities are lawful on their next confirmation statement. The reasoning behind this is to make it clear that all new and existing companies have a duty to operate in a lawful way.
The Act also brings in further changes and further blogs will be published in relation to the Economic Crime and Corporate Transparency Act in due course.
If you, or anyone in your organisation, requires further advice or assistance in this regard, please contact our team.
