The ECCTA introduces comprehensive reforms aimed at enhancing transparency and combating fraud and corruption within UK businesses and other legal entities.
The ECCTA brings several critical changes to how businesses interact with Companies House, including:
- Mandatory identity verification for all new and existing registered company directors, people with significant control (PSCs) and those who file on behalf of companies.
- Broadening powers for Companies House to become a more active gatekeeper over company creation and a custodian of more reliable data.
- Improving accuracy and reliability of financial data on the register, reflecting the latest advancements in digital technology to enable better business decision-making.
- Providing Companies House with more effective investigation and enforcement powers, along with increased data-sharing abilities with relevant partners.
- Enhancing the protection of personal information to protect against fraud and other harms.
Implications for your business as a limited company
You can anticipate the following changes:
- All your directors, PSCs and those who file documents at Companies House on your behalf will have to complete an ID verification process.
- You will have to have a registered email address, which you will be under a duty to maintain. Companies House will be able to use this email to contact you.
- You will not be able to hold your register of members centrally at Companies House.
- You will no longer be required to keep your own, register of directors, register of directors’ residential addresses, register of secretaries or register of people with significant control (PSC register).
- The filing requirements of accounts and reports for micro-entities and small companies. Micro-entities must now deliver annual accounts including their profit and loss account, and small companies must deliver annual accounts including their profit and loss account and director’s report.
Next Steps and Timelines
The implementation of these changes will require system upgrades and secondary legislation, meaning some aspects, like identity verification, may not be immediate. Early 2024 is the anticipated timeframe for the initial roll-out of these reforms. Key early measures include enhanced scrutiny of information by Companies House, stricter checks on company names, new rules for registered office addresses, mandatory provision of a registered email address, and annual confirmations of lawful company activities.
Our compliance team here at JS is closely monitoring these developments and will provide ongoing updates to ensure you stay informed and compliant.
If you have any questions or concerns about how this new legislation impacts your business, please contact our Accounts Partner, James Wood, at james.wood@jsllp.co.uk or 01942 292529. We are here to support you with these changes.