Setting up on Companies House is an integral part of running a business in the UK, but the way that Companies House works is changing.
While this has previously been relatively hands-off, the changes being made to Companies House are worth a second look.
The stated goal of the changes is to improve compliance and ensure a greater degree of transparency with record keeping.
The changes originate from the Economic Crime and Corporate Transparency Act 2023 (ECCTA) and are now taking effect.
Registered office address
Perhaps the most significant change to the Companies House rules is regarding the registered office address.
Companies House has historically been quite lax when it comes to which addresses can be used as the registered office address.
As this has resulted in some less than savoury practices, only appropriate addresses will be accepted going forward.
This means that PO boxes or addresses that cannot receive post will be rejected.
If your business currently utilises a third-party address, you will need to ensure that it meets the requirements for a registered office address.
ID verification
While it might seem strange that this was not already a requirement, ID verification is being introduced as a requirement for Companies House.
This means that anyone setting up, running, owning, or controlling a company will need to verify their identity.
This applies to all of the directors and people with significant control, so it might be time to check that all affected parties have up-to-date IDs to ensure a smooth verification process.
If you are using a third party to verify your ID, then you need to ensure that they are an Authorised Corporate Service Provider (ACSP).
You do not necessarily need to use an ACSP to engage with Companies House, but it might give you more peace of mind when ensuring that you are filing everything correctly.
It is worth noting that only authorised individuals can deliver a filing, so it is worth making sure that your filings are handled by an individual who fits the criteria.
Additional information for confirmation statements
A potentially strange new requirement is the need to explicitly confirm that the activities of your company are being carried out for a lawful purpose.
As well as whatever criminal activity a company may be engaging in, failure to declare it as such would incur additional criminal penalties.
Given that your work is on the right side of the law, this section may be just a formality.
What is more pressing with this change is the need to ensure that the description of your business activity and your company’s objectives align.
If they no longer do, or if you have expanded into a new area of work, then you will need to update this accordingly.
Failure to do so could trigger an investigation as it may be perceived that you are attempting to misuse funds.
Data sharing and scrutiny
As may be apparent by now, Companies House is tightening its focus on data.
This involves being given more stringent powers to reject, remove, or query any information that is deemed to be inaccurate.
To ensure that companies are operating with full transparency, Companies House now has additional powers to share your data with other agencies to ensure the consistency of your filings.
The last thing you need to worry about is changing rules getting in the way of growing your business.
Seeking professional advice can help you to navigate these changes without disrupting the flow of your operations.
If you want to stay compliant with the changes to Companies House, get in touch with our team today.
