The Economic Crime and Corporate Transparency Bill became law last year and one of the key outcomes was to increase the powers of Companies House. As a result of this change there will be several measures introduced over the next few years, including significant additional disclosures in the accounts submitted by small and micro entities. We will cover this in detail in a future blog.
This blog, instead, will focus on the first stage of the reforms which are likely to receive royal assent and therefore be brought in on 4th March 2024.
While there are several areas covered by this legislation, the main three changes are:
New rules for registered office addresses
From 4th March 2024, companies must always have an “appropriate address” as their registered office. An appropriate address is one where:
These changes prevent the use of PO Box as your registered office address from 4th March 2024. You can still use a third-party agent’s address as long as they also meet the conditions for an appropriate address.
If you are currently using a PO Box as your registered office address, you will need to change this by 4th March 2024. Companies that do not have an appropriate registered office address could be struck off the register.
Registered email address
From 4th March 2024, there will be a new requirement for all companies to give a registered email address to Companies House. Existing companies will need to give a registered email address when they file their next confirmation. Where Drummond Laurie assist you with the filing of your company’s confirmation statement, we will be in touch in due course to confirm your desired email address.
Companies House will use this email address to communicate with you about your company, and this email address will not be published on the public register.
Statement of lawful purpose
When you incorporate a company from 4th March 2024, the subscribers will require to confirm they are forming the company for a lawful purpose. Existing companies will also need to make a lawful purpose statement when they file their next confirmation statement. Again, where Drummond Laurie deal with your company’s confirmation statement, we will be in touch in due course to ensure this new requirement is fulfilled.
This will allow Companies House to take actions when they receive information that confirms a company is not operating lawfully.
These are the first of a number of measures expected over the next few years and Companies House have launched a website dedicated to the changes which can be accessed here Changes to UK company law – Changes to UK company law
If you would like to discuss these changes and the impact on your business, please send us your details atCONTACT US – Drummond Laurie and we will arrange for one of our business advisors to contact you for an initial discussion.