Changes at Companies House
Hello! Just as you thought that you had made it to the end of January and that you could forget about government rules and regulations for a day or two, Companies House comes rocketing out of left field with a whole slew of new regulations. Oh joy!
These only apply to those of you who conduct your business as a limited company and are therefore obliged to adhere to the rules laid down concerning entries on your company records.
These changes come as a result of The Economic Crime and Corporate Transparency Act became law in October 2023. If you’re feeling really keen, please feel free to make a lot of coffee and sit down for a good read...😑
For the rest of you (normal folks) here’s a very quick overview of the changes coming. You can read what Companies House themselves say about it all here.
So, in short it goes a bit like this:
greater powers to query information and request supporting evidence
stronger checks on company names
new rules for registered office addresses
a requirement for all companies to supply a registered email address
a requirement for all companies to confirm they’re forming the company for a lawful purpose when they incorporate, and to confirm its intended future activities will be lawful on their confirmation statement
the ability to annotate the register when information appears confusing or misleading
taking steps to clean up the register, using data matching to identify and remove inaccurate information
sharing data with other government departments and law enforcement agencies
Here are the three key changes Companies House thought needed to be emphasised:
1. New rules for registered office addresses
From 4 March 2024, there’ll be new rules for registered office addresses which mean companies must have an ‘appropriate address’ as their registered office at all times. An appropriate address is one where:
any documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the company
any documents sent to that address can be recorded by an acknowledgement of delivery
These changes mean you will not be able to use a PO Box as your registered office address from 4 March 2024. You can still use a third-party agent’s address if they meet the conditions for an appropriate address.
If you’re currently using a PO Box as your registered office address, you’ll need to change it by 4 March 2024. You can change your company’s registered office address online, using your company’s authentication code.
Companies that do not have an appropriate registered office address could be struck off the register. When we identify an inappropriate registered office address, we’ll change it to a default address held at Companies House. The company must then provide an appropriate address, with evidence of a link to that address, within 28 days. If we do not receive this evidence, we’ll start the process to strike the company off the register.
2. Registered email address
From 4 March 2024, there’ll be a new requirement for all companies to give a registered email address to Companies House. This email address will not be published on the public register.
From 4 March 2024, new companies will need to give a registered email address when they incorporate. Existing companies will need to give a registered email address when they file their next confirmation statement with a statement date from 5 March 2024. Our online services will prompt you to supply a registered email address when you file your next eligible confirmation statement.
We’ll use this email address to communicate with you about your company, so it's important that you choose an appropriate email address. You can register the same email address for more than one company.
You’ll be able to change your registered email address through our new ‘update a registered email address’ service. You’ll need to be signed in and authenticated to do this.
Companies will have a duty to maintain an appropriate registered email address, in the same way as their registered office address. Any company that does not do this will be committing an offence.
3. Statement of lawful purpose
When you incorporate a company from 4 March 2024, the subscribers (shareholders) will need to confirm they’re forming the company for a lawful purpose.
You’ll also need to confirm the company’s intended future activities are lawful on the confirmation statement.
The intention of these new statements is to make it clear that all companies on the register, new and existing, have a duty to operate in a lawful way. We may take action against your company if we receive information that confirms you’re not operating lawfully.
We will not accept your documents if these statements have not been confirmed.
From 4 March 2024, you’ll see these new statements when you incorporate a company or file a confirmation statement.
These measures will all contribute towards meeting the new registrars’ objectives, and we’ll make all our decisions based on these objectives.
Companies House have this to say regarding the timing of these changes;
“We're aiming to introduce the first set of changes on 4 March 2024. The introduction of these changes needs secondary legislation so this date is still dependent on parliamentary timetables. It will not be earlier than 4 March 2024”.
A number of these changes may go some way to tackling crimes where bogus ‘companies’ use a private residential address which has nothing to do with it as their registered address.
Regardless, these changes should make it clearer who owns and runs a company and how to get in touch with them. The required changes shouldn’t be too onerous for most company owners, either you or your agent can make the necessary changes for you.
As ever, just when you think you’ve managed to deal with tax and survive the longest, darkest month in the whole year someone goes and throws you a googly. Well, it keeps things interesting doesn’t it?!
If you need any advice or help with these changes, please drop us an email or pick up the phone and have a chat - we’re always happy to help.