Danni Rees.
Compliance and transparency are being tightened under new rules now being enforced for limited companies by the government. Danni Rees, of chartered accountants Moore UK, delves into the detail.
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Published in association with
COMPANIES House has introduced new rules for limited companies as part of wider efforts to improve transparency, compliance and processes for businesses operating in the UK.
The most significant changes are:
Registered office and email addresses
Companies must provide a “clear and verified” registered office address. This must be an actual location where documents can be delivered and must be accessible for the inspection of statutory records. Companies will not be able to use a PO Box as their registered office address.
This will combat the use of false or misleading addresses. Additionally, companies must keep the registered office address up to date and accurate at all times or face penalties.
Companies must also provide a registered email address either when they first incorporate or, for existing companies, when they file their next confirmation statement. Companies House will use this to communicate with the company but will not make it public.
Companies House can reject filings if the company does not meet these criteria.
Stricter identity verification for directors and persons with significant control
New rules requiring the verification of directors and persons with significant control (PSCs) are being introduced. All new and existing directors and PSCs will need to undergo identity verification to ensure that Companies House holds accurate and verified information on individuals who control or influence companies.
Stronger checks for company names
Companies House is now running stronger checks on company names which might give a false or misleading impression to the public and can refuse to register a company name if they believe it is intended to facilitate fraud, is offensive or gives the false impression that the company is connected to certain organisations such as the police or the NHS.
Companies House can insist that a company changes its name or, in certain circumstances, can pick a new name for the company.
Updated reporting requirements
The reporting requirements for limited companies have been updated to ensure greater accuracy of the information held on the public register. Companies must confirm they are forming a company for a lawful purpose when they incorporate and confirm that their intended future activities will be lawful on the confirmation statement.
Companies must also report changes to their shareholder and shareholdings promptly to make it easier for the public and regulatory authorities to track the ownership and control of companies.
Penalties for non-compliance
Companies that fail to meet the new requirements face fines and other legal consequences, including being struck off the register.
Companies operating in the UK must be aware of these changes and take proactive steps to ensure they meet the new requirements.
For further information visit moore.co.uk or contact your local Moore office.
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