How does the Economic Crime and Corporate Transparency Act impact your company and your responsibilities?
Following the Economic Crime and Corporate Transparency Act becoming law in October, Companies House announced that it is set to introduce the first set of changes to UK company law on 4 March 2024.
Announced as the “most significant changes” in Companies House’s history, the new rules were introduced to tackle abuse of the register, such as companies set up to commit fraudulent activities, and to improve transparency over the register.
The act introduces the biggest changes to Companies House since corporate registrations were established in 1844 and gives Companies House the power to play a more significant role in tackling economic crime and supporting economic growth.
Who will be impacted?
Under the Economic Crime and Corporate Transparency Act, there will be new responsibilities for:
- all new and existing company directors
- people with significant control of a company (PSCs)
- anyone who files on behalf of a company
Company types and other corporate entities
The new legislation generally applies to all entities registered with Companies House, including:
- private limited companies
- public limited companies (PLCs)
- limited liability partnerships (LLPs)
- limited partnerships (LPs)
- community interest companies (CICs)
- overseas companies
The legislation applies to companies and other entities registered in England and Wales, Scotland, and Northern Ireland.
The legislation will also apply to anyone who files on behalf of clients, such as accountants and company formation agents.
You’ll need to register as an authorised agent with Companies House. Authorised agents are also known as Authorised Corporate Service Providers (ACSPs).
Companies House will publish more information soon about how to register as an authorised agent.
If you’re planning on starting a new company or another entity type, you’ll need to consider the changes and new responsibilities introduced by the act. It’s important to understand how these changes will affect you.
Ruth Ross said, “These are some of the most significant changes to UK Company Law for some time and here at the Chamber we’re dedicated to keeping you informed about developments that matter.
We will provide further updates on how these measures will affect your business and what you need to do to stay compliant with the new regulations. If you have any questions or need guidance on how these changes may impact your company, please don’t hesitate to reach out to us.”
How can I find out more?
Read full details on the changes to UK company law or download the Chamber's Guide to learn more about how this will impact your company including why it is important, changes at a glance and who is affected by the changes.