Changes to UK company law: what you need to know as a Director

The Economic Crime and Corporate Transparency Act, which came into effect in March, brings significant changes to UK company law. These changes aim to tackle economic crime and support economic growth, but they also mean new responsibilities for company directors. Corporate Solicitor Charlie Danjoux takes you through the key changes, what they mean for you and how to stay compliant.

1. Simplified record-keeping
- Old requirement: Companies currently have to keep internal registers of key personnel and information.
- New requirement: Soon, you will only need to file details of directors, secretaries, and Persons of Significant Control (PSCs) with Companies House. However, an internal register of members is still required and it is still good practice to maintain other internal registers.
- Action: Ensure all directors’, secretaries’ and PSCs’ details are up to date and promptly notify Companies House of any changes. It will be an offence for an individual to act as a director unless their appointment has been notified to Companies House on time.

2. Appropriate addresses
- New rule: Your registered office address must now be an ‘appropriate address’ i.e. a physical location where documents can be received and seen by someone acting on behalf of the company. PO Boxes are no longer acceptable.
- Action: Verify that your registered office address meets this new requirement to avoid penalties or even being struck off the Companies House register.

3. Lawful purpose confirmation
- New rule: When forming a new company, you must confirm that it is for a lawful purpose. For existing companies, this confirmation is now part of the annual confirmation statement.
- Action: Ensure your company’s activities are lawful and accurately reflected in your annual confirmation statement.

4. Identity verification
- New rule: Directors and PSCs must soon verify their identity with Companies House using appropriate documents like a passport or driving licence.
- Action: When the requirement has been put in place, complete the identity verification process for all directors and PSCs.

5. Filing process changes
- New rule: Only ID-verified individuals and authorised corporate service providers (ACSPs) will be able to file documents with Companies House.
- Action: Once the changes have been made, check that your advisers have ACSP status and ensure your team members who handle filings are ID-verified.

6. Registered email address
- New rule: Companies must provide a registered email address for communication with Companies House. This must be confirmed on incorporation or, for existing companies, in their annual confirmation statement.
- Action: Set up an email address that is regularly monitored to ensure you don’t miss important communications.

7. Protection of personal information
- New measures: Individuals will be able to apply to suppress personal information like residential addresses, dates of birth and signatures from public documents at Companies House.
- Action: When the changes are introduced, consider whether you or your team members should apply for these protections.

Need help?
Navigating these changes can be complex, but you don’t have to do it alone. For personalised advice and support, get in touch with Charlie.