Significant reforms to Companies House are currently underway to clamp down on fraud and economic crime and improve transparency. As part of these reforms, Companies House has been granted greater powers to investigate and act on any suspicious company information, and there are now stricter requirements for companies when filing information.
The first round of changes came into force in March. These included:
- All companies will need to have an “appropriate” registered office address, supply a registered email address and confirm both on incorporation and annually that their activities are lawful.
- Enhanced powers for the Registrar of Companies mean that companies should expect a more robust approach being taken to information filed.
- The Registrar will, from May, have power to directly impose a financial penalty (of up to £10,000) as an alternative to criminal sanctions.
Future reforms with implementation dates yet to be announced include:
- A requirement for businesses to file digital accounts rather than paper ones – the software-only roll-out will take place over 2-3 years.
- A requirement for small and micro entities to file profit and loss accounts as well as a directors’ report.
- The introduction of a new identity verification process to help deter those wishing to use companies for illegal purposes. Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove they are who they claim to be, this includes all directors and any PSCs.
From 1 May 2024, Companies House will significantly increase its fees. As part of the move towards digitalisation, fees for paper filing will be more expensive than digital filing.
Please click on the link below to find an exhaustive list of the new prices to be charged by Companies House:https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/
The headline change that will affect all of our corporate clients is the yearly confirmation statement fee. We help file this digitally for many of our clients, and this fee which has been £13 for many years has now been increased to £34 per filing.
A Companies House spokesperson commented on the changes:
“We’re amending our fees to bring them in line with the costs of providing our services but also to recover the costs of our new powers being introduced through the Economic Crime and Corporate Transparency Act.
“This will enable the cost of investigative and enforcement activities that promote the integrity of the register, maintain a healthy business environment and combat economic crime, to be met through fees.”
As Companies House clamp down on the information filed on the public register, it is vital that clients take these filings seriously and consider what is being uploaded to Companies House.
We will continue to support clients and prepare all the necessary statutory filings that are required. It is important that we are informed of any company changes as they occur, to advise you on what needs to be submitted.
Griffin Chapman uses a complete software solution for company formations, integrated company secretarial functions and electronic filings.