Several fundamental changes are being made to Companies House that will impact every UK Limited Company. Here, we highlight the key takeaways for Limited Company landlords to be aware of.
At the beginning of March this year, Companies House introduced the first set of changes under the Economic Crime and Corporate Transparency Act. The changes will impact all SPV and Trading Limited Companies, giving new responsibilities to:
- All new and existing company directors
- People with significant control of a company (PSCs)
- Anyone who files on behalf of a company
The measures will be phased in to give Companies House more control in tackling economic crime and supporting economic growth.
Below, we run through the seven most important changes that all Limited Company landlords must be aware of.
1. Improving the quality of data
Companies House are looking to improve the quality of the data they hold on record, with a priority of ensuring all registered companies have an ‘appropriate registered address’. This means any documentation addressed to and delivered to an address must be able to be received by someone who acts on behalf of the company. Documents also need to be able to be sent on recorded delivery, meaning you can no longer use P.O. boxes as the primary addresses for Limited Companies.
2. A change to confirmation statements
In the future, all new and existing companies will need to supply a valid email address with confirmation statements. Additionally, you will need to sign a statement declaring that the company is lawful and that any intended future activities will be lawful.
3. Increases to incorporation costs and other fees
From the 1st of May, Companies House will be increasing their fees. Most notably for landlords, the cost of incorporating a new company will be £50 (if completed digitally), and confirmation statement fees will increase to £34.
For the complete list of charges and fees, click here.
4. Identity verification for new and existing companies
Companies House is implementing identity verification, which will be implemented for new and existing companies. If you’re an existing company director, Companies House will contact you about how you can verify your identity. You can expect to be asked to provide a passport, a driving license, or other identification document.
5. Changes to filing accounts
As part of this change, Companies House is moving towards the end goal of all filing via their online software. Many accountancy firms already use this software, so it’s worth starting to transition from digital and paper-based filing now before this is completely abolished from the site.
6. Protection of your personal information
In an attempt to offer greater protection for your personal information, Companies House will introduce several new measures. As part of this change, individuals will be able to apply to suppress personal information from historical documents, including their residential addresses and date of birth documents registered before the 10th of October, 2015.
For example, if your birthday was the 1st of January 1990, you can apply to amend this to January 1990. This format has been in place since the 10th of October 2015, so it is only necessary for more historic changes.
You can also ask for your signatures and the occupation of the business to be omitted.
7. Transparency of company ownership
Finally, Companies House wants to improve company ownership transparency, requiring companies to record the full names of shareholders and corporate members or firms in their registers. Furthermore, companies will need to provide full shareholder lists to Companies House, allowing shareholder information to be displayed more clearly.
What to do now
These changes will undoubtedly impact the vast majority of UK Limited Company landlords, so it’s essential to make sure you fully understand what you’ll need to do differently. To learn more about the changes, visit the government website here.
If you would like to learn more about Limited Company borrowing and discuss your options with a broker, call us on 0345 345 6788 or submit an enquiry here.
