Changes to UK Company Law

UK Company Law Changes

The media has recently reported instances of foreign individuals or entities using UK residential addresses to incorporate companies in the UK and then apply for funding. The BBC has reported there were 775,000 companies registered with Companies House in 2022 and an estimated 20% of them - 155,000 - were fake.

In March 2024 the Government introduced the Economic Crime and Corporate Transparency Act which, over the next few years, will introduce the largest changes to UK company law since corporate registrations were first created in 1844.

The aim of this act is to increase transparency and verify the information held on the Companies House register. It is hoped that these changes implemented by the Act will make it harder for people to abuse the system.

The changes include:-

• Increased powers for Company House to request information
• The introduction of ‘lawful purpose statements’ meaning that a Director or Person of Significant Control will need to make a statement to confirm that the intended future activities of the company will be lawful
• Increase to Companies House fees
• Verification of identity for those setting up, running, owning or controlling a company in the UK
• A transition towards filing accounts by software only
• The option for individuals to apply for personal information to be protected from public view because of a risk of harm
• Requirements for additional shareholder information and restrictions on corporate directors with a view to improving company ownership

If you are a company director or looking at incorporating a company, our experienced Corporate and Commercial Team can help you navigate the recent changes to UK Company Law. Give us a call today.