UK Companies House: new filing fees, identity verification and compliance changes
The administration of limited companies registered with the UK’s Companies House has recently changed significantly. This is part of broader efforts to improve transparency, compliance and processes for businesses operating in the UK.
Below is a summary of the most critical changes.
1. New filing fees for certain documents submitted to Companies House
Effective from April 2024, the fees for filing certain forms and documents, including the annual confirmation statement (formerly the annual return), have been adjusted. This reflects Companies House’s ongoing commitment to maintaining and improving its digital services.
The new fee structure will ensure that the cost of maintaining the public register is adequately covered while keeping the financial burden on companies as low as possible. Companies must now be vigilant in budgeting for these administrative costs to avoid penalties for late or incorrect filings.
2. Clear and verified registered office addresses
Companies must provide a clear and verified registered office address. The address must be an actual location where documents can be delivered and must be accessible for inspection of statutory records. This will combat the use of false or misleading addresses.
Companies House is now empowered to reject filings if the registered office address does not meet these criteria. Additionally, companies must keep the registered office address up to date and accurate at all times or face penalties.
3. Stricter identity verification for directors and persons with significant control
The UK Companies House introduced the new rules requiring the verification of directors and persons with significant control (PSCs) as part of the broader Economic Crime and Corporate Transparency Bill. This will enhance corporate transparency and reduce the risk of money laundering and fraud. The bill received royal assent on 26 October 2023, marking its passage into law.
The identity verification requirements under this legislation will be implemented gradually throughout 2024/25. All new and existing directors and PSCs will be required to undergo identity verification to ensure that Companies House holds accurate and verified information on individuals who control or influence companies. This will impact the way companies are administered and necessitate prompt compliance by businesses operating in the UK.
4. Updated reporting requirements
The reporting requirements for limited companies have also been updated to ensure greater accuracy and consistency in the information held on the public register. Companies must file their accounts and confirmation statements with additional details, including specific information about their business activities and financial performance.
Companies must also report changes to their shareholders and shareholdings promptly. This will improve the timeliness and accuracy of shareholder information, making it easier for the public and regulatory authorities to track ownership and control of companies.
5. Penalties for non-compliance to encourage timeliness and accuracy
Companies that fail to meet the new filing requirements, provide an accurate registered office address or follow identity verification processes face fines and other legal consequences, including being struck off the register.
The penalties are designed with Companies House regulations, thereby improving the overall integrity of the UK’s corporate registry.
Conclusion
The recent changes in the administration of limited companies at UK Companies House represent a significant shift towards greater transparency, accountability and regulatory compliance. Companies operating in the UK must be aware of these updates and take proactive steps to ensure they meet the new requirements. By doing so, they can avoid penalties and contribute to a more trustworthy and efficient corporate environment in the UK. For more information, contact us.
