As a Company Director running your own limited company, you need to be aware of some changes to legislation that will affect you, bought about by The Economic Crimes and Corporate Transparency Act which became law in October 2023. The government says that the new law enables Companies House to be ‘a more active gatekeeper over company creation and custodian of more reliable data.’
Key Factors Impacting Small Limited Companies from 4 March 2024
- Registered office address
Companies must have an ‘appropriate address’ as their registered office, meaning that:
- any documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the company, and
- any documents sent to that address can be recorded by an acknowledgement of delivery.
This requirement is not new. However, you can no longer use a PO Box as your registered office address from 4 March 2024, although you can still use a third-party agent’s location (such as your accountant’s address). We offer registered office services, if you would rather not use your own address.
- Registered email addresses
A new requirement from 4 March 2024, is that all companies must give a registered email address to Companies House.
New companies will need to give a registered email address when they incorporate. Existing companies will need to give a registered email address when they file their next confirmation statement with a statement date from 5 March 2024.
Registered email addresses will not be visible on the public register at Companies House.
- Statement of lawful purpose
Every limited company is obliged to operate legally. From 4 March 2024, all companies must provide a confirmed statement of lawful activities. Existing companies will need to make a lawful purpose statement when they file their next confirmation statement with a statement date from 5 March 2024.
Key Factors Impacting Small Limited Companies expected later in 2024.
- Submission of profit and loss account
Small companies and micro-entities will be required to submit a profit and loss account each year.
A small company is defined as meeting at least two of the following criteria:
- turnover of £10.2m or less,
- balance sheet value of £5.1m or less, or
- 50 employees or fewer.
Similarly, micro-entities meeting at least two of the following criteria must file a profit and loss account:
- turnover of £632,000 or less,
- balance sheet value of 316,000 or less, or
- 10 employees or fewer.
Small companies will also need to submit a director’s report.
Only ID-verified individuals (see below) and authorised corporate service providers (ACSPs) will be permitted to deliver documents. Examples of ACSPs are external accountants, tax advisers and independent legal professionals.
There is understandable concern about whether profit and loss statements will be publicly accessible via Companies House. Viewing suppliers’ profit margins may influence negotiations, for example. The secretary of state will decide whether profit and loss accounts will be available to the public and an outcome has not yet been announced.
- Identity verification
Mandatory identity verification for new and existing company directors and persons with significant interest will be required. This is being introduced to tackle fraud carried out via fake identities. An individual will be able to verify their identity through a central facility provided by Companies House or by using an ACSP.
And finally, from 1 May 2024, Companies House have increased their filing fees for all submissions. Some of these increases are substantial and the cost of running your company will increase.
You can find a full list of the fee increases here
As always, we are on hand to guide you through the changed and answer any questions you may have.
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