March 8 2024

Reforms for legal entities in the UK

Starting from March 2024, significant changes to the legislation on legal entities in the United Kingdom have come into effect under the "Economic Crime and Corporate Transparency Act" enacted on October 26, 2023.

These changes have been introduced with the primary aim of enhancing corporate transparency and improving data quality.

The main provisions of the law include:

  • Registered Office: Companies are required to maintain an "appropriate address" as their registered office, where documents can be validly served, and acknowledgment of receipt can be recorded.
  • Statement of Legal Purpose: Legal entities must confirm that the company's formation occurred for a legitimate purpose, both during the incorporation process and in subsequent annual statements to the UK Chamber of Commerce.
  • Enhancement of Companies House Powers: The Companies House registry office is endowed with greater powers to challenge inaccurate or incomplete information, with the ability to remove them from public records. Additionally, stricter checks on company names will be implemented to avoid confusion or misleading impressions to the public.
  • Sanctions: Penalties are provided for companies that fail to comply with registry requests or do not use an appropriate legal address.

Regarding "Confirmation Statements":

  • Registered Email Address: Companies are required to provide an official email address to Companies House for official communications, keeping such address confidential.
  • Statement of Legality of Activities: New companies must attest to the legality of their activities, while existing companies must do so in the next confirmation statement.

These reforms are aimed at promoting transparency and integrity in the context of business in the United Kingdom.

 

In case of further questions do not hesitate to contact us at info.uk@diacrongroup.com