Economic Crime and Corporate Transparency Act 2023 – What you need to know
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The Economic Crime and Corporate Transparency Act 2023 marks several notable changes to the Companies House requirements companies must comply with in Scotland with the aim of enhancing transparency.
Some of the changes that companies should be aware of include:
A change in the role of Companies House – Companies House itself will now participate more actively in relation to the information it receives. It now takes the role of a guardian, with the ability to, amongst other powers: reject filings, ask for further information in relation to certain filings, and delete information from the register more quickly. Companies House will also be granted enhanced enforcement and investigation powers, and be able to share information with other enforcement agencies where they have evidence of criminal conduct.
How can we help? Historically, Companies House was littered with errors due to a lack of monitoring. This will no longer to be the case. It is important to get your filings right, first time. Appointing a solicitor ensures such accuracy.
Filing documents with Companies House – The rules on who can deliver files to Companies House on behalf of a company are becoming more stringent. A company may file documents itself, or it may make use of an Authorised Service Provider.
How can we help? It is not yet clear who will qualify as an Authorised Service Provider but we expect solicitors can register themselves to take on such a role. We can ease the time-intensive, administrative burden associated with making such filings.
ID verification – Further identity verification requirements will be put in place for both new and existing company directors and persons with significant control. Directors will now not be allowed to act in their capacity as director, without having verified their identity. Verification may be done either directly through Companies House, or indirectly by means of an Authorised Corporate Service Provider. Failure to comply with these requirements is a criminal offence.
How can we help? We can advise on the verification requirements to ensure you do not commit a criminal offence.
Company e-mail addresses – Going forward, companies will be required to provide a suitable e-mail address, through which Companies House will be able to contact them.
How can we help? It is important to have a manned email address that can promptly engage with Companies House as necessary. Our solicitors can assist you to bring any Companies House communications to a satisfactory conclusion as quickly as possible.
Limited partnerships – The Act also targets limited partnerships specifically. Changes here primarily relate to transparency and registration. They aim to provide a stronger framework for these business vehicles, whilst limiting their ability to be used for illegal activity.
How can we help? Scottish limited partnerships for years have drawn the attention of the authorities as some criminal organisations have used these vehicles to exploit loopholes in anti-money laundering legislation. We can advise on the changes made as they relate to partnerships to ensure you do not fall foul of the new requirements.
Holmes Mackillop’s Registered Office Service is the best way to handle these new changes and ensure your compliance with the law. By changing your company’s registered office address to one of our offices, you can rest easy knowing that all Companies House correspondence will come directly to your solicitor, whose expertise in this area means you will not be in breach of this new law.
We do not yet know the exact date the Act is to come into force. However, it is expected to be in place in early 2024. Get in touch with our corporate team for advice on how to prepare your company in advance of these changes.
For more information, contact Ralph Riddiough rriddiough@homack.co.uk, Finlay Swan fswan@homack.co.uk or Rachel Loose rloose@homack.co.uk.
*Liam Reilly, future Trainee Solicitor, contributed to the writing of this article.