In a significant stride towards combating economic crime and fostering corporate transparency, the Economic Crime and Corporate Transparency Act (ECCT) has recently received Royal Assent, ushering in a new era for company law in England. The ECCT introduces several substantial measures over the next few years that will impact company incorporations and the powers of the Registrar of Companies. Let's delve into the key changes that are set to reshape the landscape of company law in the country.
1. Empowering Companies House: Strengthening Checks and Information Querying
The ECCT grants Companies House greater authority to query information, imposing stronger checks on company names and introducing new rules for registered office addresses. Additionally, companies will now be required to provide new lawful purpose statements, enhancing the transparency and accountability of the registration process.
2. Identity Verification Mandate
A groundbreaking change involves mandatory identity verification for anyone involved in setting up, running, owning, or controlling a company in England. This move aims to bolster security measures and mitigate the risk of individuals with malicious intentions exploiting the public company register in England and Wales.
3. Evolving Accounting Practices: Software-Only Filing and Small Company Accounts
The transition towards filing accounts by software only signifies a move towards efficiency and modernization. The ECCT also brings about changes in the options for filing small company accounts, streamlining processes, and ensuring compliance with evolving industry standards.
4. Enhancing Company Ownership Transparency
To enhance transparency in company ownership, the ECCT introduces new requirements for providing additional shareholder information. Moreover, it imposes restrictions on the use of corporate directors, reinforcing the commitment to unambiguous and accountable corporate structures.
5. Strengthened Investigation, Enforcement, and Data Sharing
Companies House will now wield more effective investigation and enforcement powers, facilitating a proactive approach in targeting organized criminals and other potential abusers of the public company register. Additionally, new powers to share data with law enforcement agencies and other government departments will further fortify the fight against economic crime.
A Pivotal Moment for Company Law
At SteelRose, we've long recognized the necessity for stringent controls and welcome these changes with open arms. Our team discussions have consistently focused on the imperative need to fortify our mechanisms, and it's immensely gratifying to witness tangible steps being taken in the right direction.
These measures not only reinforce the credibility of the business landscape but also instill confidence in investors, stakeholders, and the public. It marks a pivotal moment in company law, aligning with ongoing efforts to combat economic crime and promote corporate transparency.
Join Us on the Journey to Transparency and Responsibility
Every day presents an opportunity to refine our practices, strengthen governance, and exceed compliance expectations.
To further understand these changes and ensure your company stays ahead in compliance, get in touch with us today at info@steelrose.uk. Let's navigate these transformative changes together and build a future of integrity and transparency in the corporate world. Cheers to a new chapter in company law!