New Companies House procedures for family businesses: make sure your company records are up to date
We explore the implications for family business of imminent changes at Companies House regarding identity verification of directors and people with significant control. We also outline the timeline for implementing the changes and explain how Moore SGD Law can help you comply.
The requirements are being introduced by the Economic Crime and Corporate Transparency Act 2023 (the Act) to improve transparency of UK companies.
What are the changes to notifying Companies House?
A key change introduced by the Act is the requirement for new directors and people with significant control (PSCs) to have their identities verified before notifying Companies House of their appointment. From April 2025, identity verification will be voluntary, but it is expected to become mandatory for new directors and PSCs in Autumn 2025. Additionally, from Autumn 2025, Companies House plans to initiate a 12-month transitional period requiring existing directors and PSCs to verify their identities when the company files its next confirmation statement.
How does the changes to notifying Companies House affect my family business?
The changes coming in will apply to all companies, regardless of their size. Good corporate governance is important for all companies and includes maintaining accurate and up-to-date company records which includes statutory registers. Most family businesses don’t have a dedicated team to maintain these company records and therefore this change can represent a real burden.
The Act introduces significant changes to the statutory registers that companies must maintain. Companies will no longer need to keep their own registers of directors, directors’ residential addresses, secretaries and PSCs. Instead, all relevant information will be held by Companies House and made available on the public register.
What are the risks of non-compliance?
It is crucial that the information held by Companies House is accurate because:
- Individuals or businesses dealing with the company may rely on this information, such as the identity of a director.
- Once identity verification procedures are in place, individuals listed as directors and PSCs will need to have their identities verified, even if the information is incorrect.
- Incorrect filings with Companies House may constitute a criminal offence by the company’s directors.
How can Moore SGD Law help my family business with the changes to notifying Companies House?
Our team of company lawyers and company secretarial advisers can conduct a corporate governance ‘health check’ to ensure your company’s records and Companies House filings are accurate and up to date. We can also advise you on the changes introduced by the Act, their impact on your family business and help you ensure compliance with the new companies house act.
Moore SGD Law will be registering as an authorised corporate service provider (ACSP) to make Companies House filings on behalf of our clients and verify the identities of company directors and PSCs.
If you have any questions about the proposed changes, please contact Harry Dronfield or your usual Moore SGD Law contact.
