New Changes to UK Companies Starting May 1st, 2024 Under the Economic Crime and Corporate Transparency Act

The Economic Crime and Corporate Transparency Act (ECCTA), enacted in October 2023, represents a significant step in the UK government's ongoing efforts to combat economic crime and enhance corporate transparency. The rollout of the ECCTA began on March 4th, with initial changes already influencing UK companies. With other key provisions set to take effect from May 1st, 2024, it's imperative for businesses to understand these upcoming changes to ensure they are prepared and can adapt effectively.

1. Increase in Filing Fees

Effective from May 1st,  2024, Companies House will revise its registration fees for various filings, including:

• Confirmation Statement CS01 – £34
• Incorporation IN01 (paper) – £71
• Incorporation IN01 (digital) – £50
• Incorporation (digital, same day) – £78
• Change of name (digital) – £20
• Change of name (digital, same day) – £83
• Registration of a charge (digital) – £15
• Voluntary strike off (digital) – £33

These adjusted fees call for careful financial planning for businesses intending to register new entities or modify existing registrations.

2. Identity Verification

A significant new requirement is the mandatory identity verification for all company directors, PSCs (Persons with Significant Control), authorized corporate service providers, and those delivering documents to the registrar. This initiative aims to prevent anonymous filings and enhance the reliability of registered information. Companies can prepare now by ensuring that their directors are briefed on the upcoming regime and maintaining up to date proofs of address and photo identity on their files ahead of time.

3. Changes to Statutory Registers

The Act streamlines the maintenance of statutory registers by removing the obligation for companies to keep separate registers of directors, directors’ residential addresses, secretaries, and Persons with Significant Control (PSCs). Instead, this information must be reported directly to the registrar. Companies will need to update their internal processes to comply with these new streamlined requirements.

Leveraging Athennian for a Smooth Transition

As these changes take effect, utilizing advanced entity management software solutions like Athennian can significantly help businesses. Athennian provides comprehensive tools for managing corporate records, filings, and compliance digitally. By integrating such technology, companies can:

• Seamlessly ensure compliance with new regulations.
• Automate and efficiently manage filings, minimizing the risk of errors and non-compliance.
• Effectively handle the increased administrative burden, particularly crucial with the new demands for identity verification and digital record-keeping.
• Protect personally identifiable information (PII) with restricted access features, ensuring that only authorized users can access sensitive data. This is crucial for maintaining data security and compliance with privacy regulations as companies navigate the new verification requirements.

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