Changes to company filing requirements come into force
Further changes to company filing requirements come into force today (6 April), as part of the implementation of the Small Business, Enterprise and Employment Act.
The most significant change is that certain UK companies now need to keep a register of people with significant control (PSC).
The Small Business, Enterprise and Employment Act is comprised of a number of measures that represent a significant change for Companies House customers and businesses on a wider scale.
Some elements, including the abolishment of bearer shares and the acceleration of company write-offs, were already launched in 2015.
The filing changes coming into force in the coming months will apply to limited companies, limited liability partnerships (LLPs) and Societas Europaea (SEs). They aim to streamline traditional procedures, bolster growth for UK businesses and promote transparency.
Meryl Jones, Head of Business Change at Companies House, said: “We would encourage qualifying UK businesses – and the wide array of advisers who serve them, including accountants and solicitors – fully understand what these changes mean for their firms, as well as how they will benefit from them.”
Registering of people with significant control
From 6 April, companies will be required to keep a register of 'people with significant control' (PSC).
This will include any individuals who:
- Own more than 25% of the company’s shares and/or voting rights.
- Hold the right to appoint or remove the majority of directors.
- Have the right to significant influence or control over the company.
- Have control over a trust or firm that meets any of the above.
These new registers will be available to the public at Companies House from the end of June and failure to comply with the new measure will be considered a criminal offence.
Annual returns are being replaced
As a further measure to streamline processes, from 30 June, qualifying registered companies will no longer have to file an annual return.
Instead, companies will be required to submit a statement confirming that any and all information held by Companies House is correct and up to date.
This will include the first provision of a PSC for most participants.
The confirmation statement will come with a small fee to be paid each year, though companies may submit as many updates as they wish without extra charge.
Further information about the changes to the Small Business, Enterprise and Employment Act is available from GOV.UK.
Source: Companies House