Corporate Transparency and Register Reform
Companies House have completed the consultation period for the planned implementation of the Corporate Transparency and Register Reform. If all the proposals were implemented, it would amount to the most significant reform of the UK’s company registration framework since the register was first introduced.
Many of these reforms will require legislation to implement. Before reaching that point, the government intend to publish a comprehensive set of proposals that will set out in detail how they think these reforms should be implemented.
What we know so far
Knowing who is setting up, managing and controlling corporate entities
The government will:
- introduce compulsory identity verification for all directors and People with Significant Control (PSC) of UK registered companies;
- introduce compulsory identity verification for all individuals who file information on behalf of a company; and
- continue to allow company incorporations and filings to be made either directly at Companies House or via an agent. But in future only properly supervised agents will be able to file information. They will be required to provide evidence of the verification they have undertaken, and we will avoid duplicating identity checks.
- All company directors and PSCs will need to have a verified account at Companies House. These can be set up directly, or through a third-party agent. In the case of directors, their appointment will not have legal effect, or be shown on the register until the account has been set up. The digital process will be fast and efficient, and it will be possible to create an account and verify an identity in advance of registering an appointment as a director.
- Extend the registrar’s current limited powers to amend information already on the register. Current administrative procedures that require an application to Companies House, or a court order, will be simplified. It will be easier to remove or amend inaccurate information on the register.
Other areas of interest
- No longer to ask directors to list their occupation.
- Bring forward proposals to give Companies House power to query, and possibly reject, company names before they are registered.
- Digitising the remaining paper-based filings.
More information will be provided in due course, and also how First Corporate will help with the verification and company formation process.
Categorised in: Company Law
This post was written by Molly Luther