Blog; Economic Crime and Corporate Transparency Act: Objectives, Changes, and Compliance Requirements

Written by:
Top Service

. 22nd October 2024

purpose and objectives of the act

consequences of non-compliance

Registrar of Companies’ new powers

What is the Act?

The Economic Crime and Corporate Transparency Act aims to enhance data accuracy on company registers to combat economic crime and boost confidence in the UK economy. It introduces new objectives and powers for the Registrar of Companies, including ensuring document compliance, accurate register information, and preventing unlawful activities.

Purpose of the Act

The Economic Crime and Corporate Transparency Act aims to improve data accuracy on company registers, combat economic crime, and increase confidence in the UK economy.

Registrar’s new objectives

Ensure all required documents are submitted and properly delivered

Maintain accurate and complete information on the register

Prevent misleading public records

Prevent companies from engaging in or facilitating unlawful activities

Key changes

Registered Office Addresses:

Companies must have an “appropriate address” as their registered office, ensuring documents reach the company and can be acknowledged

Non-compliance could lead to the address being changed to a default address at Companies House, with potential strike-off if not rectified within 28 days

PO Boxes and equivalent services cannot be used as registered office addresses

Statement of Lawful Purpose:

New companies must confirm they are formed for a lawful purpose

Companies must confirm their intended activities are lawful in their annual confirmation statement

Registrar’s Enhanced Powers:

Ability to query and remove incorrect or fraudulent information more quickly

Stronger checks on company names to prevent misleading impressions

Use of annotations and data matching to clean up the register

Introduction of a new identity verification process

Enforcement and sanctions

Failure to comply with requests for information may result in financial penalties, annotations on records, or prosecution

Companies with inappropriate registered office addresses face similar consequences, including potential removal from the register

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