New reforms: company registrations

New proposals reforming the current company registration process operated through Companies House recently outlined by the Government will impact businesses across the South West.

These changes will include the introduction of identity verification when incorporating a new company and in the future, all registered companies will need to have at least one verified director.

The reforms will also see changes for those registered on the Persons with Significant Control (PSC) register who will be required to create a verified account with Companies House. The PSC reforms will apply to new and existing companies.

Introduction of Single WebFiling Account

Changes are also coming to the Companies House Webfiling account in preparing to move towards a single sign-in for all company services.

Those who currently manage more than one company will soon be able to complete filings using just one account, hopefully making the system much more efficient to use and saving time.

The new account will also allow individuals to give authorisation to directors to be able carry out filings on behalf of the company meaning greater flexibility to get company administration completed.

The new account will provide improved security through the introduction of multi-factor authentication when signing in and those who currently use the service will be required to provide further information to allow these changes to take effect and benefit from the new features.

Money laundering

With further proposals put forward including giving Companies House the ability to raise their own enquiries on individual company incorporations that appear suspicious, and improving the communication with law enforcement agencies, it is hoped that the reforms will provide better transparency and help to combat the growing concerning surrounding money laundering through UK companies.

The current system allows individuals to incorporate new companies quickly without the need for any identification checks creating anonymous entities and therefore making it attractive to those who are seeking to launder money.

No timescale set

Although the government has already pledged £63 million in the Autumn 2021 budget to fund the reforms, there is currently no timescale proposed.

Those who are currently associated with a registered company or are looking to incorporate a new company in the future, should look for further updates to avoid any penalties for non-compliance.

For more information on these issues or for help with all commercial and corporate matters, call Coodes on 0800 328 3282 or by using the contact us form on our website.