Essential Facts About the New Transparency of Company Ownership Regulations

The drive to improve transparency of company ownership is a global effort, and the UK is taking significant steps in this direction.

The UK government is making significant changes to increase transparency in company ownership, aiming to combat fraud, money laundering, and financial crime. The Economic Crime and Corporate Transparency Act 2023 introduces new regulations that impact company directors, shareholders, and Persons with Significant Control (PSCs) which we have previously covered in several of our articles.

These additional upcoming changes will affect the filing of annual confirmation statement, which every UK Limited Company, whether it is dormant or trading, must file.

The upcoming change is set to make company ownership more transparent.

Upon the implementation of these measures, companies are required to:

• Maintain a register of members that includes the complete names of all shareholders;
• Notify Companies House of the full names of all shareholders and submit a comprehensive shareholder list during their next confirmation statement filing.

Additionally, companies exempt from disclosing information regarding persons with significant control (PSC) must provide further details about their exemption, including the trading venues of their shares and the specific regulated market involved.

Furthermore, there will be limitations on the appointment of corporate directors. Only UK corporate entities possessing 'legal personality' may serve as corporate directors. The directors of these corporate entities must be individuals who are required to verify their identities. For more information regarding the restrictions on corporate directors, please refer to the relevant resources.

Although we are not aware of the specific timescale for these additional changes, Companies House has confirmed that certain changes, particularly those that might significantly impact existing companies, will not be implemented until after companies have had sufficient time to complete the mandatory identity verification requirements which come into effect later in a year.

At Coddan, as your trusted partner and corporate service provider, we are dedicated to keeping your business secure, compliant and kept up to date with any upcoming legislative changes.

If you need assistance with identity verification, company formation, or compliance services, Coddan is here to help. Would you like to get started?

If you have any questions how the current changes to the legislation may affect you and your Limited Company or your Limited Liability Partnership, and require more information or guidance, why not give us a call on +44 (0) 207 935 5171 to discuss your questions or to Apply for a Consultation. Our experienced and highly professional business support team is here to help!