Changes to the Formation of Limited Companies in the UK (2024 Update) 

 Changes to the Formation of Limited Companies in the UK (2024 Update) 

The UK has introduced several changes to the process of forming and managing limited companies, aimed at improving transparency, reducing fraud, and simplifying compliance. If you’re planning to set up a new company or manage an existing one, here’s what you need to know. 

 

 Key Changes to Limited Company Formation 

1. Enhanced Identity Verification (Economic Crime Act 2023)

– Directors and PSCs (Persons with Significant Control) must now verify their identity with Companies House before or during company registration. 

– This can be done: 

  – Online via a government gateway account 

  – Through an authorised agent (e.g., an accountant or solicitor) 

– Failure to verify may result in penalties or company dissolution. 

 

2. Stricter Rules on Registered Office Addresses

– Companies must now have an “appropriate address” (a genuine location where official mail can be delivered). 

– PO Boxes are no longer accepted unless a third-party agent can handle correspondence. 

 

3. New Rules for Company Names

– Companies House has tighter restrictions on names that: 

  – Suggest a false connection to government bodies 

  – Contain offensive or misleading terms 

– Faster suspension and removal of misleading names. 

 

4. Increased Powers for Companies House

– Proactive data checks – Companies House can now challenge and reject suspicious filings. 

– Stronger anti-fraud measures – Improved investigation and enforcement powers. 

– More detailed information required for company registrations. 

 

5. Changes to Confirmation Statements

– Companies must now provide: 

  – A registered email address (not publicly displayed, used for official communications). 

  – Additional details on shareholder information (if applicable). 

 

6. Digital Incorporation Process Improvements

– Faster online submissions with real-time checks. 

– More integration with HMRC for simultaneous tax registrations. 

 

7. New Requirements for Overseas Entities

– Overseas companies owning UK property must register with Companies House under the Register of Overseas Entities (ROE). 

– Must disclose beneficial owners and keep information updated annually. 

 

 Why These Changes? 

The reforms aim to: 

✅ Reduce fraud and money laundering 

✅ Improve corporate transparency 

✅ Modernize company registration 

✅ Align with global anti-corruption standards 

 How to Form a Limited Company Under the New Rules 

1. Choose a compliant company name (check availability on Companies House).
2. Appoint verified directors and a PSC (if applicable).
3. Provide a registered office address (no PO Box).
4. Submit incorporation documents digitally via Companies House.
5. Register for Corporation Tax with HMRC (if required).

 Penalties for Non-Compliance 

– Late filings: Increased fines for overdue documents. 

– False information: Risk of company strike-off or legal action. 

– Unverified directors: Companies may be dissolved. 

 

 What Should Existing Companies Do? 

✔ Ensure directors and PSCs verify their identities (if not already done). 

✔ Update registered email addresses in the next confirmation statement. 

✔ Review company details for accuracy. 

Need help setting up a company?  Call us today.