Companies House Response to ECCT

The New Requirement of Identity Verification & Electronic Filing for Overseas Entities

Recent reforms under the Economic Crime (Transparency and Enforcement Act 2022 (ECTE) and the Economic Crime and Corporate Transparency (ECCT) Bill are set to significantly impact overseas entities and individuals filing with Companies House. Key changes include:

1. Identity Verification: Anyone registering a company or filing on behalf of a company must complete identity verification. This applies to both UK residents and overseas entities to enhance transparency in business filings.
2. Electronic Filing Requirement: Starting from 6 April 2024, overseas entities must file all documents electronically. This is part of a broader effort to digitize filings, improve security, and prevent fraud.
3. Register of Overseas Entities: Overseas entities owning UK property must register and disclose their beneficial owners to Companies House, helping to combat money laundering.
4. Sanctions for Non-Compliance: Failure to comply with these requirements can lead to penalties, including restrictions on property transactions or filing capabilities.

If you are running a business in the UK, now is the time to ensure compliance with these stricter regulations. Whether you are a company, sole trader, or an overseas entity, professional advice is crucial.

The new rule restricts who can act on behalf of overseas entities in the UK. It is designed to eliminate unqualified overseas agents who may lack knowledge of UK regulations, making compliance difficult and leaving no one accountable in cases of violations. The rule includes the introduction of the new ACSP (Authorised Corporate Service Providers) system for filing on behalf of overseas entities. Mandatory ACSP Registration and the Role of Agents. The ECCT Act introduces requirements for agents filing on behalf of companies to register as ACSPs. Key points:

• Agent Registration: agents who represent overseas clients must be qualified member of the few UK recognised professional bodies. The agents are located in the UK to register as ACSPs, aiming to eliminate unqualified agents overseas, as one main purpose of the new rules.
• Identity Verification for Agents: Agents filing on behalf of others must verify their identity, ensuring transparency.
• Supervisory Body Membership: ACSP registration requires agents to be supervised by a UK Anti-Money Laundering (AML) bodies. Limited number of professional bodies are recognised under the new rules and ensure compliance of stricter rule, IFA is fully recognised professional body under the new announcement.
• Timeline and Guidance: The ACSP registration process will launch soon, giving agents time to comply.

As a member of the IFA, Elaga Accountancy ensures all clients remain fully compliant with the new rules, particularly overseas customers. We are ahead in implementing these changes, ensuring smooth, secure procedures and electronic filings.

***Contact us to learn more.

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