Verification of Overseas Entities

The Register of Overseas Entities was introduced on 1 August 2022, following reforms in company law aimed at increasing transparency and strengthening controls over overseas entities. These changes, including the enactment of ECCT and ECTC regulations, were partly driven by the geopolitical climate, such as the war in Ukraine.

• ECCT: Economic Crime and Corporate Transparency Act, enacted in October 2023.
• ECTC: Economic Crime (Transparency and Enforcement) Act, enacted in March 2022.

The verification requirement applies to overseas entities that plan to buy, sell, or transfer UK property or land. This includes foreign companies, partnerships, or other entities formed outside the UK. These entities must disclose their registrable beneficial owners or managing officers, with the verification conducted by a UK-regulated agent to ensure compliance with the Economic Crime (Transparency and Enforcement) Act 2022.

Typical entities requiring verification include those involved in real estate transactions in England, Wales, Scotland, or Northern Ireland since 1 August 2022. Failure to comply could result in restrictions on property transactions or penaltiesTo comply with these requirements, any overseas entity looking to buy, sell, or transfer property or land in the UK must first register with Companies House and disclose its registrable beneficial owners or managing officers.

The Role of UK-Regulated Agents

A UK-regulated agent plays a crucial role in this process. They must complete verification checks on all beneficial owners and managing officers of the overseas entity before registration can proceed.

These agents are subject to supervision under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017. They can be either individuals or corporate entities, such as financial institutions or legal professionals, and must be based in the UK.

Why Work with a UK-Regulated Agent?

Verification checks are a mandatory step to ensure compliance with UK regulations. The UK-regulated agent must verify the identity and eligibility of all beneficial owners and managing officers. This adds a layer of accountability and ensures the integrity of the information submitted to Companies House.

Choosing the Right Agent

It’s important to note that Companies House does not endorse or accept liability for any regulated agent. There is a list of some UK-regulated agents available, but it’s not exhaustive, and other agents with the required assurance code may also provide these services.

How We Can Help

If your overseas entity needs to register in the UK, choosing the right regulated agent is crucial. We are a UK-regulated agent with the necessary agent assurance code, authorized to carry out verification checks for overseas entities.

Our team ensures that your registration process is smooth, compliant, and hassle-free. Whether you're buying, selling, or transferring property or land, we’ll handle the verification of your beneficial owners and managing officers professionally and efficiently.

Contact us today to learn more about how we can assist you in meeting your regulatory requirements.

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