Companies House Introduces New Powers and Rules to Enhance Business Integrity

Companies House has recently implemented new measures to strengthen the integrity of business registrations and ensure compliance with legal standards. These updates grant Companies House new powers to challenge and change company names, enforce appropriate registered office addresses, and introduce mandatory registered email addresses and lawful purpose statements. Here’s a detailed overview of these changes:

New Powers to Challenge and Change Company Names

Companies House now has the authority to reject applications for company names if there is suspicion that the name:

- is intended to facilitate fraud;

- contains or is comprised of a computer code; or

- could falsely imply a connection to a foreign government or international organisation involving multiple countries or territories.

In addition to rejecting names, Companies House can direct companies to change their names if necessary. If a company fails to comply within 28 days, Companies House will assign a new name, typically replacing it with the company’s registration number. To prevent misuse of the register, Companies House can suppress names while a company responds to a direction to change its name.

Consequences of Non-Compliance

Non-compliance with a direction to change a company name within 28 days constitutes an offence. Furthermore, continuing to use a company name that has been directed to be changed is also an offence. Companies must adhere to these new rules to avoid legal repercussions.

Key Changes for Businesses to Prepare For

To help businesses adapt to these changes, here are three critical updates to take note of:

1.     New Rules for Registered Office Addresses

Starting 4 March 2024, companies must have an ‘appropriate address’ as their registered office. This address must:

- ensure that any documents sent to it come to the attention of a person acting on behalf of the company; and

- allow for the acknowledgment of delivery of documents.

PO Boxes will no longer be acceptable as registered office addresses. Companies using PO Boxes must have updated their addresses by 4^th March 2024. Failure to comply could result in the company being struck off the register.

2.     Requirement for Registered Email Addresses

From 4^th March 2024, all companies must have provided a registered email address to Companies House, which will not be publicly listed. New companies will need to provide this during incorporation, while existing companies must supply it when filing their next confirmation statement from 5^th March 2024. This email address will be used for official communications, making it crucial to maintain an accurate and functional email address.

3.     Statement of Lawful Purpose

From 4^th March 2024, subscribers forming a company must confirm it is for a lawful purpose. Additionally, companies must confirm their intended activities are lawful when filing their confirmation statement. This measure aims to ensure all registered companies operate within legal boundaries.

If you have any queries about these new rules and powers, please do not hesitate to get in touch with our Corporate Team by telephone on 0207 052 3545 or by email info@kaurmaxwell.com

This article is for general information only. Its content is not a statement of the law on any subject and does not constitute advice.

Please contact KaurMaxwell for advice before taking any action in reliance on it. 

By: Hiten Patel