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Economic Crime & Corporate Transparency Act 2023 – Changes to Incorporation Process

February 2024

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) became law in October 2023. The first set of changes to UK company law and Companies House processes are expected to be implemented from 4th March 2024. These changes are outlined in our blog here. They include several changes which will have an immediate impact on the company formation process. These include:

  • stronger checks on company names,
  • new rules for registered office addresses,
  • a new requirement for all companies to supply a registered email address, and
  • a new requirement for all companies to confirm they are forming the company for a lawful purpose when they incorporate and to confirm its intended future activities will be lawful on their confirmation statement.

Our Company Formation Checklist has therefore been updated to consider these changes and all other changes that will impact on the incorporation process due to the ECCTA. Whilst some of these changes are not yet in force and will be phased in over the course of 2024/25, it is sensible for companies to be aware of these upcoming changes and plan for them now. For example, companies being newly incorporated now should be aware that in due course all statutory registers are being abolished and it will then no longer be an option for companies to elect to either keep information on the central register or to keep private statutory registers. Knowing this information now should allow companies to plan for these changes and may impact the current incorporation choices they make accordingly.

As there is also a requirement for the full name of each subscriber (full forename and surname) is to be included in the Memorandum of Association (M of A). The M of A templates for private companies limited by shares, private companies limited by guarantee and charity companies limited by guarantee have been updated accordingly.

These templates will be of use to any company secretary or company administrator in managing the process of forming a company.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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