The Government’s Economic Crime and Corporate Transparency Bill continues to make its way through Parliament, having now completed its committee stage. This is the second part of the Government’s package of legislative reforms, following the enactment of the Economic Crime (Transparency and Enforcement) Act 2022, which are intended to improve transparency as well as enhancing the integrity of the information available about UK entities
The Bill, if passed, will introduce a requirement for directors and persons with significant control (PSCs) of companies, as well as general partners of limited partnerships, to verify their identities with Companies House.
Under the Companies Act 2006, a non-UK company must register with Companies House if it opens an “establishment” in the UK. This obligation is separate from the requirement for overseas entities to register with Companies House if they hold registered land in the UK.
An overseas company would need to ensure that the identity of each of its directors is verified. The Bill does not set out the consequences of non-compliance. However, unlike for UK companies, legislation will not practically be able to prevent directors of non-UK companies from acting if they have not been verified.
Further details can be found in this article prepared by our corporate and commercial team.