The information supplied when forming a new company is changing. The biggest change is the provision of information regarding anyone involved in the company that has significant control.
The Small Business, Enterprise and Employment Act implements changes to the details supplied at the time of incorporation. This is mainly to provide greater transparency to companies registered in the UK.
From 30th June companies need to provide details of any person that has ‘significant control’ in the business. This goes beyond confirming who the shareholders and directors of the company are.
What is changing when you form a company?
Companies need to state the principal business activities
Companies will now provide a Standard Industrial Classification at the time of incorporation and on the Confirmation Statement filed each year. Previously this information was only requested on the Annual Return which was completed one year after the company was formed. The principal business activity is provided by selecting on the prescribed Standard Industrial Classification (SIC) codes. Our new company formation system will list these for you.
The company will need to state whether or not it has any Persons of Significant Control (PSC) and provide the relevant information
When registering a new company you will need to confirm all of the people that have significant control. A PSC is an individual who meets one or more of the following conditions in relation to a company:
- Directly or indirectly owns more than 25% of the shares
- Directly or indirectly holding more than 25% of the voting rights
- Directly or indirectly holding the right to appoint or remove the majority of directors
- Otherwise having the right to exercise, or actually exercising, significant influence or control. This may through a power of attorney or some other method.
- Holding the right to exercise, or actually exercising, significant influence or control over the activities of a trust or firm which is not a legal entity, but would itself satisfy any of the first four conditions if it were an individual.
Private limited companies (LTDs) will also have the option to keep certain statutory register information at Companies House
It is unlikely you will choose to have full statutory information held on the public register but it may benefit companies whose information does not change very often. Electing to provide statutory information on Companies House register records will mean the public have access to director’s full date of birth and members (shareholders) addresses. We anticipate most people will choose to keep this on their own registers at the registered office.
You will find all of these new options available during the formation process. Do not worry, we have tried to keep things as simple as possible.
