Did you know that Companies House has recently made some changes to the information that is required when carrying out a company formation?
A series of significant new requirements came into law on 30th June this year. If you are investigating company names, you are probably thinking about taking the first step in forming your own company so this information may well be relevant to you:
Standard Industrial Classification (SIC) codes are used to classify businesses into different industries. Previously, an SIC code was only required when a company completed its annual return to Companies House, but you now need to state your SIC code during company formation.
The full SIC code list contains broad industries like ‘Transportation and Storage’ and ‘Real Estate Activities’ which are then divided into more specific sub-codes, allowing companies to define their specific area of business. If you are embarking on a company formation, you will need to declare your SIC code (or codes) when you set your company up.
At Business Name Checker we work with experts in company formation who will support you with the full process and with identifying the relevant SIC, when you decide to form your own company.
‘PSC’ stands for ‘Person with Significant Control’
A person with significant control or influence, is an individual who controls or owns a company and who meets one or all of the following criteria:
Holds more than 25% of a company’s shares
Holds in excess of 25% of the company’s voting rights
Is able to remove the majority of the company’s board of directors
Exercises or has the right to exercise significant influence or control over the company
In the case where a trust or firm has the same powers as identified above, the person who controls that trust or firm is also considered to be a PSC
The aim of identifying PSCs is to increase transparency over who owns and controls UK companies.
Requirements for Company Formation
It is necessary to identify the PSC (or PSCs) when you form a new company and companies must also keep a PSC register as part of statutory compliance documentation. Existing companies need to provide Companies House with their PSC information.
Confirmation Statements have now replaced Annual Returns and need to be submitted every year.
In the new Confirmation Statement process, Companies House will now tell companies what it believes to be the correct information about them and they will need to confirm it, or make any necessary changes.
If you are embarking on a company formation you will benefit from support with this process and we are here to help. Contact us and we will advise you of the best next steps for forming your company.
A number of other significant changes also became law on 30th June. These relate to Statement of Capital and also the statutory registers that all companies need to keep.
The requirements for Statement of Capital have been simplified and Companies House will now support small businesses by storing their statutory registers for them (although there are some privacy implications to this as this information becomes part of the public record).
Do you need further advice on embarking on your company formation or any of the recent changes? Call us or email us today and we will be happy to help.