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Small Business, Enterprise and Employment Act 2015 Update
20 June 2016
Small Business, Enterprise and Employment Act 2015 Update
Changes to Incorporations with effect from 30 June 2016.
As part of the June implementation of The Small Business, Enterprise and Employment Act 2015 the following changes will be implemented by Companies House requiring additional information submitted on the incorporation of companies in England & Wales and Scotland.
From 30th June 2016 all new companies will be required to:
• State its principal business activities using the Standard Industrial Classification codes (SIC code) that are prescribed for the purposes of identifying a company's proposed business activities on incorporation
• State whether or not the company has any Persons of Significant Control (PSC) and if so give those details in a prescribed form
The Act anticipates that the company must know who its PSCs are on incorporation, if the company does not have any PSCs they must state this on incorporation. Simplistically a person having more than 25 per cent of the share capital is a PSC however in practice other persons are included in the definition.
London Law is releasing a new version of their Web Formation software. This will ensure compliance with the new regime and assist clients in dealing with the new requirements. The software has been completely rewritten and updated, giving clients the benefit of London Law’s expertise on the practical aspects of company law acquired over the last 49 years. It will give access to the full list of SIC codes and additional screens to collect the PSC data together with guidance notes to assist clients with entering the data.
Clients using PC Share Register system to form companies through London Law will need to download the update to be issued by Iris on or around 30th June to continue forming companies.
London Law will soon be publishing pages for a PSC Register to enter separately into existing statutory registers and new registers sold will soon have the additional pages and tabs included.
There will be an option, for private companies only, to elect to keep certain statutory register information at Companies House, however this will result in additional information that would not normally be available for public inspection being readily available for public inspection, for example, directors full date of birth and members (shareholders) addresses.
We advise clients to use London Law’s facility for their register if they wish to keep addresses and dates of birth confidential. London Law offer various alternatives including London Law keeping an electronic register in-house and/or acting as Company Secretary and Registered Office, supplying a fully completed and printed register as an option for all new incorporations. We are also developing a secure on-line register for clients to access on demand.
Existing companies need to ensure with effect from 1st April 2016 that they set up and maintain registers of PSCs failure to so is a criminal offence. The Government has published a lengthy guide. For the majority of companies they will merely need to ensure that they have a PSC Register and complete it in the prescribed format and keep it updated. London Law will be pleased to assist.