Half of the 115 regulations affecting the day-to-day running of UK businesses are to be removed, according to initial findings from the Government’s Company and Commercial Law Red Tape Challenge.
Thousands of businesses are expected to benefit from the changes to the Companies Act 2006, which includes scrapping, merging or simplifying regulations – particularly around preparing or filing accounts. Of the 115 regulations, 37 are to be scrapped and 20 are to be simplified.
The Department for Business, Innovation and Skills said the move to cut down the ‘dead weight’ of redundant legislation would ensure remaining regulations were easier to understand.
It also announced proposals to reduce the accounting requirements for micro-businesses with fewer than ten employees, simplifying annual accounts, balance sheets and profit and loss accounts.
Business minister Jo Swinson said: “We are always trying to make sure that companies can get on with what they’re supposed to be doing – running a business and creating jobs to help make the economy stronger. These changes are common sense and make business sense. We are determined to create a flexible business environment for companies to flourish in so they can compete globally and help grow the economy.”
The Government also proposed changes to:
- remove restrictions on certain company names including using the words ‘British’ and ‘Group’
- simplify the rules regarding the display of registered company names and offices
- simplify rules around using assets to raise finance
- streamline annual reporting requirements
- repeal certain accounting obligations when changing auditors.