The Small Business, Enterprise and Employment Act, which received Royal Assent in March 2015, will be implemented over the course of 2016.
The new measures will have an impact on companies and LLPs coming into force from 6 April 2016. The government is keen to stress that all companies operating in the UK will be affected in some way.
The measures will change legal requirements including filing with Companies House, effecting company systems and processes. The act will provide valuable information for businesses to grow and trade within their respective sectors. The changes that will have the highest impact will be introduced last.
Among the upcoming changes included in the act are:
From April 2016, measures will be put in place to provide a simpler mechanism for removing the details of falsely appointed directors from the register.
People With Significant Control (PSC)
Companies and LLPs will need to keep a record of people with significant control (PSC) in preparation to file their ‘confirmation statement’ at Companies House from 30 June 2016.
A PSC includes people within a company or LLP who meet the following conditions:
- owns more than 25% of the company’s shares
- holds more than 25% of voting rights
- holds the right to appoint or remove company directors
- exercise influence or control of the company.
Prevention on appointing corporate directors will take place with limited exceptions, from October 2016. A company with an existing corporate director will need to take action explaining the conditions for an exception, or give notice to the registrar that they’ve ceased to be a director.
More changes may still happen as secondary legislation continues to pass through Parliament.