Consent to act letters

Within the incorporation process you can now click to download the officer ‘Consent to act’ letters so that you can get these signed prior to submitting the company for formation at Companies House.

Shareholder and LLP agreements

As part of the company/LLP formation process you can now purchase the following templates:

• Shareholder agreement
• LLP agreement

Let us know any feedback you have

Please do let us have any feedback on this or any other features of Inform Direct and any enhancements that would help you with your company secretarial work.

We continually make improvements to Inform Direct, which you can see on our timeline of updates.

You may find it useful to consult the flowchart below, which illustrates the different routes visually:

Let us consider each option in turn, beginning with when small company audit exemption may be available to a UK subsidiary.

Size matters – does the individual company qualify as a ‘small’ company?

When considering whether small company audit exemption may be possible for a group company, you should start by looking at the size of the subsidiary itself. It must qualify as a ‘small’ company in accordance with section 477 of the Companies Act 2006. Our related guide will help you to determine the size of the individual company and whether it may be eligible for small company audit exemption.

Is the group a ‘small’ group?

Having satisfied yourself that the company would qualify for small company audit exemption were it to be considered as a standalone entity, you must now consider how its status as a group company will affect this.

The first step is to consider whether the group of companies would qualify as a ‘small’ group. Section 479 of the Companies Act 2006 allows eligible ‘small’ group companies to apply audit exemption. Section 383 defines the size criteria that qualify a group as small. The thresholds were updated by The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, with the new increased thresholds (shown in the table below) applying for accounting periods starting on or after 6 April 2025. When considering the size thresholds (given below), you must make the calculation based on the largest possible group, considered on a worldwide basis. You can calculate the values on either a net or a gross basis:

Note the following:

• Net: means as per the consolidated accounts (i.e., after any adjustments made to eliminate group transactions).
• Gross: reached by adding together all the individual company accounts before any intragroup transactions or balances are removed.
• The maximum figures quoted in the table above apply where the accounting period is 12 months in length. Where the accounting period in question is not actually a year – the ‘Turnover’ value should be adjusted proportionately.

The group will qualify as ‘small’:

• In the first year of trading: if it can meet at least two out of three of the size criteria.
• In subsequent years: unless it exceeds two of the three size thresholds for two years in a row.

Having determined that the group qualifies as a ‘small’ group, you should next consider its eligibility.

Could the group be ineligible?

Section 479 of the Companies Act 2006 prohibits audit exemption if at any time within the financial period the group contains an ‘ineligible’ company. This renders the whole group ineligible and every UK company in the group will be required to obtain an audit of its accounts.

Section 384 states that a group is ineligible if any of its members is:

• A traded company;
• A body corporate (other than a company) whose shares are admitted to trading on a UK regulated market;
• An e-money issuer, authorised insurance company, banking company, MiFID investment firm or a UCITS management company;
• A person that carries on insurance market activity or a regulated activity under the Financial Services and Markets Act 2000; or
• A scheme funder of a Master Trust scheme.

It is worth noting that where a group contains a PLC, this will only render the group ineligible if the PLC is also a traded company (i.e., it is listed on the London Stock Exchange).

If both your company and the group that it is part of qualify as ‘small’, and no member of the group is considered ineligible, the company may qualify for exemption from audit.

What about UK subsidiaries that do not qualify as small?

Under the requirements of s479A, subsidiaries that are part of a UK group that does not qualify as small are still able to take advantage of audit exemption, provided that:

• All members of the subsidiary company agree to the audit exemption (including holders of preference or non-voting shares);
• The UK parent company guarantees the liabilities of the subsidiary (as per s479C);
• The subsidiary is included in the audited consolidated accounts prepared by the UK parent undertaking;
• The parent undertaking discloses in the notes of the consolidated accounts that the subsidiary is exempt from audit; and
• The directors of the subsidiary deliver to the registrar on or before the date of the accounts all the required documentation.

Note that in order to comply with the last point, all of the following documents must be delivered to Companies House:

1. A written notice of the shareholders unanimously agreeing to audit exemption;
2. A statement of guarantee by a parent undertaking of the subsidiary company (Form AA06); and
3. A copy of the consolidated accounts including the auditor’s report and annual report on those accounts.

Remember however, that even if the subsidiary can satisfy all the above, section 479B of the Companies Act 2006 does not allow audit exemption if at any time the company was an ineligible company.

It is worth noting that the parent company that provides the guarantee does not have to be the ultimate parent. If an intermediate parent undertaking is registered under the law of any part of the UK and will prepare consolidated accounts for filing with Companies House – then audit exemption via parent guarantee may still be available.

Is audit exemption available to dormant subsidiaries?

Section 480 states that dormant subsidiaries will qualify for exemption from audit if they have been dormant since incorporation, or for the whole of the financial period concerned and:

• have been entitled to prepare individual accounts in accordance with the small companies regime (or would have been so entitled but for being a public company or a member of an ineligible group); and
• have not been required to prepare group accounts for that financial period.

Section 479(3) adds that a dormant subsidiary is still entitled to audit exemption, even if the group to which it belongs is considered ineligible.

However, the ability to claim exemption from audit is removed if at any time during the financial period the dormant subsidiary was (per s481):

• a traded company;
• an authorised insurance company, a banking company, an e-money issuer, a MiFID investment firm, a UCITS management company; or
• a company that carries on insurance market activity.

If your subsidiary company is dormant you may wish to refer to our related guide that looks at other exemptions available to dormant subsidiaries.

Audit exemption can be lost

Even if your subsidiary company does qualify for exemption from audit, there are circumstances in which it may still be required to obtain a statutory audit. These include:

1. When members of the company require an audit.
2. There is a specific requirement in the company’s articles of association.
3. When the required statutory statements are not included on the balance sheet.
4. When there is a condition included in a shareholders’ agreement, loan arrangement or other contract.

You can find more details on each of these circumstances in a related guide which considers how to qualify for small company audit exemption.

Earlier versions of this article were published in May 2013 and May 2022.

Recording your ACSP authorised agent number

For those of you that need to register to be an authorised corporate service provider we have added the ability for you to record your authorised agent number in your Inform Direct account information.

Note that this number will not be used by Inform Direct until Companies House make their submission changes which will be in 2026. But if you have it, then do add it so that you will be ahead of the pack and ready for when it is needed.

Using your own share and member certificate templates

You can now use your own share, member and option certificate template design within Inform Direct.

Once you’ve created your design you can provide it to us and we will get it added to your account.

If you are interested in this please get in touch and we’ll explain how to get started.

Other improvements

This update also includes a few other enhancements:

• Performance improvements when using the document library
• Updates to reflect reaching 500,000 companies on the Inform Direct platform
• Introduction of our new ‘Inform Direct by Bright’ logo

Please let us know your feedback

We are always improving Inform Direct, so if you have an idea of how we can make Inform Direct even better for you then please let us know.

We are proud of our timeline of updates, which is a great record of our commitment to improving Inform Direct, past, present and future.

The two year rule:

If this is the company’s first financial year then it is straightforward to calculate company size for the purposes of accounts preparation. For most companies, (there are some limited exceptions dependent upon the trading activity of the company) it is as simple as meeting the size classifications outlined in the table above. For subsequent years however, the rules are more complex and are explained in our guide entitled How to calculate company size when preparing year end accounts.

Full accounts

The elements that make up a full set of limited company accounts vary, dependent upon the size of the company. As can be seen from Table A – the smaller the company classification, the less detail is required in a full set of limited company accounts. The smallest companies can prepare micro-entity accounts – a special type of full accounts, that need only contain a simplified balance sheet with footnotes and a simplified profit and loss account. Under section 477 of the Companies Act 2006, most micro-entities and small companies will also be able to claim exemption from audit and will not therefore be required to submit an auditor’s report.

As has already been mentioned, no exemptions are available to large companies.

It is possible that the company may not be required to submit a full set of accounts to Companies House, although again this is dependent upon the size of the company. There are simpler options that may be available and we move on to consider these now.

Abridged accounts – for small companies only

Currently, small companies have the option to prepare abridged accounts. Abridged accounts are only available to companies that are entitled to prepare accounts under the provisions of the small companies’ regime (as defined in section 381 of the Companies Act 2006). Micro-entities, medium-sized and large companies are not eligible to produce abridged accounts.

Abridged accounts enable the company to present a simpler balance sheet and profit and loss account, with fewer individual line items (and therefore less detail) – although they must continue to present a ‘true and fair’ view. The company can decide to abridge either the balance sheet or the profit and loss account, or both, but to do so the directors must obtain approval from every shareholder, every year. If the directors do decide to prepare abridged accounts, then these are the accounts that will be delivered to the company’s members and also filed for the public record.

Abridged accounts must include the following elements:

• Abridged balance sheet and/or abridged profit and loss account.
• Director’s signature and printed name on balance sheet.
• Auditors’ report (unless claiming exemption).
• Directors’ report – including signature and printed name of a director or secretary. A strategic report and/or business review is not required.
• Notes to the accounts.
• Statement on the balance sheet above the director’s signature that the accounts have been prepared in accordance with the provisions of the small companies’ regime.
• Statement that all members agreed to the abridgement.

When fully implemented the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) will remove the option to file abridged accounts

Accounts for members versus accounts for filing

Before the introduction of The Companies, Partnership and Groups (Accounts and Reports) Regulations 2015, small companies usually prepared full accounts for their members and then often decided to abbreviate the accounts delivered to Companies House – reducing the amount of company data available to view on the public record. However, the amended regulations introduced a ‘file what you prepare’ model, requiring as a starting point that small companies file on the public record the same accounts they have prepared for members.

This amended approach removed the option to file abbreviated accounts. However, it currently remains possible for small companies and micro-entities to file ‘filleted’ accounts, significantly reducing the amount of company detail available on the public record.

‘Filleted’ accounts – small companies and micro-entities

The term ‘filleted’ accounts refers to exemptions that are available under section 444 of the Companies Act 2006. If a company is considered small (or a micro-entity), then regardless of whether it has prepared full or abridged accounts for members, it may elect to ‘fillet’ the accounts it files with Companies House – choosing not to file the:

Dormant company accounts

Section 1169 of the Companies Act 2006 states that a company is dormant if it has had ‘no significant accounting transactions’ during an accounting period. In fact, there are only a few, very specific transactions that a company may put through their accounts and still be considered dormant, and these are explained in our article ‘What is a dormant company?’

If the dormant company has previously traded, Form AA02 (DCA) is not available. However, unaudited dormant company accounts may be filed with Companies House. These are very simple and comprise:

• A balance sheet including the director’s signature and printed name.
• Statements above the director’s signature to the effect that the company has been dormant throughout the year, together with statements required if the company is claiming audit exemption and if the accounts have been prepared in accordance with the provisions of the small companies’ regime.
• Any previous year’s figures for comparison.
• Certain prescribed notes to the balance sheet.

Whatever type of company accounts you are filing, you can use our simple one-step process to produce prepopulated board minutes recording the directors approval of the accounts – even when the company accounts were not created or filed using Inform Direct.

A previous version of this article was originally published on 26 July 2018. It was fully updated on 28 May 2025.

You may be able to apply to extend the time for delivering your company accounts to Companies House if they are delayed by

an unforeseen event which was outside the control of the company and its auditors or there are exceptional extenuating circumstances.

You can apply online to extend your accounts filing deadline, but you must do this before the normal filing deadline has been reached.

If you file your accounts late an automatic fine will be imposed on the company. The fines increase the longer you delay submission and the penalty is doubled if company accounts are filed late two years in a row. Public limited companies are also subject to higher tariffs than private companies. You may wish to refer to the Companies House Guide on Late Filing Penalties. 

As well as the civil penalty imposed on the company, failure to file the company accounts is a criminal offence and the company’s directors (and company secretary) could face large personal fines and even disqualification from the role of director.

Failure to deliver company accounts may also result in the company being struck off from the public register. Many people are surprised how quickly a company can find itself faced with deregistration. The process is detailed in section 1000 of the Companies Act 2006. If you fail to deliver your company accounts on time the registrar will be deemed to have

reasonable cause to believe that [the] company is not carrying on in business or in operation

As a first step Companies House will send a warning letter to the company registered office address. If it fails to receive a response from the company within 14 days, it will issue a second warning letter. If the company fails to reply to this second warning letter within a further 14 days, the registrar can issue a formal Notice of the intention to strike off and this will be published in the Gazette. Just two months after the publication of the notice, the company can be deregistered.

No. If your accounts due date falls on a Sunday or Bank Holiday you must ensure that you deliver your company accounts before this date or you will incur an automatic fine.

Yes. Currently, you can change the accounting reference date as many times as you like if it shortens the accounting period, although accounts reforms to be introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) will eventually introduce restrictions (see further details below). If the change is to lengthen the accounting period then the following restrictions already apply:

• Unless the company is in administration – you cannot change the accounting reference date to make the accounting period longer than 18 months.
• You cannot extend the accounting period more than once every 5 years unless your company is in administration or you have obtained permission from the Secretary of State or the change is to make the accounting reference date the same as a subsidiary or parent undertaking.

To change your accounting reference date you must apply to Companies House before you reach the current filing deadline. To apply you can complete paper Form AA01 or register with a free records management service like Inform Direct to submit the request electronically in a matter of moments.

The surprising answer to this question is ‘Yes!’ – but only in certain circumstances. When a Form AA01 is filed to change the accounting reference date, the deadline for filing company accounts is extended to the later of:

• 9 months for a private company (or 6 months for a public company) from the new accounting reference date; or
• 3 months from the date of receipt of the Form AA01.

In some circumstances therefore, shortening the accounting period may actually result in the company receiving additional time to file their accounts. Consider the following example:

However, note that Companies House do not look favourably upon companies that shorten their accounting reference period purely to gain additional time to file their accounts. Indeed, the ECCT Act will introduce a limit to the numbers of times that a company can shorten its accounting reference period, with the aim of preventing abuse of this procedure.

No. The same filing deadlines apply for dormant company accounts and regardless of the size of your company. You can verify the filing deadline that will apply to your next set of accounts by reading our guide entitled: “When are my annual accounts due?”

You must send a copy of the company accounts to:

• Every shareholder in the company;
• Every holder of the company’s debentures; and
• Every person that is entitled to receive notice of general meetings.

You will also be required to submit a copy of the company’s accounts to HMRC as part of your Company Tax Return. Where applicable, the Charity Commission or other regulatory bodies may also require a set of your company accounts for review.

Using Inform Direct you can produce and file both micro-entity accounts and never-traded dormant company accounts. If you are a subscriber using your own presenter code you can upload an iXBRL accounts file to Inform Direct, allowing you to electronically submit a wide range of company accounts including, small, medium, full and group accounts.

Whatever type of company accounts you are preparing, a simple one-step process allows you to produce prepopulated board minutes recording the directors approval of accounts – even when the company accounts were not created or filed using Inform Direct.

If you still have questions relating to company accounts preparation you may wish to look at our related guides: How to calculate the size of your company for year end accounts preparation and the Different types of limited company accounts available (as determined by your company’s size).

Earlier versions of this article were published in June 2015 and July 2019. The latest updates were applied in May 2025.

Lots of flexibility

You can choose to produce prepopulated board minutes and/or a written directors’ resolution to approve:

• Audit-exempt or audited accounts
• Most company accounts types, including dormant company, micro-entity, small and medium company accounts.
• Accounts you have just filed, or are about to file, or even accounts that were filed several years ago.

This new feature also covers most company types, although it is not available to Limited Liability Partnerships (LLPs) or CICs.

Where to find this new feature

You can find this new feature by clicking on the blue ‘Prepare & file accounts’ button on your company dashboard page. This will take you to the ‘Company accounts filing options’ page, from where you can select the new ‘Produce board minutes/resolution to approve accounts’ radio button (indicated by the red outline in the image below):

Select the documents you wish to produce

You can choose to produce board minutes and/or a written directors’ resolution to approve audit-exempt or audited company accounts:

Prepopulated editable word document

The prepopulated board minutes and/or written directors’ resolution will be saved as editable word documents to the company’s Document Library.

Other improvements

We’ve also listened to your feedback and improved the operation of the ‘Company accounts filing options’ screen:

1. A new section of text at the top of the screen advises you of the date the next set of accounts are due to be filed by, and the earliest date that you can submit these accounts to Companies House.
2. If it is too early to file the accounts with Companies House, the text ‘Not until {earliest filing date}‘ will display instead of the radio button.
3. You can now access the ‘Change accounting reference date’ process from this page.
4. And of course, if you wish to produce prepopulated board minutes to approve company accounts, this step is your starting point.

What can the API do?

The API includes four key endpoints that let you keep your systems in sync with Inform Direct:

• Add a company – Seamlessly add new companies to your account.

• Remove a company – Remove companies no longer in use.

• Get all companies – Retrieve a full list of companies linked to your account returning the following information:

  • Company number
  • Company name
  • Inform Direct’s public URL for the company (so you can directly link from another system)

• Get a particular company – Access high level information for a specific company:

  • Company number
  • Company name
  • Inform Direct’s public URL for the company (so you can directly link from another system)

With just a few calls, your systems can stay fully up-to-date without the need for manual data entry.

Ready to Get Started?

We’ve put together comprehensive API documentation to guide you through the setup and integration process. Everything you need is there to help you hit the ground running with the following steps:

1. Create your sandbox API key
   Start by generating your sandbox key to explore and test the API in a safe, simulated environment.

2. Authenticate and make test calls
   Use your sandbox key to authenticate and try out API calls in the sandbox—no impact on live data.

3. Request your production API key
   When you’re ready to go live, apply for a production key and complete the verification process for secure access.

4. Connect your external systems
   Once verified, you can begin syncing your external platforms—like Practice Management Systems—directly with Inform Direct.

Let us know any feedback you have

Please do let us have any feedback, on this or any other enhancements that would help you with your company secretarial work.

We continually make improvements to Inform Direct, which you can see on our timeline of updates.

Small company audit exemption – what’s the starting point?

Section 475 of the Companies Act 2006 states that:

a company’s annual accounts for the financial year must be audited…unless the company is exempt from audit.

And, this should always be the starting point. Your company accounts are subject to statutory audit until it can be shown that they qualify for audit exemption.

However, the Companies Act 2006 also sets out various scenarios which may allow a company to qualify for audit exemption. These are prescribed in the following sections:

• Section 477 – qualifying small companies
• Section 479A – eligible subsidiary companies
• Section 480 – dormant companies
• Section 482 – non-profit making companies subject to public sector audit

In this article we will consider how an individual (non-group) company may qualify for audit exemption. If your company is a member of a group, our related guide will help you to consider whether your UK subsidiary is exempt from audit.

Does your company qualify as a ‘small’ company?

The size of a company, as defined by the Companies Act 2006, is important. It influences the type of accounts the company may choose to prepare. It dictates the minimum amount of information that must be included for the public record. It also determines whether the financial statements must be audited or not.

Section 477 allows eligible ‘small’ companies to apply audit exemption. Section 382 defines the size criteria that determine whether a company is ‘small’. The thresholds were updated by The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, with the new increased thresholds (shown in the table below) applying for accounting periods starting on or after 6 April 2025:

The company will qualify as ‘small’:

• In the first year of trading: if it can meet at least two out of three of the above criteria.
• In subsequent years: unless it exceeds two of the above three size criteria for two years in a row.

There are a couple of important points to note here:

• The maximum turnover figures quoted in the table above apply where the accounting period is 12 months in length. If the accounting period is shorter or longer than a year, the threshold values should be adjusted proportionately.
• Micro-entities qualify as ‘small’ companies for the purposes of determining eligibility for audit exemption.
• The above size criteria do not apply to charities. There are separate charity audit thresholds.

Further advice on all of the above and on how to apply the ‘two consecutive financial years’ rule can be found in our guide entitled ‘How to calculate company size for year end accounts preparation‘.

Having determined that your company qualifies as a ‘small’ company, you should next consider its eligibility. It is important to note that there are certain types of company that never qualify for audit exemption.

Could my company be ineligible for audit exemption?

Section 478 of the Companies Act 2006 prohibits some small companies from audit exemption, including the following:

• Public companies
• Authorised insurance companies and companies that carry out insurance market activity
• Banking companies, e-money issuers, MiFID investment firms and UCITS management companies
• Trade unions and employers’ associations
• Pension bodies

What about dormant companies?

Section 480 states that a company will qualify for audit exemption if it has been dormant either since formation or for the whole of the accounting period concerned. This is provided that it qualifies as a small company or would have so qualified but for being a public company and is not required to prepare group accounts for that year. Section 481 prescribes the dormant companies that can never apply audit exemption. This includes:

• companies whose shares are traded on a regulated market
• authorised insurance companies
• companies that carry out banking activities
• e-money issuers
• UCITS management companies.

My company qualifies for audit exemption – can it still be required to obtain an audit?

Having determined that your company does qualify for audit exemption you should be aware that there are still occasions when the company may be required to obtain a statutory audit of the accounts. These include:

Section 476 allows an individual or a group of shareholders controlling at least 10% of the nominal share capital or at least 10% of any class of shares to request in writing that the company obtain an audit. The request must be sent to the company’s registered office address. It must be received by the company at least one month before the end of the financial year concerned. Similarly, a limited by guarantee company is required to obtain an audit if not less than 10% in number of the members of the company request it.

Section 475 of the Companies Act 2006 states that a company will not be entitled to audit exemption unless the required statements are included on the balance sheet above the authorising signatory.

The accounts of the company must be subject to an audit if the company’s articles of association require it. Many companies adopt model articles of association which do not contain a provision requiring the company to obtain an audit. However, if you find that the company’s articles do contain such a provision, it can be easily removed with shareholder approval. Refer to our guide on how to change a company’s articles of association.

When might a company choose to audit its accounts?

Even if you determine that your company does qualify for audit exemption you can still choose to obtain a statutory audit, and there may be many reasons to do so. A Department for Business, Energy and Industrial Strategy 2017 publication entitled “The impact of exempting small companies from statutory audit” found respondents cited the following reasons for choosing not to take up audit exemptions:

1. The company is likely to exceed the eligibility thresholds and require an audit soon.
2. To meet requirements imposed by lenders and preconditions for loans.
3. To provide comfort and confidence to shareholders, directors, investors and suppliers.
4. To meet the requirements of regulators or trustees.
5. To accord with decisions made at a group level that audits be undertaken by all companies in the group.
6. To improve the perceived credibility or reputation of the company.
7. A belief that audits represent good financial practice.
8. Simple inertia!

An earlier version of this article was published on 27 May 2022. The article was fully updated on 13 May 2025.

What are the recent updates?

You have been able to register as an ACSP at Companies House since 18 March 2025 and from 8 April 2025, it has been possible for ACSPs to inform Companies House that they have verified someone’s identity.

Successful verifications of individuals result in a ‘personal code’ being generated by Companies House. This code can then be used to support future submissions.

Based on Companies House’s current timelines, our understanding is that identity checks will be enforced for existing directors and PSCs in the first confirmation statement for the company from autumn 2025.

Who needs to register?

You will be required to register as an authorised corporate service provider with Companies House if you are delivering documents to the Registrar on behalf of companies or undertaking identity checks. Our role as the software platform is in providing a tool to complete submissions, but it will be you acting for the client and responsible for the appropriate checks and data submitted.

What do ACSPs do?

The role of ACSP involves:

1. Conducting identity verification checks
2. Delivering documents to Companies House on behalf of clients, as they may already be doing
3. Maintaining records on identity verification checks for inspection
4. Providing further information on those checks to Companies House at the Registrar’s request.

Why are ACSPs necessary?

For many years it has been easy to register fake companies, officers and people with significant control (PSCs) at Companies House. Anecdotes of directors called Donald Duck and suchlike are abundant. Some of these engage in money laundering and other economic crime via deliberately obscure chains of ownership. There is deemed to be a pressing need to nail down the identities of directors, PSCs and beneficial owners. This will improve the integrity of the companies register and contribute towards increased corporate transparency.

Historically Companies House has been at pains to point out that it does not verify the accuracy of the information filed on the register. Now it is transforming from a passive recipient of company information into an active gatekeeper, and ACSPs are one of its tools for that purpose.

Who needs to use an ACSP?

Under ECCTA, anyone registering companies or filing with the Registrar must have verified their identity. They can choose one of two routes for doing so:

1. Directly with Companies House, via a new digital service involving a primary identity document such as driving licence or passport
2. Via an ACSP.

Whichever method is used, a person’s verified status will remain valid for all future filings.

Those who may choose to do their identity verification checks, registrations and filings via an ACSP include:

• Company directors
• PSCs (people with significant control) and RLEs (relevant legal entities)
• Members and partners of LLPs (limited liability partnerships)
• Anyone making filings with the Registrar.

LPs (limited partnerships) are under particular scrutiny and their applications for registration and notifications of changes must be submitted by ACSPs. This also applies to their confirmation statements, which are introduced in the ECCT Act for non-Scottish LPs (they are already required for Scottish LPs).

Who can be an ACSP?

A professional intermediary like an accountancy firm, legal adviser or company formation agent is well suited to be an authorised corporate service provider. They must be already active in conducting customer due diligence like anti-money laundering (AML) checks with their clients. They must also be registered with a supervisory body for AML such as the Financial Conduct Authority or one of the professional associations for accountants, bookkeepers and tax advisers. These attributes make them suitable for ACSP status as it will simply be building on their existing abilities to conduct checks.

Before making any filings as an ACSP the intermediary must register with Companies House to confirm their own AML – supervised status. They should provide a declaration that they have conducted all necessary identification checks on their clients. In the case of an individual, they must provide a statement that their own identity is verified.

Those wishing to apply for ACSP status need to be registered with Companies House and be a ‘relevant person’ under the Money Laundering, Terrorist Financing and Transfer of Funds (Information for the Payer) Regulations 2017. In the course of their business they must be one of the following:

• A credit institution
• A financial institution
• An auditor
• An insolvency practitioner
• An external accountant
• An external tax adviser
• An independent legal professional
• A trust or company service provider
• An estate agent
• A high value dealer
• A casino.

The application must include the name of the supervisory authority under which the applicant operates for the purposes of the AML regulations. The Registrar is obliged to check with the supervisory body that the applicant is known to and supervised by it.

Are there any risks to being an ACSP?

Professional firms that would qualify as ACSPs should consider whether they want to take on the additional risk and compliance burden of providing these services to their clients.

The ECCT Act has made it an offence to deliver ‘without reasonable excuse’ any document or make any statement to the Registrar that is misleading, false or deceptive. The offence is aggravated if the person is aware that they are doing so. No professional firm will want to have their name associated with a test case in which having a ‘reasonable excuse’ is examined in court. This may make some nervous about taking on the role of ACSP.

There are new criminal and civil consequences for failing to comply with requirements. For example, a PSC of a newly incorporated company commits a criminal offence if they fail to verify their identity within 14 days of incorporation. Furthermore, the Registrar will annotate the companies register to show the company’s unverified status. There is the possible risk of an ACSP causing reputational damage to a client.

HMRC will be responsible for supervising ACSPs and will prioritise taking action against ACSPs suspected of involvement in economic crime.

To be better informed about such risks, prospective ACSPs should consult their professional associations.

• Significant workflow and customisation enhancements
• The launch of our client portal, enabling full client approval of confirmation statements
• The facility to manage a much wider range of businesses on Inform Direct
• Greater flexibility, whether in dating transactions or creating your own document templates
• Most recently, the launch of our open API

We always want to do more, developing our software and working as part of Bright Software Group and with partners to better support accountants and clients. Our specialist team are passionate about delivering more and continuing to offer the exceptional customer service which is the bedrock of your Inform Direct experience.

As we continue the year, we have a lot of exciting plans! You can always get a flavour of what’s to come in the next several months by checking our software timeline, and we have much more in the pipeline!

Our primary focus remains ensuring that accountants using Inform Direct can assure their clients of company secretarial compliance. You’ll very shortly be able to record your details as an authorised corporate service provider, and we’ll be supporting accountants in your efforts to verify the identity of your clients. You’ll be able to record and submit your clients’ Companies House personal codes in Inform Direct, whatever means you have used to verify their identity:

• Checks that you or your clients have completed directly at Companies House
• Identity checks via your existing identity verification software
• Identity checks completed using our selected identity verification partner software

Our best ideas have always come from our wonderful customers, whether new or long standing. We always love to hear your suggestions, whether for big new features or the tiniest of changes that will help you and your business. Please do get in touch with any feedback you have!

On behalf of the whole Inform Direct team, I’d like to thank all our wonderful customers for your continued enthusiasm and support. Your unwavering commitment to your own clients inspires us all, and we are both humble and delighted to partner with you in a continuing dedication to company secretarial compliance.