The United Kingdom in March this year enacted the Economic Crime (Transparency and Enforcement) Act 2022 and the deadline for complying with it provisions is rapidly approaching. The Act introduced a Register of Overseas Entities, which requires foreign companies to identify their beneficial owner to Companies House.
The new law essentially is seeking to ensure full transparency into the ultimate beneficial ownership of a foreign entity. This registration will apply to property purchased in England and Wales since January 1999, and that in Scotland after December 2014.
Penalties for non-compliance including fines of up to £2,500 (USD 3,000) per day, or up to five years in prison.
The deadline for the initial registration is 31 January, 2023. It is therefore essential that a foreign company falling within the scope of this Act complete its registration without delay.
If your company owns or wishes to acquire property in the UK, please feel free to contact us to arrange for registration in compliance with this new legislation.
Full text of the Act at legislation.gov.uk.
This article is intended for informational purposes only and does not constitute legal advice