Economic Crime and Corporate Transparency Act 2023 – how will this change my limited partnership?

The Economic Crime and Corporate Transparency Act 2023 (“ECCTA”) was introduced on 4 March 2024. The aim of the act was to increase the power that Companies House have in tackling economic crime and supporting economic growth in the UK.

ECCTA gives the National Crime Agency and Serious Fraud Office additional powers to require business and individuals to provide information and, in particular, have brought in legislation which effect Limited Partnerships (“LP”). This article will solely concentrate on LP’s and what the new measures mean for them.

Limited Partnerships

The recent changes have introduced measures which will make information more accessible and transparent in respect of Limited Partnership.

Some of the new measures which will come into effect have introduced new requirements on what information needs to filed at Companies House. You will now need to provide the following:

1. When a partner is an individual, partners’ names, date of birth and usual residential address
2. When a partner is a legal entity, the name, principal office, service address and legal form
3. Registered office within the UK
4. A standard industrial classification (SIC) code
5. Verification of the identity of general partners
6. An annual confirmation statement confirming the identify the LP’s partners.

For the most part, documentation to be filed at Companies House such confirmation statements and registration documents will have to be delivered by an Authorised Corporate Service Provider (“ACSP”).

The only alternative to this is if you meet the criteria and apply to become one yourself. This authorised agent would have to be registered with Companies House and this is done to ensure that the data is trustworthy and fit for purpose. Secondary legislation will be introduced shortly to clarify what is required and what the process will entail to become ACSP.

The changes mean that LP’s will lose the confidentiality protections they previously received.

So what does this mean for existing Limited Partnerships?

There will be a transitional period of six months before these provisions come into force this gives the current general partners time to provide the require information. If LPs do not comply with the new requirements, the registrar now has powers to dissolve unresponsive Limited Partnerships.