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https://companieshouse.blog.gov.uk/2023/01/03/register-of-overseas-entities-tips-to-speed-up-the-process/

Register of Overseas Entities: tips to speed up the process

Time is running out for overseas entities to comply with the new Register of Overseas Entities requirements. With less than 4 weeks left, it’s important to register as soon as possible.

Register of Overseas Entities

In August 2022, the UK government, together with Companies House, launched a public Register of Overseas Entities. The new rules require overseas entities that own or lease land or property long-term in the UK to register with Companies House. Information needs to be verified before it’s submitted.

As we approach the deadline, the most common question we’re asked is how entities can speed up the process. Here are the top tips from our team of verification officers.  

Appoint a UK-regulated agent 

The process cannot be completed without a UK-regulated agent. Every UK-regulated agent is reliant on third parties to help with the verification process.

No provider will be able to guarantee timeframes, so it’s important to start this process right away. You can find a list of UK-regulated agents on GOV.UK. 

Consider your own internal processes for appointing suppliers, transferring sensitive information and invoicing. All these can potentially slow down the process. 

Understand the history of the property or land  

It’s important to understand the history of the property or land. If there’s been a disposal there will need to be a paper process, which takes extra time.

The new rules do not apply and you do not need to register if the land or property was bought before:

  • 1 January 1999 in England and Wales
  • 8 December 2014 in Scotland
  • 1 August 2022 in Northern Ireland

Stakeholder management 

Most entities are reliant on stakeholders to meet compliance requirements. This could be to gather information or to appoint a UK-regulated agent.  

You’ll need the cooperation of your beneficial owners and managing officers to provide evidence. This is an essential part of the process but can take some time. Beneficial owners can often be busy, and not everyone is keen to share personal details such as their date of birth. 

Identify your beneficial owners 

The UK-regulated agent will need to understand your ownership structure before they can verify the information. This is not always straightforward and often there are several layers to look at.  

In our experience, one of the quickest ways to do this is to provide an ownership structure chart. Not all entities will have this so you could prepare a written explanation of the structure.  

Get your documents ready 

The evidence requirements for each overseas entity can be different depending on the country of incorporation and exact ownership structure. However, there are some pieces of evidence that are common across different filings, such as: 

  • a passport for your registrable beneficial owners or managing officers 
  • a utility bill from the last 3 months to evidence an address 

Make sure you have a lawyer in the relevant jurisdiction who can help verify documents. Other professionals can assist, but this can slow things down because of additional requirements.  

Respond promptly 

As mentioned, it’s difficult for a UK-regulated agent to outline all the requirements without getting into the detail of the entity. Once they do, be prepared to respond promptly to any queries so time isn’t lost.  

Trusts 

Where a trustee of a trust is a beneficial owner, it can often slow things down. The amount of information that needs to be provided increases significantly, as can the complexity of obtaining it. Gather as much historical information as you can about the trust. The entity will need to provide basic details on the trust but also details of all trustees (since the land was acquired) and each beneficiary and others who may have control over the trustees.  

Use the same UK-regulated agent to verify and submit 

Companies House advises that it’s quicker and easier for the same UK-regulated agent to verify the information and register it with Companies House. In October 2022, 3 out of 10 filings were rejected, often because the information provided by the overseas entity did not match the information provided by the agent. For this reason, Elemental and other UK-regulated agents do not offer a standalone service.  

What happens if you miss the deadline 

Overseas entities will be going through this process for the first time and it’s understandable that, despite best efforts, not all will be able to meet the deadline for a number of reasons.  

In this case, demonstrate that you’ve started the process and aim to complete it as soon as possible after the deadline. Appointing a UK-regulated agent and following the tips in this blog will help to minimise the risk of missing the deadline. While Companies House can not give you an extension they may take this into consideration against any further enforcement action.

About the authors

Nick Lindsay is the founder and CEO of Elemental. He is a qualified solicitor and chartered company secretary. Nick began his career at the law firm Olswang (now CMS), and also worked in-house for Visa and BBC Worldwide.  

Tobias Latham is a qualified solicitor and trained at Linklaters and practised at Macfarlanes. He has also taught future City lawyers at BPP Law School. He is also a Fellow of the Chartered Institute of Governance.  

Both authors have presented and written extensively on the Register of Overseas Entities to audiences in the UK and overseas jurisdictions.  

About Elemental  

Elemental is an integrated corporate services provider that specialises in supporting law firms and corporate service providers. They are an independent UK specialist, and the CGI awarded them Service Provider of the Year 2021 and again in 2022.

Elemental is the market leader for Register of Overseas Entities services and are advising a number of law firms, corporate service providers and other UK-regulated agents on the new regime.  

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4 comments

  1. Comment by Colin Burns posted on

    The filing deadline should be extended or at least no penalties charged in the first year of operation. Many professional firms have allocated such work to the Tax Team and this month is an exceptionally busy month for them. Therefore coinciding the tax filing deadline for personal tax returns with the ROC reports is most unhelpful.

    Reply
    • Replies to Colin Burns>

      Comment by Marian posted on

      I agree with you Colin. Little thought appears to have been given to professional firms assisting with multiple applications and how they can juggle meeting the requirements whilst struggling other statutory commitments, staff sickness and staff shortages.

      I have been waiting for ten days now for a "paper" application form a number of clients and given Companies House do not appear to be coping with the workload either, it would be very unfair if penalties were applied for late registration.

      This legislation was rushed through and has proven difficult to apply in certain instances. Some companies are still struggling to find verification agents at this late stage and many people involved with an overseas entity simply don't understand the urgency and why the process is what it is.

      Reply
  2. Comment by NORIS ROSARIO posted on

    I'm not sure if Innovations, Research or Company fit the overseas entity criteria however, My Company recently carried out codification processes and acknowledgement NCAGE code for Supplier of Products and Services to the MOD, International Multidisciplinary Research and Product Development is presumed to be Funded by US/ SAM.gov where further codifications were submitted were registration processes are being followed.

    Furthermore, my Company is also selected as part of a group of UK renewable experts invited to visit Cambodia to improve their renewable technologies.

    I'm currently liaising with International Collaborators to set-up an International Consortia to access US Investments and I believe my role will be Lead Administration of R&D Investments for Project delivery Supplier active vendor of products and services to the MOD.

    As a new business start-up who commenced R&D with Innovation UK some 6 months ago, my R&D seams to have provided some game changing revolutionary, innovations, ideas and concepts, which have clearly been acknowledged by US International research facilities and the UK/MOD.

    These processes require document disclosure, codification and verification processes that need to be processed in a timely manner, I've acquired a number of codification codes and entity ID and I believe that I now need to consider the International opportunities and implications to my business concept, research and Innovation model

    For the avoidance of doubt, or confusion I followed delayed, UK/ EU / Horizon Beneficiary processes, correspondence from UK and International Funding submitted applications to find acknowledgement and / or advancement of supplier and production services process for the MOD and / or Investment / funding opportunity available from US/ SAM.gov, I then advanced the aforementioned codification processes which have only recently been brought to my attention.

    Reply
  3. Comment by Adil Ishaq posted on

    Hope you have Worth for Better Approach

    Reply

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