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Companies Act changes for limited company contractors

Published on Sep 8, 2009 |

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Limited company IT contractors should take note of the latest implementation of Companies Act changes, which come into force on 1st October 2009.

This is the main implementation of the Companies Act 2006, following a series of smaller implementations over the past couple of years. An example of a previous change in 2008 is making the company secretarial role an optional appointment.

Although most limited company contractors won't be affected by the majority of the latest changes, here are some of the more relevant ones:

Companies Act changes - 1st October 2009

1. The Registrar of Companies will gain more powers.

2. Some of the Companies House forms currently familiar to limited company contractors may change, or be replaced.

3. Replacing the current procedures, Form IN01 will now be used to form a company, together with Memorandum and Articles of Association, and the submission fee.

4. Authorised / nominal share capital will be discontinued on incorporation.

5. There will no longer be a limit set out in the Memorandum of Association on the number of shares that directors can issue.

6. Company naming rules are set to become stricter, particularly "same as" type names.

7. Company directors must now provide a "service address", alongside their residential address (although these may both be the same). Therefore, a director's address will no longer appear on any public register if they have a different "service address" (e.g. your accountant or a virtual office provider).

8. Companies incorporating as limited by shares (whether private or public) on or after 1st October 2009 must complete a statement of capital and initial shareholdings as part of the application to incorporate.

9. There are new rules overseeing limited company constitutional documents (including the Memorandum and Articles of Association) - see this dedicated article on Bytestart.

You can find out more about these and the other 1st October 2009 changes at Companies House.