Are you prepared for the Register of Overseas Entities?

If your entity (i.e. a non-UK company or other non-UK entity) owns land or property in the UK, it is required to provide details of its beneficial ownership to Companies House on the Register of Overseas Entities.

These rules came into force in the UK on 1 August 2022 through the new Economic Crime (Transparency and Enforcement) Act 2022 and you must comply by 31 January 2023 or face enforcement action.

Companies House has already begun writing to all overseas entities who own land in England, Wales and Scotland to make sure they know about their new responsibilities regarding the Register of Overseas Entities – but what do you need to know?

Which organisations are affected?

  • Any non-UK legal entity with separate legal personality under its foreign law of registration that has owned registered freehold or leasehold title to UK land since 1/1/1999 in England or Wales, (or since 8/12/2014 in Scotland).
  • Any non-UK legal entity wishing to purchase such UK land in any part of the UK.
  • Any non-UK legal entity intending to dispose of such UK land, or which has disposed of such land since 28/2/2022.
  • Third parties involved in real estate transactions with non-UK legal entities, such as lenders and those with the benefit of security granted over or in connection with UK land will need to take account of the new legislation, as will third parties who buy UK land from non-UK legal entities, and third parties who sell UK land to non-UK legal entities.

What information needs to be provided?

  • Name
  • Country where it was formed
  • Registered office address and correspondence address
  • Email address
  • Legal form and governing law
  • Public register it appears on and its registration number (if it has one)
  • If the entity has disposed of UK property or land since 28 February 2022, it will also need to provide:
  • The deed or title number of the land or property
  • The date that the land or property was disposed of
  • Details of any additional beneficial owners or managing officers at the time the land or property was disposed of

Beneficial owner information

You need to provide information on each beneficial owner to HMRC, including:

  • Full name
  • Date of birth
  • Nationality
  • Correspondence address and home address
  • Date they became a beneficial owner for the overseas entity
  • Nature of control

What if no beneficial owners can be identified?

If there are no beneficial owners, or you have not identified all your beneficial owners, you’ll need to provide information about the overseas entity’s managing officers. This is a director, manager or company secretary of the overseas entity.

Act now

New sanctions are to come into force by 31 January 2023 and those affected must complete the registration process before this date.

Failure to register will result in restrictions on the sale of the property, alongside significant penalties applicable for the entity and its officers.

Posted in News.