Accountant in Dubai
April 11, 2024
Euro Accounting – French Chartered Accountants practice in London
July 6, 2024

Welcome to Euro-Accounting, a multi-awards chartered accountants practice based in the UK, with subsidiaries in France, Dubai, Ireland, and Switzerland. It is led by Shabir Djakiodine, a multi-award-winning accountant.

What sets our firm apart is our linguistic competence. We are polyglots (speaking 12 languages) and communicate without complicated jargon. Additionally, Shabir Djakiodine and our team of experts possess deep knowledge of UK company incorporation, accounting, payroll, HR and taxation, enabling us to offer services perfectly tailored to business needs.

At Euro-Accounting, we are committed to providing quality service to our clients. Thanks to our expertise and experience, we can meet the expectations of each client. We invite you to discover the range of services offered by our French accounting firm in London and Birmingham. You will not be disappointed!

The chartered accountant’s firm Euro-Accounting and its founder have received numerous awards:

The founder has won many awards, including:

  • Most Reliable Managing Director in Accounting and Finance 2024
  • Outstanding Entrepreneur 2023
  • Best Business Awards 2023
  • Business Person of the Year 2022
  • SME National Business Awards 2022

He has also been a finalist for titles such as:

  • Entrepreneur of the Year 2023
  • Great British Entrepreneur Awards 2023

Euro-Accounting as a firm has won the following awards:

  • Business of the Year 2024 with the London Chamber of Commerce 2024
  • Diversity, Equality and Inclusion 2023
  • Best Business Awards 2023
  • Best Accounting & Company Incorporation Service Provider 2023
  • Midlands Enterprise Awards 2023

And has been a finalist for distinctions such as:

  • International Business of the Year 2024
  • Excellence in Diversity and Inclusion 2024
  • International Firm of the Year 2023
  • International Business of the Year 2023
  • Commonwealth Business Excellence Awards 2023
  • Employer of the Year 2023
  • SME National Business Awards 2022

Our goal is to help you help you understand accounting and tax to comply with your legal obligations so you can focus on developing your business with peace of mind.

Today, we will explain how the Overseas Property Registration works in the UK.

 

What is Overseas Property Registration in the UK?

Overseas Property Registration refers to the register of overseas entities in the UK (https://www.gov.uk/government/collections/register-of-overseas-entities).

In case of non-compliance, Companies House can impose a fixed penalty, a daily penalty of £2,500.

 

What the Law Says about Overseas Properties Registration in the UK

The register of overseas entities came into effect in the UK on August 1, 2022, through the new Economic Crime Act. This law aims to be transparent and easy to apply.

Under this framework, foreign entities wishing to buy, sell, or transfer properties or land in the UK must register with Companies House (the UK registry) and indicate their beneficial owners or registrable managers. This helps better regulate the creation of new foreign companies in the UK.

This law also applies to various entities that have purchased a property or land on or after:

  • January 1, 1999, in England and Wales
  • December 8, 2014, in Scotland

By registering with Companies House, foreign entities must indicate their beneficial owners or managers. Entities that have disposed of property or land after February 28, 2022, must also register and provide details of this disposal. If you have disposed of your property in the UK but have recently been contacted by Companies House, you might need to check your records.

After registration, you will receive a unique foreign entity identifier to communicate to the land registry. This identifier must be provided when you buy, sell, transfer, lease, or charge a property or land in the UK.

This leads to greater transparency, enabling law enforcement to investigate suspicious wealth more effectively.

 

Explanation of Registration Terms and Required Information

Beneficial Owner Definition

A beneficial owner (https://www.inpi.fr/faq/qu-est-ce-qu-un-beneficiaire-effectif) is anyone or entity that exerts significant influence or control over the foreign entity. This person can be:

  • An individual
  • Another legal entity, such as a company
  • A government or public authority
  • A trustee of a trust
  • A member of a firm that is not a legal entity under its applicable law

You must register any beneficial owner who meets one or more of the following conditions, often referred to as the “nature of control.” There are several types of beneficial owners:

  1. An individual, another legal entity, a government, or a public authority
  2. A trustee of a trust
  3. A member of a firm that is not a legal entity under its applicable law

In all three cases, these persons will be registered as beneficial owners if they meet the following criteria:

  • They must directly or indirectly hold more than 25% of the shares of the entity or more than 25% of the voting rights in the entity. OR
  • They have the right, directly or indirectly, to appoint or remove the majority of the board of directors of the entity, i.e., have significant influence or control over the entity.

A business can be a partnership, an unincorporated association, or another entity that is not a legal entity under its governing law.

 

Who Can Use the Overseas Property Registration Service?

You can use this service if you are a foreign entity or work on behalf of a foreign entity. It is easier and quicker for a foreign entity to be registered with the same regulated agent in the UK who has conducted its verification checks. This could be financial institutions and legal professionals.

However, you may not be able to use this service for the following reasons:

  • All beneficial owners have their personal information protected with Companies House, or they are awaiting the results of a request.
  • The foreign entity has disposed of British property or land since February 28, 2022.

 

Required Information to register an Overseas Property with Companies House in the UK

To ensure your foreign entity creation file complies with the law, you must provide certain information about your company or beneficiaries.

 

Information About the Entity

You will need to provide information about your business to register for Overseas Property Registration in the UK. You will need to provide the following information:

  • The company name
  • The country where it was established
  • The registered office address and correspondence address
  • The email address, which will be used to send important information, including the company identifier
  • The legal form and applicable law
  • The public register on which it is listed and its registration number, if any
  • Documents attesting whether the company has disposed of property or land in the UK since February 28, 2022

 

Information About Sold Properties

The second type of information you need to provide is related to your sold properties or land. You will need to provide the following information:

  • The deed or title number of the property or land
  • The date the property or land was transferred
  • Details of all additional owners or managers at the time the property or land was transferred

 

Information About UK Regulated Agents

The third type of information you need to provide is related to the agent handling your case. The agent must be registered with Companies House. The required information includes:

  • The agent’s name
  • Correspondence address
  • Email address to be used for additional verification information
  • Supervisory body
  • Anti-Money Laundering (AML) number, if any
  • The name of the person responsible for all verification checks

 

Information About Regulated Agents in the UK

For regulated agents, you will need to provide the date of the verification checks and the agent assurance code.

 

Information About Beneficial Owners

After providing information about the entity itself, you must also provide information about the beneficial owners. Here is a list of some examples:

  • Full name
  • Date of birth
  • Nationality
  • Correspondence address and home address
  • The date they became a beneficial owner of the foreign company
  • The nature of the control

 

Additional Information

Once the main information about the entity and beneficiaries is provided, other information is needed, such as whether they are on the UK’s sanctions list or their criminal record.

 

If No Beneficiary Can Be Identified

If there are no beneficial owners or you have not identified all your beneficial owners, you must provide information about the company’s directors, such as a director, manager, or general secretary.

 

Information About the Director

  • Full name and former names, if any
  • Date of birth
  • Nationality
  • Correspondence address and optionally, the professional home address
  • Roles and responsibilities concerning the company

 

Information About the Manager

  • Full name
  • Correspondence address
  • Email address used for important information
  • Supervisory body
  • Anti-Money Laundering (AML) number, if any
  • The name of the person responsible for all verification checks

 

Information About Trustees

If trustees, or trust (https://www.investopedia.com/terms/t/trustcompany.asp), are true owners, you must provide information about the trust:

  • Trust name
  • Date of creation
  • Beneficial owners involved in the trust

 

Information About Former Beneficial Owners

You need to provide information about individuals or entities who were previously true owners due to their trustee status. You need to provide the following information:

  • Name of the former beneficial owner
  • The date they became a beneficial owner
  • The date they ceased to be a beneficial owner

 

Information About Involved Persons

You need to provide information about individuals who are beneficiaries, grantors, or interested parties. You need to provide:

  • Role within the trust
  • Full name
  • Date of birth
  • Nationality
  • Home and correspondence address
  • Date they became interested, if applicable

 

Information About Legal Entities

You need to provide information about legal entities that are beneficiaries or interested parties:

  • Role within the trust
  • Name
  • Principal address or registered office
  • Correspondence address
  • Country of creation
  • Legal form and applicable law
  • Registration number, if listed
  • Public register where it is listed
  • Date the legal entity became involved in the trust

 

What Information Will Be Published

All information provided for registration will be recorded in a public register accessible to all, except for information such as:

  • Home addresses
  • Correspondence addresses of individuals
  • Full dates of birth (only the month and year will be visible)
  • Email addresses
  • Identification documents
  • Beneficial owner’s role and responsibilities
  • Residential address
  • Criminal record
  • Sanctions list

 

Verification Checks by UK Agents

A UK-regulated agent must perform verification checks to ensure the entity’s compliance. The agent must perform checks no later than three months before the entity registers or updates its information.

Verification checks must be conducted on:

  • Beneficial owners or trustees
  • Directors or managers, if the entity cannot provide information about its beneficial owners
  • Beneficiaries, grantors, and interested parties, if the beneficial owner is a trustee

 

Verification Checks by UK-Regulated Agents

You can have your verification checks done by:

  • A UK-regulated agent
  • A person authorized by a UK-regulated agent

UK-regulated agents could be professionals in financial institutions or legal professionals. If you conduct your checks, you will need to provide verification statements confirming that you have done so.

 

How Verification Checks are Conducted

Verification checks must be conducted according to the UK government. This includes:

  • Verifying the client’s identity using a valid identification document
  • Verifying the client’s identity using an independent source, such as the Companies House registry
  • Keeping copies of verification checks and documents for five years

 

Registering with Companies House

To register your foreign entity with Companies House, you need to have all your information verified by a regulated agent in the UK.

You can register by requesting a UK-regulated agent to handle the registration.

 

Verification by UK Agents

If your verification is done by a UK-regulated agent, they will:

  • Verify your documents and information
  • Submit the verification checks to Companies House
  • Provide you with the foreign entity identifier once registration is complete

 

If the Agent Conducts Your Registration

If a UK-regulated agent registers your foreign entity on your behalf, they will:

  • Verify your documents and information
  • Submit the verification checks to Companies House
  • Register your entity
  • Provide you with the foreign entity identifier once registration is complete

Annual Updates

Once registered, foreign entities must update their information with Companies House every 12 months. This helps ensure the accuracy of the registry and compliance with the law.

 

  • Possible Tax Implications for Foreign Entities

Companies House provides information from the register of foreign entities to HM Revenue & Customs. There may be tax implications for foreign entities holding interests in British properties or lands, as well as for their beneficial owners. These implications can be extensive and complex, with significant changes that you need to be aware of. Euro-Accounting, chartered accountants, can help you understand these tax implications.

 

  • How to Remove a Foreign Entity

If a foreign entity is not, or is no longer, a registered owner of property or land in the UK, it can request to be removed from the register of foreign entities. The government may reject this request if the foreign entity is still listed on the land register as the registered owner of a property or land in the UK. Once a foreign entity is removed, its foreign entity identifier will no longer be valid, meaning it cannot buy, sell, transfer, lease, or charge its property or land in the UK.

 

  • Penalties for Non-Registration of Overseas Property

Companies House can impose a fixed penalty, a daily penalty of £2,500, or a combination of both. The financial penalty can be low (up to £10,000), medium (up to £20,000), or high (up to £50,000). A daily penalty can lead to a higher fine.

 

For any questions or assistance with registering your foreign entity in the UK, please do not hesitate to contact us. We are here to guide you through the process and ensure compliance with all legal requirements.

www.euro-accounting.com

info@euro-accounting.com

+44 (0) 778 986 2405