Let every person be subject to the governing authorities. Romans 13 v 1
When a charity is a company, it is subject to the rules governing companies as well as to the rules governing charities.
New legislation[1] which aims to reduce the misuse of UK corporate structures and economic crime is bringing significant change to companies in the UK. The legislation does not differentiate between large businesses operating as companies and charities operating as companies.
Companies will feel the impact of the new legislation over time. Some changes are already in force, for example, every company must now have a registered email address and Companies House fees have increased.
Other changes will come into effect later in 2025 and in 2026, including the requirement to notify Companies House within 14 days of someone becoming or ceasing to be a Director and the need to verify the identity of all Directors (both new and existing) with Companies House .
Charitable companies will need to have processes in place to ensure they meet the new requirements. Most breaches of company law are technically criminal offences and punishable with a fine. We wait to see if Companies House will take a stricter approach in light of its new powers. Aside from that, for Christian charities, meeting the new requirements is an important part of our gospel witness, as we seek to fulfil our biblical mandate to submit to the authorities that God has placed over us.
If you need help navigating the changes to make sure that your charity complies with its legal obligations, please get in touch with your usual ECS contact or Caroline Eade on 01858 411568 or [email protected].
It might also be a good time to consider whether your legal structure and governing documents are serving your ministry well. Are they enabling your charity’s work or holding things up? Do they provide room for growth? Do they provide a good basis for long term gospel ministry? If not, one option to think about is converting your charitable company to a Charitable Incorporated Organisation – you can read more about that here. CIOs are not subject to these changes in company law and can be easier to administer in other ways too.
[1] Economic Crime (Transparency and Enforcement) Act 2022 and Economic Crime and Corporate Transparency Act 2023
