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The Register of Overseas Entities came into force online on 1 August 2022.The Register of Overseas Entities, which is held by Companies House, requires overseas entities that own land or property in the United Kingdom to declare their beneficial owners and/or managing directors.The new register was introduced by the government to tackle foreign criminals who use UK property to launder money.The Register of Overseas Entities requires anonymous foreign owners of UK property to reveal their real identities to prevent criminals from hiding behind secretive chains of shell companies, and to support an international standard for transparency.Overseas entities who do not comply with the new regulations could receive severe sanctions, including restrictions on purchasing, selling, transferring, leasing or letting their land or property.Who does this Act apply to?The Register of Overseas Entities applies to legal entities that are governed by the law of a country outside the UK. This includes:
- companies/bodies corporate
- LLPs
- Other entities that have separate legal personalities under the laws by which they are governed
Section 2 of the ECTEA (Economic Crime Transparency & Enforcement Act) 2022 also notes that this applies if they are registered as the proprietor of a freehold as well as leases for more than seven years in the UK in pursuance of an application made on or after 1 January 1999.What You Need to KnowProvisions relating to the registration of dealings with land by an overseas entity in the UK's Land Registry came into force on 5 September 2022.Overseas entities cannot apply to the Land Registry to register newly acquired property unless they are registered at the time the application is made.The deadline for submitting the application to register an overseas entity which already owns UK property is 1 February 2023.The Land Registry must enter a restriction on every existing registered title held by an overseas entity as at 1 August 2022.Application ProcedureOverseas Entities will need to create an account at Companies House.They will also need to arrange for a UK-regulated agent to complete verification checks on all beneficial owners and managing officers of an overseas entity no later than three months before the overseas entity is registered. The applicant will need to request an agent assurance code from Companies House.The overseas entity must give a one month's information notice to its beneficial owners about the registration to determine whether the information the applicant holds is correct.More details can be found at section 12 ECTEA 2022.Overseas Entities will be required to pay �100 as a registration fee. Currently this cannot be paid with a Companies House payment account.Once an overseas entity has been successfully added to the ROE, Companies House will issue an Overseas Entity Identification Registration Number (OEID). The OEID will be used for Land Registry applications and added to the proprietorship register.How Healys LLP Can Help Healys Corporate Commercial Team can assist you with registering your OE. Our team of specialist lawyers are experienced in liaising with Companies House and their requirements, and can guide you through the process of registration and provision of information. We are registered with Companies House as an agent and can assist in completing all aspects of the verification and registration requirements.For information or support regarding the Register of Overseas Entities, please contact Healys LLP's legal specialists at: enquiries@healys.com