What Is The US Equivalent Of Companies House?

UK’s parliament created the Companies House as a way for citizens to access records for companies they own or are admins for. Furthermore, it allows average people to check detailed information on the company via a database. This has prompted many to question – what is the US equivalent?

In this article, Real Business will explore the Securities and Exchange Commission (SEC), the mirror to the UK’s companies house, as well as the differences, similarities, and how it works overall.

What Are Companies House And SEC?

Both function similarly to one another, as you can see below.

Companies House

Companies House is the UK’s register of companies, an executive agency by the UK government under the Department for Business and Trade. It enables the formation of limited companies and provides guidelines on regulations that apply to different businesses. Upon forming a limited company with them, you are listed on the company house website, and detailed information on your company becomes visible to the public, such as:

• Company Name and Registration Number: You will choose your official name and be assigned a registration number by Companies House.
• Registered Office Address: The official address of the company, a place where both legal documents and general communication will be directed.
• Director Details – Company details regarding the director will also be listed on the website, including their names and correspondence addresses.
• Company Secretary – The company house website will host details of the company secretary if one has been appointed.
• Shareholders and Capital – The site will display information on the company’s shareholders, alongside their share quantity and structure of the share capital.
• Annual Accounts and Financial Statements – The company will submit annual financial statements for the public, such as balance sheets and profit/loss accounts.
• Confirmation Statement – An annual statement outlining details of the company that is held on the register.
• Persons with Significant Control (PSC): Information on individuals who own large amounts of the company, and therefore have a lot of sway.
• Company Status: The current status of the company, whether it is active, dissolved, in liquidation, etc.

Securities And Exchange Commission (SEC)

SEC is essentially the US companies house, only with expanded duties. You can find company information of various publicly traded companies on the SEC, but it also acts as an overseer of the securities market, ensuring regulation is applied throughout. One of its most well-known responsibilities is ensuring that investors are protected, reinforcing the integrity of the stock market.

The U.S. Securities and Exchange Commission uses a database named “EDGAR”, which provides users with American companies detailed via annual reports, stock prices and insider trading activities. In addition, the company’s ownership structure, its debts and subsidiaries are revealed on EDGAR.

EDGAR stands for the Electronic Data Gathering, Analysis and Retrieval system. It is the primary system American companies can submit the necessary documents, such as registration statements and filings for registration.

It is an automated system that can process the submission of companies, with some of these key features being:

• Accepting electronic submission of various SEC filings including (10-K, 10-Q, 8-K, etc.)
• Validation checks on filings
• RSS feeds and email update services on company filings
• Online submission templates and tools to streamline reporting

Do I have To Register My Company On EDGAR?

For public companies in the United States, it is mandatory to register on EDGAR. American companies must submit periodic financial reports and relevant information to the SEC.

Listing your company on EDGAR is highly beneficial for your business in similar ways to how company house is, being a public stamp of trust via mandated transparency and regulation reinforcement – alongside the reduced taxes and fees for growing your business. It is essential, therefore, to understand the requirements and learn the ins and outs of EDGAR.

What Is State Registration?

EDGAR is used for federal registration purposes but is not the only way to register your company. You can also register via the state. Going through state registration means that you have to abide by business registration and licensing requirements of state law rather than federal law.

Why register with the SEC rather than the State? Because it’s typically simpler to comply with the rules and regulations at the state level.

Can I Have Several State Businesses?

Yes. However, business registration across multiple states will be difficult to manage, so it may be a good idea to enlist a registered agent service whose job is to be your company’s point of contact within the state. They will receive the state government communication and requirements, and contact you to keep you updated.

Services include:

• Communications – Handling and tracking all government communications on your behalf
• Documentation – Providing scanning and email forwarding of official notices
• Portal – Convenient online dashboard for document access
• Middleman – Address services if you don’t have a physical presence in that state
• Advisor – Ensuring you meet all renewal and reporting deadlines with local expertise to stay compliant as regulations change

Resources For Ongoing SEC Reporting

To simplify compliance with SEC requirements and regulations, there are many tools available:

Key Differences Between EDGAR And Companies House

Facilitating transparency and public access to company reports is done by both Companies House and EDGAR. However, the two systems have several key differences.

• Filing Requirements and Company Coverage – In the US only public companies register on EDGAR, while the UK’s private limited companies are required to register on Companies House.
• Accountability – EDGAR is managed by SEC, an independent federal government agency, whereas Companies House works under the UK’s Department for Business, Energy and Industrial Strategy.
• Search Capabilities – EDGAR provides a full-text search of documents and data tagging, while Companies House presents data through scanned PDF documents.
• Filing Formats – Edgar supports XBRL whereas reporting Companies focus on unstructured data in PDF and Word documents.
• Data Timelines – On EDGAR, you can find real-time disclosure documents submitted by companies. However, Companies House usually has delayed posting of documents received.

In summary, both EDGAR and Companies House systems target increasing business transparency. However, they operate differently in terms of regulatory scope and technical capabilities.

State vs Federal Business Registration

As mentioned earlier, new businesses in the United States should be registered at the federal and state levels to ensure full regulatory compliance.

State Registration

• Covers business formation legal requirements and operational licensing
• Governed by each state’s Secretary of State office
• Vary requirements by state, industry and business structure

Federal Registration

• Relates to tax, employment, intellectual property and other issues
• Overseen by the IRS, Department of Labour, US Patent Office etc.
• Provides more uniform standards across all states

Online state and federal sites like SAM.gov. facilitate different registration tasks online.

Successful completion of state and federal registration ensures a legally operating business, giving you and investors the ability to access crucial programs and public contracts. Your business assets will be protected, and your future growth will be guaranteed.

Qualifying For Government Contracts

When your business is registered, you will have access to some profitable government contracts offered at federal, state, and municipal levels. Government entities usually work with formally registered vendors who are usually given the chance to compete for lucrative opportunities.

Key registration credentials needed to qualify for contracts include:

• DUNS Number – Unique business ID number issued by Dun & Bradstreet used across multiple registration systems
• SAM Registration – Central contractor database overseen by the GSA that government buyers search
• State & Local Licences – Ensuring business licences, tax IDs and professional certifications are active
• NAICS & SIC Codes – Classification codes indicating what industry and sectors you operate in

If you succeed in streamlining these registrations, you will prove that you have the required standards to compete for contracts. It also makes you more visible, so when contracting officers look for suppliers they will easily find you, and you will be on their list of prospective eligible candidates for a government contract.

Conclusion

EDGAR is the American equivalent of the Companies House, as well as state databases, which aim at increasing the economy’s transparency. They ensure that the integrity of the economy is protected and that corporate abuse is prevented. Such a system is vital since it provides accountability and stability in the business world.