Companies House changes at a glance

The Economic Crime and Corporate Transparency Act 2023 is introducing a large number of changes to UK company law over the next few years.

The reform’s key objective is to increase transparency and strengthen confidence in the integrity of the data held at Companies House by taking measures to verify it, remove false data and sanction those who breach standards. This should improve business conditions and facilitate the ease of conducting business in the UK securely. It should deter those wishing to use companies for illegal purposes, strengthen the UK’s business environment, deter criminals and disrupting economic crime.

Previously, all information submitted to the register was not subject to any verification procedures. This allowed enterprising criminals to submit false information to obscure truthful ownership and incorporate fake companies and file false confirmation statements and annual accounts with the intention of committing fraud.

Investigation, enforcement and data sharing

From 4 March 2024, more effective investigation and enforcement powers for Companies House, and new powers to share data with law enforcement agencies and other government departments.

Improving the quality of data on our registers

From 4 March 2024, greater powers for Companies House to query information, stronger checks on company names, new rules for registered office addresses, and new lawful purpose statements.

One of the main aims of the Economic Crime and Corporate Transparency Act is to improve the accuracy and quality of the data on our registers, to help tackle economic crime and drive confidence in the UK economy.

The act has introduced new statutory objectives for the Registrar of Companies which they must seek to promote when performing their functions.

The registrar’s objectives are to:

• ensure anyone who is required to deliver a document to the registrar does so

• ensure information contained in the register is accurate and contains everything it ought to

• ensure that records kept by the registrar do not create a false or misleading impression to the public

• prevent companies etc from carrying out or facilitating by others with unlawful activities.

Registered office address

Companies must, at all times, have an ‘appropriate address’ as their registered office i.e. means:

• documents addressed to the company, by hand or post, would be expected to come to the attention of a person acting on behalf of the company

• delivery of documents is capable of being recorded by obtaining an acknowledgement of delivery

If the company’s registered office address does not meet these requirements, Companies House may take action against the company and its officers. Companies House can change the registered office address to a default address, held at Companies House. The company must then provide an appropriate address with evidence of proprietary ownership within 28 days, or Companies House could start to strike the company off. Ensure that agent’s or third-party provider’s address meets the requirements. Not able to use a Royal Mail PO Box or equivalent services by other parties.

Statement of lawful purpose

New requirement when registering a company for the subscribers to confirm they’re forming the company for a lawful purpose. A company must also confirm its intended future activities are lawful on their annual confirmation statement.

Registrar’s powers

The registrar has more powers to query and challenge information that appears incorrect or inconsistent with information they hold. Companies House can remove information more quickly if the information is inaccurate, incomplete, false or fraudulent.

There’ll be stronger checks on company names which may give a false or misleading impression to the public. This will help us improve the accuracy and quality of the data we hold and help to tackle the misuse of company names.

We’ll use annotations on the register to let users know about potential issues with the information that’s been supplied to us. We’ll also be taking steps to clean up the register, using data matching to identify and remove inaccurate information.

We’ll introduce a new identity verification process, and over the coming months, we’ll explain when these changes will come into effect.

Confirmation statement changes

From 4 March 2024, new requirements to provide a registered email address and to confirm that the intended future activities of the company will be lawful.

Registered email address

All companies must provide a registered email address (not available to the public) for Companies House to communicate with the company. New companies need to give a registered email address when incorporating. Existing companies need to give a registered email address when they file their next confirmation statement.

Statement to confirm the company is lawful

All companies must confirm the intended future activities of the company will be lawful and confirm this annual on the confirmation statement.

Reporting shareholder information

You must tell Companies House the full names of all shareholders and provide a new full list of shareholders when you file your confirmation statement. You’ll only need to provide a full list of shareholders once. Implementation date to be agreed.

Changes to Companies House fees

From 1 May 2024, increased fees to take new future expenditure into account, as well as making sure costs are recovered from existing expenditure.

Register of Overseas Entities

From 28 February 2025, entities can apply to protect their trust member details if they meet the necessary criteria. From 31 August 2025, information related to trusts on the Register of Overseas Entities will be made available on request.

Authorised Corporate Service Providers

From 18 March 2025, third-party providers planning on carrying out identity verification checks on behalf of clients will need to register as an Authorised Corporate Service Provider (ACSP).

ACSPs are individuals or organisations that undertake anti-money laundering supervised activity like company formation agents, solicitors and accountants. From 18 March 2025, third-party providers carrying out identity checks will need to register as an ACSP.  From 8 April 2025, ACSPs can tell Companies House they’ve verified someone’s identity for Companies House.

Identity verification (voluntary start)

From spring 2025, phased introduction of identity verification. Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity. Spring 2025 is the start of the voluntary ID period.

You can verify directly with Companies House through GOV.UK One Login, or through an Authorised Corporate Service Provider (ACSP). This applies to directors, PSCs and anyone acting on behalf of a company.

Protecting your information

From spring/summer 2025, individuals can apply to suppress personal information from historical documents.

Individuals can apply to suppress the registered office address from historical documents where it’s their home address. From summer 2025, individuals can apply to suppress the following information from historical documents:

• residential addresses in most instances when shown elsewhere on the register

• day of birth for documents registered before 10 October 2015

• signatures

• business occupation

Identity verification (official start)

From autumn 2025, all existing directors and PSCs must verify their identity over the coming 12-month period when Companies House Confirmation Statement become due to be filed. All new directors and PSCs must verify their identity.

Changes to company registers

From autumn 2025, there will no longer be a requirement for companies to hold certain registers of information, and companies will no longer be able to elect to hold information about the company’s officers on the central register.

Every company must hold and maintain statutory registers of information. Under the Economic Crime and Corporate Transparency Act 2023, there will no longer be a requirement for companies to hold registers of:

• Directors and residential addresses

• secretaries

• people with significant control (PSCs)

You’ll still have to register the information with Companies House and keep it up to date. Implementation will not be before autumn 2025. Companies still have to hold a register of shareholders, either at the registered office address or single alternative inspection location (SAIL).

Changes to filing of information

From spring 2026, anyone filing information with Companies House must verify their identity.

Changes to limited partnerships

From spring 2026, limited partnerships will need to file their information through Authorised Corporate Service Providers, and they’ll need to file more information with Companies House.

Identity verification (official end)

By autumn 2026, anyone filing on behalf of a company all directors and PSCs must have verified their identity.

Compliance activity starts

From autumn 2026, compliance activity begins against anyone who has not verified their identity.

Improving transparency of company ownership

New requirements to provide additional shareholder information, and restrictions on the use of corporate directors.

When the measures come into force, companies must:

• record the full names of shareholders in their register of members

• tell Companies House the full names of all shareholders and provide a one-off full shareholder list when they file their next confirmation statement

Changes to accounts filing rules

Transitioning towards filing accounts by software only, and changes to small company accounts filing options.

Filing accounts by software only

All accounts filed on and after 1 April 2027 must be filed using commercial software in a digital format. The web and paper routes will stop, but will remain open for other statutory filings. This will create a single, cost-effective, sustainable and traceable way to file. This applies to directors who file accounts themselves and third parties e.g. accountants.

Changes to small company filing options

From 1 April 2027, accounts filing options for small and micro-entity companies with reduce.

• Micro-entities will be required to file a copy of their balance sheet and profit and loss account.

• Small companies will be required to file a copy of balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account.

• Companies will no longer be able to prepare and file ‘abridged’ accounts.

Claiming an audit exemption

Any company claiming an audit exemption will need to give an additional statement from their directors on the balance sheet. Directors will need to specify which exemption is being claimed, and confirm that the company qualifies for the exemption.

Accounting reference periods

A company will be limited to how many times a company can shorten its accounting reference period. A company will have to provide a business reason if they want to shorten the period more than once within 5 years.