Timeline For the Changes to Companies House

The Economic Crime and Corporate Transparency Act (2023) is reforming the role of Companies House by providing greater powers to improve transparency, disrupt economic crime and provide a more accurate companies register. These reforms represent the biggest changes to Companies House since the introduction of corporate registrations in 1844.

Overview of Reforms

Registrars’ Objectives:

• Any person who is required to deliver a document to the registrar does so and that the requirements for proper delivery are complied with.

• The information contained in the register is accurate and complete.

• Records kept by the registrar do not create a false or misleading impression to the public.

• Prevent companies from carrying out unlawful activities or facilitating the carrying out of unlawful activities by others.

Summary of Changes:

• From 4 March 2024:

Companies House able to improve the quality of information on the register by rejecting and querying potentially incorrect or fraudulent information, and removing inaccurate information from the register. It has also improved investigation, enforcement and data sharing by exchanging more information with law enforcement agencies and regulatory bodies. A requirement was introduced obliging companies to provide a registered email address to allow Companies House to contact companies more easily.

• From 1 May 2024

Companies House introduced higher filing fees to fund investigation and enforcement activities against those misusing the register.

• From October 2024

Companies House granted more powers to issue financial penalties for any relevant offences under the new ECCT Act and the Companies Act.

• From 27 January 2025

Companies House able to receive and assess applications from individuals seeking to have residential addresses suppressed from public disclosure where they have been used as a registered office address.

• From 18 March 2025

Companies House able to expedite the striking-off of companies where the registrar has concluded the company has been formed for a false purpose.

• From 8 April 2025

Individuals will be able to voluntarily verify their identity and AML supervised service providers registered as Authorised Corporate Service Providers (ACSPs) can conduct verification services.

• Summer 2025

Companies House should be able to:

i. Allow access upon request to certain trust information on the Register of Overseas Entities.

ii. Receive and assess applications from individuals seeking to suppress their date of birth for documents registered before 10 March 2015, signature, business occupation, and residential address in most other instances.

• Autumn 2025

Identity verification will become compulsory for incorporations and new director or PSC appointments. There will be a 12-month transition period for existing directors and PSCs to verify their identity as part of the annual confirmation statement filing.

• Spring 2026

Companies House should be able to:

i. Make identity verification of the presenters a compulsory part of filing any document.

ii. Require third party agents filing on behalf of companies to be registered as an ACSP.

iii. Reject documents delivered by disqualified directors as they will be prohibited from doing so, unless they are delivered by an ACSP for specified filings permitted by law.

• By the end of 2026

Limited partnerships will be required to submit more information, providing greater transparency for users of the register. The transition period for required identity verification should be completed, and compliance activity will commence against those who have failed to verify their identity. Companies House will facilitate greater cross-checking of information and data with other public and private sector bodies.

Accounts

Companies House have not yet set a date for the planned account reforms which include:

i. Software-only filing for all accounts with a new zip package functionality

ii. Removal of abridged accounts for small companies and micro-businesses.

iii. A requirement for all companies to file profit and loss accounts to improve the financial information on the register, and for small companies to file their directors’ report.

iv. An enhanced director statement requirement for a company claiming an audit exemption, specifying the exemption and eligibility.

v. A restriction on how many times a company can shorten its accounting reference period.

Corporate directors

Any corporate directors will be restricted so that the corporate entity must have an all-natural person board itself. All the directors of the corporate director will be required to verify their identity for the appointment to be registered. Only UK corporate entities with legal personality will be capable of acting as a corporate director.

The use of overseas companies as corporate directors will be prohibited.

All information and timelines provided above remain subject to Parliamentary review and approval. Further updates or changes to these reforms will be published as soon as the information becomes available.

As an Authorised Corporate Service Provider, we can verify your identity in line with the new requirements. For more information, please contact our team.

Authored by: London Team