In August we wrote about changes at Companies House via The Economic Crime and Corporate Transparency Bill. Now with royal assent this has become law, marking a milestone in the history of Companies House. Companies House can now take a more active role in combating economic crime, safeguarding the integrity of its register, and promoting economic growth in the UK.

One of the key implementations of the act is identity verification for all registered company directors, individuals with significant control, and those representing companies. This measure aims to enhance the reliability of the data held by Companies House and ensure that personal information is not used without consent, offering greater protection to individuals.

The act grants Companies House expanded authority to act swiftly and decisively in overseeing company formation and maintaining a more accurate and dependable database. This includes improving financial information on the register to keep pace with technological advancements, enabling better-informed business decisions.

The legislation gives Companies House more effective investigative and enforcement powers, enabling it to share useful information with partners and bolstering the protection of personal data against fraud and other illicit activities.

While the act has received royal assent and become law, the changes are not immediate. Some measures, such as identity verification, will be introduced gradually as they necessitate system development and secondary legislation. Nevertheless, early measures will be implemented to enhance transparency and accuracy within the registry:

• Increased authority to query and reject incorrect or inconsistent information.
• Stricter checks on company names.
• Requirement for companies to maintain an appropriate registered office address at all times, prohibiting PO Boxes.
• Mandatory provision of a registered email address.
• Confirmation of lawful purpose for company formation during incorporation, annually confirmed on the confirmation statement.
• Annotations on the register to signal potential information discrepancies.
• Data matching to identify and remove inaccurate information.
• Sharing data with other government departments and law enforcement agencies.

The main objectives of this bill are:

• Ensuring timely and proper document submission.
• Maintaining the accuracy and completeness of the register.
• Preventing any misleading impressions created by registrar records.
• Preventing unlawful activities by companies and other entities.

These measures are expected to come into effect in early 2024, gradually improving transparency and data quality.

Companies House will adjust some of its fees in early 2024 to cover the services it will provide but these fees will remain among the most competitive globally.

We will continue to update you on these measures as they are released from Companies House.