Company Law was updated when the Economic Crime and Corporate Transparency Act was passed in 2023. The UK Government implemented the initial changes of the Act on 4 March, 2024.
The Act allows Companies House to take a more active role in tackling economic crime and promoting economic growth. Gradually, these measures will enhance transparency and ensure that the information on the company register is more accurate and reliable.
There are new responsibilities for:
- New and existing company directors
- New and existing People with significant control (PSCs)
- Anyone that files on behalf of a company
Changes at a Glance
- Director Identity verification changes
- PSC Identity verification changes
- Improving quality of data on the company register
- Changes to accounts filing
- Confirmation statement changes
- Authorised corporate service providers
- Confirming the Company is being used for a lawful purpose
Director & PSC Identity Verification Changes
Companies House has implemented a new identity verification system to prevent the misuse of companies for illegal activities. Anyone who wants to form, manage, own, or have significant control over a company in the UK will be required to verify their identity to confirm they are who they claim to be.
Starting from 8 April 2025, individuals can choose to verify their identity on a voluntary basis. This can be done either directly with Companies House using the GOV.UK One Login, or through an Authorised Corporate Service Provider (ACSP) such as Easy Digital. Both options offer the same level of assurance.
Identity verification is now compulsory for:
- Directors and people with significant control (PSCs)
- Anyone that files on behalf of a company
Identity verification will also be required for other types of registrations. For instance, individuals who are members of a limited liability partnership (LLP) will also need to complete the identity verification process.
Improving Quality Of Data On the Company Register
The act provides the registrar with enhanced powers to help them meet their objectives. What's changed?
- Companies must have an appropriate address as their registered office.
- When registering a company, the subscribers to the company must confirm the company is being formed for lawful purposes. This will also need to be declared on the companies annual confirmation statement.
- The registrar can now query and challenge any information filed to the company register that appears to be incorrect, this may be information that is inconsistent with the information already held by Companies House.
- Companies House will now carry out more in depth checks on company names which may be misleading.
Changes To Accounts
Filing accounts by software only: The new legislation means Companies House require companies to file accounts in a digital format. To conform to these changes, companies must find a suitable third party software provider, such as Easy Digital Filing in order to file their annual accounts.
Changes to small company filing options: Companies House have confirmed that in the future, small and micro companies will need to file their profit and loss accounts. The accounts will be available for the public to view on the Companies House website. Small companies will also need to file a directors' report. There will no longer be an option to file abridged accounts (just the balance sheet). Companies House have yet to set a date for this change.
Confirmation Statement Changes
All companies, including dormant companies, need to file a confirmation statement each year. It confirms the information held by Companies House is accurate and up to date.
Registered email address: All companies must provide a registered email address. The email address allows Companies House to communicate with the company, it will not be available for the public to view on the company register.
Statement to confirm the company is used for lawful purpose: All companies must confirm that the intended future activities of the company are of a lawful purpose. This needs to be confirmed each time the confirmation statement is submitted. It will not be possible to file a confirmation statement without confirming that all future activities are lawful.
Authorised Corporate Service Providers
Authorised Corporate Service Providers (ACSPs) are organisations that can undertake anti-money laundering (AML) activities. Since 8 April 2025, ACSPs can carry out identity verification for Companies House.
Looking For Further Information?
Hopefully this article has given you a better understanding of new company laws and company laws that are to be implemented in the near future. For more information on topics related to company law and regulations, feel free to explore our knowledge base. Alternatively, if you have any further questions about how company law may affect your small business, do not hesitate to contact us here.
