The Economic Crime and Corporate Transparency Act introduces significant UK company law reforms, focusing on corporate transparency, data accuracy, and economic crime prevention. Below is an overview of the most critical changes and their implementation timeline.
Enhanced Data Quality on Registers
Effective from 4 March 2024, Companies House will have expanded authority to scrutinize and challenge submitted company information. Key updates include:
- Stricter regulations on company names
- New lawful purpose statements
- Updated rules for registered office addresses
These changes aim to improve data accuracy and reliability in official company registers.
New Confirmation Statement Requirements
From 4 March 2024, companies must:
- Provide a registered email address in their confirmation statement
- Confirm that their future business activities comply with the law
These updates enhance corporate communication and legal compliance.
Revised Companies House Fees
Starting 1 May 2024, Companies House fees will increase to support the organisation’s expanded responsibilities under the new legislation.
Mandatory Identity Verification
Spring 2025 will mark the start of a phased identity verification process. Individuals involved in establishing, managing, or owning a UK company must verify their identity to prevent fraud and ensure transparency.
Personal Data Protection Measures
From spring/summer 2025, individuals can apply to suppress personal information from historical records, reducing the risk of identity theft and misuse.
Reforms to Limited Partnerships
Starting spring 2026, limited partnerships must:
- Submit information via Authorised Corporate Service Providers
- Provide additional details to Companies House
This reform enhances transparency and ensures compliance with regulatory standards.
Improved Company Ownership Transparency
New regulations will:
- Require more shareholder information
- Restrict the use of corporate directors
These measures prevent misuse of corporate entities and clarify ownership structures.
Changes to Accounts Filing
The Act mandates a transition to software-only filing of accounts, impacting small business filing options. These changes aim to improve financial reporting accuracy.
Stronger Investigation & Enforcement Powers
From 4 March 2024, Companies House will gain enhanced:
- Investigation and enforcement powers
- Data-sharing capabilities with law enforcement and government agencies
These provisions strengthen the fight against economic crime.
Prepare for the Changes
These comprehensive reforms mark a significant shift in UK corporate law, emphasizing transparency, compliance, and fraud prevention. Businesses should stay informed and adapt accordingly.
For a full breakdown of timelines and regulations, visit Companies House official guidance.
