Changes to UK company law: Economic Crime and Corporate Transparency Act

Commercial solicitor, Katherine Waumsley, takes a look at the recent and expected future changes affecting UK companies.

The first set of changes to Company Law were made on 4 March 2024 under the Economic Crime and Corporate Transparency Act. But what does this mean for you?

What is the Economic Crime and Corporate Transparency Act?

This act provides Companies House with the power to play a more significant role in tackling economic crime and supporting economic growth. Companies House has been undergoing significant reforms to enhance corporate transparency and combat economic crime. These reforms are aimed at improving the accuracy of information held by Companies House and strengthen its powers.

Who is impacted by the changes in Company Law?

The changes impact:

• all company directors;
• people with significant control of a company (PSCs); and
• anyone who makes any filings on behalf of a company.

When will the changes be made?

The changes proposed by the Economic Crime and Corporate Transparency Act are scheduled to be implemented up until 2027. Whilst the initial changes have already been introduced, it is worth noting that there are more to come.

What changes have already been introduced?

The first set of changes have already been introduced. Below is a brief breakdown of these changes:

• Improving the quality of data on the registers
  • Companies House now has greater powers to query information and conduct stronger checks on company names. There are also new rules in connection with the registered addresses of Companies and requirements for new lawful purpose statements.
• Confirmation statement changes
  • Companies House has introduced a new requirement for a registered email address to be provided, as well as a required to confirm that the intended future activities of the company will be lawful.
• Changes to Companies House fees
  • Companies house fees have increased. Please see companies house for a full breakdown of the most up to date fees.
• Investigation, enforcement and data sharing
  • Companies House has introduced enhanced investigation and enforcement powers, as well as new powers to enable them to share data with law enforcement agencies and other government departments as needed.

What changes are planned for the future?

• Identity verification
  • From spring 2025, Companies House intends to introduce a phased introduction of identity verification.
• Protecting your information
  • From spring/summer 2025, individuals will be able to apply to suppress personal information from historical documents.
• Changes to limited partnerships
  • From spring 2026, limited partnerships will need to file information through Authorised Corporate Service Providers.
• Improving transparency of company ownership
  • Companies House is also introducing new requirements for additional shareholder information to be provided.

Expert Advice

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