Changes to UK company law are coming, with the Economic Crime and Corporate Transparency Act receiving royal assent on 26 October 2023. The aim of this legislation is to reduce economic crime by increasing transparency and accuracy of company information, as well as to support businesses to grow.
Companies House will be introducing a number of measures over the coming years, which will result in new obligations for company directors, persons with significant control over a company, and anyone filing on behalf of a company. If you are planning to start a new company, or you run an existing company, you’ll need to make sure you consider the new responsibilities under this legislation.
Some of the measures Companies House will introduce include the following:
1. Improving the quality of data on the registers
- All companies will be required to register an ‘appropriate address’ as their registered office, and won’t be allowed to use a PO Box.
- When a company is incorporated, the subscribers will need to confirm that they’re forming the company for a lawful purpose.
- There will be stronger checks on company names, and increased sanctions if a company doesn’t respond to requests made by Companies House.
- There’ll be a new identity verification process for anyone setting up or running a company in the UK.
2. Changes to the way you file your financial accounts
- Companies House will transition to filing accounts using software only. You’ll need to start looking into suitable software to use, before web-based and paper filing options are no longer available. The transition will take place over the next two to three years, and your deadline will depend on which type of accounts you file for your company.
- Companies House is removing the ability to file ‘abridged’ accounts and small and micro businesses will need to file profit and loss statements. Small businesses will also need to file a directors’ report and there will be changes to the way audit exemptions can be claimed.
3. Changes to confirmation statements
- Companies will need to provide a registered email address for communications (this won’t be made public).
- Companies will need to make a formal statement that their activities are lawful.
4. Better protection of your personal information
- You’ll be able to apply to suppress certain personal information from your company’s historical records in some circumstances and/or have certain personal information hidden from public view if you’re at risk of harm.
5. Changes to limited partnerships’ information
- LPs will need to provide more information about the partners involved in the partnership. They’ll also need to file their information through an authorised agent.
Companies House will also have more power to investigate and enforce, as well as increased powers to share data with law enforcement agencies and other government departments. Their fees are due to increase from 2024 to cover the costs of implementing these new measures.
We’ll keep you updated as Companies House implements these measures. It’s also a good idea to sign up for Companies House updates by email, to ensure your company is complying with any new measures implemented.
When you’re starting a new company, you can use our Starting a Company toolkit, which contains all the documents and guidance you need to incorporate your company. You can also use our Starting an online business toolkit to help you start your own website; this contains all the relevant website policies you need.
The content in this article is up to date at the date of publishing. The information provided is intended only for information purposes, and is not for the purpose of providing legal advice. Sparqa Legal’s Terms of Use apply.
Marion joined Sparqa Legal as a Senior Legal Editor in 2018. She previously worked as a corporate/commercial lawyer for five years at one of New Zealand’s leading law firms, Kensington Swan (now Dentons Kensington Swan), and as an in-house legal consultant for a UK tech company. Marion regularly writes for Sparqa’s blog, contributing across its commercial, IP and health and safety law content.