The Economic Crime and Corporate Transparency Act 2023 has brought about some of the most significant changes to Companies House in over a century. Beyond Corporate’s Weronika Husejko looks at what the changes are, when they are expected to come into effect and the implications they will have.
A number of changes have already been brought about such as the requirement for companies to provide a registered email address and the increase in Companies House fees.
Some key changes to note are as follows:
- Identity verification
One of the key changes that is being brought about is the requirement for directors and persons with significant control (PSCs) as well as members of Limited Liability Partnership (LLP) to have their identities verified.
The plan is for this to be introduced from autumn 2025 but a transition period of 12 months will be allowed for current directors, PSCs or members of LLPs to obtain verification.
This will also apply to anyone acting on behalf of a company from spring 2026 e.g. accountants who file on behalf of the company.
The verification can be done through Companies House or via an Authorised Corporate Service Provider (ACSP). Solicitors come within the ACSP umbrella which is helpful for corporate clients given that they already go through the verification process with their solicitors.
- Protecting personal information on Companies House
It has been recognised by the Government that there is risk associated with personal information being on the public register at Companies House. In particular, certain individuals will be at risk of harm as a result of this. As such, the Government have confirmed that changes are being introduced to allow such individuals to apply to stop their personal information being available for public view.
It has also been reported that there will be an option to apply to suppress personal information from documents already filed on the public register at Companies House. For example, individuals will be able to apply to conceal their residential address (including the company’s registered office address in circumstances where it is also their home address), date of birth, signatures and business occupation.
- Filing requirements for company accounts
The main change to company accounts is the move to filing accounts by software only over the next 2 to 3 years albeit many companies will already use software for filing accounts.
The Government have also confirmed that they will be making changes to small and micro-entity company filing options including that they will need to file their profit and loss accounts. Small companies that are not micro entities must also file a directors’ report. They have also stated that there will no longer be the option to file abridged accounts.
Further, directors of those companies claiming an audit exemption will also need to give an additional statement on the balance sheet.
Other changes include shareholders being required to provide additional information to Companies House as well as restrictions on the use of corporate directors.
The aim of these changes is to generally improve corporate transparency and tackle economic crime. It will be interesting to see how these changes will work in practice which will no doubt become clear once they are implemented.
For further advice on the changes to company law, please do not hesitate to get in touch with our specialist team at [email protected]
