The latest Companies House Annual Update, a release of the latest statistics, (April 2024 to March 2025) highlights important trends and regulatory shifts. In this post, we’ll look at the key points, suggest actions you should take, and explain what these developments mean for your company.

What does the report show?

• Register Growth Slows: The UK company register grew by 1.4% to 5,427,787 companies. Fewer new companies were formed this year (801,864, down 10%), while more companies dissolved (726,735, up 9.6%). This could reflect a more cautious economic climate or tighter regulatory scrutiny.
• Average Company Age: The average company on the register is now 9 years old.
• Private Companies Dominate: Over 95% of companies are private limited companies.
• New Transparency Rules: Expanded powers under the Economic Crime and Corporate Transparency Act (ECCT Act 2023) are now in force, affecting registered addresses, shareholder transparency, and identity verification.
• Overseas Presence Grows: Overseas companies with a UK establishment increased by 1.9%.

Regulatory Changes in Force

The ECCT Act 2023 grants Companies House new powers to proactively query, challenge, and remove incorrect or misleading information, moving from a passive registrar to an active gatekeeper of data quality. These reforms aim to reduce fraud and increase transparency in the UK corporate sector.

Key actions to consider…

• Check Your Registered Office Address: Companies House is actively enforcing the rule that your registered office must be a real, physical address where official documents can be delivered and acknowledged. PO Boxes are no longer permitted. If your company has used a PO Box or an address to which you do not have legal access in the past, update your details now to avoid being struck off the register. 
• Review Shareholder and PSC Details: New rules require greater transparency about shareholders and Persons with Significant Control (PSC). Ensure all information filed at Companies House is accurate and up to date; failure to do so could result in penalties.
• Verify Director Identities: Companies House is rolling out identity verification for all directors and PSCs. Be prepared to verify your identity, either directly with Companies House or through an authorised third party. 
• Audit Your Company Name: Companies House is rejecting names that could mislead the public about your company’s activities or legal status. If you’re considering a name change, check it doesn’t contravene these guidelines.
• Monitor Deadlines: With increased filings and compliance checks, ensure all submissions, confirmation statements, and accounts are filed on time to avoid late fees or enforcement action. If you’re a client of ours, we’ll be monitoring these for you and prompting you as necessary.

Digital Service Improvements

Companies House is committed to maintaining digital services with at least 99.5% uptime and aims to answer calls within 4 minutes. However, with increased compliance activity, online filings may require more attention to detail.

Looking ahead…

• Compliance is going to be key: The regulatory environment is becoming stricter. Ensure your company’s details are accurate and up to date at all times.
• Be Proactive: Don’t wait for a notice from Companies House. Review your registered address, shareholder details, and company name now.
• Shout if you’re not sure: If you’re unsure about any of the new requirements, get in touch for guidance on maintaining compliance and avoiding penalties.
• Verify your identity now: All directors and PSCs need to verify their identity so it’s going to be far better to choose your time to get that done rather than have to do it against the deadline. This post explains what you need to do and how.

These changes are significant, but if you have any questions or need assistance updating your records, please get in touch; we’re here to help. 

Need further detail?
If you’d like more detail, you can see the full Companies House statistical release and guidance on the new rules here. As ever, we’ll keep you updated for any other changes.