Companies House is in the midst of its biggest transformation in decades, thanks to the Economic Crime and Corporate Transparency Act 2023 (ECCTA). Armed with powerful new tools, the agency is shifting from being a simple repository for company information to an active gatekeeper, directly targeting fraud, money laundering, and abuse of the UK’s company framework.

What’s changed? 

A recent progress report details the real-world impact of the ongoing reforms. Here’s what the report says has been achieved so far:

• Over 100,000 companies reviewed for misleading or false information. Companies House now actively queries or removes suspect data that could pose risks to the integrity of the register.
• 10,000+ suspicious company applications blocked. The agency is especially vigilant about mass incorporations at single addresses, a classic red flag for money laundering.
• £50 million in criminal property identified. Companies House intelligence is supporting law enforcement to disrupt the flow of illicit funds through UK property.
• Enhanced international cooperation. The agency has contributed to global efforts, like Europol’s Asset Sprint, to seize criminal assets worldwide.
• 850 intelligence reports for law enforcement. New internal teams are generating actionable reports to UK agencies, boosting the country’s defences against economic crime.

Mandatory identity verification is coming

A central pillar of ECCTA is the roll-out of mandatory identity verification for company directors and people with significant control (PSCs). While this requirement will be compulsory from autumn 2025, Companies House is already urging businesses to get ahead by verifying identities early. Our earlier post on the subject provided all of the details.

What does this mean for your business?

• Expect stricter checks when forming new companies or updating records.
• All directors and PSCs will need to be verified, making compliance essential for all, large or small. We’d strongly recommend you do this now, rather than leave it until later; as mentioned before, we cannot do it for you.

Why should small business owners care?

These changes will have important implications for small business owners:

• Greater Scrutiny: Small businesses face the same rigorous checks as larger firms. Any inaccuracies in filings could lead to delays, blocked registrations, or official inquiries.
• Higher Standards: More accurate and up-to-date company records will be expected, raising the compliance bar.
• A Safer Business Environment: Legitimate businesses will benefit from cleaner registers and less competition from fraudulent or ’shell’ companies.

Practical next steps…

To stay on the right side of these new rules, small business owners should take action now:

• Prepare Documentation: Gather and verify identity documents for all directors and PSCs.
• Maintain Accurate Records: Keep your company details up to date and promptly respond to any queries from Companies House.
• Be Proactive: Don’t wait – complete identity verification early to avoid last-minute scrambles and let us have your personal code once you receive it. In future, we’ll need it before we can submit on the company’s behalf.
• Seek Help if Needed: Our company secretarial services are designed to support compliance, from director filings to statutory register maintenance and guidance on the new identity requirements.

As ever, if you have any questions about Companies House, the submissions needed or verifying your identity, please get in touch.