In 2025, Companies House is set to implement significant reforms aimed at enhancing corporate transparency and combating economic crime, as outlined in the Economic Crime and Corporate Transparency Act 2023.
Key changes include:
Identity Verification
• Spring 2025: Introduction of mandatory identity verification for individuals involved in UK companies, including directors, Persons with Significant Control (PSCs), and those filing on behalf of companies. This process will be phased in, starting with new incorporations and appointments.
• Autumn 2025: A 12-month transition period begins, requiring existing directors and PSCs to verify their identities, typically during the annual confirmation statement filing. Filing Restrictions
• Late 2025: Only verified individuals or Authorised Corporate Service Providers (ACSPs) will be permitted to file documents with Companies House. ACSPs are regulated entities, such as law or accountancy firms, authorized to act on behalf of companies. Registered Office Address Regulations
• By March 2025: Companies House will enforce stricter rules to ensure companies have legitimate registered office addresses, prohibiting the use of PO Boxes and equivalent services. Actions will be taken against companies using inappropriate or hijacked addresses.
Corporate Directors
• By Spring 2025: Processes will be developed to impose limits on the use of corporate directors, with certain exemptions, enhancing accountability within corporate structures. Data Accuracy and Suppression
• Spring/Summer 2025: Individuals will be able to apply to suppress personal information from historical documents, including residential addresses, to protect personal data.
Enforcement and Penalties
• From March 2024: Companies House has been granted enhanced powers to query information, investigate discrepancies, and enforce compliance, including imposing penalties up to £10,000 for non-compliance.
These reforms represent a substantial shift in UK corporate governance, emphasizing transparency, accuracy, and accountability. All UK based companies should prepare for these changes by ensuring timely identity verification, updating filing procedures, and maintaining accurate company records to comply with the new regulatory landscape.
For further information, please visit Companies House guidelines at https://changestoukcompanylaw.campaign.gov.uk/changes-at-a-glance/.
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