Companies House reform: new transition plan published

What does the ECCTA entail? 

The ECCTA introduces significant reforms aimed at improving transparency around UK companies and other legal entities. These reforms aim to strengthen the role of Companies House in identifying and preventing economic crime and enhance the accuracy and reliability of the information reflected at Companies House. 

What is the timeline for implementation? 

The ECCTA’s changes are being implemented in phases, with full implementation expected by 2027. Here’s a breakdown of the key areas and their anticipated implementation dates according to Companies House: 

By winter 2024 into 2025: 

• If the Registrar concludes that a company has been formed for a false basis, Companies House will be able to expedite the striking off of that company from the register. 
• The Registrar will have powers to annotate the register to note false or inaccurate information. 

By spring 2025:  

• Companies House will begin carrying out checks on Authorised Corporate Service Providers (ACSPs) to authorise them to carry out verification services. 
• Individuals will have the option to voluntarily verify their identity. 
• Companies House will assess applications from individuals seeking to have residential addresses suppressed from public disclosure. 

By summer 2025:  

• Companies House will start to allow access on request to certain trust information on the Register of Overseas Entities. 

By autumn 2025:  

• Identity verification will become a compulsory part of the incorporation process and for new directors and People with Significant Control (PSCs). 
• The 12-month transition phase will begin, requiring all existing directors and PSCs to verify their identity (the identity verification will happen as part of the annual confirmation statement filing). 

By spring 2026:  

• Identity verification of the presenters will be made a compulsory part of filing any document. 
• Third-party agents filing on behalf of companies must be registered as an ACSP. 
• Companies House will reject documents delivered by disqualified directors. 

By the end of 2026:  

• All limited partnerships will be required to submit additional information. 
• The transition period will end for all individuals on the register requiring identity verification. 
• Compliance activity will start against those who have failed to verify their identity by the end of the transition period. 

How will this impact your business? 

All directors and PSCs (new and existing) must verify their identities either through an ACSP or directly with Companies House. Following the implementation of the ECCTA, a director will not be able to act until they have been verified. The process and planning around director appointments will be more important than ever to ensure timely verification and the validity of appointments. 

With Companies House’s enhanced powers to query, challenge and remove inaccurate information, companies will face stricter requirements regarding information filing and maintaining accurate company records. 

The ECCTA expects ACSPs, such as Buzzacott, to play a key role in verifying the identities of directors and PSCs. Our Company Secretarial team anticipates that it will be able to assist with identify verification checks and ensuring that your company’s corporate data is compliant. 

Companies House plans to communicate updates on the changes to companies via their registered email addresses. Therefore, it is important that companies ensure their registered email addresses are correct and that emails are monitored. Please see our article for further information on this. 

We're tracking the implementation of the ECCTA closely and will follow up with further insights to keep you informed. With our support, we’re confident that our clients will remain fully compliant with company legislation and that filings will continue to be made correctly and on time.