The Economic Crime and Corporate Transparency Act: Companies House reveals implementation timetable for upcoming changes

Companies House published a policy paper on 16 October 2024 setting out an indicative timetable for the changes which are still to be introduced by the Economic Crime and Corporate Transparency Act (ECCTA). The changes are expected to further Companies House's objectives of ensuring that the register of companies is accurate and transparent. The timetable is not final, and the changes will be implemented in phases. Companies House has stated that around 50 statutory instruments will be needed to implement the changes. Some transitional arrangements will last until 2027. 

The paper also confirms that the long-awaited prohibition on corporate directors will be introduced although the exact implementation date is still to be confirmed.

What are the upcoming changes to company law that you should be aware of?

• Identity verification – individuals: individuals will be able to verify their identity voluntarily from Spring 2025.
• Identity verification – directors and people with significant control (PSCs): ID verification for directors and PSCs will become a compulsory part of incorporation, the process for appointments of directors, and the registration of PSCs from Autumn 2025. Autumn 2025 will also mark the commencement of a 12-month transitional period for the seven million existing directors and PSCs to verify their identity as part of their annual confirmation statement filing. Companies House intends to take action for non-compliance at the end of 2026.
• Identify verification – presenters: this will become compulsory for presenters filing documents from Spring 2026.
• Registration of authorised corporate service providers (ACSP): trust and company service providers and professional advisers registered in the UK for AML purposes can register from Spring 2025. Third party agents must register when they are filing documents on behalf of companies by Spring 2026. From Spring 2026, for specific filings, documents delivered by disqualified directors will be rejected unless they are delivered by an ACSP.
• Limited partnerships: limited partnerships will have to submit more information to Companies House by the end of 2026.
• Strike-off powers: companies can be struck off if they were formed on a false basis by the end of 2024/early 2025.
• Residential addresses: individuals can apply to suppress their residential addresses from public disclosure by Spring 2025.
• Annotation of the register: Companies House will be able to annotate the register in a wider range of circumstances by the end of 2024/early 2025.
• Register of Overseas Entities: access to certain trust information on these entities will be granted on request by Summer 2025.
• Cross-checking: Companies House will increase the cross-checking of information and data with other public and private bodies by the end of 2026.
• Accounts reform: this will mandate software-only filings for all accounts, prevent small companies and micro-businesses from filing abridged accounts, require all companies to file profit and loss accounts, require a company claiming audit exemptions to provide enhanced director statements on the balance sheet, and limit the number of times that a company can shorten its accounting reference period.
• Prohibition on corporate directors: corporate directors will be required to have an all-natural person board whose identities have been verified. Overseas companies will also be prohibited from acting as corporate directors in the UK.

More updates will follow on these significant changes at Companies House. 

You can read our earlier article for more on the other changes introduced by the ECCTA.