Companies House has outlined its plans for the implementation of the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”).

A recently-published policy paper by Companies House explains that ECCTA represents the biggest change to Companies House since 1844, empowering it to “play a more significant role in disrupting economic crime and supporting economic growth”. It includes new responsibilities for company directors, those with significant control of a company, and anyone who files information on behalf of a company. Such is its scope, it is estimated that some 50 statutory instruments will be introduced as ECCTA is gradually implemented in the years ahead.

Some changes under ECCTA have already taken effect: since spring last year, Companies House has – among other things – been in the process of improving the quality of information on the register, sharing more information with law enforcement agencies and regulatory bodies to address money laundering and other criminal activity, and, as of October last year, been able to issue financial penalties for any relevant offences under ECCTA and Companies Act 2006.

From 18 March 2025, Companies House will also be able to expedite the striking off companies which have been formed for a false basis, as well as carry out checks on Authorised Corporate Service Providers (“ACSPs”) so that they can carry out verification services (so long as they are registered in the UK and subject to the UK’s anti-money laundering regime).

Shortly thereafter, from 8 April 2025, individuals will be able to verify their identity voluntarily with Companies House, as part of the move to ensure that anyone setting up, running, owning, or controlling a UK company proves who they claim to be.

By the end of spring this year, Companies House expects that identity verification will move from being voluntary to compulsory for: (1) new directors and people with significant control (“PSCs”); (2) existing directors and PSCs; and (3) anyone acting on behalf of a company. At the same time, third party agents filing on behalf of companies will be required to be registered as an ACSP.

Looking further ahead, Companies House anticipates that by the end of next year it should be able to:

• require all limited partnerships to submit more information, providing greater transparency for users of the register;
• complete the transition period for all individuals on the register requiring identity verification, and start compliance activity against those who have failed to verify their identity;
• facilitate greater cross-checking of information and data between Companies House and other public and private sector bodies.

Companies House cautions that the changes required to implement ECCTA are “technically and operationally complex and many require the ongoing collaboration from expert stakeholders”. As such, setting firm timetables is not possible at this time. However, it continues to proceed on the basis that implementation will be completed by 2027, and commits itself in the meantime to providing regular updates on its progress.

To read more, click here.