In 2024, many regular users of Companies House's online services were waiting to see what changes would be brought in as a result of the Economic Crime and Corporate Transparency Act 2023, which received Royal Assent on 26 October 2023.
As 2024 came and went, most changes turned out to be fairly minor and did not significantly change the process of, for example, incorporating new companies or filing annual confirmation statements. We expect the changes scheduled to take place in 2025 to be more substantial.
Change has been long in coming and it is now widely acknowledged that too much of the information hosted at Companies House is misleading, wrong, or, in the worst cases, fraudulent.
Victims of fraudsters are currently in the unenviable position of having to overcome significant hurdles to have their personal information, used without their consent by fraudsters, removed from the Companies House online records, including having to go so far as to get a court order. Any change that can reduce the time and stress involved in the process can only be welcomed.
Identity Verification
Starting from 25 March 2025, Companies House will introduce a phased identity verification process. Interestingly, current Companies House guidance says that this will be purely voluntary until the compulsory verification regime is rolled out.
Once the measures become compulsory, those involved in setting up, running, owning, or controlling a company in the UK must verify their identity. This includes new and existing company directors, people with significant control (PSCs), and individuals filing information on behalf of a company. Verification can be completed directly through Companies House using GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP).
As of February 2025, it is not clear how, from a practical point of view, the experience of making filings online will change as a result of these implementations.
Protecting Personal Information
From 27 January 2025, individuals will be able to apply to suppress their home address from the record where it has been used as a company's registered office – this is highly welcome.
From spring/summer 2025, individuals will be able to apply to suppress personal information from historical documents held by Companies House. This measure aims to protect personal data and prevent misuse. Guidance on the application process and eligibility criteria will be made available to ensure individuals can effectively manage their information – we hope this will reduce the burden on victims of fraud wanting to correct the record.
Compliance and Enforcement
Companies House has been granted enhanced powers to query and remove inaccurate or misleading information from its registers. New financial penalties have been introduced for non-compliance, underscoring the importance of adhering to filing requirements and maintaining accurate company information.
We particularly urge clients incorporating UK based companies to thoroughly check incorporation forms and annual confirmation statements to avoid any errors – not only is this good practice, it may also prevent a costly and unhappy process of correcting errors later on.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
