Changes to UK company law: a big moment for Companies House

The Economic Crime and Corporate Transparency Bill has achieved royal assent and become law. This is one of the most significant moments for Companies House in our long history. 

Once the measures come into force, we can play a much greater role in disrupting economic crime and preventing abuse of the register, while supporting economic growth and ease of doing business in the UK. 

The measures set out in the act will give us new and enhanced powers to improve the quality and reliability of our data.

We’ll also be able to act more quickly if people tell us their personal information has been used on the register without their consent. This will make a real difference to individuals and it’s something I’m particularly passionate about.

The measures include:

• introducing identity verification for all new and existing registered company directors, people with significant control, and those who file on behalf of companies
• broadening my powers to become a more active gatekeeper over company creation and a custodian of more reliable data
• improving the financial information on the register so that the register is more reliable and accurate, reflects the latest advancements in digital technology, and enables better business decisions
• providing Companies House with more effective investigation and enforcement powers, and increasing our ability to share relevant information with partners
• enhancing the protection of personal information to protect individuals from fraud and other harms.

The act has introduced 4 new objectives for me as the Registrar of Companies. Alongside my colleagues, I’ll promote these objectives while carrying out my duties:

1. To ensure that anyone who is required to deliver a document to the registrar does so (and that the requirements for proper delivery are complied with).
2. To ensure information contained in the register is accurate and that the register contains everything it ought to contain.
3. To ensure that records kept by the registrar do not create a false or misleading impression to members of the public.
4. To prevent companies and others from carrying out unlawful activities, or facilitating others to carry out unlawful activities.

As an organisation, we’ll base our decisions on these objectives. Our new and enhanced powers will give us the tools we need to act on those decisions.

What happens next

Although the Bill has received royal assent and is now an act, you do not need to do anything differently just yet.

Some of the measures in the act, such as identity verification, will not be introduced straight away. Many of these changes need system development and secondary legislation before they're introduced.

However, other measures will come into force sooner. Over time, they’ll lead to improved transparency and more accurate and trusted information on our registers.