If you run a Limited Company in the UK you need to be aware of significant legislative changes that will reshape how businesses operate. The Economic Crime and Corporate Transparency Act (ECCTA) marks the most extensive reform to UK company law in over 170 years. These changes are not minor administrative tweaks. They represent a substantial shift in regulatory expectations and enforcement.

A new era for Companies House

For decades, Companies House has functioned largely as a passive repository for company information, but things are starting to change. Under the ECCTA, Companies House is transforming into an active regulator, with enhanced powers to scrutinise, challenge, and enforce compliance across the business community.

And what does this all mean for you? Expect tighter regulations, more rigorous checks, and a reduced margin for error.

What’s changing (and why it matters!)

Here are the key developments every UK business owner should understand:

1. New requirements for registered office addresses

Businesses must now ensure that their registered office address meets stricter criteria. PO boxes, for instance, will no longer suffice. Companies will need to demonstrate that they operate from a genuine, physical location. This move is aimed at curbing fraudulent activity and enhancing transparency around company operations.

2. Mandatory company email addresses

All companies will be required to provide a registered email address to Companies House. This will serve as the official channel for all communications. The idea is simple: when there’s an issue or query, Companies House needs to be able to contact you immediately, and now they will.

3. Identity verification for directors and PSCs

Perhaps one of the most consequential changes is the requirement for directors and People with Significant Control (PSCs) to verify their identity. The days of anonymous ownership and directorship are coming to an end. Going forward, if identities cannot be verified, companies may not be permitted to incorporate, and existing directors who fail to comply could be removed.

4. Annual lawfulness declarations

Companies will now be required to submit an annual declaration confirming that their operations and future plans are lawful. This is more than just a box-ticking exercise, it places a formal duty on business owners to regularly assess and affirm their compliance with UK law.

5. Increased filing fees and new offences

Running a company will become more expensive. Fees for incorporation, filings, and other Companies House services will increase. In parallel, new offences, penalties, and sanctions are being introduced, meaning the cost of non-compliance, both financially and reputationally, will be higher than ever.

What this means for business owners

These changes will create additional administrative responsibilities for Limited companies across the UK. Annual filings will be more detailed. Identity verification processes will add steps to company formation and management. And increased scrutiny means even small oversights could lead to serious consequences.

While this may sound daunting, it’s important to remember that these reforms are being introduced for good reason. They aim to tackle fraud, increase transparency, and make the UK a safer and more reputable place to do business.

When is this coming into effect?

The new rules under the Economic Crime and Corporate Transparency Act will be introduced gradually. Here’s a simple breakdown of what’s happening and when:

From 8 April 2025

• People can voluntarily verify their identity with Companies House.

By Summer 2025

• Certain trust information from the Register of Overseas Entities will be available on request.
• People can ask to hide personal details (like date of birth, signature, home address, and job title) from older public records.

By Autumn 2025

• New directors and People with Significant Control (PSCs) must verify their identity when a company is set up or when they are appointed.
• A 12-month transition period begins for all existing directors and PSCs to verify their identity. This will be part of the company’s annual confirmation statement.

By Spring 2026

• Anyone who submits documents to Companies House must verify their identity.
• Third-party agents (like accountants) must be registered as Authorised Corporate Service Providers (ACSPs).
• Disqualified directors will no longer be allowed to file documents unless done through an ACSP (and only for specific cases).

By end of 2026

• Limited partnerships must provide more detailed company information.
• The identity verification deadline ends, and Companies House can begin taking action against anyone who hasn’t complied.
• Information sharing between Companies House and other government or private bodies will increase.

How to prepare

If you’re a business owner, now is the time to take proactive steps:

• Stay informed. Make sure you understand the new requirements and timelines.
• Review your registered office address to ensure it meets the new standards.
• Prepare for identity verification of directors and PSCs.
• Establish a process for annual declarations of lawfulness.
• Budget for increased fees and assess your compliance costs accordingly.
  
  

Most importantly: don’t go it alone. Partnering with an expert accountancy firm that’s up-to-date with ECCTA, MTD, and broader regulatory changes can be the difference between falling behind and staying fully compliant.

At Crunch, we believe in helping businesses focus on growth and success, while we take care of the complex compliance landscape.

The ECCTA represents a landmark change in the UK's corporate regulatory framework. It will make running a company more demanding, but also more secure and transparent. The key is preparation. With the right support and knowledge, these reforms can be managed smoothly.

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