New Companies House reforms: Essential compliance for your business

The recent reforms introduced by Companies House under the Economic Crime and Corporate Transparency Act 2023 bring significant changes that all UK-incorporated companies must adhere to. These changes aim to enhance corporate transparency and tackle economic crime, but non-compliance could result in severe financial penalties or even the dissolution of your company.

Protect your business and ensure compliance

The new reforms are not just procedural updates; they carry substantial implications for businesses. Companies that fail to comply with the new regulations risk receiving financial penalties. In the worst-case scenario, non-compliance could lead to the company being struck off the register, resulting in the assets passing to the Crown and the business ceasing to exist.

How we can help

To assist businesses in navigating these changes, we offer a range of services designed to ensure filings are accurate and compliant. Our services include:

• Correction of historic mis-filings: We can rectify any past errors in your filings.
• Compliance checks: We review your filings to ensure they meet the new standards.
• Maintenance and updating of statutory registers: We help maintain, update, or reconstitute your statutory registers to ensure ongoing compliance.

Key compliance areas and actions

To support businesses in meeting the new requirements, we have compiled a checklist of key areas affected by the reforms and the actions you need to take:

1. Company names: Ensure your company name does not facilitate dishonesty or deception and avoid using "sensitive" words and computer codes.
2. Registered office address: Verify that your registered office address is appropriate and capable of receiving recorded deliveries. PO Box addresses are no longer acceptable.
3. Email address registration: Register an email address with Companies House for future filings and provide a "lawful purpose" statement.
4. Accuracy of filings: Check for any errors or inconsistencies in your existing filings, as Companies House scrutinise these.
5. Financial penalties awareness: Be aware of the new financial penalties for non-compliance.
6. Home address on public register: If your home address appears on the Companies House public register, you can apply to have it removed.
7. Small company accounts: Ensure your future published accounts meet the new requirements and are not abridged or filleted.
8. Public availability of accounts: Consider the impact of full accounts being made publicly available, including the visibility of turnover.
9. ID verification for directors and PSCs: Ensure the details of directors and Persons with Significant Control (PSCs) are accurate and up to date. Prepare for the compulsory ID verification scheme starting from 25 March 2025.
10. Filing companies house documents: Ensure that those filing documents online are ID verified once the verification becomes statutory in Autumn 2025.
11. Appointment of new directors: Make the appointment of new directors conditional on obtaining ID verification.
12. Statutory registers: Maintain accurate and up-to-date statutory registers. Consider converting from hard copy to electronic registers.

Key dates to remember

An important date to note is 25 March 2025. By which time, directors and PSCs are encouraged to voluntarily verify their identities. This step is part of the broader effort to enhance transparency and ensure that ensure the accuracy of company information. 

Our advice

We strongly advise all our clients to take these changes seriously. Failure to comply could result in your business being struck off the register and a loss of assets. It is essential to act now to ensure compliance and help avoid potential penalties.

Staying informed and proactive about these changes is essential for the ongoing success and legality of your business. Our team is here to support you through this transition, providing the expertise and services needed to ensure full compliance with the new Companies House reforms.