The impact of the Economic Crime and Corporate Transparency Act on Companies House 

The impact of the Economic Crime and Corporate Transparency Act on Companies House 

In March last year, the first reforms brought about by the Economic Crime and Corporate Transparency Act 2023 came into effect and the changes granted Companies House enhanced powers to tackle corporate abuse and fraud.    

Before the act became law, company registration was enacted with a strong emphasis on trust and Companies House generally accepted documents sent to them and placed them on the public register with limited verification, which meant there was less assurance over the accuracy of the information provided. 

Identity checks were not required to be as robust as they are now, and this made it possible for directors and people with significant control (PSCs) to cover their tracks and Companies House have also admitted that they were less equipped to act on false, incomplete or misleading information.  

New powers that are coming into effect for Companies House means that they are able to query or reject filings if the information provided appears to be incomplete, inaccurate or misleading. They can also ask for changes before they accept records, as well as removing false or incorrect entries more quickly than before, without always needing an external complaint. 

Identity requirements have also been improved. Directors and PSCs will now need to verify their identity and companies must provide an appropriate registered office address. When a new company is formed, it must also confirm that it’s being created for a lawful purpose and this statement is repeated in annual confirmation statement filings. 

Companies House now has a broader range of options to encourage compliance. These include fines, annotations on the register, and where necessary, company strike-off action. They also now have dedicated teams working with law enforcement to make sure that issues can be identified and addressed at the earliest possible stage.