Companies House is cleaning up the register — here’s what SMEs need to know

Companies House is cleaning up the register — here’s what SMEs need to know

Companies House has published its latest update on the Economic Crime and Corporate Transparency Act 2023 — and for small and medium-sized businesses, the message is simple: the register is becoming more active, more scrutinised and harder to ignore.

Since March 2024, Companies House has removed 151,000 fraudulent or misleading company addresses from the register, with 920 companies moving towards expedited strike-off. The aim is to protect legitimate businesses and individuals from identity hijacking and false company records.

Identity checks are becoming part of normal business admin

By 31 March 2026, Companies House had issued 3.81 million personal codes and linked them to 3.74 million appointments. It expects to verify 6–7 million individuals by November 2026, as directors and people with significant control move through the new identity verification process.

Early feedback suggests the process is manageable: 94% of people who completed the first identity check said the instructions were clear, and 90% said the process was easy.

The compliance push is already changing behaviour

Companies House says its approach will be “reasonable, proportionate and evidence based”, beginning with guidance and support before enforcement. But businesses should not mistake that for a light-touch regime.

Two million reminder emails have already been sent to companies ahead of deadlines. Activity also increased sharply before mandatory ID requirements began and accepted director changes rose to 18,500 in the preceding week, while People with Significant Control changes reached 15,300 — a 62% increase on the same period in 2024.

There were also 139,000 applications to strike off a company between 18 November 2025 and 31 March 2026, up 24% on the same period in 2024–25.

Overseas ownership remains under the spotlight

Launched in August 2022, the Register of Overseas Entities remains central to the transparency agenda. By 31 March 2026, 33,100 overseas entities had registered, and the register had been searched online more than four million times.

Penalties are also being used. For failing to register, 5,290 warning notices and 445 penalty notices were issued, worth £23 million. For failing to update information, 3,670 warning notices and 111 penalty notices were issued, worth £555,000.

Why this matters for SMEs

For SMEs, this is not just a Companies House housekeeping exercise. It affects the credibility of company records, the risk of identity misuse, and the admin directors and owners must complete to keep filings valid.

The practical takeaway is clear: check who is listed as a director or person with significant control, make sure addresses are accurate, look out for Companies House reminders, and deal with identity verification early rather than waiting for a filing deadline.

Here at Kennedys Accounting, we are on hand to help you understand what these changes mean for your business and stay on top of your Companies House obligations. Please give us a call if you would like support.